Federal Minimum Wage Hike Would Cost Jobs, Opportunity, CEI Experts Warn

House Democrats are expected to introduce legislation on Wednesday to raise the federal minimum wage to $15 an hour by 2024 – a policy that will backfire, warn Competitive Enterprise Institute experts.

“It is unfortunate that congressional Democrats believe a $15 minimum wage will solve all problems for low wage workers,” said Trey Kovacs, a CEI labor policy analyst. “Research finds that a national $15 minimum wage will cost millions of workers their livelihood and impact young and low skill individuals the most. Moreover, this is a solution in search of a problem, because most workers already earn above the federal minimum wage, and most who do not are under the age of 25. Instead, Congress should be concerned with how important a worker’s first job is, even at relatively modest pay. Eliminating the first rung on the ladder of employment can have devastating impact on future earnings.”

“Advocates for a $15 minimum wage should look before they leap,” said Ryan Young, a CEI fellow. “A higher minimum wage has real world tradeoffs. It is not a free benefit. A higher wage will force employers to reduce non-wage pay such as insurance, breaks and personal time off, free meals or parking, and more. A hike in the federal minimum wage would also cause an estimated two million jobs to be lost and hit small businesses the hardest.”

Related:

Minimum Wage Hikes in 2019 Will Hurt Minority Youth by Killing Jobs

Minimum Wage Increases Inequality, Decreases Labor Force Participation

Trey Kovacs

Ryan Young

House Democrats are expected to introduce legislation on Wednesday to raise the federal minimum wage to $15 an hour by 2024 – a policy that will backfire, warn Competitive Enterprise Institute experts.