cbo tells us that acts in any further stimulus spending, the u.s. economy will return to a pre-pandemic level of real gdp growth by the middle of this year. unemployment will also continue to steadily decline. and this year we are poised for the largest economic growth in more than 15 years. again, this year. it is the wrong time for this plan because the sheer size of the spending has even democrat economists questioning the wisdom. larry sommers, the president secretary to president clinton and the economic adviser to president obama has raised concerns, noting that the level of spending would be at least three times the size of the output shortfall in our economy. it is the wrong time because if this bill becomes law, congress will have enacted almost 6 trillion in stimulus. that is greater than the gdp of every nation on earth except the u.s. and china. and of what? congress has already enacted over the past year an estimated 1 trillion has not even been spent, 1 trillion has not been spent. so now we know it is the wrong plan at the wrong time.

the top line is cbo's pre-pandemic economic projection. the purple line below that is cbo's estimate of potential output under current law. now the greenline. that is our estimate of what the economy looks like if the full biden package were passed. we estimate the package would result in real gdp exceeding current law is line by 3.6% at the end of 2021 and 2.1% by the end of 2022. in addition, real gdp rises above its pre-pandemic path for a time. what's that means is some of the lost output as a result of the covid-19 recession would be made up in future quarters. we estimate there will be a positive output gap between real gdp and the maximum sustained output of the economy. that positive output gap would peak at 2.6% in the first quarter of 2022. that positive output cap would put upward pressure on inflation. we think that would be welcomed by the federal reserve. the temporary surge in economic activity would create a risk of how well the economy fares as it comes down on the other side of that peak. we have projected a soft landing

>> according to cbo not of it will be spent this year. it's enough estimate that there using historical spending patterns . [inaudible] likely it will be spending a bit quicker because of the ability to include things such as acquisitiofor public housing . >> thank you so zero money for homeless spending. clearly it seems like they really care about the e homeless in this legislation and how much is 50 billion in emergency funding for fema is spentthis year, the 50 billion on iasking for how much is spent this year ? >> i half billion will be spent this year. >> roughly 23 percent so hundred 60 million or less and nine percent spent on public health such as national vaccinationprograms , diagnosing, treating, testing for the virus, shot in arms. according to cbo how much of the total spending in this bill is for the stimulus i checks to individuals? >> 423 billion. >> 22 percent, okay. let's talk about other spending in the bill . much of the bill goes to foreign aid? >> it's a very small amount that goes for international assistance. 750

inflation risks and cbo's do, what are the trade-offs? >> absolutely and inflation has remained below the fence target. before the pandemic inflation was below target had been on target for quite a while but what was rising and so that was as i i said that was not unwelcome in the sense that rising inflation was bottled before the pandemic was welcome because it's going back to the fence target after many years inflation has been below and this is natural. that's what we expect when the economy is operating above potential as erwe saw before the pandemic. again, it's not that inflation zooms up and interest rates, we see our salon, participation goesup , wages go up and those are the things we expect with the pandemic and many if not most peoplesay those are welcome . adding rising wages drop distribution especiallyat the bottom is a very welcome aspect of the economy operating at or above potential . as the economy remains below potential now with the pandemic inflationary pressures are muted. there could be negative shocks that we see w

event that shuttered thousands of businesses and stopped more than 10 million jobs and according to cbo left a 17 trillion-dollar hole in the teconomy. and then to accelerate under the biden administration certainly there is hope on the horizon. and those struggling americans through the next several months of difficulty to hasten the day when the country can return to normal. the american rescue plan is designed to be just that. american families and businesseserfl until they can gt back on their feet. broad consensus the country needs morehi support to get through the crisis. and economist from the political spectrum say the economy needs further support and the chair the federal reserve appointed by president trump just told us that the economic recovery remains and even in far from complete it is that highly uncertain. and broad support in american seven out of ten americans. no it's easy to see why there is such broad support the pandemic is the worst economic crisis since the great depression. but the republican colleagues all these groups demanding the anone.9 trillion-dollar res

