President Barack Obama's acting labor secretary, Seth Harris, toured Cleveland Friday, pitching the president's proposals to raise the minimum wage and strengthen manufacturing. Harris repeated proposals that Obama made Tuesday in his state of the union address.
CLEVELAND, Ohio -- A higher minimum wage would boost the economy by getting more money flowing into small business, acting U.S. Labor Secretary Seth Harris said Friday in Cleveland.
"This isn't money that people get in their paychecks then goes offshore to the Cayman Islands," Harris said. "Small businesses will be getting this money when people spend it. It won't be going into mattresses."
Harris led a roundtable discussion with low-wage workers at the Employment Connection employment services agency, where he pitched proposals that President Barack Obama unveiled Tuesday. He also toured ArcelorMittal's steel mill in the Flats.
In his state of the union address, Obama called for Congress to raise the federal minimum wage to $9 from $7.65 and to index the wage to inflation so it would automatically increase as the cost of living changed.
Business groups have opposed the recommendation, saying it would raise costs for businesses and force some companies to hire fewer people.
At the Employment Connection, Harris called on low-wage workers to share their stories. A camera crew hired by the Labor Department filmed the speeches so Harris could share their stories with members of Congress.
Rick King, a cashier who makes $8 per hour, said raising his family is a massive challenge, especially when there isn't enough work to keep him on the job for a full week. The son of a General Motors worker, he said this wasn't the life he had envisioned for himself.
"I always thought I'd do at least as well as my dad. It didn't turn out that way," King said. "My American dream now is to do half as well."
Harris dismissed some of the common criticisms of raising minimum wages, saying he does not believe unemployment or inflation would rise along with the wage.
Any wage proposal will face opposition in Congress, especially in the House of Representatives, where Republicans are the majority.
Ohio Republican House Speaker John Boehner criticized the proposal this week, saying, "At a time when the American people are asking the question, 'Where are the jobs?' . . . why would we want to make it harder for small employers to hire people?"
At ArcelorMittal, Harris toured a line where rolls of steel get galvanized, protecting it from corrosion.
Plant manager Eric Hauge said the steel company is investing in new equipment for the line so it can make higher-strength steel for use in the next generation of cars. Automakers like high-strength steel because they can use less metal in cars, reducing weight and improving fuel economy.
Harris said the government can help companies like Arcelor by supporting research in new technologies, updating roads and bridges and investing in education.
"This is sophisticated work. This isn't your grandfather's manufacturing," Harris said. He added that the nation will need to invest more in education and worker training as factories and job sites get more sophisticated.