The U.S. House of Representatives voted Thursday to raise the federal minimum wage from $7.25 per hour to $15 per hour. It will kill up to 3.7 million jobs.
A recent study by the Congressional Budget Office found that raising the federal minimum wage to $15 per hour would have a potentially devastating effect on the U.S. workforce.
According to the study, a $15 minimum wage would result in about 1.3 million people becoming jobless with the potential for that number rising to at least 3.7 million.
Instead of giving families that depend on minimum wage jobs a boost, the CBO study found that the net effect of a $15 minimum wage hike would be a $9 billion reduction in real family income by 2025, per Michael Saltsman, a senior vice president at Berman and Company.
It will kill start-up businesses and $15 an hour in New York isn’t like $15 an hour in Arkansas.
The bill passed largely along party lines, with 228 Democrats voting for the bill and 192 Republicans voting against it.
The Senate will ignore it and if they didn’t, the President wouldn’t sign it.
WE KNOW IT DOESN’T WORK
A study cited by The Washington Examiner in June 2018 shows what we all have known about the $15 an hour minimum wage – it hurts the very people the left says they want to help. The Fight for 15 is simply a union rallying cry to drum up membership, especially among the illegal immigrants.
The new study by a prominent researcher found that higher minimum wages have increased poverty in poor neighborhoods.
The study was led by the University of California, Irvine economist David Neumark. The minimum wages don’t reduce poverty in poor neighborhoods. An increase of $1 in the minimum wage raises poverty and government dependency by about 3 percent.
Cash welfare also fails to lower poverty, the study says. “The clear evidence here is that the minimum wage doesn’t deliver long-run gains and welfare doesn’t deliver long-run gains,” Neumark said.