Obama reiterated the push to increase the minimum wage Wednesday in a post-State of the Union speech in North Carolina.
More broadsides like that one are likely.
Both sides have think tank studies purporting to show minimum wage increases help or hurt the economy; Republican aides showed a graphic correlating the last minimum wage increase with a spike in teen unemployment, and conservative groups and think tanks put out statements describing the policy as a recipe for disaster for workers.
But the issue comes down to fundamentally different views of how government should intervene in the economy — with Obama enacting new health care mandates on businesses and now pushing higher wages, and the GOP arguing that growth will come when the government gets out of the way.
It’s one thing to make that argument in a talk at a conservative think tank, but it’s another to use it to win over public opinion. Republicans believe that they can do that this time around with stats at their back and say they aren’t sweating the issue; Democrats are equally sure that they’ll have public opinion firmly on their side.
The last time the parties tangled over the minimum wage, it ended up as a staple of Democratic messaging heading into the party’s 2006 takeover of Congress.
The fight to increase the $5.15-an-hour minimum wage was used by Democrats to bash Republicans as beholden to the wealthy — especially after then-Senate Majority Leader Bill Frist, R-Tenn., tied an increase to an estate tax cut and refused to decouple the issues.
Democrats, in turn, came out against any increases in congressional pay until the minimum wage went up.
Legislation setting the current $7.25-an-hour wage ended up on a compromise war funding bill signed by President George W. Bush the following year, after Democrats had taken over both chambers.
The issue died down nationally for several years — even though Obama proposed a $9.50-an-hour rate in his 2008 campaign. However, the issue has become a staple of fights in state capitals.
In New Jersey, Gov. Chris Christie recently vetoed an effort to raise that state’s minimum wage to $8.50 an hour and tie future increases to inflation, according to news reports. Christie offered instead a $1 increase to $8.25 over three years. New Jersey Democrats are now looking to put a minimum wage increase on the ballot for voters this fall.
The New Jersey newspaper The Record reported the ballot measure has Republicans worried about spillover effects on other races and the potential for the business community to divert its resources to fighting the referendum.
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