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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