The push is on with over 100 House Dems signing on to a bill to raise the minimum wage in the United States. Here is a demonstration of the hypocrisy of our President. Does he feel the same way about raising our rate as Samoa? Of course not. But he is a good foot soldier, and it doesn’t hurt that Nancy Pelosi has her own interests in Samoa. From an earlier post 2009:
Her district includes San Francisco. Star Kist Tuna’s headquarters are there. Star Kist is owned by Del Monte Foods, a major contributor to Pelosi. Star Kist employs 75% of the American Samoa workforce. Pelosi’s husband owns $17 million of Star Kist stock.
In January, 2007 minimum wage was increased from $5.15 to $7.25. Pelosi had American Samoa exempt so Del Monte would not have to pay it, making their products less expensive than competition.
When the huge bailout bill was passed Pelosi’s “earmark” was $33 million dollars for “economic development credit” in American Samoa. Hipocrisy? Free Republic
1. PAGO PAGO, American Samoa — “President Obama has signed into law legislation to freeze American Samoa’s minimum wage until 2015. The president signed the bill Thursday, which delays a 50-cent increase that would have gone into effect in September.
Minimum wage in American Samoa varies from $4.18 to $5.59 per hour, depending on the industry. The Fair Minimum Wage Act of 2007 provided for annual 50-cents per hour increases until the rate matched the rest of the U.S., where the minimum pay is $7.25 per hour.
Employers and a government financial report have suggested automatic increases were harming the U.S. territory’s economy.”
From an AP report, “Congress is to be thanked for preventing further economic calamity in American Samoa and preventing continual increases to the minimum wage which would have led to additional layoffs in our fragile economy,” said local Chamber of Commerce Chairman David Robinson.”
H/T:Carpe Diem
August 3, 2012 at 1:52 am
Minimum wage is stupid and anti-capitalism. No one, including government, has the right to tell a business owner how much to pay anyone. The businesses who pay best, offer the best benefits, will attract the best employees and stay in business longest. Period. End of story.
August 3, 2012 at 6:09 pm
It’s hard for some to catch on to how our system works.
August 3, 2012 at 6:27 pm
True enough but we are talking about our own congress and president. They should know how this works.
August 3, 2012 at 7:25 pm
Excellent point…I was being a bit sarcastic!
August 2, 2012 at 5:36 pm
Mandating increases in minimum wage is counter to global market competition, especially as the US dollar fluctuates up and down. Why not just leave the minimum wage the way it is and focus on building the economy? Increasing the minimum wage is “not” building an economy. If you want wages to increase, focus on having a well educated and creative workforce who can create new companies and businesses that command high talent and expertise. You can’t expect to have inexpensive fruit and veggies on the table by assuming a high-paid minimum wage person can reduce the cost of picking – or can you?
Let the market float – the “Free Market” and those who want high paying jobs should thrive to get educated and work hard to create new business and generate new ideas. That is what American is all about – not increasing minimum wages only to devastate an economy like Samoa. I should know. I’m Samoan and I saw a work force of about 6,500 people get reduced to 1,200 in just one year because of the minimum wage increase. To make things worse, it destroyed and separated families plus the crime rate went up.
At the end, Uncle Sam had to pump in over $25 million in just one year to keep people working under the umbrella of “Samoan Tsunami aid”. Americans should know better that American Samoa is a small island (only 76 sq miles) with a population of now 54,000 people (from a high of about 67,000 before the minimum wage hike) and is surrounded by independent island States (Independent Samoa, Tonga, Fiji, Tokelau, etc.) who have a minimum wage of less than $2 US dollars an hour. How can you compete in a global manufacturing and tuna packing market when island countries around you can do it cheaper?
Lastly, the more the non-informed politicians in Washington tinker with minimum wages in American Samoa, the Marianas, and other US Territories that do no have a well established economy, the more likely these island territories will need to more US tax payer subsidies, have a less independent and sustainable economically and evolve to become US welfare territory; like the Indian reservations.
Is that what America is all about? Creation of welfare states? Let’s leave the island economy minimum wage decisions to those who closer to the issues – the people who have to deal and live with it at the end – the Samoans. We don’t need election politics from Washington in 2012 on this issue. We lived through the last devastating decision made by the Democrats in congress in 2007. Our annual GDP drop from $545+ million to around $230 million (from 2007 to 2012).
August 2, 2012 at 6:14 pm
Thanks for the well thought out comment. I agree as well. This is a demonstration of the very thing that will devastate kids who are trying to enter the work force here in the U.S.
Why we are involved in Samoa beats me.
August 2, 2012 at 1:18 pm
Somehow I don’t think ABC News is gonna be featuring this story! LOL Hypocrites.
August 2, 2012 at 2:06 pm
I had to dig deep to even to find this. Came across this looking for votes on a couple of bills. Not a peeper sang.
August 2, 2012 at 8:31 am
Anyone who knows anything about that trio of San Fran Sicko witches, Pelosi, Boxer and Feinstein should not be surprised.
So Pelosi and her husband turn an island into a slave colony, while Boxer and Feinstein oppose our wars but do some multi-million dollar war profiteering off of them.
No wonder California is in the toilet.
August 2, 2012 at 9:21 am
The worst of it, what starts in CA moves eastward often, and it has. Good analysis.
August 2, 2012 at 8:22 am
Wow! That is the height of hypocracy. Stranf thathe Dems can see that minimum wage is bad for the Samoan economy but they can’t see that it is also bad for our economy. Cronyism stinks just like tuna or maybe something even worse.
August 2, 2012 at 9:20 am
The rot is at the head!