Posts Tagged ‘minimum wage’

Check out the latest from Peter Schiff.

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Listen to all of Peter Schiff’s podcasts at SchiffRadio.com. Visit Peter’s gold company at SchiffGold.com

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Please check out the latest from Peter Schiff:

Click here to listen!

Listen to all of Peter Schiff’s podcasts at SchiffRadio.com. Visit Peter’s gold company at SchiffGold.com

If you haven’t seen Walmart VP of Corporate Communications David Tovar’s response to a NY Times piece that vilifies the company, you have to check it out. I always find it interesting that despite their supposed inadequate wages and mistreatment of employees, thousands show up to apply for a few hundred positions every time they open a new store. Obviously these jobs provide a better opportunity than was previously available to these people or I doubt they would show up to apply. Walmart should be seen as a hero not a villain. They provide jobs and cheap goods making life better for many Americans.

http://blog.walmart.com/fact-check-the-new-york-times-the-corporate-daddy

Timely Article

Posted: February 27, 2014 in economics
Tags: ,

cnbc article

Unintended consequences. The central planners somehow know what the optimum minimal price of labor should be (even though many have no private sector experience), but shockingly they don’t think of all the unintended consequences.

The Minimum Wage

Posted: February 26, 2014 in economics
Tags: ,

There are so many things we grow up learning in school, from our parents, from our friends that we just assume are true. We don’t even think twice about them. They are as good as gravity. One of the reasons I just can’t read enough or watch enough videos or listen to enough podcasts about this stuff is that my mind is constantly being blown. It’s like learning everything for the first time, or maybe more like unlearning so many things you thought were factual. The first time I heard the minimum wage was not good or necessary, I was a little blown away. “Of course the minimum wage is necessary,” I thought. “Otherwise employers would just pay their employees peanuts.”

I now know this is just a ridiculous notion. It comes down to basic economics: supply and demand. If you increase the cost of something people will buy less of it. Price goes up, demand goes down. This is a law, like gravity. Not debatable. The rules don’t change just because the price we’re talking about is labor. Any study claiming the contrary is nonsense. Any such study is saying gravity does not exist and that the earth is flat. (more…)

What is the free market? By definition it is simply a system of voluntary exchanges, nothing more really. If you have a hat and I have ten dollars and we agree to exchange them, absent coercion we have both obtained something we prefer. I prefer the hat to the ten bucks and you prefer the cash. This simple system of voluntary exchanges has been vilified throughout our country’s history and has been blamed for everything from recessions and depressions to the business cycle, to low wages, to income inequality. We are told it is inherently flawed and predatory and a breeding ground for corruption, greed, fraud, scandal, etc. The pope recently told us the free market is evil basically… awesome! We hear this in the media. It is taught in the schools. The result of this perpetuation of the evil free market has been massive regulation, and controls placed on free exchange in an attempt to fix these perceived flaws. In a democracy, if most people believe the free market is to blame for a weak or volatile economy, they will elect those who will place more controls on the economy. Mysteriously these controls never fix the business cycle so we pass more rules, and round and round we go… at some point to gotta ask, “Is this really a free market?” (more…)