I’m sure Team Obama gave long, careful thought to this, weighing the pros and cons, considering the costs….or, really, sat around in a bull session which included political wonks, none with any experience in the private market, saying “how can we pump up he moonbat base”?
(NY Times) President Obama plans to sign an executive order requiring that janitors, construction workers and others working for federal contractors be paid at least $10.10 an hour, using his own power to enact a more limited version of a policy that he has yet to push through Congress.
The order, which Mr. Obama will highlight in his annual State of the Union address on Tuesday night, is meant to underscore an increasing willingness by the president to bypass Congress if lawmakers continue to resist his agenda, aides said. After a year in which most of his legislative priorities went nowhere, Mr. Obama is seeking ways to make progress without cooperation on Capitol Hill.
The Times unintentional includes what could happen
But the minimum wage order will also illustrate the limits of that approach. If Congress increased the federal minimum wage to $10.10 from $7.25 as Mr. Obama has sought, 21 million employees would eventually get a raise unless their jobs were eliminated, according to estimates by a liberal research organization. Mr. Obama’s order at most is likely to affect several hundred thousand workers.
Who will pay for this bump in pay? You the taxpayer. Federal contractors will simply pass on the costs to the Government. Some jobs will also be lost. We could see what’s called “Increased productivity”, meaning fewer workers making up the work, along with increased technological solutions. Think ATMs. We certainly won’t see all the negative effects for these companies that one sees for companies that do not survive at the teet of the federal government, but there is a question in terms of a president unilaterally requiring that anyone who does business with the federal government to pay a minimum of $10.10 an hour. Remember, there is that pesky Constitution to consider, which requires equal protection under the law. Many of these companies do business with the private sector, and will be at a disadvantage with competitors, those who do not deal with Los Federales.
This is simply a populist move based on patronizing the Democrat base, with no bearing on economics or reality. If Republicans were smart they’d point out that the last minimum wage hike was passed by Republicans, with most Dems voting against it. The last one was part of an Iraq spending bill. That may not be fair, but, hey, life isn’t fair.
Crossed at Right Wing News.