This report was originally posted to thelosteconomy.com.
Arlington, VA — A new report from the American Consumer Institute (ACI) highlights the significant economic and employment risks posed by proposed labor regulations, including a $15 minimum wage, predictive scheduling mandates, paid family leave, and joint-employer standards. The report provides a comprehensive analysis of how these policies, despite good intentions, could cost the U.S. economy over $1/3 trillion annually and result in the loss of 4 million jobs nationwide.
Read the full report here.
Key Takeaways:
- Minimum Wage Increase: A $15 minimum wage could lead to over 2 million job losses, reduce economic output by $190 billion annually, and diminish consumer welfare by $140 billion due to higher prices.
- Predictive Scheduling Mandates: Nationwide implementation could cost $44 billion in lost economic output and result in 500,000 fewer jobs.
- Paid Family Leave: Mandates in cities like San Francisco and New York show detrimental impacts on small businesses, with an estimated $25 billion reduction in GDP and 190,000 job losses nationwide.
- Joint-Employer Standards: New rules could increase franchise operating costs, threatening up to 990,000 jobs and reducing economic output by $74 billion annually.
This report serves as a call for policymakers to consider data-driven approaches to labor policy, focusing on innovation and economic growth rather than restrictive regulations. ACI urges lawmakers to prioritize solutions that promote market flexibility, empower small businesses, and safeguard consumer welfare.
For more information or to discuss this issue further, ACI is available to engage with stakeholders and policymakers.
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The American Consumer Institute is a nonprofit education and research organization. For more information about the Institute, visit www.TheAmericanConsumer.Org or follow us on X @ConsumerPal.