February 8th local time, the U.S. Congressional Budget Office (CBO) said that U.S. President Biden’s proposal to raise the minimum hourly wage for workers to $15 per hour by June 2025 will reduce the United States by 1.4 million jobs by then and make the U.S. fiscal deficit between 2021 and 20 It has increased by 54 billion US dollars in 10 years in 31 years.
The office said that although the salary increase proposal will increase workers’ wages by $333 billion between 2021 and 2031, it also means that the labor costs of enterprises will increase accordingly.
In addition, higher wages will raise the prices of goods and services, and the federal government’s spending will have to rise, which will lead to a further increase in the U.S. fiscal deficit.
In response, Republicans in Congress opposed raising the minimum hourly wage, believing that this behavior would impose an undue burden on American enterprises and reduce employment opportunities.
White House press secretary Pusaki said at a press conference on the 8th, “The president remains firmly committed to raising the minimum wage to $15, which is why he included the minimum wage in his first legislative proposal.”
At present, members of the U.S. Senate have not decided whether to include the proposal to raise hourly wages in Biden’s $1.9 trillion coronavirus relief plan.