If a company can "hardly afford to keep the employees it has now, let alone give a raise" then the proprietors of that enterprise (read: the same people who became wealthy off of the business' success) should take a pay cut since THEIR business went south. These "innovators" chose to make their money through risk and free market. The cashier and the waitress didn't sign up for that. If the business fails, man up, keep the pink-slips locked in your desk, and pay people what they can live off of.
It's incredible how relevant this is what he says about stimulus, not just in the US but in any country. For example we've had these stimulus in Belgium for more green energy by the socialist party. Now a few years later we're seeing the results: energy is more expensive, it did not help the middle class, and it didn't give green energy a better reputation because of that. Instead of letting the market take care of it, they screwed up and now we're in a situation that is worse than it was before
Every time minimum wage has been raised, unemployment has gone down within 6 months. Look at the figures, argue with the math all you want, that is the fact.
A reverse sale huh? A store advertises higher prices and people start buying more? Why would companies hire more workers when wages go up? Your missing something crucial to this story.
@UncommonThinker They don't hire more because wages went up, they hire more because they get more qualified applicants at the higher wage. Workers are not like goods, goods have no choice about being sold or not, workers have a choice about working. The fact remains, once you get past the knee jerk reaction of companies to an increase in minimum wage, during which they actually may reduce staff, unemployment has historically gone down, not up, by 6 months later. Actual statistic.
@UncommonThinker I also have a theory, not neccessarily proven as is the unemployment going down at a higher minimum wage FACT. My theory is that when you pay people more money, particularly minimum wage people, they also spend it, putting it back into the economy on Main St. . If wages stay down, the larger profits that companies realize ultimately end up in foreign banks. Minimum wage people generally spend all they get, so there cannot be a loss to business, collectively.
@nezpercenathan The minimum wage law is a LAW. Regardless of expenditures, the State restrains low-paying jobs from developing in the market via those expenditures. The expenditures will be restrained to affecting only those higher-paying jobs. And by low-paying and higher-paying I speak in terms of the minimum wage. Also, purchasing power is more important then units of currency. I can earn $7.65 an hour and it loses 95% of its value because of inflation and restraints on production.
@nezpercenathan The minimum wage is based on the fallacy that $7.65 is more important than the value of those $7.65 in the market place. Value in dollars is brought up by increased REAL (as in, in line with actual demand) wealth production. Living standards for society as a whole holds more importance than economic classes (which in my opinion will never be dissolved); economic classes only have importance when they're exasperated by political class.
@nezpercenathan Austrians hate math in economics, at least in general. They do not abhor the concept in itself, but in practice many economists and economic schools are rather mathematically reductionist at horrible expens, which result in fallacy. Also, Austrians do not abhor empiricism, but they abhor how many economists and economic schools treat historical data as though necessarily implying causality. Austrians hold to the fact that causality can only be drawn thru synthetic a priori means.
@ID1337: Have you check historical facts. In fact the past 30 years data has shown that wages have not kept up with productivity. In fact despite the increase in productivity real wages have been stagnant. I have checked data of U6 figures a year after min wage increases and the unemployement was left virtually unchanged. Inflation was not an issue either.
I usually agree with Mr. Schiff but in this situation I do not. Simply relying on Supply Side Economics is foolish.
You're missing a lot of the context. For one, many people take raises in the form of benefit increases. Like health care. And those benefits aren't as easy to report. Wages have gone up. They have simply been excluded from our accounting system. You also have to look at the output of the worker. Is it the workers fault that productivity is up, Or is it the engineer? Supply side economics causes economic booms in every country that tries it. Every single one.
This segment is well entitled, "Head and Shoulders". Look at his detractors in the past: listen to the so-called experts on television snicker and sneer at his statements. Where are they now?
Now that schiff is running for government, the amount of "schiff is wrong" responses to all of his videos have gone way up. 10 bucks says that the far left has minimum wage (how ironic) cronies, on youtube right now, lipping off bullshit comments about how Schiff is wrong etc. Here is a good way to identify them: you can't understand what they are fucking saying. Schiff is clear as a bell. You can't eat lunch for free. A message to the socialist left: We will be voting you out....
If you want to see what schiff would look like in office, look at Ron Paul. They are pretty much the same person. In regards to your point about what he would change, I am betting he would do more "exposing" than changing, and in the end, that will lead to change.
The only statement I disagree with is: "If there hadn't been a stimulus, the market could have corrected itself." Wrong, considering the economic fundamentals, the market can't correct itself, no matter how much borrowed money is thrown at it. As long a we continue to consume more than we produce, we will continue in the present trend of becoming a dependent, third-world nation. The stimulus will produce a temporary economic euphoria and is only prolonging the inevitable.
yeah let's just completely turnour back on America is what Schiff is saying. Invest somewhere else to keep some other fiat bubble alive so you can live in some unnecessary mcmansion and drive shiny new shit. Ihope you leave wJ/im Rogers after the patriots rebuild America the right way we'll never let you back in.
Won't Peter outsource jobs to cheaper labor markets? I men that's where he puts his clients money. anywhere but good old USA!!!He's a tightrope traitor in my book and he's a wimp for not telling the American Public about the elitist scam including Federal reserve. My hunch says he's shilling for them and is a wanna be like JIm Rogers. I've been waiting for his dollar to crash now for months and where's the hyperinflation and spike in gold prices. Bahumbug. I smell a con
No he is not a traitor. Your government is. They made the low skilled jobs too expensive with min wage. And all other jobs too expensive because of taxes. He is just reacting to incentives created by the government. Besides I'm sure you buy electronics and stuff made in China. Are you a traitor too then?
The terrible effects of outsourcing is a myth. If there were really that many unemployed skilled workers around the world then the countries they live in wouldn't be that poor and desperate.
Meanwhile he's made even more money in foreign markets than you could have on the DOW, and made it in money that is getting stronger while the dollar is currently getting weaker. Ooops, Schiff's right again.
You're right. Schiff is a genius. I especially liked his prediction about hyperinflation & $2,000 gold. Right on the money, Peter. Great call. Schiff is nothing more than a used car salesman (trying to peddle his newsletter & investment advice to gullible investors).
you're so ignorant. Nothing happens over night. Gold is already $1200 well on it's way to $2000 and then on to infinity. But don't worry...you can continue to bash gold and hold onto your USD and go bankrupt.
If the "Big 3" automakers proposed a plan to cartelize and built hi-speed rail systems and the public responded by preferring spending the same for using the rail, as they do car payments, it would be done. If a discount was involved, where the government used a "stimulus", what of the drivers still out there who don't want rail? They still have to pay for it. However, even the latter scenario, would be a demand for capital, so government "stimulus" would be less damaging.
""As for hyperinflation, unless the government starts giving away a whole lot more money than what people are losing in job losses, hyperinflation cannot occur.""
"New" money must be justified by "new" goods on the market. All the modes of production, from mining/farming, fabrication, production, wholesale, retail... advertising, land rent, etc... capital must be from savings or from interest gained naturally from savings.
