Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Obama: Pay gap ‘morally wrong’
The Hill ^ | - 07/30/13 05:00 AM EDT | By Peter Schroeder

Posted on 07/30/2013 3:42:05 AM PDT by onyx

President Obama is changing gears on the economy, highlighting income inequality as a growing problem in advance of pitched fall battles with congressional Republicans over funding the government and raising the debt ceiling. [WATCH VIDEO]

The focus is intended to make it easier for Obama to argue that new taxes on the rich — and not cuts to social spending — should be imposed to lower the deficit.

It also dovetails with Obama’s call for Congress to raise the federal $7.25 minimum wage and to end the automatic spending cuts known as sequestration.

“This growing inequality is not just morally wrong, it’s bad economics,” Obama said in remarks last week in Galesburg, Ill., where he began a new push on the economy.

“The income of the top 1 percent nearly quadrupled from 1979-2007, but the typical family’s incomes barely budged,” he said.

The president reiterated that message in an interview with The New York Times last week.

“If we stand pat, if we don’t do anything … income inequality will continue to rise,” he told the newspaper. “Wages, incomes, savings rates for middle-class families will continue to be relatively flat. And that’s not a future that we should accept.”

Obama is also discussing the matter in private.

During a meeting earlier this month with members of the Congressional Black Caucus, Rep. Keith Ellison (D-Minn.) said he pressed Obama to issue an executive order requiring federal contractors to provide higher wages.

“He said it’s something that he would take a close look at,” said Ellison, the co-chairman of the Congressional Progressive Caucus. “He should seriously look at doing that because he might be able to help a whole bunch of workers.”

Opponents of raising the minimum wage, including many Republicans and business groups, argue an increase would hurt small businesses already injured by the recession and slow recovery.

And if those small businesses cannot afford to pay the mandated boost, they will end up laying off workers, opponents contend.

There is evidence that income inequality has grown since the economic recession of 2008-2009.

Economists Emmanuel Saez and Thomas Piketty found that between 2009 and 2011, 121 percent of income gains went to the richest 1 percent of the population, according to a report in CBS News.

The other 99 percent, the two said, saw their incomes fall by about half a percent over the same period.

When adjusted for inflation, low-wage workers are actually making less now than they did 50 years ago.

According to a June study from the Congressional Research Service, inflation-adjusted wages have declined from a peak in 1968 and now stand roughly 26 percent below that level when adjusted for price growth. Workers would have to make $10.70 now to make an amount equal to the purchasing power of 1968’s $5.65 minimum wage.

Labor statistics indicate that a relatively small portion of the working population brings home the minimum wage. According to the Labor Department, just 4.7 percent of the 75.3 million workers in the U.S. in 2012 received the minimum wage or lower. (Some wait staff earn less than the middle wage because a portion of their income is paid in tips.)

Of that population, roughly half are under the age of 25 — employees aged 16-19 make up one-fifth of all minimum wage workers.

If Obama can’t convince Congress to raise the minimum wage, he’d be the first president since Ronald Reagan to not sign a wage hike into law.

The minimum wage hasn’t been increased since 2009, when the final stage of a three-step increase approved by Congress in 2007 was implemented.

Before last week, Obama had talked little about the minimum wage since calling for it to be increased in his State of the Union address.

Growing income inequality “undermines the very essence of America,” he told the crowd in Galesburg.

The White House is also making a last stand of sorts on the sequester.

It pressed Congress to undo the cuts earlier this year to no avail, and now faces another year of significant budget cuts unless a deal can be reached to replace them.

Republicans have shown little sign that they would accept the elimination of tax breaks, particularly after the fiscal cliff deal at the beginning of the year raised tax rates on households with annual income above $450,000.

House Democrats are pushing to end the sequester and have offered legislation that would boost the minimum wage to $10.10 per hour and index it to inflation.

Proponents hope protests from fast-food workers, along with Obama’s calls, will galvanize public support.

Ellison and other liberal Democrats are backing strikes held by workers at McDonald’s and other restaurants demanding a $15 minimum wage, as well as the right to unionize.

