Biden's proposal to raise minimum wage to $15 could kill up to 3.7M jobs, CBO estimates

Full research article in the link. The evidence is clear but then some would just cavalierly say oh well too bad millions will be out of work and become government expenses wiping out any tax gain from their asserted better economy.

Myth or Measurement: What Does the New Minimum Wage Research Say about Minimum Wages and Job Loss in the United States?



David Neumark and Peter Shirley

NBER Working Paper No. 28388

January 2021

JEL No. J23,J38



ABSTRACT

The disagreement among studies of the employment effects of minimum wages in the United States is well known. What is less well known, and more puzzling, is the absence of agreement on what the research literature says – that is, how economists even summarize the body of evidence on the employment effects of minimum wages. Summaries range from “it is now well-established that higher minimum wages do not reduce employment,” to “the evidence is very mixed with effects centered on zero sot here is no basis for a strong conclusion one way or the other,” to “most evidence points to adverse employment effects.”

We explore the question of what conclusions can be drawn from the literature, focusing on the evidence using subnational minimum wage variation within the United States that has dominated the research landscape since the early 1990s. To accomplish this, we assembled the entire set of published studies in this literature and identified the core estimates that support the conclusions from each study, in most cases relying on responses from the researchers who wrote these papers.

Our key conclusions are: (i) there is a clear preponderance of negative estimates in the literature; (ii) this evidence is stronger for teens and young adults as well as the less-educated; (iii) the evidence from studies of directly-affected workers points even more strongly to negative employment effects; and (iv) the evidence from studies of low-wage industries is less one-sided.

David Neumark

Department of Economics

University of California, Irvine

3151 Social Science PlazaIrvine, CA 92697

NBERdneumark@uci.edu



And



Peter Shirley West

Virginia Legislature

Joint Committee on Government and Finance

1900 Kanawha Blvd. E Charleston, WV 25305

peter.shirley@wvlegislature.gov

Full text here
https://www.nber.org/system/files/working_papers/w28388/w28388.pdf

Sorry for any paste format problems

 

I just reference above and posted the abstract...............

 

Biden's proposal to raise minimum wage to $15 could kill up to 3.7M jobs, CBO estimates
Biden couldn't care less.

 

that is what Democrat votes bring

 

Told ya last Friday! Now look:

 

About 30 minutes have passed and another gain:

 

Better to sell now

 

Trump not raising the min wage to 15 must have cost us 3 million jobs as he left with 3 million fewer jobs than when he took office

 

You think the China Covid had nothing to do with that? LOL!

 

I sold when it doubled then took half the money and bought back in. Now I am playing with house money.

 

a thinking / caring President coulda capitalized on the negatives and had us winning in the face of death. the opposite happened.

 

Yes - but this is the wrong topic to bring the funny money equation into effect .. Raising the min wage is not "funny money"

While I agree with the idea in general of a min wage in some sectors - using the broad brush as was done is Stupid and will cause most of the harm .. businesses like Restaurants - where the Service Staff is paid minimum wage .. but is making far more than min wage due to tips.

 

I love Washington Examiner. They have fantastic ability to convince their readers to almost everything, not as good as President Trump, but better than CNN,
Here is what Washington Examiner says:
https://www.washingtonexaminer.com/news/joe-biden-minimum-wage-cbo
“Biden's proposal to raise minimum wage to $15 could kill up to 3.7M jobs, CBO estimates”.

From where the Washington Examiner got this information? They got this information from the Fox News:
https://www.foxbusiness.com/economy...-minimum-wage-could-kill-according-to-the-cbo
“Here's how many jobs Biden's proposed $15 minimum wage could kill, according to the Congressional Budget Office”

And what really CBO said?
https://www.cbo.gov/publication/55410
[...]
"Effects of the $15 Option on Employment and Income. According to CBO’s median estimate, under the $15 option, 1.3 million workers who would otherwise be employed would be jobless in an average week in 2025. (That would equal a 0.8 percent reduction in the number of employed workers.) CBO estimates that there is about a two-thirds chance that the change in employment would lie between about zero and a reduction of 3.7 million workers (see table below)."

Yep, that the change in employment would lie between about zero and a reduction of 3.7 million workers.

I can give a free estimate in what will happen in one year with your investment if you buy Amazon stock: for sure in one year you could lose all your money or gain up to 1000%.

.....................................................................................................................................................................................................
"The Republican party promises pie in the sky but delivers breaking into the Capitol Hill and dung on the sidewalk."

 

Hahaha! So you are saying Biden will be worse......I agree.

 

Joe was better on his 1st day than 4yts of cess creatures lol and then the whole week of WINNING! https://www.yahoo.com/news/biden-signs-orders-undoing-damage-193955206.html

 

It makes no sense.
Biden needs to create 11 million new jobs for all those illegals he wants to give citizenship to.

 

don't suddenly start worrying about America, we're doing fine now and can use those willing 'illegal' hands to MAGA BABY!

 

almost 40% of Americans make less than $15 an hour, is this really the people Trump supporters want to alienate?

 

California City Raises Wages for Grocery Workers, Grocery Chain Responds Predictably

In order to reward the work of grocery store employees, Long Beach passed the “Hero Pay” measure, which increased the pay of grocery store employees by four dollars an hour. While the measure seems like it was well-intentioned, good intentions don’t balance budgets nor make the availability of products any more diverse. Long Beach officials were looking for a positive moment in the press, however, the Kroger grocery brand quickly put that to rest, by announcing that they were closing two grocery stores in the city, a Ralph’s location as well as a Food4Less store.

In an interesting development, Kroger tied the decision to close the stores directly to the ordinance. Most of the time, companies are less likely to wag their finger at the government as they don’t wish to draw the regulatory ire of elected officials. In this case, Kroger didn’t hold back.

Well thank goodness those exploited employees won't be exploited anymore!

 

Imagine the increase in the demand if 40% of the people have 10-20% more money to spend?

 

Oh yeah and it was all due to not raising the minimum wage........

TRUMP TRUMP TRUMP!!!

 

Beat me too it, just read about here

Kroger closes two stores after city orders wage increase for workers in pandemic

“As a result of the City of Long Beach’s decision to pass an ordinance requiring additional pay for grocery store workers, we made the difficult decision to permanently shut down struggling stores in Long Beach,” the business said in a press release at the Press-Telegram. “This misguided action by Long Beach City Council goes beyond the traditional bargaining process and applies to some, but not all, workers in the city’s grocery store.
https://www.fr24news.com/a/2021/02/...rs-wage-increase-for-workers-in-pandemic.html

Can't wait for the typical leftwing response "well if they can't pay that much they shouldn't be in business"

 

At the 10%-20% higher prices? How much more money does someone have to spend when they no longer have a job?

From my link above
"“An increase of $ 4 / hour represents an increase of approximately 28% in labor costs for grocers. There is no way for grocers to absorb such a cost increase without compensation elsewhere, given that grocers operate with extremely slim margins and many stores are already operating in the red, ”said the president and CEO of the California Grocers Association. “Long Beach City Council has put politics ahead of families and jobs amid a pandemic. It was completely preventable."

 

This is good for leftism. More dependants.

 

The Trump economy proved trickle down works. Go ahead now. Explain it away.