Schakowsky on the Minimum Wage

Washington, D.C. – Congresswoman Jan Schakowsky released the following statement in response to today’s Congressional Budget Office report regarding the potential impact of the minimum wage increase on poverty and family income

“As a cosponsor of H.R. 1010, the Fair Minimum Wage Act, I believe we must do everything possible to get it passed as soon as possible.

“I have listened to hard working Americans in my district who make the minimum wage, or just a bit more. Paying for housing, food, transportation and other necessities stretches them and their families very thin. These workers need and deserve a raise. If we increased the minimum wage to $10.10 an hour, nearly one million Americans could get out of poverty and it would give low-income workers a $31 billion raise.

“I am surprised and disappointed that the CBO decided to run what it calls a ‘simulation,’ based on what it admits are uncertain and difficult to predict assumptions, rather than looking at the facts on the ground. We don’t have to just guess about possible impacts – we have plenty of real-world evidence about the effects of raising the minimum wage since we’ve done it on the federal level and state levels before. After looking at those results, 600 leading economists concluded that the evidence shows, ‘little or no negative effect on the employment.’ Instead, they predict a higher minimum wage could have ‘a small stimulative effect on the economy as low-wage workers spend their additional earnings, raising demand and job growth, and providing some help on the jobs front.’

“American workers invest their lives in this country. We, as their representatives, should invest in them and increase the minimum wage.”

For more information contact: Lee Whack, 202-374-1098