Report: $15 minimum wage could cost 1.4 million jobs but lift 900,000 out of poverty
A new Congressional Budget Office report on the Biden administration's proposed $15 minimum wage hike delivers some bad news for the new president: enacting the raise would cause about 1.4 million jobs to be lost, higher prices on some goods and an increase in the federal deficit. On the other hand, the report also says the minimum wage increase would pull 900,000 Americans out of poverty -- a figure that proponents of the increase are already highlighting.
The White House pushed back on the report's assessment, saying that was "overstated" and that other research shows "at most, a modest effect on employment." The administration is, however, embracing other aspects of the report, touting that 27 million workers could benefit from the wage increase. A White House spokesperson said that the president believes that no American should work full-time and live in poverty or struggle to make ends meet, and also touted the benefits to individuals and to the economy.
But the risk of a 0.9% job loss could be a tough pill for the White House to swallow. Asked Monday about the report, White House press secretary Jen Psaki said only that she didn't have a chance to review it with the White House economic team before the briefing.
The minimum wage increase is included in Biden's $1.9 trillion COVID-19 relief package. The administration has portrayed it as a way to help essential frontline workers who have to risk themselves to virus exposure to keep things like grocery stores and restaurants running during the pandemic.
-ABC News' Sarah Kolinovsky and Mary Bruce





