Monday, February 08, 2021
Hundreds of thousands of jobs at risk
Study criticizes Biden’s record minimum wage
In the USA, the national minimum wage is the equivalent of six euros. The new US president aims to double the hourly wage. Economists confirm Biden that the number of the poor could fall by almost a million. At the same time, however, hundreds of thousands of jobs would be threatened.
According to an analysis by the independent budget bureau of the US Congress, President Joe Biden’s aim to double the minimum wage would destroy hundreds of thousands of jobs. If the nationwide minimum wage were to increase gradually to $ 15 per hour by 2025, as proposed, 1.4 million jobs would be lost, the analysis said. At the same time, the number of people living in poverty in the US would decrease by 900,000.
The national minimum wage in the US is currently $ 7.25 (six euros). There are also higher limits in some states. The economically strong New York, for example, has already decided to gradually increase the minimum wage to $ 15. According to a bill, the Democrats want to gradually raise the nationwide minimum wage to $ 15 by 2025, followed by increases based on the average wage development of all workers. But the Democrats would also need the support of several Republicans in the Senate for a pass, which seems unlikely.
Biden is fighting for full-time jobs
The Budget Bureau (CBO) said the planned increase in the national minimum wage would add a total of $ 54 billion to the U.S. budget deficit by 2031 – a small amount relative to the annual budget of more than $ 4 trillion. Biden is committed to increasing the minimum wage. His spokeswoman Jen Psaki said the president is working to ensure that people who work full-time in America do not have to live in poverty.
The hope of a quick economic recovery in the USA through a massive aid package drove the New York stock exchanges to new record highs at the beginning of the week. The prospect that the US $ 1.9 trillion economic stimulus program could be launched in the coming weeks, said stockbrokers, was the main reason for buying mood. But statements by US Treasury Secretary Janet Yellen that the country would achieve full employment again next year if Congress approves the Corona aid fueled confidence.