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 1, 2026 11:40 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
Economic Mobility and the Cleveland Plan
Anthony Dent has a clever plan to improve economic mobility: move strategically unimportant federal departments and agencies to economically impoverished cities and towns across America. Republicans would support it because, well, they hate DC and favor “real” America. Democrats would support it because their cities and states would benefit disproportionately (think Atlanta, Michigan, or Illinois). Call it the Cleveland Plan after the city that exemplifies America’s decline. Not only does Cleveland routinely rank as one ofAmerica’s fastest-dying cities, but Clevelanders...
Can Faith Save Us? – Reflections on Lumen Fidei and Pope Francis
The day Pope Francis was elected, I went directly to the bar. It was about noon when I first got word that white smoke had been spotted outside of the Sistine Chapel. Soon after, my phone began to flood with texts declaring “Habemus Papam!” I called up a few of my Catholic friends and we decided that the best place to watch the announcement at St. Peter’s was none other than our favorite college pub. The bar was empty so...
How To Help Without Giving A Dime
Charitable giving, for the most part, involves money. But not always. The auto manufacturer, Toyota, donates efficiency. The pany’s model of kaizen (Japanese for “continuous improvement”) was one their employees believed could be beneficial beyond the manufacturing business. Toyota offered to help The Food Bank of New York, which reluctantly accepted their plan. The charity was used to receiving corporate financial donations to feed their patrons, not time from engineers. But the non-profit quickly saw results. Toyota’s engineers helped reduce...
The Death Of Detroit’s Middle Class
Detroit is bankrupt. The city government can’t pay its bills. Scores of empty houses and garbage-strewn lots greet anyone who drives down once-bustling streets. There is a lot of finger-pointing, and no easy answers. There are a lot of pieces to the puzzle of what went wrong in Detroit. At The Wall Street Journal, Steve Malanga has a few puzzle pieces to add, and they form the face of former-Mayor Coleman Young. Young was Detroit’s mayor for 20 years (1974-1994),...
Play Hard, Work Harder
Over at Think Christian, Aron Reppmann asks whether there is a distinctly Christian way to vacation: “We have learned to approach our work as vocation, a calling from God, but what about our leisure?” Reppmann notes that one major temptation in modern society is to view vacation as a form of escape. Put in your 40, week after week, and hopefully, in Week X of Month Y, you’ll be able to leave your day-to-day activities behind. Close your eyes, sip...
Contraceptive Mandate Divides Appeals Courts
Two different federal appeals courts have issued opposite rulings on whether Obamacare can pany owners to violate their religious beliefs by providing contraception and abortifacients to their employees. A divided panel of the U.S. Court of Appeals for the 3rd Circuit ruled that a Pennsylvania pany owned by a Mennonite family ply with the contraceptive mandate contained in the Affordable Care Act. The majority said it “respectfully disagrees” with judges in the U.S. Court of Appeals for the 10th Circuit...
Colonel Bud Day, the Hanoi Hilton, and the Problem with Military Secularism
Senator John McCain called Colonel George “Bud” Day, “The bravest man I ever knew.” Day (1925 -2013) was a veteran of World War II, Korea, and Vietnam. A Medal of Honor recipient, Day was shot down in his F-100 Super Sabre over North Vietnam in August of 1967. Ejected from his jet and severely injured, he continued to be a thorn in the side of the North Vietnamese for the remainder of the war. Tortured ruthlessly for information, he was...
The Fears Of Young Entrepreneurs
This case has been made that government attempts to manage economies through regulation, laws, and taxes discourage entrepreneurs entering into the marketplace. I recently asked Michael, a young entrepreneur in his 20s, what were some of his fears about being a entrepreneur in America. We’re not using his full name to protect his identity but this is what he had to say: AB: How did you develop an entrepreneurial spirit and what worries you about the future? Michael: For as...
Do Distributists Get Anything Right?
As David Deavel points out, free market economists and distributists “are often at each others’ throats.” Deavel is attempting to scrutinize distributism – what it is and what it isn’t – in a series at Intercollegiate Review. He claims that while distributism has its flaws, it has some valid points and there is much good to be found in the arguments of distributists. So what it distributism? Distributists like to describe themselves as an alternative or third way that avoids...
Affordable Care Act May Mean Less People Working
The official White House website says that all Americans will now have access to affordable medical care, and that small business owners need not worry about rising costs: The proposal will also provide tens of billions in tax credits for small business owners to make insurance coverage more affordable. Small businesses will also have a new option of purchasing insurance through the exchanges. By pooling their resources in the new insurance marketplace, small business owners will lower their costs and...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved