The minimum wage is a top priority issue for Democrats, who are looking for ways to increase November turnout by low-income voters, including many African-Americans and Hispanics.
Good studies show that a wage increase to $10.10 an hour, up from $7.25, would have no impact on employment, said Jason Furman, the chairman of the president’s Council of Economic Advisors.
“Zero [job losses] is a perfectly reasonable estimate,” Furman said Feb. 18.
Instead, the wage increase will improve workers’ diligence and productivity, he said, adding that “the [CBO] report very much does make the case for a policy that benefits more than 16.5 million workers.”
“CBO confirms that many millions of workers with low or modest incomes would get significant income gains… for virtually no budget cost,” said Robert Greenstein, president of the Center on Budget and Policy Priorities, a left-of-center think-tank.
“The number of workers [who gain is] 50 times the number of workers on the job-loss side,” he added.
His group estimates that a minimum-wage increase would create 85,000 more jobs that it would eliminate, because low-wage workers would have money to spend in the market.