The CBO has just released a report saying that a $10.10 minimum wage would eliminate 500 thousand jobs. It also found that the wage increase wouldn’t be precisely targeted at poverty:
The increased earnings for low-wage workers resulting from the higher minimum wage would total $31 billion, by CBO’s estimate. However, those earnings would not go only to low-income families, because many low-wage workers are not members of low-income families. Just 19 percent of the $31 billion would accrue to families with earnings below the poverty threshold, whereas 29 percent would accrue to families earning more than three times the poverty threshold, CBO estimates.
Last April, Wonkblog published a piece entitled “Five Myths about the Minimum Wage.” As a whole, it is representative of how the left views the minimum wage, and you could hear echoes of the same talking points in President Obama’s recent State of the Union. Myth number three was: “Raising the minimum wage increases unemployment.” The CBO, at least, thinks otherwise. Will the party of science now recant and admit the tradeoffs here? Or will we be treated to another round of congratulations in which those job losses are understood as liberations?