Sun, Feb 26, 2012, 8:49 AM EST - U.S. Markets closed

Romney supports automatic hikes in minimum wage

Romney parts company with GOP allies on automatic cost-of-living hikes for minimum wage

EAGAN, Minn. (AP) -- Republican presidential contender Mitt Romney renewed his support Wednesday for automatic increases in the federal minimum wage to keep pace with inflation, a position sharply at odds with traditional GOP business allies, conservatives and the party's senior lawmakers.

"I haven't changed my thoughts on that," the former Massachusetts governor told reporters aboard his chartered campaign plane, referring to a stand he has held for a decade.

He did not say if he would ask Congress to approve the change if he wins the White House this fall.

Congress first enacted federal minimum wage legislation in 1938 and has raised it sporadically in the years since. The last increase, approved in 2007, took effect in three installments and reached $7.25 an hour for covered workers effective July 24, 2009.

It has never been allowed to rise automatically, as Romney envisions.

Romney's chief rival for the nomination, Newt Gingrich, criticized Romney for the stance, pointing to previous periods of hyperinflation and saying it would end up costing way too much money. "That would be a very dangerous idea," Gingrich said.

Romney also drew criticism from the anti-tax Club for Growth. "Indexing the minimum wage would be an absolute job killer," the group's president, Chris Chocola, said in a statement. He called the proposal "anti-growth."

Organized labor generally supports increases in the minimum wage, and Romney's position could give him cross-over appeal among blue-collar Democrats in a general election campaign.

Republicans have generally opposed attempts to raise it, although in 1996, the GOP-controlled Congress passed an election-year increase that included a package of tax cuts for business and a subminimum wage to apply to new, younger employees.

At the time lawmakers were considering the 2007 legislation, the U.S. Chamber of Commerce registered its disapproval.

"Any minimum wage increase will significantly affect the bottom line of the nation's small business owners," said Bruce Josten, the executive vice president for government affairs at the organization, which says it represents more than 3 million businesses and organizations across the country.

A spokesman for the organization declined to comment on Romney's statement.

The National Federation of Independent Business says on its website that it opposes any increase in the current federal minimum wage.

"Mandatory wage increases not only hurt small businesses, but their employees as well," the group says. "It has not been proven to reduce poverty or narrow the income gap and puts a stranglehold on America's top job creators: small businesses."

A spokesman for House Speaker John Boehner, Michael Steel, said Congress' top Republican "is following the presidential campaign but has not been commenting on the individual candidates' specific proposals." Boehner opposed the most recent increase that passed Congress.

An aide to Senate GOP leader Mitch McConnell of Kentucky did not immediately respond to a request for comment on Romney's statement.

As a candidate for governor of Massachusetts in 2002, Romney said he supported minimum wage increases in line with inflation.

Five years ago, he said he liked the "idea of getting the political debate out and I like the idea of not having the huge jumps as we do now."

___

Espo reported from Washington.

 

84 comments

  • A Yahoo! User  •  24 days ago
    South Carolina Senator Jim DeMint is bringing an amendment to the STOCK legislation designed to deal with recent scandals involving insider trading. The amendment is gauging support for term limits to be voted on possibly as early as in 2 days.
  • Jerry D  •  24 days ago
    well thats good news but how about working on creating jobs that pay real wages, 7 and 8 dollar jobs not going to boost this economy.
  • LL  •  24 days ago
    the name of the game is: say anything to get votes, then once you are the president, ignore all promises. (don't tell me you were born yesterday.)
  • ABCD  •  Charlotte, North Carolina  •  24 days ago
    LET ROMNEY PAY FOR IT OUT OF HIS OWN POCKET !!!!! THE MINIMUM WAGE SHOULD BE DONE AWAY WITH !!!!!!!!!!!!!
  • JEM  •  24 days ago
    Moving closer to the middle and tickling the ears of independent voters. He assumes he already has the Republicans (anyone but Obama) vote. This dude is more of the same
  • Eric  •  Kabul, Afghanistan  •  24 days ago
    Wow, yet another Liberal policy by a Republican. Listen, you have to start at the bottom and work your way to the top. Everyone else's wages don't adjust when minimum wage is raised!! How about some compensation in that department!

    My first job was working at Dairy Queen making $5.25 an hour in 1999. I then worked at Subway shortly after making $5.75. After that I worked at Popeye's making $6.25 and within a year of hard work I was making $7.50! In 2002, I joined the Army and was making E2 pay at like $1200 a month. I got out of the military as an E4 in 2006 and began working in a warehouse making $9 an hour barely able to keep up with my living expenses. Then in 2007 I began doing contract work doing basically the same thing I did in the military.

    Now I'm over here in Afghanistan and still can't believe I went from making so little to making so much. That's dedication to prevail.

    Unfortunately you have people who just want to go to the top without working for it or proving themselves. Then again, some people just aren't cut out to make it, those are usually the people who have the least amount of ambition. When it comes to collecting a paycheck, they're also the first to complain. Minimum wage doesn't need to be raised.

