One of the big (contrived) hits of Mr. Obama’s “State of the Union” speech was him wanting to increase the Federal minimum wage from $7.25 to $9.00/Hr.
On the face of it it sounds admirable and was well received by the audience and people in general.
I thought that it was a bit of “grandstanding” myself, planting something in the speech that is pretty much a given that it would be a popular part of his “manifesto”.
I believe that Mr. Obama has another reason for the planned increase and it has to do with “Obama Care”.
Stop and think for a minute, raising the minimum wage $1.75 will NOT bring people out of poverty, period. “IF” you work 40 hrs/wk that’s an increase of $70/wk, not very much.
I think the true reason behind the White House push to increase the minimum wage is more related to the cost of “Obama Care”, something that nobody, NO BODY! really knows what the true figures are going to be. The mandate portion of Obama Care requires that everyone buy their own health insurance. Those people who don’t earn enough to buy their own insurance will be eligible for government assistance. Now, with the increase in the minimum wage, modest or not, think of how many millions of minimum wage workers will now be ineligible for government assistance because they make too much money.
For Mr. Obama it’s a win/win situation. He gets to look like a hero, working hard to help the “little guy” and at the same time falsely making the true cost of his baby, Obama Care look cheaper than it truly is.