One of Joe Biden’s top economic policy priorities could kill as many as two million new jobs, a new report finds.
Biden has championed a $15 minimum wage throughout his presidential bid. The Democrat’s website touts helping “get state and local laws increasing the minimum wage across the finish line” and calls it “well past time we increase the federal minimum wage to $15 across the country.” An analysis from the pro-free market Employment Policies Institute (EPI) found that a nationwide mandate for a $15 minimum wage—more than double the current federal rate of $7.25 per hour—could eliminate millions of jobs within its first six years.
Economists found that those job losses would fall mainly among vulnerable populations, with some of the heaviest cuts coming in low-skill or entry-level positions. Half of the two million jobs lost as a result of the policy will occur in the arts, entertainment, recreation and accommodation, and food services sectors. Texas is projected to be the hardest hit state—losing more than 370,000 jobs by 2027—followed by Pennsylvania, Florida, North Carolina, Ohio, and Georgia. The majority of jobs lost will be those held by women, the report shows.
“Not only are 59 percent of minimum wage jobs held by women and slated to be affected by these wage increases, this means that 1.2 million jobs held by women will be lost by 2027 due to this policy, accounting for 61 percent of total losses,” the report says.
EPI managing director Michael Saltsman said the Biden-backed policy would only exacerbate the financial woes of small businesses amid the pandemic. …
… The report builds on a similar 2019 Congressional Budget Office study by using its most recent economic forecasts, meaning it accounts for the coronavirus pandemic.