With 60% of Americans living paycheck to paycheck, most U.S. households could use a raise. But an arbitrary, one-size-fits-all increase in the minimum wage imposed by lawmakers in Washington would only exacerbate the struggles of these households.
According to a new analysis by the Congressional Budget Office, proposed legislation to increase the federal minimum wage to $17 per hour by 2029, a jump of 134%, would reduce employment and increase prices, interest rates, and federal deficits.
Any one of these consequences of the so-called Raise the Wage Act of 2023 would be bad news; all four together would add insult to injury for struggling workers and families.
1. Job Losses
Already, 1.9 million fewer people are employed today than if the employment-to-population ratio were what it was in February 2020. The report from the nonpartisan Congressional Budget Office…
