CBO Says $15 Minimum Wage Would Be Mostly Positive

The Congressional Budget Office has published a new report on the $15 minimum wage.¹ Unusually for the CBO, it was a little hard to dig out all the relevant numbers, which means I had to read the whole thing fairly carefully. That’s very annoying, isn’t it?

Anyway, here are the main takeaways:

  • Families below the poverty line would see a 5.3 percent increase in earnings. Families above the poverty line would see a 0.1 percent reduction in total income.
  • Wages would rise for more than 20 million workers. However, among adults, 700,000 would lose their jobs. Many of these would be part-time workers, but CBO doesn’t put a number on it.
  • Total wages for workers would rise by $44 billion (accounting for both higher wages and increased joblessness). Income for business owners would fall $14 billion.
  • Consumers would pay higher prices amounting to a total of $39 billion. That’s an increase of about 0.3 percent.

Very few policy proposals are literally 100 percent positive, and the $15 minimum wage is no exception: a small number of low-income workers would lose their jobs and the affluent would pay slightly more for the stuff they buy. However, this is about as positive as you can expect in the real world. It’s a pretty small tradeoff for a 5 percent income boost for 20 million people.

¹The report also analyzes proposals for a $10 and $12 minimum wage, which I’m ignoring here.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate