Democrats vowed during the campaign to push for a federal minimum wage of $7.25 per hour, up from $5.15. Inflation has eroded the value of the minimum wage by 21 percent since it was last raised nine years ago.
Many Republicans have indicated support for such a measure, making it likely to pass in some form that President Bush will sign, possibly after trading it for something else. "The minimum wage is definitely going up," said Kevin Hassett, director of economic policy studies at the American Enterprise Institute.
The wage increase may shake out as an easy symbolic win for Democrats, though its real impact could be muted -- it applies to less than 3 percent of workers. Including measures passed during Tuesday's vote, 29 states and the District already have minimum wages higher than the federal one.
Also, Rep. Charles B. Rangel (D-N.Y.), who probably would chair the Ways and Means Committee in the new House, signaled yesterday that he will favor a more aggressive approach toward China and other countries on trade, including on currency policies and enforcing trade rules.
"We should insist that if they trade with us, it's free trade," Rangel said. "We have to protect American jobs."
Rangel hopes the committee will agree before year-end to extend trade preferences for Haiti, Peru, Colombia and countries in Africa, and approve normalization of trade relations with Vietnam.