Market, not politicians, should set employment wages

by The Oklahoman Editorial Board Published: March 4, 2014
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AS part of his focus on combatting “income inequality,” President Barack Obama has called for increasing the federal minimum wage from $7.25 to $10.10 an hour. Democratic strategists thought this would put Republicans on the defensive, forcing them to either acquiesce to Obama’s demands or appear indifferent to the struggles of low-income workers.

Yet it’s Senate Majority Leader Harry Reid, D-Nev., who’s now delaying a vote on a minimum wage increase. Reid previously planned to take up the issue on Thursday, but now says it won’t be voted on until sometime after March 24.

The Hill, a newspaper focused on congressional coverage, reports that Reid is making that change “amid escalating Democratic resistance” to the proposal. Democrats have solid majority control of the Senate, holding 55 of the 100 seats (including the two independents who caucus with the Democrats). Yet just 32 Democratic senators have signed on as co-authors of the minimum wage bill, which is supposedly the centerpiece of their party’s 2014 agenda.

The Democrats refusing to co-author the bill include several in competitive races in Arkansas, Louisiana, North Carolina and Virginia. But even Sen. Tom Carper, who represents reliably Democratic-voting Delaware, has suggested an increase to $10.10 an hour is too much.

Apparently, Democratic political strategy is crashing on the rocks of economic reality. A recent report by the Congressional Budget Office estimated that raising the minimum wage to $10.10 an hour could cost the equivalent of 500,000 jobs by late 2016 — although the document acknowledged some workers would benefit.

Then there’s the fact that few heads of households work for minimum wage. The U.S. Department of Labor’s Bureau of Labor Statistics reports that just 2 percent of married workers earn the federal minimum wage or less. In 2013, James Sherk, a senior policy analyst in labor economics at the Heritage Foundation, noted that over half of minimum wage earners were between the ages of 16 and 24, mostly high school or college students working part-time jobs.

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by The Oklahoman Editorial Board
The Oklahoman Editorial Board consists of Gary Pierson, President and CEO of The Oklahoma Publishing Company; Christopher P. Reen, president and publisher of The Oklahoman; Kelly Dyer Fry, editor and vice president of news; Christy Gaylord...
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