the cbo says the unemployment rate stands at 6.2%. that's lower unemployment rate than president obama's first 5 1/2 years in office. that rate will continue to fall this year and reach its prepandemic side by 2022. that's without congressional action. that's without a cent more spent by congress or additional changes. personal income actually increased at the end of last year and the personal savings rate stands at over 13%, a level not seen in four decades. the bureau of labor of statistics just updated these statistics this morning. and in their release they said that the personal savings rate is now at 20.5%, or nearly $4 trillion. that is the highest rate in quite a long time. the savings rate was 13.4% in december. these are significant, significant things. in fact, a 10% increase in personal income is directly related to the economy reopening and to the aid we provided last year on a bipartisan way. so what i think we need is targeted temporary relief, directly related to covid. no one is arguing to do nothing. what we're argui

you all may have seen a cbo projection saying it would take four years for the u.s.o bounce back and return to normal without any action. the with the imemployment of the rescue plan we could return to normal by the end of next year and moody he's also found that enacting the rescue plan would double economic growth and returning the economy to full employment a full year faster. another couple of covid updates. a few announcements were made earlier this afternoon. today we announced the launch of our fqhc vaccination program. community health centers provide primary care services in underserved areas reaching almost 30 million people. under this new program we will begin directly sending vaccine supplies to community health centers enable them to vaccinate poverty people they serve of alongside other efforts like mobile health units and community vaccination centers this, announcement is another tool we are providing to state and local leaders in their work to reached underserved and hardest hit populations this. program grew in part out of a suggestion from house c

the cbo also says it would lead to higher prices for consumers. paying more wages and passing on the prices to consumers. this has hurt american small businesses across the country. talk to a small business owner from wyoming, jimmy has a sinclair station and he called me on sunday and said $15 an hour, the station has a food court next to it. he said we would have to shut down the forward -- food court. we can't afford $15 an hour for the young people who are working there. putting money in their pockets, providing food and services to the people of the community. $15 an hour, shut it down. host: senator john barrasso on the senate floor. a reminder of how we got here on the federal minimum wage. here are the most recent increases to the federal minimum wage over the years. in 1988 was $3.10. the minimum wage arose in 1990 to $3.80 per hour. three increases back in the late -- in 2007 it was $5.95 an hour. $6.55 in 2008, in 2009 it became $7.25 an hour. that's where it has been since then and the idea from the biden administration, more than doub

so you, robert, are in disagreement with the cbo number on the job losses?nderstanding you? >> i think that that cbo number is not looking at the dynamic effects of the minimum wage increase, and that may be looking right now at a pandemic. i don't think anybody is urging a minimum wage increase right now. the issue really is over the slightly longer term, when the economy gets back on track, how many job losses will there be versus what will be the effect on having so many people having more money in their pockets with which they can buy and therefore create more jobs? i think the cbo is wrong on this. >> robert reich, thank you so much for being with us. we really appreciate your insight here. >> thank you, brianna. >>> a judge just approved a vacation retreat to mexico for a woman charged in the u.s. capitol riot. i'll talk to a public defender who is calling foul here. >>> plus the heightened security measures for impeachment as members of congress continue to worry about their safety on the hill. aq 100 like you become an agent of innovation with invesc

the>> so based on the cbo score, if you exclude spending bill occurs this year? >> referencing the recovery that represents 24 trillion of the 1.2 trillion that is estimated to be spent in 2021. there are others like unemployment compensation. when i look at the score some concerns include the 130 billion provided for k-12. how much ofve the funding is spt this year? >> 6.4 billion will be spent between 2021 but it's important to remember behind the spending obligations and commitments occur earlier and are likely initial outlays that underrepresented the activity and work. >> okay. so, if the white house said the goal was to get kids back in school as quickly as possible, why would roughly only 5% of the funding for schools be spent in 2021 since 95% of the funding is not even spent this year, that mustce mean either this much moy is not needed to reopen the schools or the states do not play this year or next. i want to explore why this has been so slow and am i correct the 129 billion of elementary and secondary emergency relief funding money is all appropriate

forecast last summer and the cbo says that's because the downturn was not as severe as expected thef the recovery was sooner and stronger than expected so, deirdre, overall a rosier outlook for the economy from the cbo. back to you. >> ylan, thank you. piper upping tesla to $1,200 today. defending its thesis in a 100-plus-page report, the analysis only on cnbc.com. tesla shares up 2.7% ja rule joins thus hour. don't miss it. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ >>> capital issues, regulatory scrutiny and an angry online mob all plaguing robinhood this week kate rooney has the latest on where

