The United States Congressional Budget Office projects that President Joe Biden's push for $15 minimum wage could result in a loss of 1.4 million jobs.

When talking about raising the minimum wage, President Joe Biden said that "raising the minimum wage is big and is bold, and it's a real answer to the crisis we're in."

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However, the CBO projection report touches on several concepts that could put a halt in Biden's plan, or it could push his plan further into action - depending on how politicians view it.

The report filed on CBO.gov suggests two factors that could be play major roles in either advancing, or stopping, the push for a national minimum wage of $15, as projected in the report. The first aspect is:

  • Employment would be reduced by 1.4 million workers, or 0.9 percent, according to CBO’s average estimate.
  • The number of people in poverty would be reduced by 0.9 million.
Another aspect worth considering is the potential rise in cost of consumer goods as businesses try to offset the raise in paid wages, or even a reduction in staff by replacing workers with automation and technology:

Higher wages would increase the cost to employers of producing goods and services. Employers would pass some of those increased costs on to consumers in the form of higher prices, and those higher prices, in turn, would lead consumers to purchase fewer goods and services.

Employers would consequently produce fewer goods and services, and as a result, they would tend to reduce their employment of workers at all wage levels. When the cost of employing low-wage workers goes up, the relative cost of employing higher-wage workers or investing in machines and technology goes down. Some employers would therefore respond to a higher minimum wage by shifting toward those substitutes and reducing their employment of low-wage workers

If the push for a national $15 minimum wage was successful, then it wouldn't take place until the year 2025.

A rise in national minimum wage would affect a lot more than just the person cashing the check, and that can all be read in the CBO's full report.