Updated May 31, 2020 12:45:19By this time next year, it’s likely that the economy will have recovered from the Great Recession, according to a new study.
According to the Economic Policy Institute (EPI), a nonprofit that studies policy issues, there is currently no reason to believe that the recovery will continue to be “unwavering” during the next three to five years.
The study, which is based on a report from the Economic Outlook and Projections group of the Congressional Budget Office (CBO), says that the country will be back to full employment by 2027.
The authors say that this is because, at the beginning of 2020, the U.S. economy was expected to shrink by 2.5% to 2.8%.
If that rate continues, by 2031, the economy could shrink by 3.8%, the report said.
The report did not say how many jobs would be lost due to the minimum-wage hike, but it did say that a $1.50 minimum wage would increase the annual GDP by about $300 billion, while a $3.00 increase would add another $400 billion to the economy.
In fact, the report predicts that the increase in wages would be so great that the federal budget deficit would not be able to be paid for by raising taxes.
In addition, the authors say, if the minimum was increased to $10.10 an hour, the annual deficit would shrink by $1 trillion.
The economists, who spoke to Business Insider on condition of anonymity, also note that the rise in the federal minimum wage is not an entirely new concept.
The minimum wage was first introduced in 1996, and it is now the law in almost all states.
In 2015, a $10 minimum wage became a reality in Alaska, Hawaii, and Rhode Island, but the rate has since been raised to $15 an hour.