The current social policy issue that I chose to discuss in my first blog post is raising the federal minimum wage. I first decided to discuss this when I heard a friend discussing how President Obama issued an executive order to raise the federal minimum wage from $7.25 to $10.10 for federal contractors. I researched the issue and found several current news stories discussing it, including one from Fox News, which helped me to get a better understanding. After more research on the background of the issue, I decided it would be best to break this blog post into sections to give a clearer idea of this issue. I also realize that this issue has a lot of “layers” and I was not able to research every aspect of it. From the articles I read, I was able to form my own opinion on the issue but I am certainly open to hearing from others and how they feel about it.
The Issue and the Debate
The current federal minimum wage in the United States is $7.25 per hour and though some states have set theirs higher than that, many have not. I found a great resource to see the different wages set across the United States from the United States Department of Labor.
It is also important to note that the heated debate of whether or not to raise minimum wage has been going on for many years in the United States. Those who believe that minimum wage should not be increased think that raising it will lead to fewer jobs because the price of labor will increase. However, supporters of increasing the minimum wage believe that the current wage is far too low to maintain a decent standard of living for workers (Chicago Tribune).
Support for the Increase
As I researched the issue, I discovered that Tom Harkin, a Senator in Iowa, has been one of the strongest supporters for the increase of minimum wage. In July of 2012, he introduced a bill called the Fair Minimum Wage Act. This is also one of the main components of Harkin’s Rebuild America Act, which was introduced in March 2012.
I also found recent support for this policy. Representative Keith Ellison from Minnesota has been urging President Obama to sign an executive order to increase the minimum wage for federal contract workers for several months. This is due to the fact that members of Congress have not been able to push this through the legislative process due to some strong opposition of the policy. If interested, you can read more about that here (Huffington Post).
These legislators are just two examples of the support behind raising minimum wage and this issue will continue to be one of heated debate.
Obama’s Executive Order
One of the powers of the president is to bypass the legislative branch and issue an executive order. During President Obama’s 2014 State of the Union Address he stated that he would be using this power to increase the federal minimum wage for federal contract workers. This means that any person who is a federal contract worker and begins a new job will have the pay rate of at least $10.10 per hour.
This seems like a very good step in the right direction at first glance. However, this only impacts a very small percentage of workers in the U.S. Upon researching this further, it appears that only new federal contract workers will experience this pay increase, so those already in a contract will not reap the benefits. According to an article from Daily Finance, in 2009, there were only 2 million people who worked as federal contractors and many of those already made above minimum wage.
There are numerous examples of Americans struggling just to get by even though they are working 40 hours a week or more due to low pay. From my perspective, it seems like a “no brainer” to increase the federal minimum wage for all workers, not just those who are federal contractors. However, many people disagreed with the President’s decision and certainly don’t agree with expanding it to include all workers. From the outside looking in, it would seem that now is the perfect time for someone to be able to pass legislation increasing minimum wage. However, the President had to bypass the legislative branch and use his executive powers just to help a small percentage of people.
I know that raising minimum wage for even a few people is a positive change, but I think that more can be done. All legislators need to recognize the dire need for wage increases for working Americans who are barely getting by on their current income. I realize that many believe that increasing wages will lead to fewer jobs, but I think that a compromise can be made if both sides work together. I don’t think President Obama’s executive order was a bad move necessarily, but I think everyone needs to examine exactly who this is going to impact and how much of an impact it is really going to make before it is considered monumental.