SKIP TO MAIN CONTENT

Biden calls for hike in US minimum wage

The US vice-president has called for support to back Barack Obama's push to raise the minimum wage, saying no working family should live in poverty.

2 min read

Published

Updated

Source: AAP


Skip to article content

US Vice President Joe Biden has called for Americans to back President Barack Obama's push to raise the federal minimum wage, intensifying debate ahead of mid-term congressional elections in November.

Obama unveiled a proposal to increase the federal minimum wage from $US7.25 to $US10.10 ($A7.85 to $A10.93) an hour in his State of the Union address in January as he set about closing income disparity - an increasingly important theme in US politics.

But rival Republicans have long argued that raising the minimum wage would hurt the economy and employment because it would prompt small businesses to tighten belts and lay off some workers.

"There's no reason in the world why an American working 40 hours a week has to live in poverty," Biden said in a weekly address on Saturday in place of Obama, who is in Saudi Arabia.

"But right now a worker earning the federal minimum wage makes about $14,500 a year. And you all know that's incredibly hard for an individual to live on, let alone raise a family on.

News that makes sense

Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

"But if we raise the minimum wage to $10.10 an hour, that same worker will be making $20,200 a year - and with existing tax credits would earn enough to bring that family or a family of four out of poverty.

"Not only would it put more hard-earned money into the pockets of 28 million Americans, moving millions of them out of poverty, it's also good for business."

In January, Obama urged Congress to raise the federal minimum wage. A congressional watchdog says that it could lift 900,000 people above the poverty line but may cost half a million jobs.


Get SBS News straight to your inbox

Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Stream now

Watch the latest news videos from Australia and across the world