When you inflate, you must have a demand for new money in capital.
I agree with everything buy what about Wal Marx who are just GREEDY AS FUCK and export jobs? Peter I think I may have misunderstood you or you have disappointed me for the first time :(
greed is good. exporting jobs keeps prices lower for all WM's consumers which far out weight WM's employees in numbers. if you are WM and you found out that u could export one or two jobs and save a billion $, wouldn't you? Or if you are WM and you could raise all your prices 15% to help pay for one or two extra jobs you feel should be created, would you do it, with Target breathing down your back? prob not.
He asks how the government thinks businesses can just pay employees arbitrarily more. Well, it's simple, they just need to steal more money from their customers. What, businesses can't take money by force like the government? There's your answer; the government was simply thinking businesses operated like it.
Why the rant on minimum wage being able to support a family. Nobody believes that is what is intended. Also, you make the assumption the government doesn't know what they're doing. That's where you just don't get it Schiff. They know exactly what they're doing. Their goal is to destroy our currency by defaulting on our debt, not through hyperinflation. By the way, this is obviously a failed head and shoulders and we will see Dow 9800 before we see Dow 7500.
Monetization of the debt is already occurring since the Fed is purchasing the debt. What I'm saying is that as tax revenues continue to decline and debt levels continue to increase, at some point the US will not be able to pay interest on the debt. When this happens, the dollar will become worthless overnight. As for hyperinflation, unless the government starts giving away a whole lot more money than what people are losing in job losses, hyperinflation cannot occur.
True, but it's still managing to sell some of its bonds to places like China. I don't know exactly how much China's buying though, just that they're still buying some while trying to diversify out. If the US defaults on its debt, it'll cause the bonds to be worthless, but not the dollar. The dollar will have high inflation since the market will expect the US to continue deficit spending financed through printing. Do you realize that your last two sentences are incompatible?
Hyperinflation sets in once social welfare continues to spend into the market, where the businesses see new opportunity to raise prices, and on and on. New money must be capitalized into efficient business ventures or it will be wasted and cause inflation. Germany became a hyperinflated economy, because the welfare rolls exceeded the demand for new capital for production. Less capital, meant less stuff and less stuff and more money... the less stuff and the more money = hyperinflation.
The first stimulus has only used 10% of it so far, the rest will be used for infrastructure, that Bush never took care of for 10 years,, min wage should be 18.00 an hour at least.....average wage should be 25.00 to 30.00 an hour a good wage 40.00 and up....that would make sense as far as prices go.....paying retail for crap, cars housing,,etc,,
We need to build the rail system too......way outdated..
How arrogant to think that you "know" what the minimum wage should be in an emergent system. You are not God; you are a flawed human being. Why should I trust you?
I agree with the concept of raising minimum wage at a time of economic crisis could be harmful at this time. YET, CEO's that made 400 times the amount of workers can hardly claim productivity issues. IMO, the biggest problem for workers is the jobs are gone. We have moved too much of our industry out of the country. Many companies have enjoyed below minimum wage profits. There are two sides to this coin, profit and greed.
I agree in principle from the perspective of the business owner and economy. However, at what point does the hourly wage, set by the free market, transition from market derived to a value determined by exploitation? Starvation from lack of employment (money) for example, removes free choice from the equation and shifts all power to the hirer resulting in exploitation.
On Min. wage, you make sense until a certain point, especially in what it concerns the present economic situation. Unfortunately heads of families are taking those jobs that were once supposed to be held by boys and girls. At today's date, moms and dads are competing with these kids and/or with low or non-skilled people for a min wage job so to put the food on the table. The problem is not to increase or not the min. wage, the solution is to create real jobs for moms, dads and skilled people.
i agree with some of what you say but i think you have to look back on history and see when the labor movement first started people were forced to work long hours for paltry wages no overtime and no job security if they disagreed iam not really a proponant of unions but they were a necessity born of management taking advantage of a large labor force for higher profits unfortunantly this dog chasing his tail scenario will continue because of human greed
You are correct in that when the unions were created there was no/little balance of power. Now the unions, such as the UAW, are a vertual monopoly, pendulum swung to the other side, and again no balance of power.
The appropritae mechanism would be to have (an educated populus) all parties, employers and employees, have free entry into/out of the market without any coersion. Related to that would be pay based primarily on performance. This is Freidman-esque (aka plagerism).
I don't like the term plagerism, you imply that schiff is claiming these principals for himself which is stupid. Schiff is a self proffesed austrian school thinker. So principles laid out by those like Adam Smith would be obvious to someone from his grounding.
Hmm... I seem to remember hearing about how setting a price floors creates a surplus of supply (in this case labor being the service supplied, we call it unemployment) ... where was that. Oh yeah it was my high school economics class. I can still see Mr. Berger wiggling his crossed supply and demand arms to signify the surplus or shortgage. Maybe Congress was sick the day they taught that lesson.
All my friends that worked for someone had free weekend, vacations, sick time off, nice homes and cars and knee deep in loans! to have what they have at $35,000 to $45,000 a yr paying jobs.
Me I drove a old truck, lived in a cheap apt. , ate hot dogs and soup and made my own lunches so I could afford!!!!! to build my business, I spent years making this happen and I have had to give up a lot to get to here!
Most people are missing the point looking at it as an employee!
I have had 79 employees at one time and it was not worth the effort to try to make bigger money because it seemed to me that the Government was geeting the bigger part of the pie! and with that WHY would I want to help them out and these employees when I made this business and not any of them!
I guess I am required in life to do it for everyone else right?
What people don't look at is the back drop of building a business, what it took, what you didn't get to do.
What he said on entry level paying jobs is right on the money!
When you think that entry level pay is to live on we are doomed!
I am an employer, I would love to use entry level people but being that I am a small business I cannot, I need people with experience so I have to pay more than entry level pay as what he was talking about.
So giving that, I have to be very careful in who I hire so that they make me and them money are they don't have a job!
It is possible to support a family of 4 on a minimum wage, just not with an accepted US lifestyle. Is is like 4 people sleep i 1 bed, eat mostly pasta and bananas, some eggs. Everyone has shoes from Goodwill. No cars, high speed internet or health insurance. This is normal life for a developing country. A lot of our population is slipping into third world status and our government can not admit it.
i dunno but probably has to do with genes in that they increase chances of survival. Secondly, probably has to do with other things as well. Like if they spend more time at home cus they can't get a job...it means they're doing "other" things besides working (like making babies, lol). As well, if they do make low incomes, i'm guessing the stress of life is a contributing factor. But anyways, turns out that after real incomes rise, people tend to have smaller families. Pretty interesting.
it's not just because of increase in real incomes, it's just that people who do have high incomes tend to be well educated and focus more on career than on family.
that's a big part of it as well. Not necessarily the "well-educated" part cus educated people can still have big families. It's that if they're spending more time focusing on their career and thinking of things to further that, and doing things to further that, it means less time spent on "other" things, lol.
dont EVER think that if you pay 7:50 hr that your employee will produce anymore than that they will only produce what you pay them and are not required to work any harder
If that were true every employee hired would lower profits. So then why would you hire an employee? You hire people because they help to increase profits by being more productive than what you pay them. The more productive you are the more you get paid. Not vice versa.
