Obama Pushes for Wage Changes, Education

President Barack Obama congratulated Maryland Monday for passing a minimum wage of $10.10 an hour.
Obama Pushes for Wage Changes, Education
President Barack Obama speaks during a visit to Bladensburg High School in Bladensburg, Maryland, on Monday. (Aude Guerrucci-Pool/Getty Images)
Mary Silver
4/8/2014
Updated:
4/7/2014

President Barack Obama congratulated Maryland Monday for passing a minimum wage of $10.10 an hour. Maryland joins 21 other states with a minimum wage higher than the $7.25 an hour set by the federal government. 

Obama’s efforts, dubbed “give America a raise,” have been limited to federal contractors so far. The president is planning to change other wage rules for federal contractors later this week.

“Maryland’s important action is a reminder that many states, cities and counties—as well as a majority of the American people—are way ahead of Washington on this crucial issue,” Obama said in a statement. 

Two months ago, Obama’s executive order directed the federal government to give bid preference to companies that pay contractors $10.10 an hour. However, its scope is limited—the change only applies to companies that get new government contracts. 

Exactly how workers will benefit from the order is in dispute. House Speaker John Boehner said the provision will block businesses from competing for federal jobs, and therefore will benefit no workers. 

Obama wants a more comprehensive federal minimum wage increase, but he’s not likely to get the help he needs from Congress, at least not the current, uncompromising House. “There’s only one group who can get the job done for the entire country—that’s Congress,” the president stated. “They should follow Maryland’s lead.”

28 Million

About 28 million Americans would benefit from a higher national minimum wage, according to the White House. According to the Congressional Budget Office, such a change would mean about 500,000 jobs would be lost, and about 1 million people would emerge from poverty.

According to an analysis from Isabel Sawhill of the Brookings Institution, “the trade-offs are clear. There is no free lunch but this lunch is pretty cheap. The ratio of winners to losers is high; whatever the effects on jobs, they are likely to be small. Studies of retailers don’t find adverse effects on employment for those operating in states with higher minimum wages.”

Yet, she said, the fact that there are workers who are not worth $10 dollars an hour to their employers is an indictment of our educational system.

Grants for Career Education

In a separate action Monday, Obama announced 24 schools that will share more than $100 million in grants to redesign themselves to better prepare high school students for college or for careers. The awards are part of an order Obama signed last year. Money for the program comes from fees that companies pay for visas to hire foreign workers for specialized jobs.

At a White House event Tuesday, Obama will take other steps to balance the pay disparities between men and women. The Senate this week is scheduled to take up gender pay equity legislation that would affect all employers, but the White House-backed bill doesn’t have enough Republican support to overcome procedural obstacles and will likely fail.

Obama’s orders demonstrate that even without legislation, the president can drive economic policy. They show the limits of his power when he lacks congressional support.

Too Far

Republicans said Obama is pushing his executive powers too far and should do more to work with Congress. His new executive orders are sure to lead to further criticism that the president is placing an undue burden on companies by increasing their costs.

The Associated Press contributed to this report.

Mary Silver writes columns, grows herbs, hikes, and admires the sky. She likes critters, and thinks the best part of being a journalist is learning new stuff all the time. She has a Masters from Emory University, serves on the board of the Georgia chapter of the Society of Professional Journalists, and belongs to the Association of Health Care Journalists.
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