President Joe Biden recently signed an executive order to take care of his closest allies; federal employees. The order raises the minimum wage for contractors and employees working on contracts to $15 per hour.
This is a jump from the current minimum of $10.95, a 37% increase in labor costs, set to become effective between January and March of next year.
Biden signed a separate but similar order to raise wages for ordinary federal employees to $15 per hour.
Biden is also prioritizing an effort to make the national minimum wage $15 per hour.
Studies examining the impact of raising the minimum wage to $15 revealed that on the upside, 1 million people would be lifted out of poverty over the course of 4 years. On the downside, the increased cost in labor would cause the outright loss of 1.4 million jobs.
The Biden administration attempted to argue that increased salaries would not increase costs for taxpayers because they say it would reduce turnover and retain more effective workers.
But a study suggested that increased costs to the government for services such as cleaning, maintenance, and cafeteria workers would total $54 billion between 2021 and 2023.
Author: Bert Graves