Shipping News and Reviews

The finances bureau of the Congress places the thumb on the scales in its minimal wage forecasts

How did you do that? Dube notes that the most recent report "weighted more negative studies," although there has been evidence in at least one case since the negative study that the results are being challenged. Even a recent review of the available data by well-known opponents of minimum wage increases David Neumark and Peter Shirley "had a mean estimate of -0.15 for directly affected employees, less than half the CBO assumption, ”emphasized Ben Zipperer of the Economic Policy Institute.

Jesse Rothstein, an economist at the University of California at Berkeley and a former chief economist at the US Department of Labor, tweeted, “I don't see why CBO seems to be putting its thumb on the scales. But his estimates seem far from professional opinion. "

That's the baseline: the CBO picks the data that worsens a minimum wage hike – and still states that that would translate into a 10-year wage increase of $ 333 billion for low-wage workers and 900,000 fewer people in poverty.

Bernie Sanders, chairman of the Senate Budgets Committee, highlighted another strange shift in the CBO's projections for an increase in the minimum wage, saying in a statement: "I find it difficult to understand how the CBO concluded that an increase in the Minimum wage would increase the deficit by $ 54 billion. Two years ago, CBO concluded that a minimum wage of $ 15 would add less than $ 1 million to the deficit over ten years. In addition, several key studies by the Center for Wage and Employment Dynamics and the Economic Policy Institute have shown that raising the minimum wage would lead to a significant reduction in the deficit. "

Sanders went on to say that there is good news for the prospect of passing the Senate Increase Wage Through Reconciliation Act, “From a Byrd Rule perspective, the CBO has shown that raising the minimum wage has a direct and significant impact on the government would have federal budget. This means that under the rules of reconciliation we can clearly increase the minimum wage to USD 15 an hour. "

And it has to be reconciliation, because as Sanders also said: "We will never get 10 Republicans to raise the minimum wage through "regular order". Republicans support starvation wages. That won't change anytime soon.

Comments are closed.