Peter Morici

Let’s do for America’s private employers what teachers unions have done to education, and millions more will be unemployed.

The working poor surely need a raise. Since adjusted in 2009, inflation has seriously eroded the value of the $7.25 per hour minimum wage.

By insisting on raising the floor to $10.10, which the Congressional Budget Office estimates could kill 500,000 mostly low-wage jobs, Obama forces congressional Republicans to block an increase and paints them as enemies of the poor. Meanwhile, this tactic precludes a reasonable adjustment to $8.25 an hour, which would cause few employment losses.

Just as with higher taxes on entrepreneurs to burdensome health care mandates, to gain political advantage, the president’s policies burden the working poor. He plays champion of fairness while behaving more like a manipulative character in a Dickens novel.

While presidents can’t fool all the people all the time, they can fool enough of the people enough of the time to maintain a tight grasp on power.

Peter Morici is a professor at the University of Maryland Smith School of Business, a widely published columnist and five time winner of the MarketWatch best forecaster award. He tweets @pmorici1

Peter Morici

Professor Peter Morici is a recognized expert on economic policy and international economics. He has lectured and offered executive programs at more than 100 institutions including Columbia University, the Harvard Business School and Oxford University.