$15 minimum wage would boost pay for 17 million but 1.3 million would lose their jobs, CBO says

Raising workers wages to $15 minimum per hour would offer several Americans a hike but at the same time would also result in smaller no. of people losing their jobs, as per projections released on Monday.

Hiking the wage floor to a $15 minimum for every hour by the year 2025 would increase wages for around 17mn US workers but would also put nearly 1.3mn people out of work, estimates the nonpartisan Congressional Budget Office (CBO).

House Democrats had previously unveiled a bill to eventually hike the federal US minimum wages to a $15 every hour by the year 2024. The party argued that this move would reduce poverty among workers and boost economic growth as well.

However, the opponents of the wage hike argue that doing so would reduce the no. of positions available for the minimum wage people amid the higher costs.

The House may vote on the bill, known as Raise the Wage Act sometime later in July. It’s expected that the bill may pass although it may be opposed by Grand Old Party (GOP)-held Senate as well as US President Donald Trump.

Although the bill might not become a law, the Democrats consider it a way to showcase themselves as superior for working class in comparison to the Republicans as 2020 presidential elections approach. Over 200 Democrats have supported the bill.

Notably, 29 states as well as Washington DC have high minimum wages in comparison to the federal $7.25 wage level. In fact, 7 states have also approved $15 every hour pay floors.

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