Yellen: Minimum Wage Increase Would Cost Jobs

Image: Yellen: Minimum Wage Increase Would Cost Jobs

Friday, 09 May 2014 09:09 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Federal Reserve Chair Janet Yellen, in congressional testimony Thursday, backed the Congressional Budget Office (CBO)'s estimate that President Obama's proposal to lift the minimum wage would cost 500,000 jobs.

Obama wants to see an increase to $10.10 from the current rate of $7.25. The CBO also estimates that such a hike would lift 900,000 people out of poverty.

"I think almost all economists think that the minimum wage has two main effects," Yellen said, according to The Christian Science Monitor. The first is an increase in pay for low-paid workers, and the second is that "there would be some amount of negative impact on employment."

Editor's Note:
New Warning — Stocks on Verge of Major Collapse


The size of that impact represents a matter of "considerable debate," Yellen said. But, "I wouldn't argue with their [the CBO's] assessment," she said. "They're good at this kind of evaluation."

The White House said the CBO overestimated job losses.

As for the positive side of a minimum wage increase, "a large number of individuals would see their incomes raised as a consequence," Yellen said. "I think that's the trade-off."

David French, top lobbyist for the National Retail Federation, criticized efforts by Democrats in Congress to put Obama's proposal into law.

"It is thoroughly a political exercise and our goal is to create a strong economy across the entire industry," he told CNNMoney. "Our concern with the minimum wage increase at this time is it didn't meet that standard."

Editor's Note: New Warning — Stocks on Verge of Major Collapse

Related Stories:

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Experts: Retailers Likely to Just Meet Holiday Sales Forecasts

Wednesday, 24 Dec 2014 16:18 PM

U.S. consumers have not turned out in force for the final shopping days before Christmas, suggesting that traditional re . . .

More 'Help Wanted' Signs Up at Small Businesses

Wednesday, 24 Dec 2014 11:52 AM

If you're looking for signs that the U.S. economy is growing and that the job market is improving, just talk to small bu . . .

Jobless Claims Fall to Seven-week Low

Wednesday, 24 Dec 2014 10:57 AM

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, underscoring the econom . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved