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Minimum wage: Obama meets with Dem. governors to discuss hike

Minimum wage hike was discussed by President Obama Friday during a meeting with Democratic governors. Obama called raising the minimum wage not only "good policy, it also happens to be good politics."

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Jacquelyn Martin/AP
President Barack Obama meets with members of the Democratic Governors Association, Friday, Feb. 21, 2014, in the State Dining Room of the White House in Washington. The President sought to build momentum for his effort to gradually raise the federal minimum wage to $10.10 an hour by 2016.

President Barack Obama promoted his effort to raise the聽minimum聽wage聽on Friday, declaring in a meeting with Democratic governors that higher pay is not only "good policy, it also happens to be good politics."

Gathering with Democratic allies at the White House, Obama sought to build momentum for his effort to gradually raise the federal minimum聽wage聽to $10.10 an hour by 2016, part of a larger aim to address income inequality between the wealthy and the poor.

The president noted that many Democratic governors had outlined plans of their own to increase the聽minimum聽wage, citing recent pushes by the governors of Hawaii, Washington state, Connecticut, Maryland, Massachusetts and Illinois.

"This is not just good policy. It also happens to be good politics," Obama said. "Because the truth of the matter is the overwhelming majority of Americans think that raising the聽minimum聽wage聽is a good idea."

Taking a veiled swipe at a prominent Republican, Obama noted that聽wages聽were increased in New Jersey by public referendum, even though it was opposed by New Jersey Republican Gov. Chris Christie. Democrats have assailed Christie in recent weeks over a political payback scandal that has engulfed his administration.

Republicans have opposed increasing the聽minimum聽wage, asserting that it will kill jobs. GOP leaders seized upon a report earlier this week by Congress' nonpartisan budget analysts that found the聽wage聽increase could reduce jobs in 2016 by about 500,000, or 0.3 percent.

Republican governors gathered at a hotel near the White House suggested that raising the聽minimum聽wage聽was an issue better left to the individual states and the free market.

"I'm not for increasing the聽minimum聽wage聽because I'm concerned it would destroy jobs, especially for small business owners," said Oklahoma Gov. Mary Fallin, the chair of the National Governors Association. "The market will take care of itself."

Michigan Gov. Rick Snyder, also a Republican, wouldn't say whether he supported Obama's proposal when asked.

"My focus is on getting jobs that pay more than聽minimum聽wage," he said, citing a state program that helps create jobs that pay $11.50 an hour and new trade jobs that pay more than $50,000 a year. "I'm working on that."

Fallin said she wasn't worried about political fallout from Republican opposition to a higher聽minimum聽wage, despite polls that show most Americans support the president's plan.

The Senate is expected to debate a聽minimum聽wage聽bill next month that would increase the current $7.25 an hour聽minimum聽wage聽in three increments to $10.10 by 2016, with annual increases reflecting inflation after that. The Congressional Budget Office report released on Tuesday found that without any adjustments to the聽minimum聽wage, about 45 million Americans are expected to live below the poverty line in 2016.

Democrats said raising the聽minimum聽wage聽would boost consumer spending, which would help local economies.

Washington Gov. Jay Inslee, a Democrat, said he recently asked his state economist why the state had not experienced as much economic growth as desired despite the presence of major companies like Amazon and Boeing.

"Their answer was clear, it's because we have a drag in our economy because of low聽wage聽jobs that are not creating consumers who can go out and create the demand we need," Inslee said. He said raising the聽minimum聽wage聽would "remove that anchor" on the economy.

The meeting with Obama came at the start of a weekend gathering of most of the nation's governors for the annual National Governors Association meeting. The long weekend, which will include a White House dinner on Sunday night and a bipartisan meeting with Obama on Monday, will include discussions on economic development, education and health care.

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