CBO Warns $15 Minimum Wage Will Kill 1.4 Million Jobs, House Dems Are All For It

House Democrats on the Education and Labor Committee voted to approve a $15 minimum wage proposal as part of the coronavirus relief package, despite warnings from the Congressional Budget Office (CBO) that it would put 1.4 million Americans out of work.

Rep. Ilhan Omar (D-MN) celebrated the passage of a proposal to more than double the federal minimum wage from $7.25 to $15 per hour by the year 2025.

“It’s a wrap,” she tweeted. “$15 #MinimumWage passes the [Education and Labor] committee after more than 13 hours of debate.”

CNBC reports that it is unclear if the minimum wage provision would survive inclusion in the final $1.9 trillion aid package due to strict Senate rules.

Still, Senate Majority Leader Chuck Schumer (D-NY) is hoping to get it through.

“We’re trying to work as well as we can with the [Senate] parliamentarian to get minimum wage to happen,” he told reporters.

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$15 Minimum Wage Would Cut 1.4 Million Jobs – CBO

The vote supporting a $15 per hour federal minimum wage comes within days of a CBO report indicating such a move would cost 1.4 million American jobs.

Raising the minimum wage would lift 900,000 Americans out of poverty, the report adds, but 1.4 million would presumably dip down in take-home pay considering they’d be out of work.

“Young, less educated people would account for a disproportionate share of those reductions in employment,” the CBO states.

Worse, they’d likely be out of the workforce for quite some time.

“In 2021, most workers who would not have a job because of the higher minimum wage would still be looking for work and hence be
categorized as unemployed,” they write.

“By 2025, however, half of the 1.4 million people who would be jobless because of the bill would have dropped out of the labor force.”

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President Biden Supports Raising the Minimum

If House Democrats don’t get their $15 minimum wage wish with this coronavirus relief package, President Biden has vowed to push for the pay hike at a later time.

“I put it in but I don’t think it’s going to survive,” Biden told CBS News in an interview this past weekend. “My guess is it will not be in [the stimulus bill].”

That doesn’t mean he’s about to give up.

“I’m prepared as the president of the United States on a separate negotiation on minimum wage to work my way up from what it is now,” Biden argued.

“No one should work 40 hours a week and live below the poverty wage and you’re making less than $15 an hour, you’re living below the poverty wage.”

A recent post by Factcheck.org indicates the numbers could end up being better than the CBO estimates, but they could just as easily be worse.

“There also is a 33% chance that between zero and 1 million jobs would be lost, and a 33% chance that the decrease would be between 1 million and 2.7 million jobs,” they write.

A Biden adviser dismissed concerns about jobs being lost due to a $15 minimum wage.

White House Counsel of Economic Advisers member Jared Bernstein said “we have a tendency to focus on some of the big negatives.”

Being jobless would seem like a pretty big negative for most Americans.

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Biden Declares Economic Relief For Businesses Will Be Based Partly On Gender And Race

President-elect Joe Biden announced that economic relief for struggling businesses would be based partly on the gender and race of the owners.

In a video posted to the Biden-Harris presidential transition team Twitter account, the soon-to-be President admitted his obsession with identity politics by noting skin color and gender would play a part in deciding who gets economic relief from the federal government.

“Our focus will be on small businesses on Main Street that aren’t wealthy and well-connected, that are facing real economic hardships through no fault of their own,” Biden announced.

He added, “Our priority will be Black, Latino, Asian, and Native American owned small businesses, women-owned businesses, and finally having equal access to resources needed to reopen and rebuild.”

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Response to Biden’s Decision to Make Economic Relief Partially Contingent on Race and Gender is Negative

As you might imagine, response to the Democrat president-elect segregating economic relief for businesses based on race and gender wasn’t warmly received.

“If you don’t vote for me, you ain’t … receiving these government assistance checks?” political commentator Kyle Becker partially joked, making reference to Biden’s famous comment that African-Americans that don’t vote for him “ain’t black.”

Others were less willing to be in a joking mood about Biden’s economic inequality declaration.

To be fair, it was mostly minority-owned businesses that were affected by the riots that Biden, Harris, and the Democrats encouraged over the summer.

RELATED: James Clyburn Admits House Democrats May Not Send Articles Of Impeachment To Senate Until After Biden’s First 100 Days In Office

Biden’s Choices Always Revolve Around Race and Gender

Who could have possibly imagined that it would be a Democrat President-elect who would drag civil rights back decades by making government decisions based on ethnicity or sex?

Besides everyone, I mean.

Biden is, after all, the man who chose Kamala Harris to be his running mate not based on credentials or resume, but because she is a woman who isn’t white.

The same man who accused Republicans of trying to hold back blacks economically by putting “y’all back in chains” is more than willing to put the chains on white-owned businesses.

“We’re going to make a concerted effort to help small businesses in low-income communities in big cities, small towns, rural communities that have faced systemic barriers to relief,” Biden added.

“Think of the mom and pop owner with a couple of employees who can’t pick up the phone and call a banker, who doesn’t have a lawyer, an accountant, to help them through this complicated process.”

Just as with voter identification, Biden seems to be suggesting it’s the minority and woman-owned businesses without the capability or knowledge to navigate complex applications.

Is there anything more racist than saying certain groups of people aren’t smart enough to figure things out without the government’s assistance?

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