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
Nov 25, 2025 9:04 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
Trump to Davos: Reject the ‘prophets of doom’
President Donald Trump told the world’s foremost government and business leaders to reject the “prophets of doom” and follow “the great eback” during his speech to the World Economic Forum in Davos, Switzerland, today. President Trump gave a forthright call to unleash human creativity by embracing technological progress, energy exploration, lower taxes, deregulation, and the free market. “This is a time for tremendous hope, and joy, and optimism, and action,” the president told skeptical Davos attendees, who mostly sat in...
Acton Line podcast: Why we need Sir Roger Scruton’s true conservatism
When Sir Roger Scruton passed away at the age of 75 on January 12, the world lost a giant in philosophy. Scruton wrote approximately 50 books on topics ranging from food to music to conservative thought, and in 2016 he was knighted for his contribution to philosophy and education. On this episode, Acton’s Samuel Gregg explains the most important veins of Scruton’s thought, especially those related to political philosophy and the arts. Resources: “Roger Scruton: a year in which much...
Bernie Sanders tweets a recipe for exacerbating the housing crisis
Note: An expanded version of this post was released as this week’s Acton Commentary. This week, Democratic presidential hopeful Senator Bernie Sanders, I-VT, tweeted the following reaction to a story from The Economist describing rising American rent payments: This is a crisis. We need national rent control. — Bernie Sanders (@BernieSanders) January 19, 2020 Sanders is certainly right that we face a housing crisis. Prices for housing have continued to rise with the decline in housing stock relative to population....
FAQ: The U.S.-China ‘Phase One’ trade agreement
On Wednesday, President Donald Trump and Chinese Vice-Premier Liu He signed “Phase One” of a two-part trade agreement between the United States and China. Here are the facts you need to know. What does the new trade deal mean for both countries? The agreement cools, or at least pauses, the 18-month-long trade war between the two nations. The world’s two largest mit to opening their markets: The U.S. reduces tariffs, while China agrees to purchase a specific amount of goods...
6 quotes: Martin Luther King Jr.
Americans celebrate the third Monday of every January in honor of Rev. Martin Luther King Jr. However, his message of human dignity and racial equality inspired people worldwide, whether he delivered his sermons in Atlanta or Oslo. Below are six quotations that reflect his deepest beliefs and philosophy: On the source of human dignity: Deeply etched in the fiber of our religious tradition is the conviction that men are made in the image of God and that they are souls...
The apocalyptic style in 21st century environmentalism
We’ve just put online the Fall 2020 issue of Religion & Liberty, which looks at environmental stewardship and current problems in conservation from a number of aspects (get over to Acton’s Facebook page ment on the articles). In the cover story, I wrote about the demands for a “citizen’s assembly” to accelerate the agenda of the radical environmental organization Extinction Rebellion. Presumably, these new assemblies won’t involve elected bodies like the U.S. Congress or the Parliament of the United Kingdom:...
Samuel Gregg reviews ‘Islam: Menace or Challenge?’
In his new book, “L’Islam: menace ou défi?” (“Islam: Menace or Challenge?”), Bishop Dominique Rey addresses how Catholics in Europe can best respond to the growth of Islam throughout the continent. While Rey lays out various manifestations of Islam in the book, he chooses to focus mainly on Christianity rather than Islam, writes Samuel Gregg at The Catholic World Report. “Rey is more concerned with how Catholics respond to Islam’s growth throughout Europe.” Islam’s presence in Europe offers Catholics a...
Lunch lady equality: The fruits of Sweden’s ‘good socialism’
Sweden is often hailed for its sweeping cultural and political emphasis on the equality of all things. But while the popular discourse tends to center on its progressive economic policies and far-reaching public services, the country’s focus on fairness stretches across the spheres of Swedish society—including, more recently, its school cafeterias. At a local school in Falun, head cook Annica Eriksson was ordered by city officials to pursue a bit more mediocrity in her cuisine. Her food was good—too good....
2019 Best sellers: Surprises in the Acton Book Shop
Book sales data is hard e by. Publishers keep their sales numbers close to their chest. The information is valuable. It shapes which authors, designers and editors publishers cultivate as well as which topics, genres and formats they invest in. It reveals the effectiveness of marketing and advertising as well as the weight of a review. In this respect, even the worst sellers provide high quality information. Best seller lists, such as The New York Times, are the products of...
Donald Boudreaux on why Oren Cass’s comparative advantage is not discussing comparative advantage
Last week I wrote about the basic economic illiteracy behind of Oren Cass’s case for industrial policy. So basic were the mistakes that I thought perhaps I had misread Cass’s argument. Like the villainous Mugatu from edy Zoolander I asked myself, “Doesn’t anybody notice this? I feel like I’m taking crazy pills!” Thankfully the economist Donald Boudreaux, former economics-department chair at George Mason, writing today for AIER has reassured me that Oren parative advantage is not his discussion parative advantage:...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved