Increase Minimum Wage To Generate U.S. Job Losses

Posted On 19 Feb 2014
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Tag: increase minimum wage in USA, independent Congressional Budget Office, minimum wage 10.10 per hour

Raising the federal minimum wage of U.S. dollars 10.10 per hour, as proposed by President Barack Obama and Democrats in Congress, could result in the loss of about 500,000 jobs by the end of 2016, estimated the Budget Office Congress.

The independent Congressional Budget Office (CBO) also said that the rise in hourly wage would reduce the U.S. budget deficit in small quantities for several years but then increase slightly in subsequent years.

The minimum wage is $ 7.25 per hour.

Democrats who control the U.S. Senate could try to pass a bill of minimum wage next month, Reuters said.

They could raise the salary to $ 9,000

The CBO report, which also studied the impact of raising the minimum wage to $ 9 an hour, rather than $ 10.10, said both measures would lift many people out of poverty.

A minimum wage of $ 10.10 would help 900,000 people overcome poverty line income by $ 24.100 a year for a family of four. That figure would be 300,000 people with a minimum salary of $ 9, the CBO said.

Families living in poverty would be a total increase of 5,000 million dollars in real income to $ 10.10 per hour and 1,000 million to $ 9, the CBO estimated.

A total of 16.5 million workers would see their profits increase with a minimum salary of $ 10.10 per hour, while 7.6 million would benefit from a salary of $ 9, according to the CBO report.

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