قالب وردپرس درنا توس
Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ US https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ $ 15 minimum wage would boost pay for 17 million workers, says CBO

$ 15 minimum wage would boost pay for 17 million workers, says CBO



A new report from the Congressional Budget Office (CBO) has assessed the impact of raising the federal minimum wage to $ 15, $ 12, or $ 10 per hour at 2025. According to CBO estimates, the minimum wage to $ 15 an hour would rise. boost the pay for 17 million workers. But, says CBO, it would also cause a median 1.3 million employees to lose their jobs as employers can't afford the wage – that's a 0.8% reduction of the number of employed workers.

CBO says that if the federal minimum wage were raised to $ 15 an hour, there is a 66% chance that between none and 3.7 million people could lose their jobs. However, the report states, "There is considerable uncertainty about the size of any option's effect on employment."

But those making less than $ 15 would not be the only ones impacted by a wage increase. So would those who earn just over $ 15 currently. According to CBO estimates, another 10 million workers would also see a boost in their pay from a raise in the minimum wage.

The report also found other benefits. According to the CBO analysis, 1.3 million people whose income was below the poverty line would be the wage jump over that threshold.

Raise the wage

The federal minimum wage currently sits at $ 7.25 an hour, and Congress hasn't raised the wage for over a decade, the longest time in history. Since the minimum wage was created in 1938, it has been irregularly increased at the will of Congress. According to the Economic Policy Institute (EPI), the minimum wage has been boosted nine times since 1938. In the last 81 years, the minimum wage has increased from 25 cents to $ 7.25.

Currently, 29 states and D.C. have minimum wages above the federal minimum wage of $ 7.25 per hour.

 Minimum wage across the U.S. (Source: David Foster / Yahoo Finance)

A January poll found that 55% of registered voters said they would support the minimum wage to $ 15, and another 27% said it should be increased but to a lesser amount. The minimum wage increased by CBO is similar to the wage increase called for in the Raise the Wage Act of 2019, which would bump the minimum wage to $ 15 by 2024 and would be indexed to wage growth thereafter.

Raising the minimum wage has become a hot-button issue among policy makers and business leaders, with some big-name companies announcing increases. Presidential candidates Kamala Harris, Joe Biden, Bernie Sanders, Elizabeth Warren, Amy Klobuchar, Beto O'Rourke, Julian Castro and John Hickenlooper have all publicly declared to fight for a $ 15 minimum wage if they were to win the White House in 2020. [19659002] Though CBO's report shows that some 27 million people would receive a boost in pay, EPI's analysis shows that raises the federal minimum wage to $ 15 would boost the pay for roughly 40 million workers – more than a quarter of the wage-earning workforce.

While inflation levels are steady, the purchasing power of the current minimum wage has steadily eroded over the last decade. Since the minimum wage was raised to $ 7.25, its purchasing power has declined by 17%. That's a loss of $ 3,000 in annual earnings for full-time minimum wage workers. Since reaching its buying power peak in 1968, the minimum wage has lost 31% in purchasing power. That means that minimum wage workers are "earning" more than $ 6,800 less than they would in 1968 – when the minimum wage was only $ 1.60.

38 PHOTOS

US. fast food worker protests for $ 15 minimum wage

See Gallery

NEW YORK, NY – NOVEMBER 10: Protest for low $ 15 an hour minimum wage on November 10, 2015 in New York, United States. In the organizers are calling the National Day of Action for $ 15 and hour minimum wage, thousands of people took to the streets across the country to stage protests in front of businesses that are paying some of their workers the minimum wage. Home care workers, employees in retail and fast food restaurants say that the current minimum is not a living wage. (Photo by Spencer Platt / Getty Images)

NEW YORK, NY – NOVEMBER 10: New York City Mayor Bill de Blasio makes an appearance in support of low-wage workers, many in the fast-food industry, as they join with supporters on demand at minimum wage of $ 15 an hour on November 10, 2015 in New York, United States. In the organizers are calling the National Day of Action for $ 15 and hour minimum wage, thousands of people took to the streets across the country to stage protests in front of businesses that are paying some of their workers the minimum wage. Home care workers, employees in retail and fast food restaurants say that the current minimum is not a living wage. (Photo by Spencer Platt / Getty Images)

NEW YORK, NY – NOVEMBER 10: Protest for $ 15 an hour minimum wage on November 10, 2015 in New York, United States. In the organizers are calling the National Day of Action for $ 15 and hour minimum wage, thousands of people took to the streets across the country to stage protests in front of businesses that are paying some of their workers the minimum wage. Home care workers, employees in retail and fast food restaurants say that the current minimum is not a living wage. (Photo by Spencer Platt / Getty Images)