the cbo analysis found that this program would raise the deficit by $54 billion over the course of ae, because the government would be spending more in social safety net programs. on the flipside, the cbo did say that the number of people lifted out of poverty would be 900,000, and that on net, wages would increase by $333 billion and brian, that of course means that the labor cost for businesses would go up. back to you. >> ylan mui, thank you very much. >>> coming up, amazon's union battle is heating up as the alabama union workers are starting to cast their votes down there in bessimer, alabama, and the impact if it goes through. i made a business out of my passion. i mean, who doesn't love obsessing over network security? all our techs are pros. they know exactly which parking lots have the strongest signal. i just don't have the bandwidth for more business. seriously, i don't have the bandwidth. glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't. let's take car

i hope you will understand one.4 million jobs cbo anticipates to be lost come from people at the lowernd. the walmart guy will not lose his job. it will be a teenager or senior citizen to get extra money to build a resume. my belief is there will be a time to look at increasing minimum wage. but during the covid crisis this is the worst possible time increasing mandates on small businesses because they are barely making it to begin with i look forward to working with you have to we could increase in a responsible way but right now is not the time in my view. the construct you set up about corporate america versus everybody else we will have decades to talk about that. i just implore you to think of what we're doing at a time of restaurants and hotels barely hanging on because of the restrictions on travel to myrtle beach has been hit hard because people cannot come and go now is not the time to do this. would ask my democratic colleagues to think long and hard about what you are doing because at a time when businesses barely making it if this ever became law it would crush them. people

you all may have seen a cbo projection last week found it would take the economy four years to bounce back and return without the action plan. studies found the economy could recover from the pandemic and return to full employment but the beginning of next year if the rescue plan is enacted. moody also fanned -- found that enacting the rescue plan would double economic growth and returning the economy to full employment a full year faster. a couple of other updates from our covid team. the covid coordinator made a few announcements earlier this afternoon. today we announced the launch of our fqhc vaccination program. community health centers provide primary care services in underserved areas reaching almost 30 million people. under this new program we will begin directly sending vaccine supplies to community health centers, enabling them to vaccinate more of the people they serve alongside other efforts like mobile health units and community vaccination centers. this announcement is another tool we are providing to state and local leaders in their work to reached underserved and harde

this would be the second biggest deficit recorded since world war ii the cbo also expecting the deficit to average more than a trillion a year for the next ten years. that is going to push the national debt up to 102% of gdp this year and 107% in 2021, the highest. it does not incorporate the relief package that congress is currently but the cbo does warn that future action could lead to markedly different results >> it sounds like a stumbling block. >> certainly the reason the cbo wanted to get this out is it could inform lawmakers' thinking clearly democrats have indicated they're okay with that republicans i'm sure, though, will use in as another piece of information to hammer democrats with as this debate goes on. >> ylan mui, thank you >>> stocks taking a bit of a dive after the dow hit a record high this morning. a bit of fatigue, modest losses in the major indecents but the big caps have been spinning their wheels the last few days if you look at the s&p 500, nobody feels as if it's completely run away to the up side if you look at how this trend has gone recently, it's been a ti

we had the cbo ruling on the minimum wage. go through that a little bit, tell us what we learned, if you can. reporter: cbo, congressional budget office, a group here in washington, non-partisan group that tries to predict what legislation might look like and this prediction from the cbo today, if there is a $15 minimum wage what that could look like in 2025. here is part of what they found. it would mean higher pay for 17 million workers who currently make under $15 an hour. maybe bigger paychecks for 10 million that currently make over that mark. they feel it would lead to 900,000 fewer people in poverty. however the cbo also projects that it would mean 1.4 million job losses. they say that would raise the unemployment rate by nearly a full percentage point. connell? connell: yeah. fewer jobs and also less poverty. so enter that into the discussion for both sides there in washington. thank you. blake burman live for us in washington. we have an historic vote meantime underway. amazon warehouse workers are taking a major step

