White House Press Secretary Jen Psaki confirmed on Monday that President Biden remains “firmly committed” to a $15 federal minimum wage, despite projections for massive job loss as a result of the implementation. The nonpartisan Congressional Budget Office (CBO) estimated on Monday that such an increase to the minimum wage would slash upwards of 1.4 million jobs. Additionally, the office predicted a massive increase to the deficit, as well as a hike in consumer goods. From the CBO’s fresh report:
"The cumulative budget deficit over the 2021–2031 period would increase by $54 billion. Increases in annual deficits would be smaller before 2025, as the minimum-wage increases were being phased in, than in later years. Higher prices for goods and services—stemming from the higher wages of workers paid at or near the minimum wage, such as those providing long-term health care—would contribute to increases in federal spending...Employment would be reduced by 1.4 million workers, or 0.9 percent, according to CBO’s average estimate..."
Psaki clarified that a provision to increase the minimum wage would not be written into the next COVID relief package, but that the administration remains committed.
MINIMUM WAGE: Jen Psaki says, “The President remains firmly committed to raising the minimum wage to $15,” as relief package may not include a wage hike provision.
— Forbes (@Forbes) February 8, 2021
RELEATED: Biden Predicts $15 Minimum Wage Won’t Be In Relief Bill, Vows Separate Push https://t.co/ezN8gtkn7V pic.twitter.com/FJ0u6rlNn7
Senator Bernie Sanders (I-VT), who chairs the Senate Budget Committee, is a strong proponent of raising the minimum wage.