NEW YORK, NY – NOVEMBER 10: Protest for $ 15 an hour minimum wage on November 10, 2015 in New York, United States. In the organizers are calling the National Day of Action for $ 15 and hour minimum wage, thousands of people took to the streets across the country to stage protests in front of businesses that are paying some of their workers the minimum wage. Home care workers, employees in retail and fast food restaurants say that the current minimum is not a living wage. (Photo by Spencer Platt / Getty Images)

NEW YORK, NY – NOVEMBER 10: Protest for $ 15 an hour minimum wage on November 10, 2015 in New York, United States. In the organizers are calling the National Day of Action for $ 15 and hour minimum wage, thousands of people took to the streets across the country to stage protests in front of businesses that are paying some of their workers the minimum wage. Home care workers, employees in retail and fast food restaurants say that the current minimum is not a living wage. (Photo by Spencer Platt / Getty Images)

NEW YORK, NY – NOVEMBER 10: Protest for $ 15 an hour minimum wage on November 10, 2015 in New York, United States. In the organizers are calling the National Day of Action for $ 15 and hour minimum wage, thousands of people took to the streets across the country to stage protests in front of businesses that are paying some of their workers the minimum wage. Home care workers, employees in retail and fast food restaurants say that the current minimum is not a living wage. (Photo by Spencer Platt / Getty Images)

NEW YORK, NY – NOVEMBER 10: Protest for $ 15 an hour minimum wage on November 10, 2015 in New York, United States. In the organizers are calling the National Day of Action for $ 15 and hour minimum wage, thousands of people took to the streets across the country to stage protests in front of businesses that are paying some of their workers the minimum wage. Home care workers, employees in retail and fast food restaurants say that the current minimum is not a living wage. (Photo by Spencer Platt / Getty Images)

FORT LAUDERDALE, FL – SEPTEMBER 10: Laura Rollins joins with others to protest in front of a McDonald's restaurant in support of a $ 15 an hour minimum wage on September 10, 2015 in Fort Lauderdale , Florida. Seattle, San Francisco and Los Angeles are among the cities with a minimum of $ 15 an hour wages. (Photo by Joe Raedle / Getty Images)

FORT LAUDERDALE, FL – SEPTEMBER 10: Laura Pierre joins with others to protest a support of a $ 15 an hour minimum wage on September 10, 2015 in Fort Lauderdale, Florida. Seattle, San Francisco and Los Angeles are among the cities with a minimum of $ 15 an hour wages. (Photo by Joe Raedle / Getty Images)

CHICAGO, IL – JUNE 22: Marie Gasaway protests with fast food workers and community activists outside a McDonald's restaurant in the Loop on June 22, 2015 in Chicago, Illinois. The protestors were calling for an increase in the minimum wage to $ 15-dollars-per-hour. The demonstration was staged to coincide with the 4th hearing of the Wage Board in New York as it debates the $ 15-dollar-per-hour increase for its workers. (Photo by Scott Olson / Getty Images)

FORT LAUDERDALE, FL – SEPTEMBER 10: Protesters in support of a $ 15 an hour minimum wage march together on September 10, 2015 in Fort Lauderdale, Florida. Seattle, San Francisco and Los Angeles are among the cities with a minimum of $ 15 an hour wages. (Photo by Joe Raedle / Getty Images)

CHICAGO, IL – JUNE 22: A woman starts for change as fast food workers and community activists protest outside a McDonald's restaurant in the Loop on June 22, 2015 in Chicago, Illinois. The demonstrators are calling for an increase in the minimum wage to $ 15-dollars-per-hour. The demonstration was staged to coincide with the 4th hearing of the Wage Board in New York as it debates the $ 15-dollar-per-hour increase for its workers. (Photo by Scott Olson / Getty Images)

CHICAGO, IL – JUNE 22: Juan Hernandez, 8, protests with his mother, who works for McDonald's, and other fast food workers and community activists outside a McDonald's restaurant in the Loop on June 22, 2015 in Chicago, Illinois. The protestors were calling for an increase in the minimum wage to $ 15-dollars-per-hour. The demonstration was staged to coincide with the 4th hearing of the Wage Board in New York as it debates the $ 15-dollar-per-hour increase for its workers. (Photo by Scott Olson / Getty Images)

CHICAGO, IL – JUNE 22: Fast food workers and community activists protest outside a McDonald's restaurant in the Loop on June 22, 2015 in Chicago, Illinois. The protestors were calling for an increase in the minimum wage to $ 15-dollars-per-hour. The demonstration was staged to coincide with the 4th hearing of the Wage Board in New York as it debates the $ 15-dollar-per-hour increase for its workers. (Photo by Scott Olson / Getty Images)

