Increasing the federal minimum wage could alleviate poverty for many workers, but it may also lead to job losses, according to a CBO study. Currently, the federal minimum wage of $7.25 is insufficient for affordable housing in major U.S. cities, with many needing over $40 per hour to cover rent without exceeding 30% of their income. Efforts to raise the minimum wage, such as the proposed Raise the Wage Act, have stalled in Congress.
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