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But unlike those other options, a higher minimum wage has undeniable political appeal for the White House. First of all, it is broadly popular. A recent poll from USA Today and the Pew Research Center found that 71 percent of Americans support Obama’s proposal. So even though Republicans in Congress will almost certainly kill any minimum wage bill, it gives Obama an opportunity to point out his differences with the GOP.
Just as significantly, the higher minimum wage would not cost the government anything. Unlike the EITC or infrastructure investment, mandating a higher minimum wage is revenue neutral. In today’s deficit-obsessed capital, that may be the root of its appeal.