“There is a groundswell movement going on,” Ellison said. “They’re pressed so hard to the wall that they don’t have any other choice.”

Ellison, who worked at a McDonald’s between high school and college, said workers in the industry earn every penny they make.

“I know it’s hard work. You come home bathed in grease,” he said.


TOPICS: Business/Economy; Front Page News; Government; Politics/Elections
KEYWORDS: minimumwage; obamalies
Navigation: use the links below to view more comments.
first 1-5051-100101-114 next last

1 posted on 07/30/2013 3:42:05 AM PDT by onyx
[ Post Reply | Private Reply | View Replies]

To: onyx

Has his buddy Warren Buffett taken a pay cut or paid his own damn back taxes yet?


2 posted on 07/30/2013 3:43:18 AM PDT by a fool in paradise (America 2013 - STUCK ON STUPID)
[ Post Reply | Private Reply | To 1 | View Replies]

To: onyx

Here’s a pay-gap remedy: send the Obamas on their last vacation ever. In prison.


3 posted on 07/30/2013 3:45:44 AM PDT by Hardraade (http://junipersec.wordpress.com (Obama: the bearded lady of Muslim Brotherhood))
[ Post Reply | Private Reply | To 1 | View Replies]

To: a fool in paradise; SatinDoll

“morally”

Hey, the leftist line.... don’t stuff your morality down my throat

Also I should add, leftists do not separate social and economic issues, to them they are the same thing.


4 posted on 07/30/2013 3:46:07 AM PDT by GeronL
[ Post Reply | Private Reply | To 2 | View Replies]

To: onyx

Income equality is a Marxist political concept.


5 posted on 07/30/2013 3:51:47 AM PDT by savedbygrace (But God.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: onyx

How odd? The minimum wage in 1968 was $1.62 per hour according to the federal government.


6 posted on 07/30/2013 3:53:15 AM PDT by blackdog (There is no such thing as healing, only a balance between destructive and constructive forces.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: onyx

The pay gap should be wider, lazy lefties should receive no benefits, hard working Republican paid double and pay no taxes.
Also the Obums should leave the WH and reimburse the money they stole whislt in power. Never has an American President and his family been so LAZY.


7 posted on 07/30/2013 3:53:40 AM PDT by Christian1
[ Post Reply | Private Reply | To 1 | View Replies]

To: onyx
This ‘morally wrong’ statement comes on the heels of the Vatican's statement about high interest lending being ‘morally wrong’. Apparently, Obama is the political equivalent of Carlos Mencia.
8 posted on 07/30/2013 3:55:18 AM PDT by liberalh8ter (The only difference between flash mob 'urban yutes' and U.S. politicians is the hoodies.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: savedbygrace

Exactly so and “House Democrats are pushing to end the sequester and have offered legislation that would boost the minimum wage to $10.10 per hour and index it to inflation”!!!


9 posted on 07/30/2013 3:59:17 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 5 | View Replies]

To: savedbygrace

Why $10.15 as the minimum wage? Every time they raise it they say it isn’t enough. Quit screwing around and make it $20.00... or $ 25.00...or $30.00. There are hundreds of ways to wreck an economy and raising the minimum wage is one of those. The stupidity of the Democrat Party is stunning...


10 posted on 07/30/2013 3:59:57 AM PDT by Russ (Repeal the 17th amendment)
[ Post Reply | Private Reply | To 5 | View Replies]

To: onyx

Since the Democrats took over Congress in 2007, the median income has fallen by $3000.

https://en.wikipedia.org/wiki/Household_income_in_the_United_States
http://en.wikipedia.org/wiki/Personal_income_in_the_United_States

Socialists seem to like income inequality, as long as they and their cronies are rich and everyone else is poor.


11 posted on 07/30/2013 4:00:04 AM PDT by exDemMom (Now that I've finally accepted that I'm living a bad hair life, I'm more at peace with the world.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: liberalh8ter

‘morally wrong’ = you’re right.


12 posted on 07/30/2013 4:00:08 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: GeronL

Where are we to turn for the moral standard?

