Sunday, September 7, 2014

Minimum Wage puts unskilled workers out of work

Peter Schiff: Again, I told "The Daily Show" this, too. The first minimum wage was actually meant to stop people from hiring blacks or hiring Asians by trying to force them to pay higher wages because they were getting jobs and getting hired at lower wages. Labour unions are big proponents of the minimum wage because it forces employers to use skilled labour as opposed to unskilled labour. And by increasing the price of unskilled labour you make it more likely – I gave the example, what if I'm a business man and I can hire one skilled worker at $20 an hour or three unskilled workers at $6 an hour who would end up doing the same job. I can hire the three unskilled works because that's only $18 an hour rather than the skilled worker who wants $20 an hour. I don't have to hire him. I can hire the three unskilled people instead and save money. But if the skilled worker can successfully lobby for a $7 an hour minimum wage, and now the three unskilled workers cost $21 an hour, now I'm not going to hire those people. I'm going to hire the one skilled worker for $20. So minimum wage put those three unskilled workers out of work. -  @ :

Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.

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