WASHINGTON — The Congressional Budget Office (CBO) released a report Monday finding that legislation to impose a federal $15 minimum wage would eliminate 1.3 million jobs. Rachel Greszler, Heritage research fellow in economics, budget and entitlements, released the following response to the CBO’s analysis of the Raise the Wage Act:
Good intentions are no excuse for imposing bad policy. The CBO report confirms what even liberal economists have warned against: a $15 minimum wage would lead to significant job losses and create a ‘survival-of-the-fittest’ labor market, where only more skilled workers come out on top.
The Left is under the illusion it can force employers to artificially increase wages with no adverse consequences for American workers. The Raise the Wage Act is a misguided attempt to increase incomes. In reality, it will eliminate jobs and decrease incomes for workers with the fewest skills and least experience.
The Earned Income Tax Credit, which already raises the $7.25 minimum wage to about $10, is a far more effective way to reduce poverty and raise incomes for low-wage families without pushing others into poverty through unemployment.