Feb 9, 2021
How raising the minimum wage would affect the U.S. economy
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According to the nonpartisan Congressional Budget Office. Its new report says a $15 federal minimum wage would reduce poverty but cost the U.S. jobs. Plus, dispelling the worry that a third round of COVID relief will produce inflation. And, a Tennessee high school program aims to get more women into the auto repair field.
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There are worries that a third COVID relief package for the U.S. economy will lead to inflation
Jeffrey Cleveland, chief economist at Payden & Rygel, however, is not concerned about "overheating" — that is, pumping in too much stimulus during a recovery and therefore producing inflation as demand ratchets up. Here's how he sees it: "The economy is not running hot at present. Inflation, by all measures, is still very low," Cleveland said. "We've been hearing this story, I think, for decades that the economy was on the cusp of overheating, and that would lead to higher inflation. And we haven't seen that inflation, that worrisome inflation, materialize. So I think perhaps down the road these are issues that people should wrestle with, but fears of overshooting and overheating are premature."
The CBO report says a $15 minimum wage would pull 900,000 people out of poverty but cost almost 1.5 million jobs.
One Tennessee high school is persevering with its automotive program, even during the pandemic
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