Report: Minimum Wage Increase to $10.10 Could Cost 500K Jobs

by Karl Utermohlen | February 19, 2014 1:46 pm

The Congressional Budget Office (CBO) believes that a $10.10 federal minimum wage could cost the country about half a million jobs.

The CBO’s report is based on data compiled by well-trained economists who came up with 500,000[1] as the central estimate for job reductions. However, the likely range for job reductions goes from “very slight” up to 1 million if the federal minimum wage was raised to $10.10.

The CBO also found that raising minimum wage would help about 900,000 people move above the poverty threshold by boosting their average family income by about 3%.

The opinions contained in this column are solely those of the writer.
 
Want to share your own views on money and politics? Drop us a line at letters@investorplace.com and we might reprint your views in our InvestorPolitics blog! Please include your name, city and state of residence. All letters submitted to this address will be considered for publication.

Endnotes:
  1. 500,000: http://www.businessweek.com/articles/2014-02-18/the-cbo-foresees-lost-jobs-from-a-higher-minimum-wage

Source URL: http://investorplace.com/investorpolitics/minimum-wage/
Short URL: http://investorplace.com/?p=479481