Obama stumps for minimum wage hike, retirement plan

• President Obama kicks off post-State of the Union national tour
• Obama promotes minimum wage hike during visit to a Costco in Maryland
• The president also discusses retirement savings at a speech in Pennsylvania

President Obama hit the road Wednesday to try and sell some of his State of the Union ideas, including a proposed minimum wage hike and a new retirement savings plan.

From a Costco store in suburban Maryland to a steel mill in western Pennsylvania, Obama also echoed a major theme from Tuesday's speech: He will try to work with Congress, but will go around them with executive orders if necessary.

"America doesn't stand still. ... I'm not going to stand still," Obama told a crowd at U.S. Steel plant in West Mifflin, Pa., near Pittsburgh. "So wherever I can take steps to expand opportunity for more families, regardless of what Congress does, that's what I'm going to do."

During that visit, Obama signed a presidential memorandum authorizing a new savings plan for "working Americans" whose employers do not have retirement plans. Under the "myRA" plan — "my retirement account" — workers could dedicate part of their pay to the purchase of treasury retirement bonds, building up savings that could be turned into individual retirement accounts.

Earlier, at the Costco store in Lanham, Md., Obama echoed his State of the Union call for a hike in the nation's minimum wage, saying that "I firmly believe it's time to give America a raise."

Republicans and some economists said an increase in the minimum wage will discourage businesses from taking on entry-level employees.

GOP lawmakers also criticized Obama's emphasis on executive orders.

"The president must understand his power is limited by our Constitution," said House Speaker John Boehner, R-Ohio. "And the authority he does have doesn't add up to much for those without opportunity in this economy."

The Maryland stop began a two-day series of speeches designed to highlight various proposals in the State of the Union Address. Job training and education are on the agenda Thursday as Obama makes speeches in Wisconsin and Tennessee.

Speaking a little more than 12 hours after his annual address to a joint session of Congress, Obama said a higher minimum wage would give consumers more money to spend, helping revive the economy.

The president endorsed a proposed congressional bill from Sen. Tom Harkin, D-Iowa, and Rep. George Miller, D-Calif., that would increase the minimum wage from $7.25 per hour to $10.10 over time.

Echoing Tuesday night's speech, Obama said he will soon issue an executive order to increase the minimum wage to $10.10 for federal contract workers. He cast that order as the type of executive action he will take if Congress balks at his proposals.

"America just can't stand still if Congress isn't doing anything," Obama said. "I'm not going to stand still either."

Later, during his speech at the steel plant in Pennsylvania, Obama said his new "myRA" retirement plan will make it easier for people who may not be making much money and are just beginning to save.

"It's affordable," Obama said. "You can open an account with as little as $25, and can contribute as little as $5 at a time."

Brian Graff, CEO of the American Society of Pension Professionals and Actuaries, said the myRA is a "modest proposal" that would require voluntary cooperation from the businesses involved.

It may be something of a down payment on a more ambitious plan to require all businesses to have some kind of retirement plan, Graff said — but, he noted, "that would require congressional approval."

The retirement savings plan has received a warmer reception than the proposed minimum wage increase, which Republicans and some economists said would further slow the economy.

One critic, the Employment Policies Institute, ran a full-page ad in The Wall Street Journal quoting Microsoft co-founder Bill Gates as saying that a higher minimum wage would encourage businesses to automate more of their operations.

Noting that the Harkin-Miller bill would eventually increase the minimum wage by nearly 40% over time, the ad says that "the White House argues that this won't hurt hiring. But the vast majority of economic research says otherwise. Bill Gates gets it. Why doesn't the President?"

David Cooper, an analyst with the Economic Policy Institute, said an estimated 16.7 million workers — about 12.8% of the workforce — make less than $10.10 an hour and would eventually receive a raise under the Harkin-Miller bill.

Cooper noted that 21 states plus Washington, D.C., have higher minimum wages than the federal government.

EPI, which supports an increase in the federal minimum wage, estimates that Obama's plan for contract workers could benefit roughly 200,000 people.

The White House has not estimated how many minimum wage contract workers would be helped by Obama's forthcoming executive order, which would apply only to future contract. Boehner said few if any workers would see wages rise any time soon.

Obama's call for more executive orders triggered criticism from Republicans in Washington and nationwide.

Alan Wilson, the attorney general of South Carolina and chairman of the Republican Attorneys General Association, said that "governing by executive order is not leadership. it's an abuse of power and undermines the rights given to states under the Constitution."