additional wages that are earned will help us with social security and benefit those same people that cbo let me ask you about the white house generally. i know that you speak to the president. how frequently are you speaking to the president right now and what is he thinks about the pace of his first 100 days? >> i think he's done an incredible job so far. he's helped working people in the first five weeks more than the last administration did in four years and some of the previous administrations did over their period of time. he understands the importance of collective bargaining and a fair wage for working people. he understands that a paycheck is more than just bringing home money for your family. it is about dignity and respect, and he also understands that you can't get the economy under control until you get covid under control. and you can't get covid under control until you protect those front line workers. that's why he issued an order for an emergency pandemic standard to protect those workers, and we couldn't be happier about that. >> all right. afl cio president. thank you f

reporter: the cbo, their projection this morning is that the economy will return to pre-pandemic size by the middle of the year without additional stimulus. press sec. psaki: the president's plan was designed to achieve certain basic goals, getting shots of the arms of americans and helping the families who are going hungry and the nearly 7 million americans facing possible eviction during a pandemic. cbo projections for next year's growth have been a measure of all these things, it's not a measure of how each american family is doing and whether the american people are getting the assistance they need or whether we are able to get vaccines for people. it answers a different question. our focus is on what the american people need to get through this crisis which is why we are pushing for this legislation. reporter: on school reopening, the democratic mayor of chicago said it's safe to reopen schools and invested $100 million for interest safety measures, but teachers there remain on the verge of striking. does the white house agree with the mayor and that funding has been put into pla

> we have a comment from economist at the economic policy institute ben zipper who talked about the cbo and the minimum wage increase and assessed this saying when it comes to looking at the numbers you referenced what happens is, yes, when you raise the minimum wage and employers hire a few low-wage workers, that is correct. on the other hand the factor that is off setting is that even though employers are hiring fewer workers, fewer workers are leaving their jobs. how would you respond to that? >> where you look at where we are as an economy, we are still 10 million jobs short of where we were in february of 2020. that includes over 4 million people that left the labor force. a lot of those folks, by the way, who are out of jobs right now are women. they have been hit extremely hard especially because of the school shutdowns. so, again from an economy standpoint, this is not a one size fits all solution. within the covid-19 relief bill currently being discussed a great and powerful idea that we support which is enhancing the tax credit. it's wonky and that's why americans don't use it

as soon as things open up the cbo thinks that they will. so it is a real question why do we need to go into more debt to do something that is probably unnecessary and could in fact heat things up a little too much? you know i think there is some mixed feelings about this. obviously more money pumped into the economy, the market likes that but at the same time it could prove to be a disaster. we'll wait and see what happens. of course, if that 15-dollar an hour minimum wage gets through on federal level like biden and the democrats would like to have it through with the stimulus, that is going to be a big job-killer. i think the markets should be concerned about that. neil: you know, if i can switch back to what we might expect, john layfield, over the impeachment timeline to get this done maybe as soon as early next week. they don't have to take up all the hours, 16 each side, go through the pros and cons whether you can impeach a former president, et cetera, but that if it does drag on, and all of sudden they are calling witnesses and that

larger and the debt is going grow almost exponentially, and the same was spire entirely true of the cbo. what has happened is the pandemic has led to an upward jump and you -- this is the latest cbo prediction, and in the upward exponential growth in the public sector debt was there before the pandemic but the pandemic has given a sharp upward rise to that. and i'm afraid that 2021 is likely to produce yet another sharp upward rise in the debt and in the deficits that will be brought about because of vaccines will not be rolled out quickly enough to stop the pandemic in it tracks much above the early summer. now, what is all this effectively mean? so on to the next slide. what is going to happen are how are we going to deal with the debt? the first point, an unhappy point, one that has to be mentioned, is that it's very unlikely that growth will get us out of this because growth is a combination of the increase in the working force, interacting with the growth in the productivity of that working force, but the work are force is now going to grow much slower and in those countries which

. >> host: there was a comment from an economist at the policy institute who talked about the cbo and the minimum wage increase and he said when it comes to looking at those numbers that you reference what happens is that yes, it is true thatis when you raise the minimm wage employers hire fewer low-wage workers and that is correct but on the other hand the factor that is offsetting is that even though employers are hiring fewer workers fewer workers are leaving their jobs so how do you respond that? >> guest: when you look at where we are in the economy we are still $10 million million jobs short of 2020 and that includes over 4 million people that have actually left the labor force oland a lot of those are out of jobs are now are women and they have been hit actually hard, especially because of the school shutdowns. again from an economy standpoint this is not a one-size-fits-all solution and byta the way, withn the covid relief bill the 1.9 trillion bill being tdiscussed there is a very powerful and great idea that we do support which is enhancing and expanding the earned income ta

