New fuel has been added to the minimum wage debate as the Congressional Budget Office (CBO) declares that raising it could have negative consequences on jobs.
“Increasing the minimum wage would have two principal effects on low-wage workers. Most of them would receive higher pay that would increase their family’s income, and some of those families would see their income rise above the federal poverty threshold,” said a release from the CBO. “But some jobs for low-wage workers would probably be eliminated, the income of most workers who became jobless would fall substantially, and the share of low-wage workers who were employed would probably fall slightly.”