The Congressional Budget Office published a report analyzing the economic impact of the “Raise the Wage Act of 2021,” a bill proposed in January that would increase the federal minimum wage from $7.25 to $15. The report found that the increase would reduce overall employment by 1.4M workers but also reduce the number of people living in poverty by 900k (source), providing support for both critics and proponents of the legislation.
More context: An increase to the federal minimum wage has been the subject of ongoing debate and was initially included in the Biden administration’s $1.9T coronavirus relief proposal.
Extra: The Congressional Budget Office (CBO) is a non-partisan federal agency that provides budget and economic analysis to Congress.
The New Paper
This story is from the February 9, 2021 edition of The New Paper – a clear, concise daily briefing that makes fact-first news easy to consume. Try it today.