thanks a new cbo report finds raising the national minimum wage to $15 would reduce poverty but increaseeficit and cause 1.4 million jobs to be lost. a look at fight over the national minimum wage and potential impact, let's welcome mick mulvaney, u.s. special envoy to northern ireland, thanks for joining us. i'm finding out, victory has a thousand fathers but defeat is an orphan. i guess everyone was bullish on bitcoin. you're tell me you were bullish. what did you do? i know that you were listening to that last discussion saying you started a caucus in congress >> yeah, i thought of the bitcoin caucus in congress when i think bitcoin was at $200. didn't buy any because i thought it would be a conflict of interest, so there was a mistake, but also once sit on the board of the digital chamber of commerce, the largest bitcoin trade association. i wish i could have been in on that conversation. but let's talk aboutminimum wage. >> let's do. because in this day and age, i've seen so much criticism for people that say that anyone that says alternative facts or alternate facts, i guess that w

the cbo understands this because they said if they do this mandate to double the minimum wage that one.3 million people would lose their jobs. then there are the's bailouts that have been having a history of bad behavior coming to spending. joe biden spent a year running for president on a platform with in a bipartisan way if the president wants to do things in a united way we should do the next corona relief package in a bipartisan way. >> and how the process works and then it actually leads nowhere to have the debate is largely political from the time you might have used otherwise to get something done. democrats are saying to do this three times in the next 18 months. i think they are about to find out in the next six weeks just how hard it is. i'm not aware of any time anybody in the minority side of the budget so everybody has to be there. the when they were there on the majority side voting for a they are sending directions to everybody in the senate and those have to be back by february 16. and the deadline facing quickly is the mid-march deadline that we put it on increased une

in fact, the cbo said it would take some time to get the job back.eir jobs or livelihood affected, how does $1,400 to someone making $75,000 or a family making 150 that never lost their job, that received their paycheck every month during this every pandemic, how does that $1,400 help? >> yeah. i think that's a good question. first of all, yes, people who lost their job have faced some of the deepest hardships. but there's lots of people who kept working and yet they've lost hours or someone else in their family has lost a job or they've had difficulty meeting their rent or their mortgage. >> but that's reflected, though, in the amount. that would be reflected in the amount. go ahead. >> yeah. so let me talk about that. if you look at the savings of people in, say, the 60 to $80,000 range, those people often have 0, negative, low rates of savings. and what they've done with these checks in many cases is they've initially saved them. they haven't spent them right out of the box. and then as the crisis has proceeded and the uncertainty that's embedded

cbo projected we would spend 6.4% of gdp. and last year it was 5.4.s a saings over a trillion dollars from the last decade. so i look forward to an understood to work with you on the issues of price transparency, on pharmaceuticals, and market -- >> i apologize, i'm going to try to keep people to five minutes. we have a 12:00 impeachment engagement. >> my apologies. >> not at all. >> senator stabenall virtually. >> thank you, i look forward to working with both of you on this committee, and congratulations on your nomination and i might just say as an editorial comment. we have endured four years of the ultimate mean tweets. i know we were all thinking that and i don't want to hold you to a higher standard, but we certainly want to turn the page on how we move forward together and i wish we had seen those comments in the consistency over the last four years, but welcome. i want to focus first of all on something that i have spoken with you about and that is strengthening our by-american act and the jobs that can come with that. i know this is a priori

i think cbo's estimate is actually on the low side. there are three states where the median wage is below $16.50, where half of all workers in less than that. there are two dozen states where half of all workers earn less than $18.50 an hour, and 47 states, over one quarter of workers earn less than $15 an hour. this would be extremely disruptive, particularly in low-wage states, but when you think about low-wage states, you thing about half the state. >> can i reclaim my time? because i know the democrats colleagues care about these low income workers, but the reality is in the restaurant sector, this past year, nearly one in every five restaurants permanently closed their doors, and 30 of the largest retail and restaurant companies have filed for bankruptcy. is this really the time to put greater stress on those employers in their ability to retain workers? i think this is a devastating policy that will destroy jobs and kill people's ability to stay employed. i yield back. chair waters: thank you. the gentleman from colorado who was

