By Peter Whoriskey
Washington Post, February 21, 2013
… the White House argues that “modestly” raising the pay rate will not stall the jobs recovery. “A range of economic studies show that modestly raising the minimum wage increases earnings and reduces poverty without jeopardizing employment,” according to the White House press office. ...
At a White House meeting of executives of small and medium-sized business in November that covered a range of economic issues, one advocated for raising the rate.
“I think it’s the ethical thing to do, to come up with a wage that a person can live on, and then index it to inflation,” said Paul Bolotsky, the founder and chief executive of uncommongoods.com, which sells independently designed goods and employs about 100 people. “It engendered a lot of discussion.” ...
There are even some, such as Kelly Services staffing agency chief executive Carl Camden, who say the problem with Obama’s proposal is that it doesn’t go far enough.
“It needs to be closer to $12.50 an hour,” Camden said. “How’s that for a weird position?”
Like Bolotsky, Camden argued that businesses that pay only the minimum wage in effect may be getting a government subsidy because those wage-earners could be eligible for government help such as food stamps and Medicaid.
“Right now, we have a system of subsidizing low-wage work in the country,” Camden said.
Copyright 2013 Washington Post Co.