CHICAGO, IL – JUNE 22: Fast food workers and community activists protest outside a McDonald's restaurant in the Loop on June 22, 2015 in Chicago, Illinois. The protestors were calling for an increase in the minimum wage to $ 15-dollars-per-hour. The demonstration was staged to coincide with the 4th hearing of the Wage Board in New York as it debates the $ 15-dollar-per-hour increase for its workers. (Photo by Scott Olson / Getty Images)

Demonstrators fit a McDonald's Corp. restaurant during a rally in Oak Brook, Illinois, US, on Wednesday, May 20, 2015. Labor activists seeking $ 15-an-hour wages marched on McDonald's headquarters on Wednesday, marking the second straight year of protests ahead of the fast-food chain's annual meeting. Photographer: Daniel Acker / Bloomberg via Getty Images

CHICAGO, IL – JUNE 22: Fast food workers and community activists protest outside a McDonald's restaurant in the Loop on June 22, 2015 in Chicago, Illinois. The protestors were calling for an increase in the minimum wage to $ 15-dollars-per-hour. The demonstration was staged to coincide with the 4th hearing of the Wage Board in New York as it debates the $ 15-dollar-per-hour increase for its workers. (Photo by Scott Olson / Getty Images)

Demonstrators march during a rally near a McDonald's Corp. restaurant and the headquarters in Oak Brook, Illinois, US, on Wednesday, May 20, 2015. Labor activists seeking $ 15-an-hour wages marched on McDonald's headquarters on Wednesday, marking the second straight year of protests ahead of the fast-food chain's annual meeting. Photographer: Daniel Acker / Bloomberg via Getty Images

A demonstrator holds a sign that reads 'People and Planet over Profit' during a rally near a McDonald's Corp. restaurant and headquarters in Oak Brook, Illinois, US, on Wednesday, May 20, 2015. Labor activists seeking $ 15-an-hour wages marched on McDonald's headquarters on Wednesday, marking the second straight year of protests ahead of the fast-food chain's annual meeting. Photographer: Daniel Acker / Bloomberg via Getty Images

Demonstrators at a rally near McDonald's Corp. Headquarters in Oak Brook, Illinois, U.S., on Wednesday, May 20, 2015. Labor activists seeking $ 15-hour wages marched on McDonald's headquarters on Wednesday, marking the second straight year of protests ahead of the fast-food chain's annual meeting. Photographer: Daniel Acker / Bloomberg via Getty Images

Demonstrators at a rally near McDonald's Corp. Headquarters in Oak Brook, Illinois, U.S., on Wednesday, May 20, 2015. Labor activists seeking $ 15-hour wages marched on McDonald's headquarters on Wednesday, marking the second straight year of protests ahead of the fast-food chain's annual meeting. Photographer: Daniel Acker / Bloomberg via Getty Images

Home health care workers and other protesters hold signs at a rally in support of minimum wage increase in New York, US, on Wednesday, April 15, 2015. Fast-food workers held rallies in 236 US Cities Wednesday in their biggest protest yet for higher pay and union rights. Photographer: Victor J. Blue / Bloomberg via Getty Images

Home health care workers hold signs at a rally in support of minimum wage increase in New York, US, on Wednesday, April 15, 2015. Fast-food workers held rallies in 236 US Cities Wednesday in their biggest protest yet for higher pay and union rights. Photographer: Victor J. Blue / Bloomberg via Getty Images

Protesters hold signs at a rally in support of minimum wage increase in New York, U.S., on Wednesday, April 15, 2015. Fast-food workers held rallies in 236 U.S. Cities Wednesday in their biggest protest yet for higher pay and union rights. Photographer: Victor J. Blue / Bloomberg via Getty Images

Protesters hold signs at a rally in support of minimum wage increase in New York, U.S., on Wednesday, April 15, 2015. Fast-food workers held rallies in 236 U.S. Cities Wednesday in their biggest protest yet for higher pay and union rights. Photographer: Victor J. Blue / Bloomberg via Getty Images

Protesters hold up a Ronald McDonald puppet at a rally in support of minimum wage increase in New York, US, on Wednesday, April 15, 2015. Fast-food workers held rallies in 236 US Cities Wednesday in their biggest protest yet for higher pay and union rights. Photographer: Victor J. Blue / Bloomberg via Getty Images

Signs lay in the street before the start of a rally in support or minimum wage increase in New York, US, on Wednesday, April 15, 2015. Fast-food workers hero rallies in 236 US Cities Wednesday in their biggest protest yet for higher pay and union rights. Photographer: Victor J. Blue / Bloomberg via Getty Images

Protesters hold signs at a rally in support of minimum wage increase in New York, U.S., on Wednesday, April 15, 2015. Fast-food workers held rallies in 236 U.S. Cities Wednesday in their biggest protest yet for higher pay and union rights. Photographer: Victor J. Blue / Bloomberg via Getty Images

