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 13, 2026 8:10 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
Business is bad. Can it also be good?
There are many reasons to critique business these days. From crony capitalist practices to surveillance capitalism and data collection, from abuse of the environment for short term profits to siding with the fashionable for short term praise at the expense of religious freedom and long term cultural health. Business and corporations deserve much of the condemnation they receive. As Adam Smith wrote in The Wealth of Nations People of the same trade seldom meet together, even for merriment and diversion,...
New York’s rent regulations: people over profit?
Last week, the New York State Legislature arranged a series of regulations designed to protect tenants and control rents. This action was quickly repeated by the California Assembly, which passed a rent-cap bill, both following in the footsteps of Oregon’s statewide rent control law enacted this past February. Landlords in New York City were quick to argue that the new legislation would cost local construction jobs and prevent owners from making needed repairs, leading to buildings in disrepair. Nevertheless, these...
Beyond Bolsonaro: A freedom surge in Brazil
Those who argue that the recent victory of President Jair Bolsonaro in the 2018 Brazilian presidential elections represent an authoritarian shift are highly mistaken. On the contrary, liberalism has never been as strong and vibrant in Brazil as it is in the present moment. While some “intellectuals” and most of the media — in Brazil and internationally — keep characterizing Bolsonaro’s victory as a sign of increasing intolerance and alt-right politics (because of a few unfortunate declarations during his campaign)...
Fiscal policy: The best case scenario
Note: This is post #125 in a weekly video series on basic economics. When and why does the government might engage in expansionary fiscal policy? When does the government increase spending, or decrease taxes, bat a recession? In this video by Marginal Revolution University, Tyler Cowen examines some of the government’s options, from doing nothing to taking steps to increase thevelocity of moneyand thereby increase aggregate demand. (If you find the pace of the videos too slow, I’d mend watching...
Philip K. Dick, Lord Acton, and the nineteenth century that never ended
The American science fiction author Philip K. Dick was a strange guy. In addition to being a prolific author of many science fiction classics like The Man in the High Castle, Do Androids Dream of Electric Sheep?, and Minority Report (All these and many more adapted for film and television) he was also a prolific diarist. Many of these diary entries were edited and published as The Exegesis of Philip K. Dick in 2011. A recurring theme in these diary...
What’s missing from the UK prime minister’s race? A British view
The 313 Conservative MPs held the second round of voting to elect the new leader of the Conservative Party and prime minister of the United Kingdom. Each of the six remaining candidates – Boris Johnson, Jeremy Hunt, Michael Gove, Dominic Raab, Sajid Javid, and Rory Stewart – had to receive at least 33 votes to advance to the next round. The results, which were announced around 6 p.m. London time, were as follows: Johnson: 126;Hunt: 46;Gove: 41;Stewart: 37;Javid: 33; andRaab:...
The board gaming boom: Reviving face-to-face play in a digital age
The rise of board games is making headlines (just check out some of the stories here, here, here, here, and here). Despite massive disruption by online- and mobile-based gaming, many consumers seem to still enjoy the face-to-face interaction and experience of tabletop games. As the market responds, and as technology and globalization continue to open the playing field to petitors and genres, what might we learn about the prospects munity in an otherwise digital age? There are many theories about...
Why the national debt is an intergenerational injustice
Note:This article is part of the ‘Principles Project,’ a list of principles, axioms, and beliefs that undergirda Christian view of economics, liberty, and virtue. Clickhereto read the introduction and other posts in this series. The Principle: #21A – National debt is almost always an unjust form of an intergenerational wealth transfer. The Definitions: National Debt — The federal or national debt is the net accumulation of the federal government’s annual budget deficits; the total amount of money that the U.S....
Trump’s tariffs could lead to a Bible shortage
At his campaign rally last night President Trump vowed that he’d make “America wealthy again.” But the taxes he’s imposed on Americans in the form of tariffs are making America poorer—both materially and spiritually. When Trump imposed tariffs on China last year I mentioned that in 2019 the tax would cost households to suffer losses equivalent to $2,357 per household (or $915 per person). Since then we’ve found that the tax increase may have other harmful effects, including causing a...
Acton Line podcast: Why Marxism is still alive; The legacy of Aleksandr Solzhenitsyn
On this episode of Acton Line, Romanian author and public intellectual, Mihail Neamtu, joins the show to talk about what he calls the “ghost” of Marxism. What defines Marxism and what remnants of the ideology are we seeing today? After that, Daniel J. Mahoney, writer and professor of politics at Assumption College, speaks with Acton’s Director of Communications, John Couretas, about the legacy of the 20th century Russian writer, Aleksandr Solzhenitsyn. Solzhenitsyn’s writings are said to have contributed greatly in...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved