Jen Psaki, the White House Press Secretary, recently confirmed that Biden is “firmly committed” to raising the federal minimum wage to $15 per hour, even though massive job losses will occur after its implementation. On Monday, the nonpartisan CBO, or Congressional budge Office, provided an estimate that revealed up to 1.4 million jobs may be lost after the implementation of such a federal wage hike.
According to the CBO, the budget deficit from 2021 to 2031 “would increase by $54 billion,” and these increases will remain relatively small prior to 2025 as the federal minimum wage phases in. In addition, the CBO warned that Americans can anticipate “higher prices for good and services,” which originate from higher labor wages. In addition, the federal government will also have to increase spending.
Psaki also noted that the provision for the federal minimum wage increase is not in the current COVID relief package, but she reinforced the Biden administration’s commitment to a $15 per hour federal minimum wage.
MINIMUM WAGE: Jen Psaki says, “The President remains firmly committed to raising the minimum wage to $15,” as relief package may not include a wage hike provision.
— Forbes (@Forbes) February 8, 2021
Bernie Sanders, the chair of the Senate Budget Committee, strongly advocates raising the federal minimum wage.