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from The Great Debate:

Executive orders: Part of the framers’ grand plan

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President Barack Obama has used his executive authority to stop deporting undocumented immigrants who had been brought to the United States as children. The administration has also announced that it will stop requesting mandatory minimum sentences for low-level, non-violent drug offenders.

Obama is now using executive orders and other unilateral exercises of executive power to advance his agenda rather than wait on Republicans in Congress.

The GOP has grown increasingly outraged by the president's actions. House Republicans last week passed the “Enforce the Law Act,” part of a continuing campaign to label any action by the president as “executive overreach.” House Speaker John Boehner (R-Ohio) earlier this year felt the need to “remind” the president that “we do have a Constitution.”

Our Founding Fathers, however, would not be surprised that Obama has engaged in unilateral actions. It would surprise them if he hadn’t.

from Breakingviews:

U.S. is minimum-wage laggard given its prosperity

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By Martin Hutchinson
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

America is a minimum-wage laggard – at least relative to its economic prosperity. With Washington considering a higher pay floor and Peru’s prime minister losing his job over the issue, a Breakingviews analysis shows that minimum wages as a percentage of local income levels are still low in the United States and, for instance, in neighboring Mexico.

from The Great Debate:

On minimum wage: Mind the Gap

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Just 24 hours after Senate Republican Leader Mitch McConnell (R-Ky.) warned that raising the minimum wage to $10.10 per hour from $7.25 would deal a “devastating blow to the very people that need help most,” Gap Inc. announced it would raise employees’ minimum pay to $10 per hour by next year.

In striking contrast to the alarms sounded by McConnell, Gap chief executive officer Glenn Murphy emphasized the benefits of this pay raise for the company’s lowest-paid workers. He described it as a “strategic investment to do more for our employees” -- one that  will help “attract and retain a skilled, enthusiastic and engaged workforce.”

from The Great Debate:

FDR set the terms for labor executive orders

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Many critics have called President Barack Obama’s executive order raising the minimum wage for federally contracted workers an unprecedented bold action. The president bypassed a gridlocked Congress to increase pay to $10.10 an hour -- and raise labor standards for the only federal workers directly within his authority.

This move is a significant step in combating income inequality. The federal government is the largest low-wage job creator -- with more than 2 million low-wage workers. That’s more than Wal-Mart and McDonald’s combined.

from The Great Debate:

The middle class’s missing $1.6 trillion

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The United States was the world’s first middle-class nation, which was a big factor in its rapid growth.  Mid-19th-century British travelers marveled at American workers’ “ductility of mind and the readiness…for a new thing” and admired how hard and willingly they labored. Abraham Lincoln attributed it the knowledge that “humblest man [had] an equal chance to get rich with everyone else.”

Most Americans still think of themselves as middle class.  But the marketing experts at the big consumer goods companies are giving their bosses the unsentimental advice that the middle class is an endangered species. Restaurants, appliance makers, grocery chains, hotels are learning that they either have to go completely up-scale, or focus on bargains for the struggling and budget-conscious.

from The Great Debate:

The minimum wage fight: From San Francisco to de Blasio’s New York

In his State of the Union address last month, President Barack Obama urged cities and states to bypass Congress and enact their own minimum wage increases. "You don't have to wait for Congress,” he stated.

On Monday, New York City Mayor Bill de Blasio followed the president's advice. De Blasio announced, in his State of the City address, that he plans to ask Albany next week to give the city the power to raise the minimum wage.

from The Edgy Optimist:

The real issues behind the minimum wage debate

In his speech at the Center for American Progress this week, President Obama devoted considerable time to an issue suddenly much in discussion: the minimum wage. This is not a new debate. In fact, it neatly echoes the last time Congress raised the minimum wage, in 2007, which echoed the debates before that. Few economic issues are such sweet catnip to ideological camps, and there is precisely zero consensus about whether these minimums have positive, negative or no effect.

Supporters say that a higher minimum wage will give people a better standard of living and boost consumption. Detractors argue that it will lead companies to hire fewer workers and kill job creation. One thing no one addresses, however, is that regardless of whether the government raises the minimum wage, our society can’t endlessly coast with a system that includes wage stagnation for the many and soaring prosperity for the few, nor can the government snap its legislative fingers and magically produce income. Someone will pay for these increases; nothing is free.

from The Great Debate:

It’s not just fast-food workers who are underpaid

Akil Poynter, 20, works 30 hours a week at a St. Louis area McDonald’s, earning $7.35 an hour for manning the grill. Since the Florissant Valley Community College student can't get by on that income, he took on a second job, preparing sandwiches and salads at a local Panera Bread. There he receives $7.95 an hour for another 25 hours of labor a week.

Asked the difference between his two employers, Poynter says there isn’t much of one. Panera’s nicer surroundings and higher-quality food don’t translate to better working conditions. "The environment is different but the work is the same," Poynter noted. "Workers are working their butt off every day to get their paycheck."

from Reihan Salam:

Finding new ways to make work pay

One of the scariest notions about America’s sluggish labor market recovery is that it doesn’t represent an aberration, but rather a new reality in which good jobs are few and far between, particularly for those with limited skills. It is certainly possible that the future will be brighter than we think, and that we will soon enter a new economic Golden Age in which people with low education levels will flourish as employers clamor for their services at ever-higher wages. But if this happy outcome does not come to pass, as the current evidence suggests, the United States and other market democracies will have to come up with a Plan B.

A number of interrelated developments, from automation to organizational innovation to off-shoring, appear to have reduced the willingness of employers to pay middle-income wages to less-skilled workers. That is, the problem is not that there is no wage at which employers will take on less-skilled workers. If this were the case, agriculture and hospitality companies wouldn’t be pressing lawmakers for an immigration overhaul that would allow for a large influx of less-skilled workers from abroad.

from The Great Debate:

Will a minimum wage destroy German jobs?

Germany has once again become the world’s favorite whipping boy, roundly criticized over the past few days by the U.S. Treasury, a top International Monetary Fund official and the European Commission president, among others, for running record trade and current account surpluses that are supposedly detrimental to the European and global economy.

The arguments continue, with the Germans themselves saying that the surpluses are simply the happy result of the nation’s industrial competitiveness and don’t hurt anyone else. Lost in the debate, however, is what’s happening in Berlin right now. As Chancellor Angela Merkel seeks to form a new coalition government, she appears to be on the verge of throwing out some of the very policies that underpin the export boom of the past decade.

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