UPDATED 1:48 PM PT – Friday, January 22, 2021
A pay raise may sound nice in theory, but Joe Biden’s plan to boost federal minimum wage might actually do more harm than good.
Biden and other Democrats have been long proponents for setting the national minimum wage to $15 an hour, but economists warn that action does not come without consequences.
“Lets say you have five employees. They’ll make less than $15, but now they’ll have to make $15. You’re not going to be able to afford all of those five employees,” Macro Strategist Mitch Roschelle said. “You may have to lay one person off and try to get more productivity out of the remaining people who you are now paying more too. That is just the reality of how businesses work. ”
It’s long past time to raise the minimum wage, so hardworking people earn at least $15 an hour.
I hope that Democratic control of the House and Senate will ensure prompt action to get it done.
— Joe Biden (@JoeBiden) January 12, 2021
According to a recent report by the Congressional Budget Office, such a move would cost the U.S. around one million jobs.
The move to increase minimum wage comes as many businesses are already on the brink of collapse due to Democrat imposed shutdowns, which appear to have no end in sight.
“I believe there’s a way to do it safely and we shouldn’t just shut them down,” New York resident Paul Rowe said.
Experts said minimum wage should not be a one size fits all approach, but rather should be adjusted according to individual cities and cost of living.