President Clinton joined congressional Democrats on the Hill today to unveil the proposal, which is expected to play well in an election year. Republicans and business leaders will argue that the increase would be bad for the economy, and that wages are already being driven upward by scarcity in the labor market. They may also be tempted to point out that the proposal comes from a man whose office is heavily staffed with unpaid interns.
Passing the Buck
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WASHINGTON: Corporate America will not be pleased with the price it may be
asked to pay for restoring Democratic party unity: a $1-an-hour increase in the minimum wage over two years. But, says TIME business writer Bernard Baumohl, even in the unlikely event that the proposal is approved by Congress, business has little cause for alarm: Theres not much evidence to support the idea that increasing the minimum wage causes inflation the economy reacted well to the previous increase.