under this provision, if it's correct what cbo says, it will probably be at least 1.4 million jobs lost, up to potentially 2.7 million jobs lost. that means that these people that are learning as they're earning will go from a wage to a new wage that's zero because they won't have a job. that concerns me. because in michigan, we have many people who are trying to simply get through college, develop an opportunity, learn a skill that won't have the opportunity. and most people who are working in a family-providing situation are above the minimum wage already. >> if i could, let me turn to chairman scott. chairman, again, we all have read the news accounts that it looks like that minimum wage measure won't survive. as i understand it, there's a $54 billion cost associated with that in the legislation. i'm curious if you've given some thought to maybe redirecting that money, if this measure is not going to be in there anyway, there might be other areas to deploy those funds that might make a little more sense. is that something you're in a position to speculate about or consider at this po

democrats efforts to mandate pay for small businesses would eliminate 1.4 million jobs according to cbo. fortunately the senate parliamentarian may prevent that from happening in this bill. it's one thing to provide relief to families that need it, but it's another thing altogether to empower washington to kill jobs in our rural communities. since january of last year the federal government has spent approximately $3.5 trillion to provide assistance to families, to health care providers, schools in our communities. those bills were bipartisan. republicans supported aid where it was needed, and we continue to support aid where it is needed. sadly, democrats have opposed any targeting that would have made this bill work better. in the ways and means committee they opposed any amendment we would have offered that would have improved outcomes for unemployed families and struggling industries. ways and means republicans released an analysis that found there's still $46 billion, nearly one third remaining in the total $150 billion coronavirus relief fund that had been provided to state and lo

you can save taxpayers $246 billion by cancelling unemployment benefits that the cbo is warning could result in more joblessness. maybe just rip out the $30 billion for public transit agencies, the $1.5 billion for slam track and the $800 million for food assistance that goes to other countries. also on the chopping block should be the $35 billion going to undermining our healthcare system by propping up obamacare. you still need more cuts, joe? >> what would you have me cut? what would you leave out? >> how about the millions for political democrats and their cronies, $86 bill for underfunded union pension plans. $350 billion for kickbacks for state that destroyed their economies with needless lock downs. $50 million in environmental justice grants, anti-eco activists should be stripped from the bill and finally, $129 billion that the teacher union payola dressed up as an emergency funding to reopen schools. even the white house was forced to admit nobody of this money would go towards opening schools this year. >> need to obligate funds according to spending plans. that's why this f

the cbo generally comes out wit left-wing studies. it was a surprise to see this.ut back they're going to get from democrats is or might be places in chicago and san francisco that can bear this kind of burden, as west virgini and the senator has joked, can they bear that burden. fixed cost of living a much lower, i kind of doubt it. >> biden spoke out about his tw hour phone call with china's president she. >> i told him no american president can be sustained as a president if he doesn't reflect the values of the united states. so the idea, i'm not going to speak out against what he's doing in hong kong, what he's doing in the western mountains of china, and taiwan, by making it forceful, i said, he gets it. >> so i guess biden admits that he knows that he's just paying lip service to biden's raising the issue of human rights. after make a nod toward human rights. >> she was excited to see donal trump and pompeo and a republican have to take the bac seat to joe biden and someone who has actually already potentially compromised members of joe biden's family on this

we have the new study from the cbo says it's a job killer to give me the story, lauren. cbo is nonpartisan and may find while lifting 900,000 americans out of poverty, the higher wage could cost 1.4 million workers their jobs by the year 2025 because it increasing costs for employers with many that are struggling. the employers then ultimately pass the costs on to consumers so prices rise for everyone else in business goes down as a result. as you noted amazon supports higher wages, course they do, so does target, best buy, cosco, many banks as they sure they are private companies and can afford to pay their workers more money, but republicans largely argue that it's of the company's decision or the state's decision, not the federal government to determine what $15 an hour should be in a state like west virginia versus in new york, for instance. we have democrats forging ahead with their push for this. they will try to pass the national wage using the budget reconciliation process where it's just a majority needed and that's kind of funny sense what are we 20 days into t

