By
NICK GOSNELL
Hutch
Post
HUTCHINSON — A Midwest economic expert has concerns about an early policy goal of the Biden administration, to increase the federal minimum wage to $15 an hour.
"An increase in the minimum wage would certainly contribute to inflationary pressures," said Creighton University economist Ernie Goss. "There would be some job losses. There would also be some, if not job losses, certainly be a cut in the hours worked for current employees. In my judgment, this is particularly negative for our teenage workers. We'd like to see those young men and women get a leg up, or at least a first step on the economic ladder."
Goss is also concerned about how much more debt this would put the country in.
"This would probably mean the deficit for fiscal 2021 would be somewhere in the range of $3 to $4 trillion," Goss said. "That's putting us in the position where you are, in my judgment, going to see higher inflationary pressures."
The question is whether or not it would be outside the boundaries of what the Federal Reserve considers normal or acceptable. That remains to be seen, depending on what the final coronavirus relief deal ends up with. The Fed has said it will stick with the current low interest rates for some time going forward.