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 10, 2026 1:31 AM

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
Miller: Here I Come to Save the World Bank
In The American Spectator, Acton Institute’s Michael Matheson Miller throws his hat into the ring as he launches a tongue-in-cheek candidacy for World Bank president, but also raises serious questions about the institution’s poverty fighting programs. Miller is a research fellow at Acton, where he directs PovertyCure, an initiative that promotes enterprise solutions to poverty. Jeffrey Sachs — are you listening? Here are some planks from Miller’s campaign platform: I don’t believe that foreign aid is the solution — or...
Europe: A Turtle on its Back?
Would dissolving the mon currency, as proposed by the French free-market economist and entrepreneur Charles Gave in his bookLibéral mais non coupable(“Liberal But Not Guilty”) free the Old Continent to stand upright on its financial feet again?Or would dissolving the currency drastically end the European project altogether, as some pro-Euro technocrats in Brussels fear? Charles Gave, the chairman of the investment firmGaveKal, (and whose lecture I listened to at a 2011 Acton Conference Family Enterprise, Market Economies, and Poverty in...
Private Charity: A Practitioner’s View
There are only a few days left to register for the AU Online session, Private Charity: A Practitioner’s View! This online session will take place on March 27 and feature highly-rated Acton lecturer and current U.S. Regional Facilitator for Partners Worldwide, Rudy Carrasco. In a lecture that blends the theoretical with real-life encounters and stories, Rudy shows how using local knowledge and resources unavailable and unsuited to public agencies is vital for effective charity. Why wait to hear Rudy speak...
Can Fair Trade End Poverty?
Which does a better job helping the impoverished peoplearound the globe—free trade or fair trade? The American Enterprise Institute recently held a debate on that topic at John Brown Universityentitled “Free Trade vs. Fair Trade: What Helps the Poor?” Click here to watch the debate between scholars Claude Barfield, Paul Myers, and Victor Claar. In the debate Dr. Claar raises concerns about both the logic and economic reasoning underlying the fair trade movement. He also expands on that theme in...
John Locke and the Contraceptive Mandate
Michael Gerson on what the Obama administration’s view of religious liberty shares with John Locke: One tradition of religious liberty contends that freedom of conscience is protected and advanced by the autonomy of religious groups. In this view, government should honor an institutional pluralism — the ability of people to associate, live and act in accordance with their religious beliefs, limited only by the clear requirements of public order. So Roger Williams ed Catholics and Quakers to the Rhode Island...
Which Vocations Should Be Off Limits to Christians?
The Reformation doctrine of vocation teaches that even seemingly secular jobs and earthly relationships are spheres where God assigns Christians to live out their faith, notes Gene Veith. But are there some lines of work that Christians should avoid? God himself works through human vocations in providential care as he governs the world. He provides daily bread through farmers and bakers. He protects us through lawful magistrates. He heals us by means of physicians, nurses, and pharmacists. He creates new...
HHS Mandate Fits Bigger Pattern
Both the original promise versions of the Obama administration’s health insurance mandate (the HHS mandate) coerce people into paying, either directly or indirectly, for other people’s contraception. The policy may have been pushed along by exigencies of Democratic Party constituency politics, but I suspect there’s also a worldview dimension to the mandate, one embodied in one of President Obama’s more controversial appointments—Science and Technology Policy Director John Holdren. Holdren, as far as I know, wasn’t involved in crafting President Obama’s...
Does the Vatican think water should be ‘free’?
Not surprisingly, the Pontifical Council for Justice and Peace (PCJP)’s latest document on water has garnered scant media attention. Why, after all, would journalists, already notorious for their professional Attention Deficit Disorder and dislike of abstract disputation, report on something named “Water: An Essential Element of Life,” especially when it is nothing more than an update of a document originally released in 2003, and then updated in 2006 and 2009, with the exact same titles? Back then, First Things editor-in-chief...
Obama Administration Actions Affecting Religious Freedom
“The past year has marked a shift in religious liberty debates,” notes Sarah Pulliam Bailey at Christianity Today, “one that previously centered on hiring rights but became focused on health care requirements.” Bailey put together a helpful timeline that shows a number of actions the government took in the past year, setting precedents and priorities on various issues affecting religious freedom. ...
The Social Muddle
Over on The American Spectator website, Acton research fellow Jonathan Witt explains that contrary to the misunderstanding of many on the political and religious left,business, justice, and the Gospel are already social: The adjective that economist Friedrich Hayek famously called a “weasel word” is alive and well in the feel-good phrasessocial business,social justiceandthe social gospel. In all three of these phrases, mon weasel word sucks some of the essential meaning out of what it modifies by implying that business, justice,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved