Here It Comes: Obama Considering Executive Order To Raise Minimum Wage

Tyler Durden's picture

We thought that all perfectly idiotic headlines regarding the encroachment of central-planning would come from traditional banana republics as Venezuela, and of course France, such as the following:

  • MADURO SAYS VENEZUELA TO HAVE NEW FX SYSTEM
  • MADURO SAYS DOLLAR TO REMAIN AT 6.3 BS/DOLLAR IN 2014
  • MADURO CREATES AGENCY TO ENFORCE FAIR PRICES
  • MADURO SAYS LAW TO ALLOW MAX. 30% PROFIT MARGIN
  • NIGERIA TO SET UP FANNIE MAE-STYLE MORTGAGE FINANCE CO.
  • FRANCE PASSES LAW TO TAX WEALTHY AT 75%

And so on.

Boy were we wrong.

Moments ago The Hill reported that what many thought was absolutely impossible, may in fact become a reality: President Obama is considering issuing an executive order (#394,039,993,837?) to raise the minimum wage for Federal Workers... and in the process - with the help of that other central planner par excellence Bernyellen - lap all those other Banana republics that everyone so enjoys making fun of.

From the Hill:

President Obama is considering using his executive authority to raise the minimum wage for federal contractors, he told Senate Democrats during a closed meeting at the White House.

 

Lawmakers present at the Wednesday night session said Thursday that Obama did not bring up the matter himself, but appeared receptive to the idea when questioned on the topic. “The issue was raised,” Sen. Barbra Boxer (D-Calif.) said Thursday. “He said he was looking at it, as he looks at everything else.”

 

Sen. Bernie Sanders (I-Vt.), who was also in attendance, offered a similar account and said he has heard from members of the president’s staff that he is seriously considering executive action on the measure.

 

Obama and congressional Democrats are pushing for an across-the-board hike in the minimum hourly wage, from $7.25 to $10.10. But Republicans are cool to the plan, warning it could hurt the economy.

 

Federal contractors represent only a fraction of the nation’s employees. Businesses that together received more than $446 billion in federal contracts employ some 2 million workers, only some of whom are paid the minimum wage. Still, an increase for that segment of the workforce could generate momentum toward a raise for all workers now paid the lowest amount allowable by law.

 

An executive order to that effect would be tantamount to setting a minimum wage for federal contractors, they said. “Profitable corporations that receive lucrative contracts from the federal government should pay all of their workers a decent wage,” the lawmakers wrote. Obama in recent days has vowed to make 2014 "a year of action," even if it means relying heavily on administrative authority to pursue policy goals in lieu of congressional action.

Suddenly it all makes sense: in order to "fix" one idiotic act of central planning with unintended consequences, namely letting the Fed take over capital markets in order to preserve the oligarchic, kleptocratic system, pardon financial stability, and in the process make the uber-wealthy richer beyond their wildest dreams, while making the poor yearn for the days of the first Great Depression, the president will now one-up that act, and progress with even more "centrally-(un)planned", authoritarian acts which bypass Congress entirely, make a mockery of the republic, result in even more adverse unintended consequences, and practically assure that in the great race for the Banana Republic (or is that Banana Dictatorship?) endgame, the US has just overtaken everyone.

If only the Fed could now proceed to stop pretending things are getting better and promptly Taper the Taper, so as to push the superturbo printing button, it would at least assure that the great reset will come that much faster. At this point, it couldn't possibly come fast enough.