One of President Donald Trump’s key financial advisors just weighed in on raising the federal minimum wage. White House economic adviser Larry Kudlow said on Thursday that he would oppose any deal that would raise the federal minimum wage.
“My view is no. My view is a federal minimum wage is a terrible idea, and will damage, in particular, small businesses,” he said when asked about the prospect at a Washington Post event.
The Democratic Party has a history of pushing for a substantial increase in the federal minimum wage. They have suggested a hike to as much as $15 an hour. That is over double the current rate of $7.25 an hour.
“Today, a full-time minimum wage worker is unable to afford to rent a small, two-bedroom apartment anywhere in the United States. Republicans’ failed trickle down policies have left the American people with a raw deal, jeopardizing our children’s future and the future of our economy,” House Minority Leader Nancy Pelosi (D-Calif.) said in a July statement. That speech b Pelosi marked nine years since the last minimum wage hike.
Kudlow said he opposed the federal minimum wage because state and local economies were so varied. He dismissed the one-size-fits all approach as something that will not work, but he also said that he opposed minimum wages at the state and local level.
Trump’s economic advisor argued that the best way to help ordinary workers was to cut corporate taxes. Workers wages have remained largely stagnant in recent years, though monthly wage data was raised in the last quarter according to new government data.
This issue is debated among economists. Some argue that they lead to lay-offs and concentrate the benefits among the lucky employees who still have jobs. Others say that moderate increases over time can have significant, positive benefits for the lowest-paid workers.
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