Great commentary. I think the definite problem is we think in too much in the short-term. The government actions made now will be felt years later (or hours later like the Titanic).. and much like what history has shown, the effects will be unstoppable once the sinking starts.
And exactly! With a higher minimum wage, it only caps the wages, options, and employment options since such a large chunk is taken from a gov't mandated requirement.
But your OK with Socializing debt and privatizing profits, right? Explain that one to your grand kids, not me.
IF, every US citizen got $500,000.00, one time only, there would be no shortage of jobs. But instead, we bailed out fat cats who produce paper with ink on it, backed by faith alone.
Why not stimulate innovation as opposed to bailing out failed business models?
Screw it! Buy Silver and don't work for minimum wage.
I doubt the second stimulus will go through. I think Obama is starting to realize that there is a lot of money being spent and he was even talking about doing what John Mccain had brought up of taxing health care benefits. We are even seeing a reduced buying of "toxic assets" from 1 trillion to 40 billion.
These guys are listening. Just keep pushing with logical arguments and not "you're a facist" and "Palin is an articulate speaker" type of nonsense.
Agreed. Schiff's reasoning is based on a broken business model, where quality has an easier time taking a back seat to profits. I have heard the argument that many people would pay a few extra bucks to have clothing made in the US because it is made in the US. Is that bad?
Schiff has obviously been out of the loop for far too long. This sounds more like pro-globalization than free-market and that's bad capitalism.
And never mind inflation. Inflation will never affect the minimum wage workers, right? And cost of living is irrelevant, too. Right? How about ZERO health care coverage, no retirement plan and working for some stressed out a**hole that has marital, gambling and drinking problems and has no business running a business.
Oh really? I'm sure all of Schiff's incredibly accurate prediction were all a streak of luck and, as you say, he doesn't know what he's talking about. Why don't you go play in the traffic?
I'm not picking on the poor guy trying to stay afloat. I well recognize the Wall street crooks for what they are.
But, stagnation is not progress. I don't buy the argument that there are jobs "Americans won't do", it's that they won't do it for slave wages. The response: Hire someone off the books or ship the jobs overseas.
And as an employer, my strategy is to loose the employees that don't add value and reward those who do. Net-Net we all win.
Case in point. We still have unions in this country and for good reason. But quality has taken a back seat to profits unfortunately.
Look at the General Motors effect. So, we have been outpaced by foreign owned car companies for 30 years...and what do we have to show for it? Ownership in a company with poorly designed products. We don't even get what we pay for any more by and large.
The opposite of too big to fail is too small to succeed, right?
Also, the fact of the matter is (and I know you know this as well as I do) that there will be significant inflation in the near future. These minimums merely reflect the post-stimulus economy that we will be seeing and will end up having no more effect on the job market than $5.15 had 10 years ago. Hell, inflation may get so bad that $7.75 may end up being less effective. I agree that we shouldn't be playing with the mins, but then again the storm that is coming really makes it fell necessary
Peter, the fundamentals of your argument are good but not entirely spot on. There are almost as many people earning minimum wage above the age of 24 (47%) as there are below it (53%). Also, the people above above 24 that make it are more likely to be female or of an ethnic minority and are also significantly more likely to hold such a job full time.
if everything is "getting better" why have retail stores spending MILLIONS putting in shorter shelving and carrying less inventory and the president signing for 20 more weeks extension of UI?...if it were recovering wouldnt they be getting more inventory and stopping extensions on UI?...pay NO ATTN to the words of our officials..its what they DO that matters.
gold is droping now ,silver also with the dow sp oil gas but treasuries are up. before sept buy gold silver head to newzealand thats my plan esp if crapntrade passes
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Wow! I just discovered a new dynamic to the "Peter Schiiff Principle" that I wasn't aware of.
So, increasing the minimum wage is a bad idea?
How about this? The companies that cannot afford to pay a living wage are too small to succeed. So, fuck 'em. Let them fail. IF, the people who are not skilled labor deserve to be wage slaves then why not act like wage slaves, therein further degrading an already lousy service industry in the US.
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I respect your savvy when it comes to finances but I'm going to call you on this one. You suck at being a human being. I'm tired of the education argument because it no longer holds water. Education isn't an investment in an individuals future. It is an indoctrination in how NOT to think outside the box.
Maybe you should try making it on $6.65 an hour before you begin making asinine statements like this. And btw, don't piss off the person making your sandwich at the drive thru.
I haven't voted you down, but I'll make a counter point.
Could you explain why your third party evaluation should trump two consenting adults in a voluntary contract for employment? If I'm willing to work for $1 an hour, and someone else is willing to pay that, what business is it of yours?
Maybe I'm not after a "living wage" (whatever that means). Maybe I just want a little extra cash. A government mandated minimum wage turns marginal employment into unemployment. It's pretty simple.
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So, you're not talking about the current system.
You have something else in mind, right?
If your serious about wanting to make some extra cash, there are other ways, reselling furniture, goods, scrap metal, day labor, etc..wherein Uncle Scam is not part of the equation, at all. That's really what this is about; how it effects the indifferent, not the disaffected.
We don't want Socialism, we just already have it and we are not mature enough to admit it. Except this form of Socialism is called, "Privatize profits and Socialize debt", ensuring that the top continues to rise while suppressing the living standards of everyone below.
I don't aspire to make minimum wage, either way; your mileage may vary.
Schiff is a genius! I do respect the man. And I respect him enough to call him on this issue for a debate.
And by the way, in my opinion, a living wage means that you are comfortable enough with your financial situation that you don't have to worry about living paycheck-to-paycheck, food stamps, begging for a subsistence, or unnecessarily burdening the rest of society to support you.
Do the math. Tally up your bills; power, water, groceries, gas, insurance (gotta have insurance), money allocated for savings, etc...less the cost for a mortgage and a car note. How much would you need; minimum?
If the success or failure of a company depends on whether they are paying employees $6.25/hr or $7.25, there may be some issues with the companies business model.
So, Schiffs argument that by hiring an employee, he is investing in himself and his company, the key is the operative word "investing" which bears an underlying connotation for longevity. If my employees are taking care of me, I return the value to them in order to invest in my future.
All of which may be fine and rational choices. Some people will be in it for a "living wage", a "great living" wage, a "simple living" wage, "just some spare cash", etc., ad infinitum.
The point remains. If the employee and employer reach a voluntary agreement, are both adults, and no force can be proven, then it's none of my business, none your business, and none of Uncle Sam's business.
Third party observers have no valid stake in the transaction.
Peter, you forgot about subminimum wage. Those teens working summer jobs that you mentioned don't have to be paid minimum wage.
