Minimum thinking

ANOTHER minimum wage hike is being debated, and Uncle Bernie is determined to make it happen this time. But while the Vermont senator can paint the idea as power to the people, the Congressional Budget Office has some new official numbers out this week.

The bag is mixed, to say the least. According to CNN:

“Raising the federal hourly minimum wage to $15 would reduce poverty—but would also cut employment by 1.4 million workers and increase the federal deficit by $54 billion over a decade, according to a Congressional Budget Office report released Monday. However, spending on Medicaid and unemployment benefits would increase because of higher enrollment by those who lose their jobs.”

As we’ve seen in cities and states that raise the minimum wage, those who keep their jobs are happy with the extra money. And those who lost their jobs as a result of the mandated pay increase are usually bitter. After all, the hourly rate for unemployed individuals is still $0. And there’s no trick Uncle Sam can pull to change that.

Raising 900,000 out of poverty is a noble goal. But it should be done by creating a strong economy and business environment where companies, from mom-and-pop shops to Fortune 500 corporations, can grow. Call it the free market.

Companies like Walmart, Amazon, and Target have been steadily increasing pay over the last few years, and they do it without mandates from Uncle Sam.

The other thing to keep in mind is having a uniform blanket minimum wage in every city doesn’t work. Maybe businesses in Little Rock are handling the hike to $11 an hour. But what about smaller operations in Jasper or De Queen?

Many Republicans and some Democrats—such as Sen. Joe Manchin (D-W. Va.)—are holding the line on this issue. They know $15 an hour would hurt businesses and send too many scrambling for new employment.

The CBO is bipartisan. Take another look at its data. Then perhaps share it with our elected officials in Washington.