Photo: From Bloomberg.com
An op-Ed by: Felix Fernandes
It was of no surprise when the Congressional Budget Office (CBO) released their analysis of President Biden’s “Raise The Wage Act” which seeks to raise the minimum wage to $15 by 2025, that it would sing a different tune to that of its supporters. I could literally write a book on the adverse effects of a government regulated minimum wage, but for today we will focus on the CBO report.
The CBO found that legislation would increase the federal budget deficit by $54 billion between 2021 and 2031. More importantly, however, the legislation would drive up the prices of goods and services, while also reducing employment by 1.4 million jobs. Those that would be most adversely effected would be the young and the less educated people.
This is just one piece of the Biden Administration’s controversial $1.9 trillion Covid relief package. This is another example of a Party pushing their agenda upon the people under the guise of “relief” for the people.
White House Counsel of Economic Advisers member Jared Bernstein reacted to the CBO’s study showing that a $15 minimum wage would cost over 1 million jobs by saying “we have a tendency to focus on some of the big negatives”.
The minimum wage law is another example of government overreach. The free market is what should dictate the wages. How ignorant and arrogant are Washington elites when they believe they know what a business can or can’t afford to pay their employees?