CHICAGO, IL – APRIL 15: Demonstrators gather in front of a McDonald's restaurant to call for an increase in minimum wage on April 15, 2015 in Chicago, Illinois. The demonstration was one of many held nationwide to draw attention to the cause. (Photo by Scott Olson / Getty Images)

CHICAGO, IL – APRIL 15: Demonstrators gather in front of a McDonald's restaurant to call for an increase in minimum wage on April 15, 2015 in Chicago, Illinois. The demonstration was one of many held nationwide to draw attention to the cause. (Photo by Scott Olson / Getty Images)

CHICAGO, IL – APRIL 15: Demonstrators gather in front of a McDonald's restaurant to call for an increase in minimum wage on April 15, 2015 in Chicago, Illinois. The demonstration was one of many held nationwide to draw attention to the cause. (Photo by Scott Olson / Getty Images)

Fast food workers, healthcare workers and their supporters shout slogans at rally and march to demand and increase the minimum wage to 15USD per hour, in Los Angeles on December 4, 2014. The nationwide protest is expected to reach 190 US cities. AFP PHOTO / ROBYN BECK (Photo credit should read ROBYN BECK / AFP / Getty Images)

Fast food workers, healthcare workers and their supporters shout slogans at a rally and march to demand and increase the minimum wage to 15USD per hour, in Los Angeles on December 4, 2014. The nationwide protest is expected to reach 190 US cities. AFP PHOTO / ROBYN BECK (Photo credit should read ROBYN BECK / AFP / Getty Images)

Two women order food as striking fast food workers, home healthcare workers and their supporter shouting slogans inside a MCDonalds during a rally and march to demand in Increase the minimum wage to 15USD per hour, in Los Angeles on December 4, 2014. The nationwide protest is expected to reach 190 US cities. AFP PHOTO / ROBYN BECK (Photo credit should read ROBYN BECK / AFP / Getty Images)

NEW YORK, NY – DECEMBER 04: Protesters march through the streets demanding a minimum wage to $ 15 per hour on December 4, 2014 in New York, United States. The movement, driven largely by fast food workers, has risen in prominence in the past year; protests were also joined by demonstrators angry at the grand jury's verdict to not mention the police officer who killed Eric Garner in July, 2014. (Photo by Andrew Burton / Getty Images)

NEW YORK, NY – DECEMBER 04: March protesters through a McDonalds demanding a raise on the minimum wage to $ 15 per hour on December 4, 2014 in New York, United States. The movement, driven largely by fast food workers, has risen in prominence in the past year; Today's protests were also joined by demonstrators angry at the grand jury's verdict to not mention the police officer who killed Eric Garner in July, 2014. (Photo by Andrew Burton / Getty Images)

WASHINGTON, DC – DECEMBER 04: U.S. Late. Bernie Sanders (I-VT) speaks to low-wage federal contract workers during a protest where the workers demanded presidential action to increase to $ 15 an hour wage December 4, 2014 in Washington, DC. A number of workers were expected to walk off their jobs later in the day as part of the protest. (Photo by Win McNamee / Getty Images)

WASHINGTON, DC – DECEMBER 04: Low-wage federal contract workers block rush hour traffic on Independence Avenue while demanding presidential action to win an increase to $ 15 an hour wage December 4, 2014 in Washington, DC. A number of workers were expected to walk off their jobs later in the day as part of the protest. (Photo by Win McNamee / Getty Images) HIDE CAPTION

SHOW CAPTION

The negative impacts

Critics say that boosting the minimum wage would cause employees to lose their jobs. While the report acknowledged that upwards of 3.7 million people could lose their jobs, EPI says that raising the minimum wage would outweigh the costs. The minimum wage was boosted to $ 15.

“More and more, economists are recognizing that simple, dated models of the economy that always predict job loss when the minimum wage is increased based on assumptions that have little bearing on the low-wage labor market, ”EPI said in a statement. "Well over 100 mainstream economists signed on this letter in support of increasing the minimum wage to $ 15 in 2024. CBO's assessment of the literature has simply not yet caught up."

In the other two models – raising the wage to $ 12 and $ 10 – the report found that only 300,000 or 100,000 people would lose their jobs respectively.

The impact on the federal budget is even less clear. The CBO report says it has “not estimated how the options in this report would affect the federal budget.”

However, the report continues, it has estimated the impact of the Raise the Wage Act. In that analysis, CBO writes, "the next 10 years, the bill was spending spending on annual appropriation acts at $ 76 million and would be mandatory spending the Postal Service at $ 1 million."

Kristin Myers is a reporter at Yahoo Finance. Follow her on Twitter

Read more:

Follow Yahoo Finance on Twitter Facebook Instagram Flipboard LinkedIn YouTube and reddit .

Read the latest financial and business news from Yahoo Finance


Source link