The cost of higher minimum wage

Washington

A report out this week from the Congressional Budget Office looks at the impact of raising the federal minimum wage to $15 an hour.

“We will see increase in workers wages, a reduction in poverty, a reduction in inequality,” said Heidi Shierholz. She’s a Senior Economist at the Economic Policy Institute

The report from the CBO says about 1.3 million people would lose their jobs and business owners would see reduced income.

Michael Tanner works for the Cato Institute. He warns that raising the minimum wage could do more harm than good.

Tanner said, “we should also note the report said that America as a whole would be poorer. .”

Chairman of the Federal Reserve, Jerome Powell, says a range of studies have similar findings. He adds there are winners and losers.

“What they tend to show is that a number of people get higher wages and a number of people lose their jobs,” said Powell.

House Democrats say they plan to hold a vote on the issue this session.

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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