Major Concerns with Obama’s Wage Executive Order
During Barack Obama’s 2014 State of the Union, the President announced he will sign an executive order raising the minimum wage for federal works to $10.10 an hour. He believes this will stimulate the economy, benefit the lower class and further level the playing field for the American people.
First of all, the use of executive orders violates the separation of powers which was set by this country’s founding fathers in the Constitution. Mr. Obama is throwing out Article I, Section 1 of the Constitution: “All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.” If the President cannot pass his agenda through this country’s democratic process it respectfully should not become law.
Secondly, the President has indicated he will force the wage increase on federal workers. Where does he suppose this money will come from? This money is coming straight out of the taxpayers pocket while the 2014 budget already calls for a $380 billion deficit and the projected year-end debt stands at $18.2 trillion or $56,000 per U.S. Citizen.
As for his executive order – Why stop at $10.10 an hour? Why not raise the minimum wage to $20 or $100 an hour? If everyone made $100,000 per year wouldn’t poverty be eliminated and everyone in America lives happily ever after? Unfortunately, Mr. Obama and his staff failed to research the potential devastating consequences of such a radical and unwarranted order. It is currently estimated 50-60% of people that live below the poverty line currently don’t work and raising the minimum wage will only make it harder for the citizens actually looking to enter the labor force. If businesses are mandated to pay higher wages they simply will be more selective on whom they hire. Similar to any other goods or service, if you raise the price of it, people will take less. Employers are left with two options: cutting employees or seeking other ways to use less labor. Either one is devastating to our economy.
In a true capitalistic society, and what this country was founded on, the market can and should set the minimum wage just like all other commodities. The true source of higher earnings is personal responsibility; U.S. Citizens need to hold themselves accountable for their earnings and make themselves more marketable to employers by furthering their education and accumulating additional experience and skills in the workforce. Mr. Obama cannot force higher wages on the taxpayers and expect everything else to work itself out.