PRESIDENT OBAMA'S REMARKS ON RAISING MINIMUM WAGE

FROM:  THE WHITE HOUSE 

April 30, 2014

Remarks by the President on Raising the Minimum Wage

East Room

3:02 P.M. EDT

THE PRESIDENT:  Thank you, everybody.  Please have a seat.  Good afternoon.

AUDIENCE MEMBER:  Aloha!

THE PRESIDENT:  Aloha.  (Laughter.)  Got a Hawaiian guy here.

After 14 months since I’ve called on Congress to reward the hard work of millions of Americans like the ones who we have here today to raise the federal minimum wage, we saw this morning a majority of senators saying “yes,” but almost every Republican saying “no” to giving America a raise.

They blocked a bill –- sponsored by Senator Tom Harkin and Congressman George Miller, who is right here in front.  (Applause.)  A bill that would have gradually raised the minimum wage from $7.25 an hour to $10.10 an hour.  By preventing even a vote on this bill, they prevented a raise for 28 million hardworking Americans.   They said no to helping millions work their way out of poverty -- and keep in mind, this bill would have done so without any new taxes, or spending, or bureaucracy.  They told Americans like the ones who are here today that “you’re on your own” -– without even looking them in the eye.

We know these Americans.  We depend on them.  The workers who’d benefit from a minimum wage increase often work full-time, often in physically demanding jobs.  They average 35 years of age.  Most low-paying jobs are held by women.  But because Republicans in Congress said “no” to even allowing a vote on the floor of the Senate, these folks are going to have to wait for the raise they deserve.

Now the good news is outside of Washington folks aren’t waiting.  While Republicans have been deciding whether to even allow a minimum wage bill to even come up for a vote, you’ve seen 10 states and the District of Columbia go ahead and raise theirs.  (Applause.)  Yesterday, the Hawaii legislature voted to raise their minimum wage to $10.10 an hour.  Maryland did the same thing earlier this month -– and I know we’ve got some Maryland state legislators here today.  Thanks for the good work.  (Applause.)

So the actions that have been taken in just four states -- Maryland, Connecticut, Minnesota, and Hawaii -– means that over a million workers will see a raise.  What’s more, we’ve seen big companies like The Gap, and small businesses -- from a pizza joint in St. Louis to an ice cream parlor in Florida -- increasingly choosing to raise wages for their employees because they know it’s good business.  They know that it means employees are more likely to stay on the job, less turnover.  It means that they’re going to be more productive, and customers see the difference.  That’s one of the reasons I issued an executive order requiring employees on new federal contracts to be paid a fair wage of at least $10.10 an hour.  (Applause.)

So Americans have been way out in front of Congress on this issue.  In fact, about three in four Americans support raising the minimum wage.  And that’s because we believe that in the wealthiest nation on Earth, nobody who works full-time should ever have to raise a family in poverty.  That’s a basic principle.  (Applause.)  And at a time when those at the top are doing better than ever, while millions of Americans are working harder and harder just to get by, that three out of four Americans understands that America deserves a raise.

A few months ago, I got a letter from a woman named Sheila Artis.  And Sheila lives in Lilburn, Georgia and at the time she was working two jobs -- making $8 an hour at each job.  As Sheila wrote, “I do not have days off, I have hours off.”  But she kept going to work every day because she wanted to be able to afford college tuition for her daughter.  And so she wrote to me and said, “I do not want a pot of gold.  All I want is to pay for college and pay my bills in full every month.”  That's all she’s looking for.  Doesn't expect to get wealthy, just wants to be able to pay the bills at the end of every month, be able to act responsibly, meet her responsibilities based on her own hard work.

People like Sheila deserve a fair shot.  So far Republicans in Congress disagree.  In fact, some of them want to scrap the minimum wage entirely.  One House Republican said, “It’s outlived its usefulness.  I’d vote to repeal the minimum wage.”  A Senate Republican said he doesn’t think the minimum wage helps the middle class.

This is a very simple issue.  Either you’re in favor of raising wages for hardworking Americans, or you’re not.  Either you want to grow the economy from the middle out and the bottom up so that prosperity is broad-based, or you think that top-down economics is the way to go.

Republicans in Congress have found the time to vote more than 50 times to undermine or repeal the health care bill for millions of working families.  Earlier this month, they voted for a budget that would give the wealthiest Americans a massive tax cut while forcing deep cuts to investments that help middle-class families.  But they won’t raise wages for millions of working families when three-quarters of Americans support it?  That makes no sense.  And on top of that, they’ve blocked our efforts to make sure women receive equal pay for equal work.  They’ve stood in the way as we’ve fought to extend unemployment insurance for parents who need a little help supporting their families while they’re out looking for work.  Republicans have failed to dismantle the Affordable Care Act, and they’ve increasingly failed to do anything when it comes to helping people who work hard get ahead.

If there’s any good news here, it’s that Republicans in Congress don’t get the last word on this or any issue -- you do, the American people, the voters.  (Applause.)  Change is happening, whether Republicans in Congress like it or not. And so my message to the American people is this:  Do not get discouraged by a vote like the one we saw this morning.  Get fired up.  Get organized.  Make your voices heard.  (Applause.)  And rest assured, I’m going to keep working with you and Leader Nancy Pelosi and other members of Congress who are here today to raise wages for hardworking Americans.  It’s the right thing to do.  (Applause.)