you support a $10.10 and the cbo supports where you are on that because their analysis shows if you go$15 by 2025ure lose 1.3 million jobs and you will raise wages for 17 million people but the $10 an hour the cbo said you will not lose any jobs. do you think they should insist on the $15 minimum wage when it may not stand up to the bird rule for reconciliation. >> that is another debate. but i've been in favor of the increasing the minimum wage. i think the level is where the the devil is in the detail and i think that once again we could talk about the challenges and places in new york city or houston, texas, versus the challenges in a place like great falls, moenntana, and i think tt is what we need to do. we have to get conversations and we need to get people out of poverty and there is a sweet spot and we need to have the negotiations going forward. >> do you believe it was finally a mistake for the biden administration to cancel the keystone xl pipeline on day one in office given the impacts of 11,000 american jobs. do you think it was a mistake. i know you think it was a mistake

i haven't had a chance to go through the entire cbo. there's some trade-offs. they didn't even talk much about the small businesses in places where it's obvious they counts afford it. so is this a time to change the rules of reconciliation and force this down the throats of small businesses? >> i think we're looking at this the wrong way. if the minimum wage had grown more, it would be $19.33. raising the minimum wage would raise pay for 32 million americans, 31% of african americans would get a wage increase. it would benefit the economy as a whole as more people would have more money to spend. so i think that when we look at that job loss and your previous guest just mentioned automation, automation is just driven by technology. that is not going to be driven by this. we look at the results in seattle. they have not caused this massive job loss that people are predicting. economists are not on the same page. just choosing this one study when there's many others by the economic policy institute and other organizations say this will be a positive as a whole is

host: you could factor in the recent cbo report looking at the potential impact of the $15. even though some would be able to still be risen out of poverty, how do you justify those sides? guest: i do think there's a lot of criticism of that cbo report as to whether it's really based on current data. putting that aside, i would say this, again, if you are working -- if you are a decent hard-working person you shouldn't have to work two or three jobs to take care of your family. raising this minimum wage is not only important for millions of families in our country, but to me it's the moral thing to do. host: represented of lois frankel joining us from west palm beach -- representative lois frankel joining us from west palm beach. go ahead. caller: good morning. my question is when pete buttigieg testified for the state of the infrastructure, our country was rated a d-as far as development. i'm concerned, where is the money for toll roads and new improvements in infrastructure? how is that monitored and how has it led to be in the state and how will we get the money to improv

the rest of the feeding program appeared in the cbo grants budget. as we always do, we include a slide on the ihss program and what we call out here are two things in particular. one is the growth in the ihss moe. that is the local share of the costs of the i hss program. it grows from year to year because it grows by inflation under the state law and it grows as wages go up. the budget staff computed the impact of those two things, and it is $9.6 million in the budget year. in the lower half of the slide we line out the wages for ihss workers as described in the minimum compensation ordinance and as described in the collective bargaining agreement between the i hss public authority independent providers. that is really the financial piece of this picture. as i said, we have a budget that for the agency where we will be able to continue to deliver services. we have very little room to add, and we are really working with the mayor's budget office on what the description of the covid feeding program will be next fiscal year. at this point i will turn t

the cbo estimated an $15 an houe minimum wage would destroy 1 million jobs. it would decrease employment for part-time workers and those fos without a high school diploma and raise the costs for small businesses and small businessese are p hurting the most because the government shutdown. those are the people we should be helping. it's unconningable congress would pass something to hurt the jobs when we're trying to recover the economy. can you explain why now is not the time to raise the minimum wage. >> thank you, congressman. i agree with that. i think there are several min reasons why raising the minimum wage in a period of labor market weakness leads to a larger amount of employment loss. businesses are more willing to make those kinds of changes to the way they produce goods and services when the economy is weak. and when the economy is weak, of course, there's less demand for businesses, products, and services to begin with, which also makes them more inclined to change the structure of their t labor forces.le i think it's actually -- it maye be even s

the cbo says it will take until 2024 to fully recover without sizeable relief.o you explain your opposition given those facts about millions of struggling americans? >> so all of those things -- i mean, we've allocated money for these purposes, and by the way, cbo is projecting we'll have almost 5% growth next year if we don't do an additional bill. we have tens of billions of dollars that hasn't made it out the door yet because the ink is hardly dry on the last bill. what this is is it's clear, in addition to the very hard left executive orders, it's clear, unfortunately, from my point of view, that while president biden has given some great speeches about unity, he's governing from the hard left. this is a list of liberal democrat wish lists for massive spending and don't let a crisis go to waste. people remember that we did have an economic crisis, so try to load up as much spending as possible irrespective of the need. by the way, how do you know that? ten republican senators marched down to the white house and offered to do another bill. i don't agree with

