obama\s minimum wage pledge divides economists
Last Updated : GMT 22:49:54
Arab Today, arab today
Arab Today, arab today

Obama\'s minimum wage pledge divides economists

Arab Today, arab today

Arab Today, arab today Obama\'s minimum wage pledge divides economists

Washington - AFP

President Barack Obama\'s pledge to raise the minimum wage by 24 percent has divided economists and businesses who warn it could threaten recent improvements in jobless numbers. Obama has stated that his administration plans to increase the existing minimum hourly rate from $7.25 to $9, vowing to press ahead with the initiative despite the sequester budget crisis. \"There are other areas where we can still make progress even with the sequester unresolved,\" Obama said, referring to $85 billion of drastic budget cuts that went into effect on March 1. \"I\'m gonna keep pushing to make sure that we raise the minimum wage so that it is one American families can live on.\" Unlike other developed nations such as France, where the minimum wage is indexed to inflation and adjusted automatically each year, the rate in the United States often remains unchanged for years at a time. The last increase, to the current level of $7.25 an hour, was introduced nearly four years ago in July 2009. \"Taking action on the minimum wage is long overdue,\" US Deputy Labor Secretary Seth Harris told AFP. The United States has one of the lowest minimum wages of major industrial nations. According to figures from the International Labor Organization, the US is only 38 percent of the median wage, compared with 46 percent in Britain and 60 percent in France. For Democratic lawmakers, Obama\'s proposals do not go far enough. Democrats in Congress have launched a bill hoping to raise the rate to $10.10. Democratic House Minority Leader Nancy Pelosi said the increase -- strongly opposed by Republicans -- was necessary to protect middle class Americans. \"We have a situation where if we are to honor our commitment to the middle class, which is the backbone of our democracy, we have to reflect that in... our public policy,\" Pelosi said. Proposals to increase the minimum wage are broadly popular, with 71 percent of people backing the move, according to a Gallup poll. Former Obama administration adviser William Spriggs, the chief economist of the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), said the hike was essential. \"The gap between the average wage of the American worker and the minimum wage is very high,\" Spriggs said. He said the current minimum wage also exposed a gender divide in the workforce, noting that those on the minimum wage were predominantly women. \"We think it would also help close the gender gap between men and women in terms of salary,\" he said. But other economists and business groups are sharply divided over the proposals. The US Chamber of Commerce has argued the burden of any increase will be felt most by small businesses. \"The US Chamber continues to believe that increases in the minimum wage fall disproportionately on small businesses who are the least able to absorb such a dramatic increase in their labor costs,\" it said. \"Accordingly, the US Chamber continues to oppose increases in the minimum wage and believes that any increase must be coupled with provisions that recognize the impact this will have on small businesses.\" Michael Saltsman, research director at the conservative Employment Policies Institute, questioned whether a wage increase could be effective. \"Will it do what President Obama wants to do, which is help to reduce poverty?\" Saltsman asked. \"On that question, the minimum wage has been a disappointment too,\" he said, adding that poor people \"need a job, not a wage increase.\" Any increase in the minimum wage is likely to be mitigated by the complexity of the American system. Many states already have their own minimum wage, with several already above the current level of $7.25, while certain employees, such as those paid tips, work under a different scale. But Ioana Marinescu, an economist at the University of Chicago Harris School of Public Policy Studies was adamant that an increased minimum wage will \"boost consumption\" without adversely affecting businesses. \"Underpaid employees will often eventually find a better paid job elsewhere,\" she said. \"By paying more, employees are more likely to stay, which will mean businesses are saving money spent recruiting and training new employees.\" Obama\'s minimum wage push has also found support from an unexpected quarter, with the budget retail giant Costco backing the move. \"Instead of minimizing wages, we know it\'s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty,\" Costco chief chief executive Craig Jelinek said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

obama\s minimum wage pledge divides economists obama\s minimum wage pledge divides economists

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

obama\s minimum wage pledge divides economists obama\s minimum wage pledge divides economists

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today Jordanian journalist happy of her career

GMT 17:37 2017 Thursday ,23 November

Jordanian journalist happy of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday