CBO Reveals The Real Cost Of Minimum Wage Hikes





Obama Minimum Wage Opportunity Unemployment SC

Leftists across the nation continue to lobby for an unsustainably high minimum wage, insisting their only concern is for workers struggling to make ends meet on the existing base hourly rate of $7.25. Despite the fact that an incredibly small percentage of minimum wage workers actually support a family on their income, Democrat leaders – specifically Barack Obama – have increasingly advocated a significant spike in the minimum wage.

During his latest state of the union address, Obama expressed a desire to force employers to pay their unskilled laborers at least $10.10 per hour.

Naturally, this added financial burden would result in widespread price increases for consumers, which would disproportionately affect the very low-income families the policy would ostensibly benefit. Furthermore, conservative commentators have long contended these unilateral pay increases would translate to mass layoffs among companies unable to absorb the financial blow.

A new report from the Congressional Budget Office backs up that argument with a disastrous projection for the American workforce should the minimum wage spike precipitously.

According to an estimate released by the CBO Tuesday, approximately 500,000 workers would lose their jobs due to the increase. In an economic climate already rocked by persistently high unemployment rates, the CBO projection indicates the massive layoffs would occur within the next two years.

The potential fiscal damage of an increased minimum wage would impact the entire economy, the report concludes.

Forecasts show the hike could result in meager deficit cuts in the short term. Over several years, however, the unfeasible wage increases would have the opposite effect, actually pushing the U.S. budget deficit even higher.

No matter the criteria used, objective outlooks show a disastrous result from such a huge spike in the base hourly rate of American workers. The only benefit, it seems, is to the leftist politicians who trade false promises and pandering for guaranteed votes by an uninformed populace.

–B. Christopher Agee

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Comments

  1. Linda From NY says:

    I agree with this article that this minimum wage would bring on more jobs losses, in my opinion I feel that it may in courage companies to hire illegals instead of Americans. Obama is no Fool this is one way of making himself look good while knowing that it will bring more unemployment and a sneaky way to win democrat voters.

    He may get the support of these low information voters who are not looking at the bigger picture, which it will result in more job losses but we know what is going on and we see right through this man.

    I hope most Americans will not be fool and see this as another ploy to win back the support that he lost other then that he is done

    • Edwardkoziol says:

      Linda you got a good point but also when wages go up so does the price of goods so your back in the same boat.As far as illegals go until we throw their dead asses out they'll always be trouble until we fix the border.

  2. Edwardkoziol says:

    You don't hear the black boob trying to help the elderly out who live on fixed incomes.Who wants to hire a person in their 70s and older.

  3. MuslimLuvChrist says:

    Liberals never understand the repercussions and consequences of their actions! Thank God the CBO is nonpartisan, but doesn’t it make you wonder why obama and the progressives haven’t bought them out like every other government agency???

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