Minimum Wage

CDA opposes legislation to increase the minimum wage and urges Congress to oppose such initiatives, which would have a tremendously deleterious impact on our economy overall. Even the Congressional Budget Office (CBO) stated in their report on 2016 on this issue that total U.S. employment could be reduced by 500,000 jobs as a direct result of the increase. According to the CBO report, “once fully implemented in the second half of 2016, the $10.10 option would reduce total employment by about 500,000 workers, or 0.3 percent.”

The impact of this job loss would be huge on our already fragile economy and would have a harmful effect on the current unemployment rate as well. Hiking the minimum wage hurts, not helps, the lowest paid workers. The typical minimum-wage employee is young, with few skills and little or no job experience. Higher labor costs mean fewer people get hired, job loss and less working hours.

Increasing the minimum wage does not alleviate poverty. There are other, more effective ways of addressing poverty in this country. Though intended to help low-income families get ahead, the minimum wage instead costs some their jobs and others hours at work. This leaves poor families actually worse off.

Each new Congress legislation is introduced to raise the minimum wage and this 115th Congress is not different. CDA will continue to monitor the progress of such measures and work to ensure the best interests of our distribution industry are protected to promote solid economic initiatives and job growth.