{"id":124776,"date":"2021-02-11T14:45:26","date_gmt":"2021-02-11T19:45:26","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=124776"},"modified":"2021-02-11T15:12:45","modified_gmt":"2021-02-11T20:12:45","slug":"unemployment-inflation-and-automation-the-truth-about-the-15-minimum-wage","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/unemployment-inflation-and-automation-the-truth-about-the-15-minimum-wage\/","title":{"rendered":"Unemployment, Inflation, and Automation: The Truth About The $15 Minimum Wage"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Funemployment-inflation-and-automation-the-truth-about-the-15-minimum-wage%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=124776&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/02\/GettyImages-528764388-1200x800-1.jpg\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span>Before signing an executive order kick-starting the process to require that \u201ceveryone working for the federal government get a minimum wage of $15 an hour,\u201d Biden said that we were in a \u201cnational emergency.\u201d<\/span><\/p>\n<p><span>\u201cWe need to act like we\u2019re in a national emergency. So we\u2019ve got to move with everything we got,\u201d Biden<\/span> <a href=\"https:\/\/www.nbcnews.com\/politics\/white-house\/biden-sign-two-executive-orders-covid-economic-relief-worker-protections-n1255239\"><span>said<\/span><\/a> <span>in a speech.<\/span><\/p>\n<p><span>\u201cIf we act now, our economy will be stronger in both the short and long run. That\u2019s what economists both left, right and center are telling us.\u201d<\/span><\/p>\n<p><span>In an \u201c<\/span><a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/presidential-actions\/2021\/01\/22\/executive-order-protecting-the-federal-workforce\/\"><span>Executive Order on Protecting the Federal Workforce<\/span><\/a><span>,\u201d signed on January 22, Biden described career civil servants as \u201cthe backbone of the Federal workforce,\u201d and laid the groundwork for a federal minimum wage of $15.<\/span><\/p>\n<p><span>In Section 5 of the order, titled \u201cProgress Toward a Living Wage for Federal Employees,\u201d Biden directs the Director of the Office of Personnel Management to \u201cprovide a report to the President with recommendations to promote a $15\/hour minimum wage for Federal employees.\u201d&nbsp;<\/span><\/p>\n<p><span>In the pursuit of a broader federally-mandated minimum wage of $15 per hour, Biden included such a proposal as part of his $1.9 trillion economic stimulus package,<\/span> <a href=\"https:\/\/www.kiplinger.com\/personal-finance\/careers\/salaries\/602086\/biden-proposes-15-minimum-wage\"><span>saying<\/span><\/a> <span>\u201cif you work for less than $15 an hour and work 40 hours a week, you\u2019re living in poverty.\u201d&nbsp;<\/span><\/p>\n<p><span>While Biden has expressed some doubt that the relief proposal will be a successful vehicle for this policy, he has also said that he was<\/span> <a href=\"https:\/\/www.cnn.com\/2021\/02\/05\/politics\/biden-minimum-wage-covid-proposal\/index.html\"><span>prepared<\/span><\/a> <span>\u201con a separate negotiation on minimum wage, to work my way up,\u201d having campaigned on raising the minimum wage prior to winning the election.<\/span><\/p>\n<p><span>Multiple high profile Democrats have spoken enthusiastically in favor of raising the minimum wage to $15 per hour. Rep. Ilhan Omar (D-MI) claimed that raising the minimum wage would lift hundreds of thousands of Americans out of poverty.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Raising the minimum wage to $15 would lift 900,000 out of poverty.<\/p>\n<p>It\u2019s time!<\/p>\n<p>\u2014 Ilhan Omar (@IlhanMN) <a href=\"https:\/\/twitter.com\/IlhanMN\/status\/1358822912036392961?ref_src=twsrc%5Etfw\">February 8, 2021<\/a><\/p>\n<\/blockquote>\n<p><span>Rep. Alexandria Ocasio-Cortez said that we need \u201cmore than $15,\u201d calling to \u201cpush for more equitable pay.\u201d<\/span><\/p>\n<p><span>House Speaker Nancy Pelosi said that they were \u201cproud\u201d of the bill which included a $15 minimum wage, and that \u201c27 million people will get a raise.\u201d<\/span><\/p>\n<p><span>Unfortunately, the reality of minimum wage increases is far from the economic utopia being presented by Democrats, and is closer to the outcome of Biden\u2019s other job-killing executive orders and policies.<\/span><\/p>\n<p><span>In January, Fox Business reported the findings of the Congressional Budget Committee, who found that Biden\u2019s $15 minimum wage proposals would \u201creduce business income and raise prices,\u201d as well as destroying countless jobs.