But it makes sense that it'd increase because of all the inflation being created. I think the bigger issue is what Marc Faber has mentioned--will the Fed ever be able to raise interest rates to above inflation? I think there's still a lot of deleveraging left to do. Financials are entrenching themselves while manufacturing is shrinking. What a mess!
In regards to minimum wage - it is being raised from $6.55 to $7.25. I've always felt that the argument for/against was a waste because at prior levels, the minimum was too low to make much of a difference. At $7.25 and in this economy, however, it might actually cause a measurable increase in unemployment.
He seems somewhat like a dick though. I hope he runs and wins, but people look for "nice" people that they can relate to. If he answers the question "What do you think about abortion" in the wrong way, that would be the end of his run. Of course this is part of what is wrong with the way we vote for people.
I see your point of view peter but here the problem. 70 percent of our gdp is consumer spending. and you know what happens when jobs cater to this? by providing tons of minimun wage jobs. no jobs are available except minimum wage. i have two college degrees and i cannot get paid more than 30 cents over minimum wage. meanwhile inflation is taking that away! so theres my two cents.
That is an unfortunate circumstance but not really a problem with the theory. If the only jobs available are ones that pay the current minimum wage, and that minimum wage rises, that doesnt mean everyone gets a raise. It means a couple people get a raise and everyone else gets fired. Resulting in even less of those minimum wage jobs available but doing nothing about the fact that the higher paying jobs you are looking for still dont exist.
yep, i was just stating this because in the video peter schiff stated that only highschoolers who need extra spending money have these jobs, but his point regarding this is false...
Peter once again lays out remedial economics.....something the obama administration does not understand !! Why doesnt our government understand this simple concept? Thanks again Peter, for telling it like it is..love the videos, keep em coming !!
Peter, I know the goverment intervened after the crash of 29 and froze wages and farm prices. I also know that these moves increased unemployment and forced farmers to destroy produce because people could not pay the high prices. However, do not give the impression that you are out of touch with what the workers are now going through. I mean, people do have to try to support their families on minimum wage - at least in right to work states like Florida. Here minimum wage is the only wage.
You are right. I have noticed that wages have been squeezed down everywhere beginning in 1981 with Reganomics. Wring out the excess income with Efficiency Studies - fire everyone making above minimum wage and hire new workers to replace them.
That creates a huge problem for a company, not only on the public opinion which equals a huge decline in future profits but when problems come up... I bet you the newbies are not going to be as successful which costs even more money and time...
Government on the other hand, makes sure institutions are "too big to fail". I also think Government itself is a business, which is viewed upon as legitimate by its people and thus is "too big to fail"..
Kihjin, actually gold hasn't taken a nose dive relative to oil. However, it has dropped. The reason for this is because many people still see gold as a commodity (for jewelry and electronic use) rather than a store of wealth or as a future form of currency. So, as the stock market and oil continue to drop gold will drop to some degree, but not dramatically because many people do not see it as a commodity, but as real money.
Because there is a sell off in the market, the dollar is strengthening and thus oil, gold/silver come down in price. There are talks of more government stimulus and meddling in the markets with oil against oil "speculators" so there was a big sell off in oil.
Right john, and I should have also added that ultimately I agree with what Peter has said, that gold will eventually go up dramatically in price. When that happens is anyone's guess, but it could be surprisingly soon.
I think people need to change their concept of government. Government should not have a political function at all, it should merely be an agency, much like the military, that protects the basic freedoms of a countries' citizens. Democracy, and even the most well crafted republic, always ends up leading to mob rule and corruption. The worst invention in the history of mankind was government. The best: free market capitalism. FMC, the new democracy.
Technically our republic could be as close to perfect as you can get if the federal government was held down to its basic functions as the constitution outlines. Education of people has dumbed them down to think we need this massive government to survive. Free markets are essential in prosperity.
I only propose one extra solution, no more taxes... All voluntary exchange, where if I don't like the services in any of the States I can opt out. That way the money supply further restraints and controls the State. And if they are ever so stupid like today, then they will fail. And other systems will emerge. Also no more monopoly on courts, police, fire department, and education among other things. These systems don't need a Gov't such as the State to manage alone or at all. Free Market is key.
We don't, and people will realize this once they have the opportunity to perform certain needed functions in a society like police, fire, security, courts.. People will realize that all this can be done without a State and has been done without a State... Ireland, Iceland, some parts of the western America. Its much more efficient because there is no such thing as too big to fail and by competition by voluntary mutual exchange you will have the best of the best set of standards.
"education of people has dumbed them down to think we need this massive government to survive"
It wasn't necessarily education, but the lack of freedom in the market of ideas. People act intelligently with the information they have. With social media, we get to play a much larger role in determining what information other people have, while also demonstrating what information we have.
Also by increasing minimum wage, all goods/services associated with minimum wage jobs will have a price increase. You cannot raise people out of poverty by increasing their salary, you have to educate them out of poverty.
Nice work peter, although I do have to say that most of the "paperboys" that I know are adults who are working as a 2nd job. Most drive their cars by themselves which puts a HUGE strain on their transmission and brakes for very little money. I'm not defending them but I am saying that I don't know of anyone who is a "paperboy" and is under 20 years old in the State of Minnesota. keep up the good work!!
If a company can "hardly afford to keep the employees it has now, let alone give a raise" then the proprietors of that enterprise (read: the same people who became wealthy off of the business' success) should take a pay cut since THEIR business went south. These "innovators" chose to make their money through risk and free market. The cashier and the waitress didn't sign up for that. If the business fails, man up, keep the pink-slips locked in your desk, and pay people what they can live off of.
Knowlesmil89 1 month ago in playlist Peter Schiff on Minimum Wage Laws
It's incredible how relevant this is what he says about stimulus, not just in the US but in any country. For example we've had these stimulus in Belgium for more green energy by the socialist party. Now a few years later we're seeing the results: energy is more expensive, it did not help the middle class, and it didn't give green energy a better reputation because of that. Instead of letting the market take care of it, they screwed up and now we're in a situation that is worse than it was before
TWSceptic 1 month ago
Maybe the first time Peter if wrong about Dow, lol.
exitiummagnum 6 months ago
Every time minimum wage has been raised, unemployment has gone down within 6 months. Look at the figures, argue with the math all you want, that is the fact.
nezpercenathan 1 year ago
@nezpercenathan
A reverse sale huh? A store advertises higher prices and people start buying more? Why would companies hire more workers when wages go up? Your missing something crucial to this story.
UncommonThinker 1 year ago
@UncommonThinker They don't hire more because wages went up, they hire more because they get more qualified applicants at the higher wage. Workers are not like goods, goods have no choice about being sold or not, workers have a choice about working. The fact remains, once you get past the knee jerk reaction of companies to an increase in minimum wage, during which they actually may reduce staff, unemployment has historically gone down, not up, by 6 months later. Actual statistic.
nezpercenathan 1 year ago
@UncommonThinker I also have a theory, not neccessarily proven as is the unemployment going down at a higher minimum wage FACT. My theory is that when you pay people more money, particularly minimum wage people, they also spend it, putting it back into the economy on Main St. . If wages stay down, the larger profits that companies realize ultimately end up in foreign banks. Minimum wage people generally spend all they get, so there cannot be a loss to business, collectively.
nezpercenathan 1 year ago
@nezpercenathan It worked out great for the American Samoa. We increased their minimum wages with ours. They are in a total depression right now.
