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At Town Hall, President Biden Throws Cold Water on Hopes For Quick $15/Hour Wage Rate

 

Earlier this week, President Joe Biden held a town hall in Milwaukee in which he took a range of questions from the audience.  While President Biden addressed student loan forgiveness and defunding the police, among other topics, I wanted to highlight his most recent comments in regard to raising the federal hourly minimum wage rate to $15/hour.

In response to a question from an audience member about raising the wage rate to $15/hour, President Biden acknowledged that while he supports a $15/hour wage rate, he wanted to see that wage rate be gradually phased in.  It is worth noting that President Biden recognized that small business owners could be detrimentally impacted by a wage hike and in doing so, gradually phasing it might be appropriate.  (This concern has been a recurring theme across the country as other cities and states consider raising their minimum wage rates.  It is one thing for large employers to shoulder the burden of a sudden increase in labor costs...it is an entirely different situation for smaller employers to make ends meet.)

Granted, it should not come as much of a surprise that following President Biden’s statement at the town hall, some were quick to criticize the President’s position on the matter.  Vermont Senator Bernie Sanders tweeted yesterday that the federal hourly minimum wage rate of $7.25 must be raised to $15/hour by 2025.  He has indicated that any Covid relief bill that approved by the Senate would include language raising the hourly minimum wage rate.  (Prior comments from President Biden indicated he wanted a Covid relief bill independent from any stimulus bill, which would likely include hourly minimum wage rate language.)  Notably, at least two Democratic Senators, Krysten Sinema and Joe Manchin, have voiced their opposition to any Covid relief bill that includes hourly minimum wage rate language.

President Biden’s comments are likely to frustrate those who thought a Democratic controlled Congress and White House would quickly move to pass minimum wage legislation and put an aggressive timeframe on raising the federal hourly minimum wage rate to $15.  While there appears to be disagreement among Democrats on how fast to raise the hourly minimum wage rate, they are at least in agreement that it needs to be raised.  The question then turns to whether they can agree on a timeframe while they have majority control to approve legislation (over likely Republican opposition.)


For additional information:  https://www.cnn.com/2021/02/17/politics/15-dollar-minimum-wage-biden/index.html

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