<\/span><\/p>\n<p><span>\u201cBiden\u2019s effort to raise the federal minimum wage from $7.25 to $15 per hour is estimated to kill as many as 3.7 million jobs, according to a recent nonpartisan analysis by the Congressional Budget Office,\u201d Fox Business<\/span> <a href=\"https:\/\/www.foxbusiness.com\/economy\/heres-how-many-jobs-bidens-proposed-15-minimum-wage-could-kill-according-to-the-cbo\"><span>reported<\/span><\/a><span>. \u201cBased on the CBO\u2019s median estimate, 1.3 million workers who would otherwise be employed would be jobless in an average week in 2025, an 0.8% reduction. However, the CBO also noted that a federal minimum wage of $15 per hour would increase the wages of 17 million workers in an average week in 2025.\u201d<\/span><\/p>\n<p><span>In July 2019, the CBO also<\/span> <a href=\"https:\/\/www.cbo.gov\/system\/files\/2019-07\/CBO-55410-MinimumWage2019.pdf\"><span>forecast<\/span><\/a> <span>that increasing the minimum wage to $15 per hour would \u201cReduce business income and raise prices as higher labor costs were absorbed by business owners and then passed on to consumers,\u201d and \u201cReduce the nation\u2019s output slightly through the reduction in employment and a corresponding decline in the nation\u2019s stock of capital (such as buildings, machines, and technologies).\u201d<\/span><\/p>\n<p><span>In June 2017, when a team of economists<\/span> <a href=\"https:\/\/evans.uw.edu\/wp-content\/uploads\/files\/w23532_0.pdf\"><span>studied<\/span><\/a> <span>the effects on employment when the city of Seattle moved to increase its minimum wage \u2014 hitting a $13 minimum in 2016 \u2014 they found that this \u201creduced hours worked in low-wage jobs by around 9 percent.\u201d Later<\/span> <a href=\"https:\/\/evans.uw.edu\/wp-content\/uploads\/files\/w25182.pdf\"><span>research<\/span><\/a> <span>in October 2018 found that \u201cless-experienced workers saw no significant change to weekly pay.\u201d<\/span><\/p>\n<p><span>Just this week, the Congressional Budget Office<\/span> <a href=\"https:\/\/www.reuters.com\/article\/us-usa-economy-wages-cbo\/biden-minimum-wage-hike-would-boost-incomes-but-cut-jobs-in-2025-cbo-idUSKBN2A822S\"><span>said<\/span><\/a> <span>that \u201c<\/span><span>Joe Biden\u2019s plan to raise the minimum wage to $15 per hour by 2025 would cut employment by 1.4 million jobs that year and increase the budget deficit by $54 billion over the next 10 years.\u201d While the \u201cnon-partisan legislative budget referee agency\u201d claimed that the minimum wage increase would \u201clift 900,000 Americans out of poverty in 2025,\u201d they acknowledged that this would be somewhat offset by 1.4 million fewer workers employed \u201cas some companies will choose to invest more in technology or automation.\u201d<\/span><\/p>\n<p><span>\u201cYoung, less-educated people would account for a disproportionate share of those reductions in employment,\u201d the CBO said.<\/span><\/p>\n<p><span>In addition, according to<\/span> <a href=\"https:\/\/www.foxbusiness.com\/economy\/biden-15-minimum-wage-childcare-costs-increase\"><span>analysis<\/span><\/a> <span>carried out by Rachel Greszler \u2014 an economics research fellow at the Heritage Foundation \u2014 a $15 minimum wage would raise the cost of child care by an average of 21% across the United States, equating to $3,728 per year for a family with two children.<\/span><\/p>\n<p><span>\u201cWith childcare consuming even more of family budgets \u2014 40 percent or more of the median household incomes in a lot of states \u2014 many families could be priced out of the childcare market completely,\u201d Greszler<\/span> <a href=\"http:\/\/report.heritage.org\/bg3584\"><span>wrote<\/span><\/a><span>. \u201cIn turn, the unintended consequences of a $15 minimum wage could force some parents to give up their jobs and live on lower household incomes, while causing others \u2014 particularly single parents \u2014 to turn to non-licensed, typically illegal, childcare.\u201d<\/span><\/p>\n<p><span>The economic reality being intentionally ignored or dismissed by Democrats is that simply raising the minimum wage does not guarantee that every current worker will therefore receive a higher income. As summarized by Thomas Sowell, \u201c<\/span><span>making it illegal to pay less than a given amount does not make a worker\u2019s productivity worth that amount \u2014 and if it is not, that worker is unlikely to be employed.\u201d<\/span><\/p>\n<p><span>The claim made by Democrats assumes both that every one of these lower-paying jobs is safe from replacement or removal, and that companies are financially able to pay the additional wage.