CBO Report Warns of "Disastrous" $15 Minimum Wage

In the 2020 Presidential election, Floridians in large numbers voted to raise the minimum wage to $15. This has long been a controversial political discussion because of the positive and negative arguments made pertaining to the impact the change would have on the economy. While many have championed the vote to raise the minimum wage, Republicans in the Sunshine State are wary of the implications it could have on Florida’s economy.

This week, the Congressional Budget Office released a report indicating that a $15 minimum wage would have disastrous economic impacts. Some of those impacts include that “the cumulative budget deficit over the 2021-2031 period would increase by $54 billion,” there would be “higher prices for goods and services – stemming from the higher wages of workers paid at or near the minimum wage, such as those providing long-term health care – would contribute to increases in federal spending,” and “changes in employment and in the distribution of income would increase spending for some programs (such as unemployment compensation), reduce spending for others (such as nutrition programs), and boost federal revenues (on-net).”

The Biden Administration on a number of occasions has fully affirmed that it is fully committed to increasing the federal minimum wage to $15, but Florida Senator Rick Scott (R) has responded to the CBO’s report, warning that “President Biden continues to push his job-killing agenda, including a $15 minimum wage, despite all evidence showing that it will devastate our economy and small businesses.”

Noting that, “just last week Senate Democrats overwhelmingly joined Republicans in voting against raising the national minimum wage to $15 during the pandemic,” Scott called for Democrats to “work on creating a strong economy so every family has the opportunity.”

Instead, the former governor of Florida believes that the other side of the aisle is “making every attempt to kill the American Dream and destroy small businesses.”