UncommonThinker 1 year ago
@nezpercenathan It worked out great for the American Samoa. We increased their minimum wages with ours. They are in a total depression right now.
UncommonThinker 1 year ago
Comment removed
Nellsing 1 year ago
@nezpercenathan The minimum wage law is a LAW. Regardless of expenditures, the State restrains low-paying jobs from developing in the market via those expenditures. The expenditures will be restrained to affecting only those higher-paying jobs. And by low-paying and higher-paying I speak in terms of the minimum wage. Also, purchasing power is more important then units of currency. I can earn $7.65 an hour and it loses 95% of its value because of inflation and restraints on production.
Nellsing 1 year ago
@nezpercenathan The minimum wage is based on the fallacy that $7.65 is more important than the value of those $7.65 in the market place. Value in dollars is brought up by increased REAL (as in, in line with actual demand) wealth production. Living standards for society as a whole holds more importance than economic classes (which in my opinion will never be dissolved); economic classes only have importance when they're exasperated by political class.
Nellsing 1 year ago
@nezpercenathan You're nuts.
SDS4BO 1 year ago
@nezpercenathan You're also a naive socialist, probably paid to blog in your underwear from your mom's basement.
SDS4BO 1 year ago
@nezpercenathan Did you check other factors? The minimum wage is not in isolation.
Nellsing 1 year ago
@nezpercenathan Austrians hate math in economics, at least in general. They do not abhor the concept in itself, but in practice many economists and economic schools are rather mathematically reductionist at horrible expens, which result in fallacy. Also, Austrians do not abhor empiricism, but they abhor how many economists and economic schools treat historical data as though necessarily implying causality. Austrians hold to the fact that causality can only be drawn thru synthetic a priori means.
Nellsing 1 year ago
more commom sense from the Duke!
mavaufberlin 2 years ago
"What determines wages is productivity"
That is so true!! Just look at Bill Gates, he worked productively for just 2 million hours in order to truly earn his sixty billion dollars.
id1337x 2 years ago
@ID1337: Have you check historical facts. In fact the past 30 years data has shown that wages have not kept up with productivity. In fact despite the increase in productivity real wages have been stagnant. I have checked data of U6 figures a year after min wage increases and the unemployement was left virtually unchanged. Inflation was not an issue either.
I usually agree with Mr. Schiff but in this situation I do not. Simply relying on Supply Side Economics is foolish.
josepht68 2 years ago
You're missing a lot of the context. For one, many people take raises in the form of benefit increases. Like health care. And those benefits aren't as easy to report. Wages have gone up. They have simply been excluded from our accounting system. You also have to look at the output of the worker. Is it the workers fault that productivity is up, Or is it the engineer? Supply side economics causes economic booms in every country that tries it. Every single one.
UncommonThinker 2 years ago
See my comment below. It is not exactly true.
josepht68 2 years ago
There are some inefficiencies in the system. But yes, Bill Gates was very productive when he was working. Which is why most people buy microsoft.
UncommonThinker 2 years ago
microsoft IS insanely productive you idiot.
mike8903 2 years ago
This segment is well entitled, "Head and Shoulders". Look at his detractors in the past: listen to the so-called experts on television snicker and sneer at his statements. Where are they now?
Their silence is golden.
SuperCulloden 2 years ago
if i make 12 hr is that wrong to?
wkruk1979 2 years ago
head + shoulders failed. Ha ha. Pwned by Meredith Whitney! (Didn't she call you, Peter? Guess you're off the list!)
papakilatube 2 years ago
Now that schiff is running for government, the amount of "schiff is wrong" responses to all of his videos have gone way up. 10 bucks says that the far left has minimum wage (how ironic) cronies, on youtube right now, lipping off bullshit comments about how Schiff is wrong etc. Here is a good way to identify them: you can't understand what they are fucking saying. Schiff is clear as a bell. You can't eat lunch for free. A message to the socialist left: We will be voting you out....
micbaca 2 years ago 2
but even if he wins what will he change? NOTHING!!! minimum wage like abortion rights is settled law
wkruk1979 2 years ago
If you want to see what schiff would look like in office, look at Ron Paul. They are pretty much the same person. In regards to your point about what he would change, I am betting he would do more "exposing" than changing, and in the end, that will lead to change.
micbaca 2 years ago 3
The only statement I disagree with is: "If there hadn't been a stimulus, the market could have corrected itself." Wrong, considering the economic fundamentals, the market can't correct itself, no matter how much borrowed money is thrown at it. As long a we continue to consume more than we produce, we will continue in the present trend of becoming a dependent, third-world nation. The stimulus will produce a temporary economic euphoria and is only prolonging the inevitable.
rickw1954 2 years ago
yeah let's just completely turnour back on America is what Schiff is saying. Invest somewhere else to keep some other fiat bubble alive so you can live in some unnecessary mcmansion and drive shiny new shit. Ihope you leave wJ/im Rogers after the patriots rebuild America the right way we'll never let you back in.
rrdrums110 2 years ago
Mindless nationalism can save all of our problems, eh? If only.
Balden2 2 years ago
Won't Peter outsource jobs to cheaper labor markets? I men that's where he puts his clients money. anywhere but good old USA!!!He's a tightrope traitor in my book and he's a wimp for not telling the American Public about the elitist scam including Federal reserve. My hunch says he's shilling for them and is a wanna be like JIm Rogers. I've been waiting for his dollar to crash now for months and where's the hyperinflation and spike in gold prices. Bahumbug. I smell a con
rrdrums110 2 years ago
Oh dear *sigh*
No he is not a traitor. Your government is. They made the low skilled jobs too expensive with min wage. And all other jobs too expensive because of taxes. He is just reacting to incentives created by the government. Besides I'm sure you buy electronics and stuff made in China. Are you a traitor too then?
Idiot!
BarrySlisk 2 years ago 8
low skill jobs to expensive
high skilled jobs shipped overseas for cheaper labor
what kind of jobs are left than?
wkruk1979 2 years ago
The terrible effects of outsourcing is a myth. If there were really that many unemployed skilled workers around the world then the countries they live in wouldn't be that poor and desperate.
UncommonThinker 2 years ago
Outsourcing soon makes one quite unecesary (unnecessary, but i just can't spell the word unecesary with unecesary consonants).
TeaPartisan 1 year ago
As usual, Schiff's forecast was completely wrong. The Dow is trading at 9,100 (on its way to 10,000). Schiff is clueless.
CB9YT 2 years ago
Meanwhile he's made even more money in foreign markets than you could have on the DOW, and made it in money that is getting stronger while the dollar is currently getting weaker. Ooops, Schiff's right again.
