Report: minimum wage hike could cost American economy 1 million jobs

The Congressional Budget Office (CBO) has delivered yet another punch in the gut to the Obama administration’s agenda.

This week the CBO confirmed what many economists have said for years: raising the minimum wage to the proposed $10.10 would cost minimum wage workers their jobs. In fact, the CBO report says it is likely that 1 million minimum wage workers would lose employment.

That’s nearly one third of all minimum wage workers.

The report also points out that in addition to an astronomical jump in the unemployment rate for entry-level workers, any slight initial increase in tax revenue would eventually dry up and actually increase the deficit, and that the increase would raise prices for the entire country.

As we’ve already reported, though the minimum wage doesn’t effect many people, those who do work for the minimum wage are often the very ones who would be hurt by increasing it.

President Obama signed an Executive Order last week increasing the minimum wage for federal contract workers to $10.10 and has called on Congress to dictate that for the rest of the country.

Increasing the minimum wage is a favorite issue of the left, so we can be sure that their allies in the media will spin this CBO report. But perhaps this time the Obama Administration at least won’t pretend that the loss of jobs is a good thing, as they’ve actually tried to do with ObamaCare.