Tuesday, October 14, 2014

White House Weekly Address: More on the Minimum Wage

In his most recent, Weekly Address, President Barack Obama continued to congratulate his administration for economic recovery and call for a raise in the federal minimum wage.






And he peddles the same issues that he alleges will improve upon the recovery: rebuilding our transportation infrastructure, insuring fair pay for women (i.e.--paying them by some other standard than the market demand for their skills, and restructuring student loans.



"That’s why I’m going to keep pushing policies that will create more jobs faster and raise wages faster – policies like rebuilding our infrastructure, making sure women are paid fairly, and making it easier for young people to pay off their student loans."

The President's primary agenda, however, is securing a raise in the federal minimum wage.  He wants Americans to ask themselves the following question:

"Ask yourself: could you live on $14,500 a year?  That’s what someone working full-time on the minimum wage makes.  If they’re raising kids, that’s below the poverty line."

Of course, the vast majority of federal minimum wage earners are not full timers attempting the raise a family; they are part timers working to help pay bills or earn some extra spending money.

He follows with the obligatory moral judgment:


 "And that’s not right.  A hard day’s work deserves a fair day’s pay."

That's just political rhetoric. Of course a hard day's work deserves a fair day's pay. But who decides what is fair? The President? The employer thought the wage was fair because that was offered based upon the new hire's education and skills. The part timer earning minimum wage apparently thought the wage fair, since he contracted to accept that wage. . And many people receive a "fair day's pay" even when they have not worked especially hard at all. 


"It also means they’ll have more money to spend at local businesses – which grows the economy for everyone."

It does meant that. But it also means those local business might be paying our higher wages and charging higher prices. That is not growing the economy. That is inflation.


"That’s why, since the first time I asked Congress to give America a raise, 13 states, 21 cities and D.C. have gone around Congress to raise their workers’ wages.  Five more states have minimum wage initiatives on the ballot next month.  More companies are choosing to raise their workers’ wages.  A recent survey shows that a majority of small business owners support a gradual increase to ten-ten an hour, too.  And I’ve done what I can on my own by requiring federal contractors to pay their workers at least ten-ten an hour."

And this it how is should be done private businesses and local jurisdictions determining what is a "fair wage." Labor markets and costs of living differ significantly between states and regions.

And finally this:

 "Because America deserves a raise right now.  And America should forever be a place where your hard work is rewarded."

Again, the President seems clueless that Americans receive wages all the time. Although may people start out at the federal minimum wage, few stay there. Hard work not only should be rewarded, it almost always is rewarded.

Government bureaucracies are not the only ones that take care of employees.



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