Gov Report: Up To ONE MILLION Jobs Will Be Lost Due to Minimum Wage Hike
February 24th, 2014
A few weeks ago the Congressional Budget Office, which is responsible for the accounting and reporting associated with federal legislation and regulations, estimated that the Affordable Care Act would raise national budget deficits by $1 trillion and lead to the destruction of some 2.5 million jobs.
But the new health insurance mandates and the pressure they will put on America’s businesses aren’t the only challenges facing an already dwindling labor force.
Earlier this month President Obama raised the minimum wage for federal workers through an Executive Orders that will take effect on January 1, 2015. He promised to push through a similar mandate for the private sector. However, just because minimum wage workers in America will see a roughly $3 increase in their hourly pay doesn’t necessarily mean that they’ll be better off than today.
According to the CBO, the wage hike is going to do exactly the opposite of its intended purpose. Not only can we expect businesses to almost immediately raise prices on the goods and services they offer in order to offset the wage hikes, but it will end up costing the American economy even more jobs in the long run.