Pelosi to Fast-Track Minimum Wage Increase

This is another article about the possibility of a federal minimum wage increase as the 110th Congress convenes for the first time in January, 2007. This article says the bill they will promote was proposed by George Miller (D-CA), the incoming chairman of the House Education and the Workforce Committee. It appears to make the same proposals as Kennedy's failed bill earlier.

According to Pelosi's spokesman Brendan Daly and lobbyists, the bill will go straight to the House floor, bypassing the Education and Workforce committees. Pelosi prefers a stand-alone minimum wage bill that is not tied to other legislative efforts, something that has complicated the passing of such an increase in the past. It seems like these other bills are tacked on not only to achieve compromise or bipartisan support, but in general to make the group affected by the bill more broad. There is a strong feeling of support from community groups like ACORN for a minimum wage increase, but in reality a very small portion of the population gets paid the minimum wage, and a large chunk of that population may not even vote yet.

The article provides a good brief summary of the issues being debated. Proponents argue that it will aid the working poor, while business groups counter that it could lead to higher prices for goods and services and force companies to cut low-skilled jobs that will make it difficult for people to get entry-level jobs. Economically speaking, an increase in the price of labor would either have to occur with a subsequent decrease in supply or an increase in demand. Assuming that demand for labor stays the same (or even decreases, as is predicted by some) the supply will have to increase and this will cut back on the number of jobs available.

Senate lobbyists also think the bill will be advanced thru committees, where they will try to make the bill more appealing to proponents. For example, they may include a proposal of faster depreciation of restaurant buildings. This would not be ideal for Pelosi, who wanted this bill to stand alone, but it may be necessary to garner the necessary support.