The Lesson Florida can learn from the CBO’s report on minimum wage
Bottom Line: What’s the fastest way to the unemployment line for over a million Americans? Raising the minimum wage to $15 per hour. This according to the recently released CBO report analyzing the House Democrats proposal to raise the federal minimum wage to $15 per hour. According to CBO estimates,1.3 million Americans would likely lose jobs were that to happen – though the high end of the range was as high as 3.7 million based on the state of the economy overall. Yes, the CBO did state that an average of 17 million Americans would earn more but it’s hard to suggest that 17 million Americans getting a raise is worth at least 1.3 million earning nothing. And this doesn’t even address the other issues, such as higher inflation due to the artificial increase in the cost of labor that would erode into the increased earnings of those who’d earn more.
Essentially, it’s like this. Raise the minimum wage, kill jobs and raise the cost of living for all Americans. Only the economically illiterate would think that makes any sense...or that having the same minimum wage in Dothan, Alabama that you do in New York City makes sense. But again, this isn’t about good policy, it’s about politics that appeals to the ignorant in our society. As I’ve laid out previously, fewer than 1% of Americans earn minimum wage. Of those who do the average age is under 22 and working part-time. The living wage arguments are bull crap political talking points. Part-time minimum wage jobs are opportunities for entry level unskilled employees to gain skills and opportunity. So, let’s take this back home to our situation in Florida.
Attorney John Morgan is currently behind the progressing movement to get the $15 minimum wage proposed constitutional amendment on next year’s ballot. Based on the CBO’s estimates I can now breakdown their math to give you the view of the destruction to Florida’s economy it would bring about. Using Florida’s population, minimum wage and labor market participation,Florida would see the following occur:
- 1.15 million would receive a raise
- 88,400 – 251,600 jobs lost
- Increase in cost of living for 21.3 million
Sound like a good idea for you? There are two sides to stories and one side to facts. I’ll continue to deliver the facts. I really am for the people.