Jaycephus01 2 years ago
You're right. Schiff is a genius. I especially liked his prediction about hyperinflation & $2,000 gold. Right on the money, Peter. Great call. Schiff is nothing more than a used car salesman (trying to peddle his newsletter & investment advice to gullible investors).
CB9YT 2 years ago
you're so ignorant. Nothing happens over night. Gold is already $1200 well on it's way to $2000 and then on to infinity. But don't worry...you can continue to bash gold and hold onto your USD and go bankrupt.
malumalumalu 2 years ago
Peter Schiff is one of the precious few sane men in America.
kmg501 2 years ago 2
Remember to donate to Peter's Senate Campaign! We need to get this man in office!
thane17 2 years ago 2
so wages can be cut?
wkruk1979 2 years ago
That swarming sound is about 100 different points that Peter has made in the last five years zooming over your head.
Jaycephus01 2 years ago
If the "Big 3" automakers proposed a plan to cartelize and built hi-speed rail systems and the public responded by preferring spending the same for using the rail, as they do car payments, it would be done. If a discount was involved, where the government used a "stimulus", what of the drivers still out there who don't want rail? They still have to pay for it. However, even the latter scenario, would be a demand for capital, so government "stimulus" would be less damaging.
DarthKazi 2 years ago
""As for hyperinflation, unless the government starts giving away a whole lot more money than what people are losing in job losses, hyperinflation cannot occur.""
"New" money must be justified by "new" goods on the market. All the modes of production, from mining/farming, fabrication, production, wholesale, retail... advertising, land rent, etc... capital must be from savings or from interest gained naturally from savings.
When you inflate, you must have a demand for new money in capital.
DarthKazi 2 years ago
I agree with everything buy what about Wal Marx who are just GREEDY AS FUCK and export jobs? Peter I think I may have misunderstood you or you have disappointed me for the first time :(
drewd1987 2 years ago
greed is good. exporting jobs keeps prices lower for all WM's consumers which far out weight WM's employees in numbers. if you are WM and you found out that u could export one or two jobs and save a billion $, wouldn't you? Or if you are WM and you could raise all your prices 15% to help pay for one or two extra jobs you feel should be created, would you do it, with Target breathing down your back? prob not.
DominationCorp 2 years ago 2
He asks how the government thinks businesses can just pay employees arbitrarily more. Well, it's simple, they just need to steal more money from their customers. What, businesses can't take money by force like the government? There's your answer; the government was simply thinking businesses operated like it.
gblargg 2 years ago
Every capitalist greedhead argues against the minimum wage. This imbecile has never produced anything in his life except hot air.
flimflamman 2 years ago
Leftist cartoon. Why don't you go strike or something?
Balden2 2 years ago
Peter Schiff was warning people of the collapse of the united states economy (and soon the dollar) YEARS AGO! too bad nobody listened.
DonEddy 2 years ago
Why the rant on minimum wage being able to support a family. Nobody believes that is what is intended. Also, you make the assumption the government doesn't know what they're doing. That's where you just don't get it Schiff. They know exactly what they're doing. Their goal is to destroy our currency by defaulting on our debt, not through hyperinflation. By the way, this is obviously a failed head and shoulders and we will see Dow 9800 before we see Dow 7500.
donharlan1 2 years ago
Defaulting on our debt will result in all the deficit spending being financed through monetization which ends in hyperinflation.
Entropy137 2 years ago
Monetization of the debt is already occurring since the Fed is purchasing the debt. What I'm saying is that as tax revenues continue to decline and debt levels continue to increase, at some point the US will not be able to pay interest on the debt. When this happens, the dollar will become worthless overnight. As for hyperinflation, unless the government starts giving away a whole lot more money than what people are losing in job losses, hyperinflation cannot occur.
donharlan1 2 years ago
True, but it's still managing to sell some of its bonds to places like China. I don't know exactly how much China's buying though, just that they're still buying some while trying to diversify out. If the US defaults on its debt, it'll cause the bonds to be worthless, but not the dollar. The dollar will have high inflation since the market will expect the US to continue deficit spending financed through printing. Do you realize that your last two sentences are incompatible?
Entropy137 2 years ago
Hyperinflation sets in once social welfare continues to spend into the market, where the businesses see new opportunity to raise prices, and on and on. New money must be capitalized into efficient business ventures or it will be wasted and cause inflation. Germany became a hyperinflated economy, because the welfare rolls exceeded the demand for new capital for production. Less capital, meant less stuff and less stuff and more money... the less stuff and the more money = hyperinflation.
DarthKazi 2 years ago
that is exactily what MW sohuld do its the lowest rate on whitch to live on
wkruk1979 2 years ago
The first stimulus has only used 10% of it so far, the rest will be used for infrastructure, that Bush never took care of for 10 years,, min wage should be 18.00 an hour at least.....average wage should be 25.00 to 30.00 an hour a good wage 40.00 and up....that would make sense as far as prices go.....paying retail for crap, cars housing,,etc,,
We need to build the rail system too......way outdated..
HealthlyBodies 2 years ago
If minimum wage was 18.00, there'll be either 90% unemployment, or the price of a loaf of bread 10.00.
Entropy137 2 years ago 2
How arrogant to think that you "know" what the minimum wage should be in an emergent system. You are not God; you are a flawed human being. Why should I trust you?
Balden2 2 years ago
god dose not exist btw
wkruk1979 2 years ago
you are listening to the truth ladies and gentlemen
steveinamerica 2 years ago
Peter Schiff has given out advice thats saved people $1000s and thats earned people $1000s. I think all this free advice deserves a reward.
Schiff for Senate!!!
NicosMind 2 years ago
Though raising minimum wage never helps anything, increased productivity hasn't manifested itself as a raise for workers in almost ten years.
hatcakefloss 2 years ago
Mr. Schiff, you state that liberals pretend not to understand that increased labor costs will result in less employment...
have you ever heard Barbara Boxer or Nancy Pelosi speak on the subject?
Do you really believe that they are pretending to be oblivious to simple logic?
JohnRinNoHo 2 years ago
Well maybe they do but if they have such an understanding than why dont they oppose such foolishness as minimum wage or the stimulus bills
mikeiswylde 2 years ago
I agree with you as this is ALL TOTALLY MAD TO DO THIS! As Peter explains that when this drops this will all become even more painful.
Travellingman1000 2 years ago
I agree with the concept of raising minimum wage at a time of economic crisis could be harmful at this time. YET, CEO's that made 400 times the amount of workers can hardly claim productivity issues. IMO, the biggest problem for workers is the jobs are gone. We have moved too much of our industry out of the country. Many companies have enjoyed below minimum wage profits. There are two sides to this coin, profit and greed.