Can we look to the Bible?

1 Thessalonians 4:11,12 says, “Study to be quiet, and to do your own business, and to work with your own hands, as we commanded you; that ye may walk honestly toward them that are without, and that ye may have lack of nothing.”

GAMBLING DISCOURAGES HONEST LABOR: The basic tenet of the bible is based on the idea that every person should give an honest day’s work for a honest day’s pay. To a degree, gambling discourages work. It encourages a person to simply wait on the lucky day when he will hit the number and rest from his life of waiting on the right number. It encourages him to find a “get rich quick” scheme and a short cut to wealth without applying the abundance of talents that God has given him in the market place of business and labor. Proverbs 28:19-20 puts it this way, “ He that tilleth his land shall have plenty of bread: but he that followeth after vain persons shall have poverty enough. A faithful man shall abound with blessings: but he that maketh haste to be rich shall not be innocent.”
~Pastor Roosevelt Wright, Jr.
http://newtabernacle.com/Questions/Qgambling.html


13 posted on 07/30/2013 4:00:37 AM PDT by a fool in paradise (America 2013 - STUCK ON STUPID)
[ Post Reply | Private Reply | To 4 | View Replies]

To: onyx

Yep, odumbo’s “pay gap” is too wide. He needs to be defunded, permanently.


14 posted on 07/30/2013 4:01:09 AM PDT by Progov (I'm for SMALLER , HONEST government)
[ Post Reply | Private Reply | To 9 | View Replies]

To: a fool in paradise

bump


15 posted on 07/30/2013 4:01:10 AM PDT by GeronL
[ Post Reply | Private Reply | To 13 | View Replies]

To: exDemMom

Thanks very much for that.

We can easily see where he’s going with this.


16 posted on 07/30/2013 4:01:13 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: a fool in paradise

I think Warren still owes his back taxes.


17 posted on 07/30/2013 4:02:04 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Russ

If the minimum wage is going to keep rising, why does unemployment pay at or below minimum wage even if your previous job paid in at several times the minimum wage?

If it is to be a “livable” amount, shouldn’t it fall more in line with the most recent/longest tenured wage for an employee?


18 posted on 07/30/2013 4:02:58 AM PDT by a fool in paradise (America 2013 - STUCK ON STUPID)
[ Post Reply | Private Reply | To 10 | View Replies]

To: onyx

So why doesn’t he just admit his policies didn’t work and turn the ship around? Because he’s vindictive.


19 posted on 07/30/2013 4:03:43 AM PDT by jersey117
[ Post Reply | Private Reply | To 1 | View Replies]

To: y'all




Please Support Free Republic today!

20 posted on 07/30/2013 4:15:42 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jersey117

Yes, and he’s a Marxist.


21 posted on 07/30/2013 4:16:13 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 19 | View Replies]

To: onyx

Maybe he can explain to us what the hell Michelle was doing back at the UC Hospital that was worth $300K /year, but wasn’t important enough to hire someone to replace her.


22 posted on 07/30/2013 4:19:21 AM PDT by tacticalogic ("Oh, bother!" said Pooh, as he chambered his last round.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tacticalogic

we all know.

A no-show job as a political kickback


23 posted on 07/30/2013 4:19:58 AM PDT by GeronL
[ Post Reply | Private Reply | To 22 | View Replies]

To: onyx
Economists Emmanuel Saez and Thomas Piketty found that between 2009 and 2011, 121 percent of income gains went to the richest 1 percent of the population

Am I missing something, or is that mathematically impossible?
24 posted on 07/30/2013 4:22:00 AM PDT by rightwingintelligentsia (Truth/Lies; Liberty/Tyranny--WHAT DIFFERENCE DOES IT MAKE??)
[ Post Reply | Private Reply | To 1 | View Replies]

To: onyx
Everyone must live in squalor and need, only then will socialism succeed!

