Home
/
RELIGION & LIBERTY ONLINE
/
Democrats propose to eliminate over a million jobs held by the working poor
Democrats propose to eliminate over a million jobs held by the working poor
Jan 16, 2026 5:26 PM

The Democratic presidential candidates are in agreement on a proposal to eliminate 1.3 million jobs nationwide.

That’s not the way they would frame the issue, of course. Saying that you will eliminate over a million jobs held by the poorest people in America is not exactly a winning message. Instead, they frame it as a pay increase—a doubling of the federal hourly minimum wage from $7.25 to $15 by 2025. Will Americans be fooled?

The Congressional Budget Office(CBO), an independent, nonpartisan federal agency within the legislative branch that provides analyses of budgetary and economic issues to support the Congressional budget process, released a new report titled, “The Effects on Employment and Family e of Increasing the Federal Minimum Wage.” According to the report, in an average week in 2025, the $15 option would boost the wages of 17 million workers who would otherwise earn less than $15 per hour. Another 10 million workers otherwise earning slightly more than $15 per hour might see their wages rise as well.

But 1.3 million other workers would e jobless, according to CBO’s median estimate. There is a two-thirds chance that the change in employment would be between about zero and a decrease of 3.7 million workers. CBO’s estimates are based on the median values of likely ranges for wage growth and the responsiveness of employment to changes in wages. As the report notes, the likely ranges for the responsiveness parameter are not symmetric: That value has an equal chance of being smaller or larger than the median, but if it is larger, it could be substantially larger.

In other words, there is about an equal possibility that the raise would be smaller—maybe a few hundred thousand jobs lost. And there is the equal possibility that it would eliminate as many jobs as were created in all of 2018 and half of 2017. Here’s a chart from the report that shows the range.

Guess which end of the range the Democrats will focus on?

The Democrats will rely on the innumeracy of the average American to sell the destructive policy. They are counting on the typical voter to think that the effect of the wage increase will likely be close to zero. Voters won’t know the e until it’s too late.

If we want to help the poor a better approach would be to leave the minimum wage alone and increase the Earned e Tax Credit (EITC). As the CBO report finds, an increase in the credit amount available in the EITC would go almost entirely to e families, whereas an increase in the minimum wage raises earnings for many workers who are not in e families as well. For example, roughly 40 percent of workers directly affected by the $15 option in 2025 would be members of families with e more than three times the federal poverty threshold.

Why isn’t the EITC the more attractive option? Because, as the report states, increasing the EITC would require bination of increased taxes, reduced spending in other areas, or larger budget deficits. It’s easier to raise the minimum wage and pretend that business will bear the cost than to make a change that would require sacrifice. Unfortunately, neither party is currently willing to do what is right for the working poor. But we can at least try to stop them from putting more poor people out of work.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Continuing to Remember the Poor
All they asked was that we should continue to remember the poor, the very thing I had been eager to do all along. Galatians 2:10 NIV This video is part of an extended interview with Rev. Dr. John Dickson (Director, Centre for Public Christianity and Senior Research Fellow, Department of Ancient History, Macquarie University) for The Faith Effect, a project of World Vision Australia. (HT: Justin Taylor) Update: I should also add that a useful collection of primary texts on...
For the tax-weary: a free e-book from Acton!
Since your wallets are probably a bit lighter due to Tax Day here in the United States, Acton wants to help out by giving you a free e-book: Globalization, Poverty and International Development. Just follow the link, Globalization, to get our monograph from Lord Brian Griffiths delivered free to your Kindle or e-reader. This offer is available beginning at 3 a.m. EST, 4/17/12 until 3 a.m. EST, 4/19/12. ...
U.S. Appeals Court Opinion Criticizes Supreme Court Precedents That Undermine Economic Freedom
Legal scholar Orin Kerr provides excerpts from the concurring opinion today in Hettinga v. United States, in which Judge Janice Rogers Brown (joined by Judge Sentelle) argues that the Supreme Court should overturn its rational basis caselaw in the economic area and return to a Lochner-era regime of judicial scrutiny for economic regulations: The practical effect of rational basis review of economic regulation is the absence of any check on the group interests that all too often control the democratic...
The Paradox of Public Education
Schools are controlled by the government, but they serve munities with niche needs, says Paul T. Hill, founder of the Center on Reinventing Public Education. Is there a way that education be publicly funded but privately managed? Public education struggles with two conflicting facts. First, public schools are small craft organizations that require close teamwork and constant adaptation to the unpredictable development of students. Second, they are government agencies always subject to constraints imposed through politics and legal processes. In...
What Sam Spade Can Teach Social Entrepreneurs
The noir heroes like Sam Spade in “The Maltese Falcon” served as models for a generation of Americans, says David Brooks. The new generation of apolitical social entrepreneurs could learn from them too: . . .[T]he prevailing service religion underestimates the problem of disorder. Many of the activists talk as if the world can be healed if we could only insert more passion and resources into it. History is not kind to this assumption. Most poverty and suffering — whether...
Finding the Proper Balance Between Subsidiarity and Solidarity
Subsidiarity has es shorthand for smaller government, while solidarity is now shorthand for expansive government. But as Msgr. Charles Pope explains, there is more nuance to the terms than the reductionist slogans suggest: Precise meanings have been lost – The problem that has emerged is that Catholics, and others, have taken these terms into the political arena and, as might be expected, these rather careful and nuanced Catholic terms have been reduced more to slogans, and are fast losing their...
Can Anything Good Come from Hollywood?
How mon good and prosperity e from an unlikely place. An interview with Gary Stratton by Jon Hirst. Today we share an interview with Gary David Stratton, PhD, Chairman of the Christian Ministries Department at Bethel University, Teaching Pastor at Basileia Hollywood, Senior Editor at , and Director of the Hollywood Bezalel Initiative. You can follow Gary on Twitter @GaryDStratton. What happens when you mix Hollywood, the local church and academia? Few would imagine such a concoction, but that amazing...
Samuel Gregg — Benedict XVI: God’s Revolutionary
The pope turns 85 today. On the website of Crisis Magazine, Acton Research Director Samuel Gregg looks at this most prominent of “status-quo challengers.” While regularly derided by his critics as “decrepit” and “out-of-touch,” Benedict XVI continues to do what he’s done since his election as pope seven years ago: which is to shake up not just the Catholic Church but also the world it’s called upon to evangelize. His means of doing so doesn’t involve “occupying” anything. Instead, it...
Catholic Bishops Defend Religious Liberty
The United States Conference of Catholic Bishops’ (USCCB) Ad Hoc Committee for Religious Liberty released an Easter week statement titled “Our First, Most Cherished Liberty.” The document outlines recent threats to religious liberty in the States and abroad while endorsing an ing “Fortnight for Freedom” to defend what it calls “the most cherished of American freedoms.” We suggest that the fourteen days from June 21—the vigil of the Feasts of St. John Fisher and St. Thomas More—to July 4, Independence...
Slum Dwellers in India Save for Private Schooling
As Michelle Kaffenberger points out, parents in the poorest parts of India share a concern of many Americans: Their children don’t actually learn much in the public schools. A recentEconomistarticle states that between a quarter and a third of school children in India attend private schools. In India’s cities, experts estimate as many as 85 percent of children attend private schools. According toanother report, 73 percent of families in Hyderabad’s slum areas send their children to private schools. Additionally, private...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved