House Democrats are moving ahead with a coronavirus relief bill, but Republicans and some moderate Democrats are pushing for them to consider a radical new idea: sending money only to people who actually need it.
It also appears that the Dems’ push to include a $15-an-hour minimum wage raise in the COVID bill is dead, but President Biden says he hopes to see it passed as a stand-alone bill. He and the bill’s supporters claim it will not destroy low-skill jobs, but on that claim, they stand alone. A number of studies, as well as practical experience in cities that have tried it, show that raising the cost of labor above what the market will bear results in layoffs, small business closures and starter-level jobs being automated.
Now, add to those problems a new report by the Congressional Budget Office, which estimates that nearly doubling the minimum wage to $15 an hour would result in a net loss of about 1.4 million jobs over the next four years. It raises the cost of doing business, which is passed on to consumers as higher prices, which causes them to cut back, resulting in less revenue to businesses which have to cut staffs, creating a downward economic spiral.
But I’m sure all those people will be able to find high-paying new “green jobs.” Just don’t ask Biden Press Secretary Jen Psaki when or where you might be able to apply for one of those.