CBO confirms what conservatives say about an artificially high minimum wage: It’s a job killer

By Jon Dougherty

(NationalSentinel) The one way that the Democrat Left could destroy POTUS Donald Trump’s massive jobs creation machine is by taking power and imposing an artificially high minimum wage on American small businesses.

Conservatives have been making this argument for years, but a recently released study by the Congressional Budget Office confirmed them.

“About 1.3 million workers who would otherwise be employed would be jobless in an average week in 2025,” the report reads. “That decrease would account for 0.8 percent of all workers and 7 percent of directly affected workers who would otherwise earn less than $15 per hour.”

The CBO was tasked with scoring/analyzing legislation introduced by Rep. Bobby Scott (D-Va.) that gradually phases in a $15-an-hour minimum wage over the course of five years while eliminating the minimum-wage exemption that currently applies to workers who make tips.

Strangely, however, Scott didn’t read the conclusions of the report the same way others did.

“The CBO’s report leaves no doubt that the Raise the Wage Act will be good for workers and their families,” Scott said in a statement Monday.

That’s because the CBO’s analysis also claims that 17 million Americans would see their wages grow, with 9 million being lifted out of poverty — supposedly.

The reality is, as we’ve seen, that higher mandated wages — that is, mandating that a business pay higher wages than it can reasonably afford — lead to two outcomes: Closure or lay-offs, which Democrats and Left-wing economists never address.

For instance, a 2016 study by the Harvard Business School found that restaurant closures increased markedly when San Francisco began to increase its minimum wage.

The study, released in April 2017, found “A $1 increase in the minimum leads to a 14% increase in the likelihood of exit for a 3.5-star restaurant.”

Previous research, including a 2006 study by Cornell University, found that Americans on the lowest economic rung are hit the hardest when minimum wages increase.

Also, the study found no correlated drop in poverty when minimum wages are increased.

A survey of economists released in 2015 found that nearly three-quarters of them, or 72 percent, opposed raising the minimum wage to $15 because they believe it would have a deleterious effect on the economy — and jobs.

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“The majority of surveyed economists believe a $15.00 per hour minimum wage will have negative effects on youth employment levels (83%), adult employment levels (52%), and the number of jobs available (76%),” MinimumWage.com reports.

“When economists were asked what effect a $15.00 per hour minimum wage will have on the skill level of entry-level positions, 8 out of 10 economists (80%) believe employers will hire entry-level positions with greater skills,” the site adds.

And there’s this: Why should the federal government be empowered to mandate what businesses pay workers in a supposed free republic?

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