Democrats might need to settle for a $11-per-hour minimum wage, Goldman Sachs says

SourceBusiness Insider
SectorEconomy
CountryMiddle east

The $15-per-hour minimum wage sought by Democrats may be too lofty a goal, economists at Goldman Sachs said Monday. President Joe Biden and Congressional Democrats are pushing to gradually lift the federal minimum wage over the next four years. The nominal wage was last increased in 2007 to its current level of $7.25. Meanwhile, the real minimum wage — the baseline adjusted for inflation — has steadily declined over the last five decades. The proposed increase almost certainly requires unified support from Congressional Democrats, but more moderate members of the party have hinted they aren't yet on board with such a large hike. Some fear the higher baseline will cut into the hiring of low-wage workers.

Others see the policy as too broad to fit each state well. The chances of a $15 minimum wage passing in the near term are low, economists led by Jan Hatzius said in a note to clients. A compromise of between $10 and $11, enacted at a...read more...