One More Republican Needs to Goâthe Head of CBO
CBO Director Phillip Swagel testifies before the House Budget Committee, January 29, 2020.
As the
Prospect has reported, the Congressional Budget Office, supposedly a âneutralâ source of technical assessment, has completely misstated the net impact of a $15 minimum wage. The details are wonkyâcheck out EPIâs evisceration hereâbut basically CBO overstates costs, miscalculates the interaction between wages and prices, and understates benefits.
The benefits include reduced reliance on public assistance, increased tax revenues, and wage increases for a total of 27 million American workers. All of that would produce macroeconomic stimulus and generate jobs. Also, the $15 minimum wage is part of a $1.9 trillion stimulus package that itself will boost jobs, and the package needs to be understood as a whole.