CentrlFlagrl 2 years ago
True in some cases, but raising the cost of employing people in this country just increases the odds of a company exporting those jobs.
hiddenblood 2 years ago
I agree in principle from the perspective of the business owner and economy. However, at what point does the hourly wage, set by the free market, transition from market derived to a value determined by exploitation? Starvation from lack of employment (money) for example, removes free choice from the equation and shifts all power to the hirer resulting in exploitation.
theslimeylimey 2 years ago 4
Im going to donate $500 to ur campaign fund.
johma513 2 years ago 7
On Min. wage, you make sense until a certain point, especially in what it concerns the present economic situation. Unfortunately heads of families are taking those jobs that were once supposed to be held by boys and girls. At today's date, moms and dads are competing with these kids and/or with low or non-skilled people for a min wage job so to put the food on the table. The problem is not to increase or not the min. wage, the solution is to create real jobs for moms, dads and skilled people.
1162Sky 2 years ago 2
Jeez, this makes such good sense! Good job
Airblade90 2 years ago 3
Peter Schiff is god.
PeterSchiffIsGod 2 years ago 4
i agree with some of what you say but i think you have to look back on history and see when the labor movement first started people were forced to work long hours for paltry wages no overtime and no job security if they disagreed iam not really a proponant of unions but they were a necessity born of management taking advantage of a large labor force for higher profits unfortunantly this dog chasing his tail scenario will continue because of human greed
dragonflychainsaw 2 years ago
You are correct in that when the unions were created there was no/little balance of power. Now the unions, such as the UAW, are a vertual monopoly, pendulum swung to the other side, and again no balance of power.
The appropritae mechanism would be to have (an educated populus) all parties, employers and employees, have free entry into/out of the market without any coersion. Related to that would be pay based primarily on performance. This is Freidman-esque (aka plagerism).
FrickinLaserBeam 2 years ago
I don't like the term plagerism, you imply that schiff is claiming these principals for himself which is stupid. Schiff is a self proffesed austrian school thinker. So principles laid out by those like Adam Smith would be obvious to someone from his grounding.
murrchops 2 years ago 2
Excellent video Peter!
davids11131113 2 years ago
Comment removed
FreedomIsSecurity 2 years ago
Hmm... I seem to remember hearing about how setting a price floors creates a surplus of supply (in this case labor being the service supplied, we call it unemployment) ... where was that. Oh yeah it was my high school economics class. I can still see Mr. Berger wiggling his crossed supply and demand arms to signify the surplus or shortgage. Maybe Congress was sick the day they taught that lesson.
adambelnap 2 years ago
You don't get it for free people, you earn it if you know what that means?
You get what you put in to it and it does not happen over night.
Plant a sead for apples or any else, it takes time and care before you get anything from it right? well, that is the same thing with anything else!
We think" we should get it all right now! and that is not good thinking.
On a ladder you have to start from the bottom to get to the top and life is the same way people!
warisbs 2 years ago
All my friends that worked for someone had free weekend, vacations, sick time off, nice homes and cars and knee deep in loans! to have what they have at $35,000 to $45,000 a yr paying jobs.
Me I drove a old truck, lived in a cheap apt. , ate hot dogs and soup and made my own lunches so I could afford!!!!! to build my business, I spent years making this happen and I have had to give up a lot to get to here!
Most people are missing the point looking at it as an employee!
warisbs 2 years ago
I have had 79 employees at one time and it was not worth the effort to try to make bigger money because it seemed to me that the Government was geeting the bigger part of the pie! and with that WHY would I want to help them out and these employees when I made this business and not any of them!
I guess I am required in life to do it for everyone else right?
What people don't look at is the back drop of building a business, what it took, what you didn't get to do.
warisbs 2 years ago
What he said on entry level paying jobs is right on the money!
When you think that entry level pay is to live on we are doomed!
I am an employer, I would love to use entry level people but being that I am a small business I cannot, I need people with experience so I have to pay more than entry level pay as what he was talking about.
So giving that, I have to be very careful in who I hire so that they make me and them money are they don't have a job!
warisbs 2 years ago
It is possible to support a family of 4 on a minimum wage, just not with an accepted US lifestyle. Is is like 4 people sleep i 1 bed, eat mostly pasta and bananas, some eggs. Everyone has shoes from Goodwill. No cars, high speed internet or health insurance. This is normal life for a developing country. A lot of our population is slipping into third world status and our government can not admit it.
abayden 2 years ago
Why do people need to have a huge family when they have low skills in the first place? Spread the poverty-----I mean wealth!
Chainedorlo 2 years ago
i dunno but probably has to do with genes in that they increase chances of survival. Secondly, probably has to do with other things as well. Like if they spend more time at home cus they can't get a job...it means they're doing "other" things besides working (like making babies, lol). As well, if they do make low incomes, i'm guessing the stress of life is a contributing factor. But anyways, turns out that after real incomes rise, people tend to have smaller families. Pretty interesting.
stealthswimmer 2 years ago
it's not just because of increase in real incomes, it's just that people who do have high incomes tend to be well educated and focus more on career than on family.
ch1kusoo 2 years ago
that's a big part of it as well. Not necessarily the "well-educated" part cus educated people can still have big families. It's that if they're spending more time focusing on their career and thinking of things to further that, and doing things to further that, it means less time spent on "other" things, lol.
stealthswimmer 2 years ago
dont EVER think that if you pay 7:50 hr that your employee will produce anymore than that they will only produce what you pay them and are not required to work any harder
wkruk1979 2 years ago
If that were true every employee hired would lower profits. So then why would you hire an employee? You hire people because they help to increase profits by being more productive than what you pay them. The more productive you are the more you get paid. Not vice versa.
NicoBanTyralash 2 years ago
Search this on YT "Web bot Cliff High on RBN with Common sense show 07/05/09"
rollsthepaul 2 years ago
.we are so rich that if you americans realized it you would
take our wealth and resources.other than that like i said we are
the worst squanderers of natural resources per capita probably on the
planet.and yet the popular opinion in Canada is that
environmentalism is just status quo.yes o.k. i agree but we don't
act like it.BTW humans are destroying the earth and global
warming does exist yes and the earth is also not flat get it
,good.
trflatline1 2 years ago
.i see can see this being
from literally the richest welfare state on the planet no not
Russia. i am Canadian we are a great nation but this is Obama's
wet dream and it's working for now socialized medicine,social
security,social services, ect because we can afford it but what
happens when we go broke..we go directly from a socialist state
to a communist state and our wealth is the only determining
factor.
trflatline1 2 years ago
it's all exponential when it comes to stimulus,the government
just raises the bottom, minimum wage say to 100$/hour that's just
your baseline.i disagree with peter that unemployment is a
function of wages.if you have a minimum wage of 100/hour that
means a layer makes now 1000$/hour and inflation is much greater
than it is now.that's just how inflation works you are poor no
matter how much you make because you are the lowest earner in
given society and you get priced out.
trflatline1 2 years ago
Great commentary. I think the definite problem is we think in too much in the short-term. The government actions made now will be felt years later (or hours later like the Titanic).. and much like what history has shown, the effects will be unstoppable once the sinking starts.
And exactly! With a higher minimum wage, it only caps the wages, options, and employment options since such a large chunk is taken from a gov't mandated requirement.
at1212b 2 years ago
I don't know why Peter is wasting his time and ours picking on the little guy -
why is he afraid to press hard on the real scoundrels - Goldman and the Feds
Focus Peter Focus
marniespeaks 2 years ago
LMAO what's with all these socialist lunatics showing up on Peter's comments?