the cbo, though, said it would raise employment for .9% of workers.nesses, especially small businesses, who in this pandemic are having a more horrific time than in normal circumstances, how do they strike a balance with saying, shuure, i would love to pay my workers more, but -- >> and for those who pay their workers a lower minimum wage except for tips, they'll have to scale up to that $15 an hour. but we spoke to one worker in wash washington, d.c. who said they were able to make the math work because they incorporated the $15 an hour into their business model. >> we knew this $15 an hour was coming so we put it in our business model. but it worked for us and it was the right thing for us as a business. >> reporter: that is why president biden is asking to scale up to this $15 minimum wage over the course of five years in order to give small businesses that opportunity to change their business model. now, we know republicans are saying that's still too much. they're suggesting a $10 minimum wage scaled up over the next couple years, but for small b

we saw today the cbo upgrading its expectations. they're thinking the economy gets back to its pre-covid level mid-year. they're talking about fourth quarter, 3.7% growth over fourth quarter of last year. we have seen the, you got the ism report today on manufacturing which is growing. 4% growth in the fourth quarter. so there really is no crisis here. i'm wondering at what point that intrudes on beltway discussions. connell: only thing i would say i guess to challenge that, usually i would be more likely to tilt in the way of data than anecdotes is that should we give a little bit more weighting to kind of anecdotal discussions in the small business community as an example? there are a lot of people in their own restaurants, for example, we have them on all the time, other small businesses still really suffering even if the overall economy, whether it is manufacturing or just gdp or maybe the stock market at times can look a little bit better? those people say they do, many of them, not all, you become of them say you know what, we

let me tell you what the congressional budget office came out, and they reported, the cbo, they reported, that it would lift 900,000 americans out of poverty, which is a great thing, but it would cost 1.4 million jobs by 2025 because of things like automation. the burger places will just automate their industries and not hire humans. what is your response to that? >> thank you, joy, for that, because there are some problems with that. first of all, i'm glad they said it would lift people out of poverty, and today people fighting in the campaign and people like pamela saying, we have to have that now. what they're basing that on is a 55-year-old poverty threshold that is far too low. the truth of the matter is it will lift millions of people out of low wages and poverty. 62 million people work for less than a living wage. 6 million workers, tip workers, who make $2.10 an hour plus tip will be lifted out of that. 45% of black workers, poor low-wage workers, and the majority would be white workers from west virginia to mississippi. but you have to add to this not only the raise of the livin

the cbo says it could have tradeoffs.ges by more than $330 billion for 17 million workers, nearly 1 million people would be lifted out of poverty and the government would spend less for food assistance. on the downside the cbo estimates it could increase unemployment by 1.4 million and raise the federal deficit $54 billion over a decade. other studies argue it would give a boost to the economy and certainly doom saying about past minimum wage hikes did not come to pass. this is easier said than done especially for small businesses. heck, get this. even bernie sanders ran into trouble when some of his campaign workers complained they weren't being paid the minimum wage he was campaigning on at the time. sanders argued he was paying the equivalent of $15 an hour if you add in benefits. there is an additional hurdle. senate rules. even president biden doesn't think his proposal will survive part of his covid relief bill. this friday the house will vote and then the senate takes it up but they're expected to apass it will you

the cbo has looked at that, and they have concluded that if there were a $15 minimum wage, that overw years, that would kick 1.4 million workers, mainly young workers, out of the job market. it would also hurt small businesses. what's your response? >> the minimum wage is a critical piece of not only raising wages for 27 million americans, pulling 1 million people out of poverty, but it is a major step to addressing income inequality in this country. and the cbo, overall, said this is going to be a tremendous economic gain by raising the minimum wage, over time. this will be phased in. but here's the other point. every american who is working full time should be able to provide the basic necessities for their family. put food on the table for their children. be able to pay the basic bills. and what we have now are families that are working two or three or four jobs and still not able to make it. and i don't think that we can look at this issue around the minimum wage and not recognize that almost 70% of minimum wage workers are women. and women are being disproportionately hurt in th