Report: Raising Minimum Wage Could Cost 500,000 Jobs
(Washington, D.C.) An estimate from the Congressional Budget Office shows more than half a million jobs could be lost by 2016 if the minimum wage is raised to $10.10.
President Obama has been pushing for the hike from the current $7.25 an hour.
The report shows a pay hike could reduce budget deficits but only for a short time.
U.S. Senator Lamar Alexander (R-Tenn.) released the following statement:
“This CBO report reiterates a fundamental principle of our free-market economy: increasing the minimum wage eliminates jobs, cuts off the bottom rung of the economic ladder, and reduces opportunity. Instead of minimum wages, the goal should be higher family incomes. To do that, we should liberate the free enterprise system from Obama regulations and make it easier to create jobs, provide more job training, and offer more choices of good schools to children of low-income parents.”