<\/span><\/p>\n<p><span>These are obviously untrue. Earlier this week, the supermarket chain Kroger<\/span> <a href=\"https:\/\/www.bizjournals.com\/cincinnati\/news\/2021\/02\/02\/kroger-tests-all-self-checkout-store.html\"><span>announced<\/span><\/a> <span>that they were \u201c<\/span><span>about to test its first store that offers only self-service checkout lanes using enhanced capabilities.\u201d Presumably, if successful, this would result in the removal of the minimum wage jobs of checkout workers.&nbsp;<\/span><\/p>\n<p><span>Larger corporations, such as <a href=\"https:\/\/www.dailywire.com\/news\/amazon-wants-15-federal-minimum-wage\">Amazon<\/a>, are also advocating for a federally-mandated $15 minimum wage. Many argue that the goal here is to place a further financial disadvantage upon the small businesses already struggling to compete.<\/span><\/p>\n<p><span>Not only that, there is the mathematical fact that $15 does not hold the same value across the United States. Writing for the Daily Wire, Rachel Greszler<\/span> <a href=\"https:\/\/www.dailywire.com\/news\/one-size-15-minimum-wage-doesnt-fit-most\"><span>noted<\/span><\/a> <span>that \u201ccosts of living vary significantly across the United States.\u201d<\/span><\/p>\n<p><span>\u201cThe federal government recognizes these differences (albeit imperfectly) through locality-based adjustments to the General Schedule pay scale which increases some workers\u2019 pay by as much as 40% due to higher costs-of-living,\u201d Greszler continued.<\/span><\/p>\n<p><span>\u201cBut lawmakers pushing a $15 nationwide minimum wage are failing to recognize these differences, and while no city or state can escape the unintended consequences of a $15 minimum wage, some areas will be especially hard-hit.\u201d&nbsp;<\/span><\/p>\n<p><span>\u201cIn Mississippi, for example, the median wage is $15 per hour. That means that half of all workers in Mississippi earn less than $15 per hour, and half earn more. Imposing a $15 minimum wage on Mississippi would be like imposing a $21.24 minimum wage on California, a $24.14 minimum wage on Massachusetts, and a whopping $35.74 minimum wage on DC.\u201d<\/span><\/p>\n<p><span>In a piece for the Daily Signal, Greszler summarized \u201c<\/span><a href=\"https:\/\/www.dailysignal.com\/2019\/07\/11\/here-are-6-ways-a-new-report-devastates-the-15-minimum-wage\/\"><span>6 Ways a New Report Devastates the $15 Minimum Wage<\/span><\/a><span>:\u201d<\/span><\/p>\n<ol>\n<li><span>It would be a job-killer.<\/span><\/li>\n<li><span>It would create a survival-of-the-fittest labor market.<\/span><\/li>\n<li><span>It would expedite the pace of automation.<\/span><\/li>\n<li><span>It would drive up prices.<\/span><\/li>\n<li><span>It would shrink the economy, and shrink family incomes.<\/span><\/li>\n<li><span>It would drive up deficits, inflation, and interest rates.<\/span><\/li>\n<\/ol>\n<p><span>As many in the country already struggle with the results of government mandated lockdowns in the face of the COVID-19 pandemic, none of these likely outcomes should be a point of celebration.<\/span><\/p>\n<p><em><span>Ian Haworth is an Editor and Writer for The Daily Wire. Follow him on Twitter at<\/span><\/em> <a href=\"https:\/\/twitter.com\/ighaworth\"><em><span>@ighaworth<\/span><\/em><\/a><em><span>.<\/span><\/em><\/p>\n<p><em><span>The views expressed in this piece are the author\u2019s own and do not necessarily represent those of The Daily Wire.<\/span><\/em><\/p>\n<p><em><span>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a<\/span><\/em> <a href=\"https:\/\/www.dailywire.com\/subscribe\"><em><span>member<\/span><\/em><\/a><em><span>.<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before signing an executive order kick-starting the process to require that \u201ceveryone working for the federal government get a minimum wage of $15 an hour,\u201d Biden said that we were &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1893223,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[4432,6425,5708,4561,6426,4846],"class_list":["post-124776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-about","tag-automation","tag-inflation","tag-minimum","tag-truth","tag-unemployment"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/124776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=124776"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/124776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1893223"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=124776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=124776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=124776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}