If your member of Congress doesn’t support raising the minimum wage, you’ve got to let them know they’re out of step, and that if they keep putting politics ahead of working Americans, you’ll put them out of office.  Tell them to reconsider.  Tell them it’s time for $10.10.  You can tweet at them -- use hashtag #1010Means.  Let them know how raising the minimum wage would help you, or your family, or somebody that you know.  And while you’re at it, tell them to restore unemployment insurance for Americans who are trying to support their families right now while they look for work.  (Applause.)  Extending this lifeline of unemployment insurance would actually strengthen the economy and create jobs, and give millions of Americans across the country a sense of hope.

In the meantime, I’m going to keep offering my support to every business owner, and mayor, and governor, and county official, and legislator, and organization that’s working to give America a raise.  Because change does not come from Washington, it comes to Washington from all the folks out there who are working hard.  Americans want the people they send here to set aside the old political arguments and move this country forward.  With enough determination and enough persistence, the American people will ultimately win out.

So thank you, God bless you.  God bless the United States of America.  (Applause.)

WHITE HOUSE ISSUES FACT SHEET ON RAISING THE MINIMUM WAGE

FROM:  THE WHITE HOUSE 
January 28, 2014
FACT SHEET: Opportunity for All – Rewarding Hard Work

Raising the Minimum Wage through Executive Order to $10.10 for Federal Contract Workers & Calling on Congress to Finish the Job for All Workers by Passing the Harkin-Miller Bill

Year of Action: Making Progress Through Executive Action

The President wants to work with Congress to pass the Harkin-Miller bill that would increase the Federal minimum wage to $10.10 and index it to inflation thereafter, and he will continue to work with Congress to get that done. The President has also looked at what he can do through executive action to help raise wages for hardworking Americans. In the State of the Union Address, the President will announce that he will use his executive authority to raise the minimum wage to $10.10 for those working on new federal contracts for services.

Hardworking Americans – including janitors and construction workers – working on new federal contracts will benefit from the Executive Order (EO). This action will cover workers who are performing services or construction and are getting paid less than $10.10 an hour.  Some examples of the hardworking people who would benefit from an EO include military base workers who wash dishes, serve food and do laundry.

A higher minimum wage for federal contract workers will provide good value for the federal government and hence good value for the taxpayer. Boosting wages will lower turnover and increase morale, and will lead to higher productivity overall. Raising wages for those at the bottom will improve the quality and efficiency of services provided to the government. When Maryland passed its living wage law for companies contracting with the state, there was an increase in the number of contractors bidding and higher competition can help ensure better quality.

The wage increase will be manageable for contractors. The increase will take effect for new contracts after the effective date of the order, so contractors will have time to prepare and price their bids accordingly.

Continuing to Work With Congress to Help All Workers

The President is using his executive authority to lead by example, and will continue to work with Congress to finish the job for all Americans by passing the Harkin-Miller bill. The bill would raise the Federal minimum wage for working Americans in stages to $10.10 and index it to inflation thereafter, while also raising the minimum wage for tipped workers for the first time in over 20 years.

Businesses like Costco have supported past increases to the minimum wage because it helps build a strong workforce and profitability over the long run. Low wages are also bad for business, as paying low wages lowers employee morale, encourages low productivity, and leads to frequent employee turnover—all of which impose costs.

Raising the minimum wage will make sure no family of four with a full-time worker has to raise their children in poverty. It has been seven years since Congress last acted to increase the minimum wage and, adjusted for inflation, today the real value of minimum wage is roughly the same as what it was in the 1950s, despite the fact that the typical American family’s income has doubled since then. And right now a full-time minimum wage worker makes $14,500 a year, which leaves too many families struggling to make ends meet. Even after accounting for programs like the Earned Income Tax Credit, a family of four supported by a minimum wage worker still ends up living below the poverty line.

Indexing the minimum wage to inflation would help lower-income workers keep up in the future. Since it was first established in 1938, the minimum wage has been increased 22 times, but was eroded substantially over several prolonged periods because of inflation. Democrats and Republicans agree that indexing the minimum wage to inflation would ensure that working families can keep up with expenses and will not suffer if Congress fails to act. Indexing would prevent a repeat of the 34 percent decline in the real value of the minimum wage from 1978 to 1989 and the 19 percent decline in real value from 1998 to 2006.

Helping parents make ends meet. Around 60 percent of workers benefiting from a higher minimum wage are women.  Less than 20 percent are teenagers.  Also, those workers who would benefit from an increase in the minimum wage brought home 46 percent of their household’s total wage and salary income in 2011.  Raising the minimum wage directly helps parents make ends meet and support their families.

Raising the minimum wage is good for government, good for business and workers and key to a stronger economy.  A range of economic studies show that modestly raising the minimum wage increases earnings and reduces poverty without jeopardizing employment.  Higher wages can also boost productivity, increase morale, reduce costs and improve efficiency.  

Across the country, Americans are saying it’s time to raise the minimum wage. The President believes that it’s time for action, and people across the country agree. Since the President called for an increase in the minimum wage in last year’s State of the Union, five states have passed laws increasing their minimum wage. And many businesses, from small businesses to large corporations see higher wages as the right way to boost productivity and reduce turnover and therefore boost their profitability.