FBHO

25 posted on 07/30/2013 4:22:40 AM PDT by MrBambaLaMamba (Obama lies, smokes, blasphemes, eats pork, reads your mail, eavesdrops and drinks during Ramadan)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rightwingintelligentsia
I think if you factor in borrowed stimulus funds plus phony employment numbers, then subtract Obama’s vacation slush fund and multiply it by Obama’s fairy tale projected economic gains, it's possible. /s
26 posted on 07/30/2013 4:27:37 AM PDT by liberalh8ter (The only difference between flash mob 'urban yutes' and U.S. politicians is the hoodies.)
[ Post Reply | Private Reply | To 24 | View Replies]

To: rightwingintelligentsia

LOL.

Mystical mathematics from Washington are always over my head.


27 posted on 07/30/2013 4:31:34 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 24 | View Replies]

To: onyx

I think the “income gap” should be related to the “effort gap”.

Effort to get an education. Effort to be responsible citizens. Effort to get a job. Effort to do the job well. Effort to start your own company (and risk savings and work extra hours for months/years). Effort to raise kids who put effort into these things.

Outside of a lot of millionaires in congress, I don’t think the problem is nearly as bad as liberals claim.


28 posted on 07/30/2013 4:31:49 AM PDT by LostPassword
[ Post Reply | Private Reply | To 1 | View Replies]

To: tacticalogic

Yes, all of us should have well paid positions like hers.


29 posted on 07/30/2013 4:33:29 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 22 | View Replies]

To: onyx

I wish people would mind their own business.


30 posted on 07/30/2013 4:35:13 AM PDT by gotribe (Vladimir Putin is MY President)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GeronL
A no-show job as a political kickback

And he's going to preach to us about the morality of our paychecks...

31 posted on 07/30/2013 4:35:14 AM PDT by tacticalogic ("Oh, bother!" said Pooh, as he chambered his last round.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: onyx

Considering the fact that the government’s constant printing of currency with nothing to back it up is the biggest reason poverty is rising and people are struggling with making ends meet, dear leader deserves something very painful for having the arrogance to lecture us on this subject.


32 posted on 07/30/2013 4:37:47 AM PDT by RWB Patriot ("My ability is a value that must be purchased and I don't recognize anyone's need as a claim on me.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: LostPassword

You have a superb attitude, however massive government regulations, obamacare and high taxes are strangling are economy.

Your “effort gap” observation is excellent.

Too many are flat-out lazy.


33 posted on 07/30/2013 4:39:42 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 28 | View Replies]

To: onyx
Obama: Pay gap ‘morally wrong’

I knew eventually OTrauma would announce to the world he is a straight-on dogmatic Communist.

34 posted on 07/30/2013 4:39:52 AM PDT by Lazamataz (Early 2009 to 7/21/2013 - RIP my little girl Cathy. You were the best cat ever. You will be missed.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: RWB Patriot

You’re right!


35 posted on 07/30/2013 4:40:23 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 32 | View Replies]

To: Lazamataz
I knew eventually OTrauma would announce to the world he is a straight-on dogmatic Communist.

Yep, he's going for the gold, but in this article, fellow Moslem, Keith Ellison bested him.

36 posted on 07/30/2013 4:42:11 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 34 | View Replies]

To: MrBambaLaMamba

GO Detroit!


37 posted on 07/30/2013 4:43:51 AM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
[ Post Reply | Private Reply | To 25 | View Replies]

To: onyx

he’s right about this pay gap thing. I want my pay raised to what he makes. Besides, I am better at my job than he is at his.


38 posted on 07/30/2013 4:45:07 AM PDT by wny
[ Post Reply | Private Reply | To 1 | View Replies]

To: onyx

That little number in the text about a workforce of 75 million caught my eye. I had thought that number used to be 100 million years back. that’s, what, 25 million smaller? Is that possible?


39 posted on 07/30/2013 4:46:06 AM PDT by vortec94
[ Post Reply | Private Reply | To 1 | View Replies]

To: onyx
here comes the hallmark of O'Butplug's economic plan; 98% "flyover country class - 2% Government class.
Just seems like "old times in "Mother/Soviet Russia" has begun, let the knock-knock raids/purges begin..
..it's not new/it's the same old Stalinist/Totalitarian mindset. new flies/same dung pile.

