Yellen backed 2014 report forecasting 500,000 lost jobs from minimum wage hike
Treasury secretary nominee Janet Yellen previously backed a 2014 report that found a $10.10 federal minimum wage could kill half a million jobs. On Tuesday, she claimed that a $15 minimum wage would result in “minimal” job loss.
Yellen testified before the Senate Finance Committee Tuesday morning, nearly two months after President-elect Joe Biden announced her nomination to head the Treasury Department. When Sen. Tim Scott (R., S.C.) criticized Biden’s plan to raise the minimum wage to $15, noting that it could “hurt our economy as much as it would improve our economy,” Yellen defended the proposal.
“I think that the likely impact on jobs is minimal,” Yellen said. “That’s my reading of the research.”
But Yellen endorsed a 2014 report from the nonpartisan Congressional Budget Office predicting up to 500,000 lost jobs as a result of a $10.10 minimum wage. While the Obama administration lambasted the report, Yellen defended the CBO, calling the agency “good at this kind of evaluation” and adding that she “wouldn’t argue with their assessment.” The CBO later found that a $15 minimum wage could kill as many as 3.7 million jobs, with total real family income dropping by $9 billion.
Biden has made a $15 minimum wage a key pillar of his economic package, but the policy is likely to face hurdles in an evenly split Senate. At least 10 Senate Republicans must back Biden’s proposal to avoid a filibuster, and many GOP lawmakers have already expressed their opposition. Sen. Pat Toomey (R., Pa.), for example, said that the proposal would cause “many low-income Americans” to “lose their current jobs and find fewer job opportunities in the future.”
Employment Policies Institute managing director Michael Saltsman echoed Toomey’s claim, telling the Washington Free Beacon that a $15 minimum wage would harm small businesses struggling to stay afloat during the coronavirus pandemic.
“It’s frankly irresponsible for the Biden administration to propose this at any time, but especially at a time when restaurants are dealing with huge 2020 losses, continued mandatory closures, and millions of jobs that haven’t come back since the start of the pandemic,” Saltsman said.
The Biden transition team did not return a request for comment.
by the Oklahoman Editorial Board
Thus it was no surprise that he parroted a Reagan trope in recently asking the question of whether Americans are better off today than when he took office — and then answering his own question by concluding that “the country is definitely better off than we were when I came into office.”
For Reagan, it was a campaign strategy drawn as a weapon against Jimmy Carter in 1980. Are you better off, he asked voters, than you were four years ago?
Such comparisons aren’t unique to Reagan and Obama, of course, but Reagan put his own stamp on it — quite successfully as it turns out.
“By every economic measure,” Obama told college students the other day, “we are better off than when I took office.” So not only has this president adopted the Reagan line (even crediting Reagan). He’s turned it into yet another example of repeated, robotic rhetoric in the endless campaign speeches made by a man “who is not running for anything except the exit,” in the words of Caroline Baum, a former Bloomberg News columnist. Continue reading
“In this day, when our freedom to worship is most precious, let us redouble our efforts to bring this and other greatest freedoms to all the peoples of the Earth.” (1988)
by Scott L. Vanatter
Ronald Reagan believed in Americans. He believed in the promise of America, that Americans possessed the inherent and acquired power to rise to the occasion. This, because of the overt and unique design of the Founders to foster freedom and responsibility. Reagan was optimistic about America’s future. He believed that when freedom flourishes, responsibility and accomplishment would naturally follow. (Sometimes to the astonishment and even delight of our greatest skeptics.) Others assume the opposite; they believe that force or coercion is necessary to accomplish their ends. Continue reading