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Obama: ‘Revving’ US economy calls for higher wages
TEHRAN, Iran — In this photo released by the official website ofthe office of the Iranian Presidency, Iran's President HassanRouhani kisses the head of Armita, daughter of Iranian scientificresearcher Darioush Rezaeinejad who was assassinated in July2011, during a news briefing after Iran and world powers cameto an agreement in Geneva, over its nuclear programme, at thePresidency compound. (PHOTO: AP)
Business
September 2, 2014

Obama: ‘Revving’ US economy calls for higher wages

MILWAUKEE (AP) — President Barack Obama renewed his push for Congress to raise the minimum wage on Monday in a buoyant accounting of the economy’s “revving” performance, delivered on behalf of Democrats opening their fall campaigns for the midterm congressional elections.

“America deserves a raise,” he told a union crowd in Milwaukee, vowing to keep a hard sell on Congress in much the way he once courted his wife. “I just wore her down,” he cracked.

Timing his push to Labour Day, the traditional start of the autumn campaign, Obama aggressively drew attention to recent economic gains, setting aside past caution on that subject.

“By almost every measure the American economy and American workers are better off than when I took office,” he said, rattling off a string of improving economic indicators even while acknowledging not all people are benefiting. “The engines,” he said, “are revving a little louder.”

It was, at least indirectly, a pep talk for Democrats facing tough races in a nation still gripped with economic anxieties.

The emphasis on the minimum wage is designed to draw campaign contrasts with Republicans, many of whom maintain that an increase would hurt small businesses and slow down hiring. No one expects Congress to act on it before the November elections.

Despite the absence of a federal increase, 13 states raised their minimum wages at the beginning of this year. Those states have added jobs at a faster pace than those that did not raise the wage, providing a counterpoint to a Congressional Budget Office report earlier this year that projected that a higher minimum wage of US$10.10 an hour could cost the nation 500,000 jobs.

Until now, Obama and his White House aides had been reluctant to draw too much attention to positive economic trends, worried that some may prove illusory or that, even if they hold, many working Americans continue to live on the edge of poverty and take no comfort in the upswing.

But in Milwaukee, Obama dared to say of the job picture, “We’re on a streak.”

White House aides still insist they are not declaring full victory over the lingering effects of a recession that ended five years ago.

But White House officials believe it is time to highlight recent improvements, in part to strengthen a difficult political environment for Democrats and to counter public perceptions that are eroding the president’s public approval. Officials say Obama’s most compelling case is to compare the economy now to what he inherited in 2009 in the aftermath of a near Wall Street meltdown.

Obama, whose public approval is at about 40 per cent, has also been cautious about making appearances in states with close midterm political contests and where his popularity might be even lower.

But in coming to Wisconsin, he brought his Labour Day message to the state that was the epicentre of a fight over the collective bargaining rights of public employees. Labour Secretary Tom Perez and several national labour leaders came with him.

The White House is encouraging Democrats to draw attention to the recovery as they head into the November mid-term elections.

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