The dangers of increasing the minimum wage to $15 per hour are well-established and documented.
Even the most mundane understanding of economics allows for one to realize that when expenses for businesses go up, the increased costs are passed down to consumers and workers. This is why hiking the corporate tax rate from 21% to 28% would hurt the economy, just like raising the minimum wage.
According to recent economic findings, raising the minimum wage would not only pass down the costs to consumers and workers; it would furthermore engender higher rates of teen unemployment, Newsmax reports.
More Teen Unemployment Under a $15 Minimum Wage
During the most severe joblessness spells of the COVID-19 pandemic, teens between the ages of 16 and 19 suffered unemployment rates of at least 30%; in many cases, joblesssness rates for 16 to 19-year-olds even surpassed just three out of ten.
Why did Biden just say he wants a $15 minimum wage when the Congressional Budget Office said it would cost 1.4 million jobs?
— Paul A. Szypula, US Senate Candidate for NY in ‘22 (@Bubblebathgirl) February 8, 2021
Now, the Congressional Budget Office reports that if the minimum wage reaches $15 per hour, teen workers and other workers seeking to enter the labor force will suffer. Economists additionally warn that workers who are lower on the food chain, rather than higher, are the most likely to lose their jobs if the minimum wage increases to $15.
Building Back the American Workforce
Right now, the United States needs to improve the economy, not weaken it.
This means getting people back to work and allowing businesses to open their doors. If congressional Democrats and President Biden manage to ram through a $15 federal minimum wage, this will put more businesses out of work; it will also cause employees (teens or otherwise) to lose their jobs.
Democrats who continue to push for $15 per hour have not acknowledged the issues here. They also won’t admit that economists are not in favor of such a proposal; instead, Democrats aim to use their current congressional majorities to ram through policies without Republican votes.
The Congressional Budget Office said Monday that raising the minimum wage to $15 hour would put 1.4 million Americans out of work by 2025, while increasing budget deficits by $54 billion over 10 years.
— Senator John Cornyn (@JohnCornyn) February 8, 2021
Raising the minimum wage is a key part of the Democrats’ platform. It is also a matter that President Biden campaigned upon; despite the warnings from the Congressional Budget Office and economists, there are no indications that Democrats will stand down on a policy that would further damage the U.S. economy and workforce.
Are you suprised to learn that teen unemployment rates will surge if the minimum wage reaches $15 per hour? Do you think Democrats will manage to increase the federal minimum wage? Let us know in the comments section below.