40 posted on 07/30/2013 4:47:15 AM PDT by skinkinthegrass (who'll take tomorrow,$pend it all today;who can take your income & tax it all away..0'Blowfly can :-)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GeronL

How can this rich man who never worked a day in his life other than stirring the excrement in the black community complain that some people make more money than others.

He is rich because Bill Ayres(a terrorist) wrote his book about his drunken womanizing Muslim father, and because of his political connection with radical Socialists, and he wants to take away the rewards of those who did actually work to get rich.


41 posted on 07/30/2013 4:51:38 AM PDT by Venturer ( cowardice posturing as tolerance)
[ Post Reply | Private Reply | To 4 | View Replies]

To: onyx

To the extent that the elites use regulations and immigration to depress wages, it is.


42 posted on 07/30/2013 4:55:26 AM PDT by freedomfiter2 (Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: onyx

Don’t get mad at Obama. You have to realize that his calling in life is as a COMMUNITY ORGANIZER. In other words, a troublemaker.

He has no other experience in life and certainly not that of a President who actually manages and protects the security and laws of our country.

He’s doing what he does best....PROPAGANDA and HATE AND DISCONTENT.


43 posted on 07/30/2013 4:58:04 AM PDT by DH (Once the tainted finger of government touches anything the rot begins)
[ Post Reply | Private Reply | To 1 | View Replies]

To: liberalh8ter

The Bible would support that.


44 posted on 07/30/2013 4:58:21 AM PDT by freedomfiter2 (Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Christian1
silly person; they're there only for the (single/family) taxer-paid vacations,
AF1 flights to nowhere and separate golf trips w/his very personal male posse.

45 posted on 07/30/2013 5:00:23 AM PDT by skinkinthegrass (who'll take tomorrow,$pend it all today;who can take your income & tax it all away..0'Blowfly can :-)
[ Post Reply | Private Reply | To 7 | View Replies]

To: onyx; mickie; flaglady47; Chigirl 26; ExTexasRedhead; Bob Ireland; Bizzy Bugz; oswegodeee; ...
Obama is brazenly coming out with the pure communist diktat, now....unabashed, unashamed, unadulterated, un-American commie ideology.

This thug with a manicure has nothing to lose.....and as a lame duck he's doubling-down to motivate and solidify his revolulutionary base for the midterm election.

Now he's inciting labor unrest and strikes along with the racial tension he's been promoting all along.....not to mention the ever-present class warfare propaganda.

He's a smiling but dangerous psychopath like Richard Widmark playing Tommy Udo in "Kiss of Death".

He's intent on ruling by fiat, he's surrounded by a marxist palace guard.....he's travelling the country setting the stage for rioting and street warfare......and he's actually out of our control because he's unchecked by any determined opposition or Justice Department reins.

What's happening in our country is like watching that Spanish train derailment video making the rounds.

Leni

46 posted on 07/30/2013 5:02:03 AM PDT by MinuteGal
[ Post Reply | Private Reply | To 1 | View Replies]

To: a fool in paradise

It is not a pay gap it is a work gap. Those not making money are unwilling to work for it.


47 posted on 07/30/2013 5:02:16 AM PDT by edcoil (Something wonderful is going to happen today!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: onyx
At what point do we have “Defacto Communism”?
48 posted on 07/30/2013 5:04:16 AM PDT by Falcon4.0
[ Post Reply | Private Reply | To 1 | View Replies]

To: a fool in paradise

Ayn Rand was a prophet.


49 posted on 07/30/2013 5:05:23 AM PDT by wbill
[ Post Reply | Private Reply | To 2 | View Replies]

To: onyx

Inequality pf pay results from inequality of ability that is mostly the result if inequality if initiative.

If more pay is desired then more work is required. Work is leveraged by education. One hours work by a Physician or civil Engineer is leveraged by the work required to learn the trade


50 posted on 07/30/2013 5:09:15 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Travon... Felony assault and battery hate crime)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-100101-114 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson