US – A new government report outlining the effect of the raise the wage act of 2021 offers bullet points to both sides of the argument on whether to raise the hourly rate to 15 dollars an hour or not.
In the report boosting the minimum wage to $15 per hour would raise income for millions of Americans and lift 900,000 people out of poverty.
That’s great news but the hourly rate would also put some 1.4 million fewer Americans would be working according to the report.
But Why? According to the report, employers would react to the higher rate bypassing some of the costs onto the consumer having fewer sales, also employers would find more efficient efforts and reduce employees to save costs, also it is likely that employers would reduce investment in new technology affecting technology jobs.
Both bullet points help feed the argument if the minimum wage act should be passed. The report comes from the congressional budget office and offers an impartial analysis with no recommendations.
Read the full report here: https://www.cbo.gov/system/files/2021-02/56975-Minimum-Wage.pdf