CBO: Minimum Wage Hike Costly
Will cost the economy $15 billion.
Once again, the CBO is warning about the detrimental effects of the minimum wage. On Wednesday, it released a report warning that raising the minimum wage to $10.10, as Democrats want to do, will cost the economy $15 billion and increase the deficit by $5 billion over the next decade. Governments at all levels will spend another $1 billion over those 10 years on wages and higher prices. The math is simple: Higher-priced labor means higher-priced products and/or less profit margin and room for growth. This report also comes on the heels of February’s warning that the minimum wage hike would cost 500,000 jobs. Democrats are bound and determined, however, so we doubt this latest report will dissuade them.
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