Views on the News: Minimum Wage
On Tuesday, President Barack Obama delivered his State of the Union address, focusing heavily on the issue of income inequality and the minimum wage. Obama proposed raising the federal minimum wage to $10.10 per hour, up from the current standard of $7.25 per hour, and to tie the minimum wage to a cost-of-living adjustment, meaning that it will rise with inflation over time. Should Congress prove unproductive on the issue, Obama promised to achieve this goal through an executive order. Do you agree with the president's plan to raise the minimum wage, even if it means bypassing Congress entirely?
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Dean Lisa Lynch
As a major employer, the U.S. government helps sets the norms for pay and working conditions across the country. Approximately two million workers are hired through federal contracts. The National Employment Law Project estimates that about 20 percent of these workers have earnings below the poverty line and up to 40 percent earn less than a living wage. One of the myths of minimum wages is that only teenagers receive them. The reality is that the average age of minimum-wage workers is 35, the majority of impacted employees work full time and more than a quarter of minimum wage workers have children. More than two decades of research suggests that modest increases in the minimum wage will have little or no negative impact on jobs. Increasing the wage paid to these workers to $10.10 an hour will have a positive impact on these workers and their families.
Lisa Lynch is the dean and Maurice P. Hexler Professor of Social and Economic Policy at the Heller School for Social Policy and Management.
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Prof. Gordon Fellman (SOC)
Aaron Fried '14
President Obama's proposed edict to raise federal employees' minimum wage is merely an executive power grab draped in shoddy economics. While the President and his cronies in the Beltway bleat that their top priority is "jobs, jobs, jobs," this proposal clearly reveals their commitment to employment as political superficiality. All minimum wage policies increase unemployment by artificially cutting demand for inexpensive, unskilled workers; this disproportionately harms the poor and uneducated. It is essential, however, to focus on this abusive overreach of executive power. According to Article I of the Constitution, the President does not and must not have the authority to legislate at all, let alone arbitrarily decree prices; he is not a king. The fact that he is unilaterally seizing this power is particularly disturbing, given America's current slide towards an authoritarian police state. Everyone, regardless of political affiliation, ought to oppose this callous usurpation of the democratic process.
Aaron Fried '14 is Vice President of Brandeis Libertarians and a Columnist for the Justice.
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Avi Snyder '13
Pledging to raise the minimum wage is good politics--but bad policy. A strong body of economic research indicates that a minimum wage hike would modestly increase unemployment by raising the cost of labor and accelerating the trend toward automation of lower-skill work. Raising the minimum wage would also do little alleviating poverty. After all, two-thirds of minimum-wage workers live in families with incomes above 150 percent of the poverty line, and most are not heads of households.President Obama's pledge to raise the minimum wage for federal contractors is more empty symbolism that serious policy reform. If he really wants to get Americans back to work, he should consider lowering the minimum wage for the long-term unemployed, incentivizing employers to hire them. And if the president wants to make work pay, he should work with Congress to follow through on his proposal to expand the Earned Income Tax Credit (EITC). Compared to a minimum wage increase, an EITC expansion would better direct resources to poor families while keeping labor costs down for employers.
Avi Snyder '13 was President of Brandeis Mock Trial, and interned at the Heritage Foundation's Center for Policy Innovation. He now works in public policy in Washington D.C.
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Katharine Cohen '14
The question as to whether this is constitutional could perhaps be left to judicial review, which keeps a check on executive power. As far as if this is an appropriate time to invoke the power of executive order, it seems as urgent a time as any. We go to war for what we believe are moral reasons, for example when people's lives or freedom are at stake. The war on poverty is a universally understood moral pursuit. The lives of those who live in poverty in the United States are in imminent danger, and therefore I see raising the minimum wage as not only a natural and reasonable response to inflation, but more specifically as vital step in the war on poverty and improving the well-being of all Americans.
Katharine Cohen '14 is the president of the Poverty Action Coalition.
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