(Associated Press) A report by Congress’ nonpartisan budget analysts seems to have thrown Democrats onto the defensive after it concluded that the party’s drive to boost the federal minimum wage could cost a half-million jobs by 2016.
A Congressional Budget Office report released Tuesday concluded that a gradual increase to $10.10 hourly by that year – which is what President Barack Obama and congressional Democrats are seeking – would increase pay for more than 16.5 million people, mostly those earning low wages. It also would lift 900,000 people over the federal poverty threshold, the study said.
Democrats hailed those findings. But in a congressional election year in which the slow-recovering economy remains a paramount issue, Democrats from the White House to Capitol Hill contested another of the report’s conclusions: that the increase would reduce jobs in 2016 by roughly 500,000, or 0.3 percent.