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Thursday, 11 February 2021 21:41

CBO: $15 Minimum Wage Would Lead to 1.4M Lost Jobs, Impacting Young, Less Educated the Most

Written by Dan McCaleb, The Center Square

Index

...increase as a result of negotiations that accounted for higher costs of labor facing health care providers.”

 

Other ramifications of a $15 minimum wage, according to the CBO, would be less investment by businesses.

 

"Some businesses would invest in capital goods to replace workers," the report said. "Other businesses, however, would be discouraged from constructing new buildings or buying new machines if they anticipated having fewer employees to use them. On average, over the 2021–2031 period, real investment would be slightly lower than it would be if current laws did not change, CBO estimates. That reduction in investment would reduce workers’ productivity and lead to further reductions in their employment.”

 

The Georgia Center for Opportunity, which advocates for those in poverty through free-market solutions, said the negatives of such a large minimum wage hike outweigh any benefits.

 

"Workers need immediate help, but doubling the federal minimum wage when Georgia small businesses are closing left and right is not the right answer," Buzz Brockway, GCO's director of public policy, said in a statement. "Recent data have shown us that unilateral minimum wage hikes hurt low-income, low-skilled workers the most. What's needed for low-income Georgia workers is more than a temporary fix: What's needed is practical training and credentialing to help them 'upskill' into better-paying jobs and careers."

 

We thank The Center Square for reprint permission. 

 

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