Biden to raise federal minimum wage to $15 an hour, potential 1.4 million lost jobs

For years, the idea of unskilled workers being bumped to a $15 per hour wage has been a rallying call for Democrats across the country, including President Joe Biden, who recently promised to make it a reality with the Raise the Wage Act.

According to Breitbart, Biden and his administration are selling hopeful American workers a false bill of goods, as a recent report from the Congressional Budget Office revealed that passing such a massive federal minimum wage bump would disrupt the employment industry, causing a potential loss of 1.4 million jobs in the process. 

Increased prices

Aside from killing over a million jobs over the course of his administration, Biden’s proposal to raise the minimum wage would add a staggering $54 billion to the national deficit over the next decade.

Furthermore, small business owners will only be able to afford doubling their wages by increasing the price of goods and services.

“In 2025, when the minimum wage reached $15 per hour, employment would be reduced by 1.4 million workers [or 0.9 percent of all jobs], according to CBO’s average estimate. In 2021, most workers who would not have a job because of the higher minimum wage would still be looking for work and hence be categorized as unemployed,” reads the CBO report.

Biden is currently using the coronavirus pandemic as a way to include the minimum wage bump in the next COVID-19 relief bill, arguing that struggling Americans need all the help they can get.

“There is real pain overwhelming the real economy, one where people rely on paychecks, not their investments, to pay for their bills and their meals and their children’s needs,” Biden said in an address last month.

Critics respond

As National Review pointed out, the minimum wage was never meant to be a sustainable form of income for the average American, rather, it should be used as a stepping stone to incentivize the worker to advance their skills that lead to higher-paying positions.

That’s why the millions of people who will be displaced by the government-mandated wage will be young, unskilled workers — to the tune of about 58% of the 1.4 million who will be affected by the change.

Critics of the plan also have particular concern over the impact of a $15 per hour minimum wage in states and cities that aren’t New York or Los Angeles. Small businesses in rural America will suffer catastrophically if they’re forced to pay the same wages as densely-populated areas that are better suited to support the hike.

On a much simpler level, many critics of the idea argue that a person working at a local fast-food chain do not deserve to make as much or more than an Emergency Medical Technician or even a police officer in rural America.

Getting a wage bump will sound good to many who aren’t thinking ahead a few steps, but it won’t be long before they’re scratching their heads with confusion as small businesses continue to invest in and implement automation in their businesses to avoid going bankrupt.

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