Easing a Sting

By changing inflationary laws

Because the public now recognizes that the Government is the inflater of first resort, President Carter is considering changes in two inflationary federal laws:

The minimum wage law. A bill passed last year lifts the minimum wage from $2.65 an hour to $2.90 on Jan. 1, to $3.10 in 1980 and to $3.35 in 1981. Some White House aides think if the 1980 and 1981 increases were eliminated for younger workers--most likely those 21 and younger--as many as 450,000 jobs might open up for them. Carter will get strong opposition from union leaders, who argue that the change would tempt employers to replace unskilled adults with teenagers.

The Davis-Bacon Act. This law is more likely to be changed than the minimum wage. Davis-Bacon forces contractors working on federally aided construction projects to pay workers at the "prevailing" local wage. But, in administering the act, Labor Department officials often seek guidance only from local union chiefs, who quote the highest wage in the region. The White House is considering advising the Labor Department to become more objective and include some nonunion wages in its calculations.

Carter will continue to be under public pressure to restrict or remove more inflationary laws. Says a top Administration adviser: "It will all come down to Carter's readiness to fight labor." -

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