    We simply need to stop all the this wasteful government spending, bring our troops home in which will free up lots of money for our budget and put that money to good use to rebuild our economy. You can't spend your way out of a recession. Just ask FDR or his Treasurer. They spent so much money trying to stimulate the economy and accomplished nothing. Fact is, we didn't fully come out of the depression until our soldiers returned from WWII.

    The reason why we are even occupying 130+ countries is merely for special interests. It's not for the war on terrorism like most politicians tell you. It's because we have a special interest in that country that we want. Our actions have caused us to be attacked by terrorists. That's called BLOWBACK. We have always been meddling in other countries affairs and that's why we have been attacked. Of course the media tells you that it's because we are rich and free. That is not true... The real basis is because we can't keep our nose out of everyone's business.

    How would you like it if China or Russia occupied our lands without consent and told us how we should live? Just because our democracy is working for us doesn't mean we should be forcing it upon these other countries. We should be letting them adapt it themselves. WE SHOULD BE LEADING BY EXAMPLE! Instead we're not, we're forcing our ideas on other people, now isn't that really unconstitutional? We don't even follow our own constitution anymore.

    The worst part is everyone supports our troops. However they turn a blind eye when we speak our minds and tell them who we support in the elections. Everyone turns to the person who has the most money and feeds you what you want to hear. Well the person I'm voting for isn't Obama, Gingrich or Romney. The person I support, because he understands the economy. He predicted the housing balloon and bust back in 2002. He's the only candidate who hasn't changed his tune and his votes as Congressmen follow suit with exactly what he preaches. He's inspired me that my vote does count and so does yours!

    RON PAUL 2012!
  • Super Poor  •  24 days ago
    The people who suffer most from inflation are always posting in support of it. Kind of hard to believe.
  • Dan  •  24 days ago
    WAIT TEN MINUTES TO BE SURE HE HASN'T CHANGED HIS MIND.... waiting..... waiting...
  • Tom  •  24 days ago
    If small businesses rely on people making next to nothing why are we trying to protect small businesses? Sorry, just confused as to how this hurts them if they are "creating" good jobs.
  • lapedro  •  24 days ago
    what wont he say to be elected
  • Stupnagel  •  St Louis, Missouri  •  24 days ago
    Romney's proposed automatic minimum wage increase is inflation-neutral and far safer than leaving increases to the whims of an ever-changing Congress. It's going to happen anyway, so why not have it happen in an automatically controlled manner?

    Changing the subject, now that Gingrich has told everyone that Romney is "anti-gun rights", look on the Internet for the current NRA-ILA (Institute for Legislative Action) commentary on Romney, who spoke recently on their behalf. VERY favorable! NRA commentaries on Gingrich (also very favorable in the past) are "not available". Bottom line: NRA likes them both, but supports Romney for the White House.
  • Roy V  •  Eugene, Oregon  •  24 days ago
    Three years in office and Obama hasn't raised the the minimum wage by executive order yet! Maybe the "progressives" should vote him out of office for failure to effectively represent them.
  • Alpha Monkey  •  24 days ago
    No He Doesn't
  • JimAtHome  •  24 days ago
    Goldman Sachs loves Romney too! They are his number one donor this month.
  • Scott  •  24 days ago
    What are his plans for the NLRB ? Will he reverse the changes Obama has made?
    His proposal sounds too much like his religion.
    He's a socialist.
  • Black Jack  •  24 days ago
    When are you people going to listen up - MITT IS A RINO.
  • CONCRUSHER  •  18 days ago
    GROVEL FOR THE CRIMINAL RULING CLASS SHEEPLE DRONES- GROVEL!

    Republicans want lower taxes, a larger income gap; abolishment of the minimum wage, worker's rights, social safety nets, and government regulations; tort reform, arbitrary agreements, and corporate personhood.

    In other words, they want the middleclass to merge with the poor, have no rights in the workplace, to a livable wage, protection from an unsafe work environment, the ability to sue their employer if they are harmed in an unsafe workplace, or protection if disabled or laid-off.

    The Republicans want the American Dream to only be available to the wealthy (the new aristocrisy) while the middleclass (the new poor) are left to toil as wage-slaves and serfs.
  • Shawn  •  24 days ago
    Mittens will promise rainbows and unicorns. And give you outsourced jobs and take away all workers rights in return. it worked before.
  • Shawn  •  24 days ago
    Raising minimum wage is a job killer OR is it a killer to the owners personel take home pay? You really think these biz owners are going to say oh #$%$ forget it close up shop and go be an employee themselves? You really think the owners are going to do ALL the work themselves. Republicans are financial terroist and anything they don't like is job killing. I am suprised they haven't tried to overturn Roe vs Wade on that grounds that it kills jobs. Pay people a good wage and you will get good work, pay people the minimum and thats exactly what you get minimum effort. Grow up republicans and learn to share.
  • Energized at 50  •  Westminster, Maryland  •  24 days ago
    Great for jobs creation in China!!!
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