HeWhoPawns 2 years ago
But your OK with Socializing debt and privatizing profits, right? Explain that one to your grand kids, not me.
IF, every US citizen got $500,000.00, one time only, there would be no shortage of jobs. But instead, we bailed out fat cats who produce paper with ink on it, backed by faith alone.
Why not stimulate innovation as opposed to bailing out failed business models?
Screw it! Buy Silver and don't work for minimum wage.
Frequencitee 2 years ago
I doubt the second stimulus will go through. I think Obama is starting to realize that there is a lot of money being spent and he was even talking about doing what John Mccain had brought up of taxing health care benefits. We are even seeing a reduced buying of "toxic assets" from 1 trillion to 40 billion.
These guys are listening. Just keep pushing with logical arguments and not "you're a facist" and "Palin is an articulate speaker" type of nonsense.
etbitmydogucf 2 years ago
min wage - you forgot the elderly.
Goldman $700,000 per year - is that productivity?
labor vs profits - so are you saying people under 22 who are single should make less?
marniespeaks 2 years ago
Agreed. Schiff's reasoning is based on a broken business model, where quality has an easier time taking a back seat to profits. I have heard the argument that many people would pay a few extra bucks to have clothing made in the US because it is made in the US. Is that bad?
Schiff has obviously been out of the loop for far too long. This sounds more like pro-globalization than free-market and that's bad capitalism.
Frequencitee 2 years ago
And never mind inflation. Inflation will never affect the minimum wage workers, right? And cost of living is irrelevant, too. Right? How about ZERO health care coverage, no retirement plan and working for some stressed out a**hole that has marital, gambling and drinking problems and has no business running a business.
Frequencitee 2 years ago
I'm not saying bring back debtors prisons, but we're being robbed blind by Goldman and the other big guns -
Got to stop that first or you'll end up a slave
marniespeaks 2 years ago
Oh really? I'm sure all of Schiff's incredibly accurate prediction were all a streak of luck and, as you say, he doesn't know what he's talking about. Why don't you go play in the traffic?
draggeddownthehole 2 years ago
Napoleon had it right until he met Wellington.
Try and crawl out of your cave and evolve.
Pick on the Wall street Crooks not the guy trying his best to make ends meet
marniespeaks 2 years ago
He's got a business to run that's effected by the economy and he's trying to stay afloat
He's not willing to be one of those people he thinks should go under, basically the rest of us
So it's not about how the economy should be, that's fried, it's about his business staying afloat
He's not free to evolove with the changes
The irony is he keeps saying there's no going back, we'll never pay the debt, but he's acting and selling like he still can
what he should be advocating now is jail time
marniespeaks 2 years ago
I'm not picking on the poor guy trying to stay afloat. I well recognize the Wall street crooks for what they are.
But, stagnation is not progress. I don't buy the argument that there are jobs "Americans won't do", it's that they won't do it for slave wages. The response: Hire someone off the books or ship the jobs overseas.
And as an employer, my strategy is to loose the employees that don't add value and reward those who do. Net-Net we all win.
Frequencitee 2 years ago
Case in point. We still have unions in this country and for good reason. But quality has taken a back seat to profits unfortunately.
Look at the General Motors effect. So, we have been outpaced by foreign owned car companies for 30 years...and what do we have to show for it? Ownership in a company with poorly designed products. We don't even get what we pay for any more by and large.
The opposite of too big to fail is too small to succeed, right?
Frequencitee 2 years ago
Also, the fact of the matter is (and I know you know this as well as I do) that there will be significant inflation in the near future. These minimums merely reflect the post-stimulus economy that we will be seeing and will end up having no more effect on the job market than $5.15 had 10 years ago. Hell, inflation may get so bad that $7.75 may end up being less effective. I agree that we shouldn't be playing with the mins, but then again the storm that is coming really makes it fell necessary
ChichiriMuyo 2 years ago
Peter, the fundamentals of your argument are good but not entirely spot on. There are almost as many people earning minimum wage above the age of 24 (47%) as there are below it (53%). Also, the people above above 24 that make it are more likely to be female or of an ethnic minority and are also significantly more likely to hold such a job full time.
ChichiriMuyo 2 years ago
this is great lol
peanutscoins 2 years ago
if everything is "getting better" why have retail stores spending MILLIONS putting in shorter shelving and carrying less inventory and the president signing for 20 more weeks extension of UI?...if it were recovering wouldnt they be getting more inventory and stopping extensions on UI?...pay NO ATTN to the words of our officials..its what they DO that matters.
centervilletn 2 years ago
gold is droping now ,silver also with the dow sp oil gas but treasuries are up. before sept buy gold silver head to newzealand thats my plan esp if crapntrade passes
mlong5151 2 years ago
This comment has received too many negative votes show
Wow! I just discovered a new dynamic to the "Peter Schiiff Principle" that I wasn't aware of.
So, increasing the minimum wage is a bad idea?
How about this? The companies that cannot afford to pay a living wage are too small to succeed. So, fuck 'em. Let them fail. IF, the people who are not skilled labor deserve to be wage slaves then why not act like wage slaves, therein further degrading an already lousy service industry in the US.
Frequencitee 2 years ago
This comment has received too many negative votes show
I respect your savvy when it comes to finances but I'm going to call you on this one. You suck at being a human being. I'm tired of the education argument because it no longer holds water. Education isn't an investment in an individuals future. It is an indoctrination in how NOT to think outside the box.
Maybe you should try making it on $6.65 an hour before you begin making asinine statements like this. And btw, don't piss off the person making your sandwich at the drive thru.
Frequencitee 2 years ago
This comment has received too many negative votes show
And for whomever voted me down. Show yourself coward.
Frequencitee 2 years ago
I haven't voted you down, but I'll make a counter point.
Could you explain why your third party evaluation should trump two consenting adults in a voluntary contract for employment? If I'm willing to work for $1 an hour, and someone else is willing to pay that, what business is it of yours?
Maybe I'm not after a "living wage" (whatever that means). Maybe I just want a little extra cash. A government mandated minimum wage turns marginal employment into unemployment. It's pretty simple.
VeniVidiVid 2 years ago 9
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So, you're not talking about the current system.
You have something else in mind, right?
If your serious about wanting to make some extra cash, there are other ways, reselling furniture, goods, scrap metal, day labor, etc..wherein Uncle Scam is not part of the equation, at all. That's really what this is about; how it effects the indifferent, not the disaffected.
Frequencitee 2 years ago
We don't want Socialism, we just already have it and we are not mature enough to admit it. Except this form of Socialism is called, "Privatize profits and Socialize debt", ensuring that the top continues to rise while suppressing the living standards of everyone below.
I don't aspire to make minimum wage, either way; your mileage may vary.
Schiff is a genius! I do respect the man. And I respect him enough to call him on this issue for a debate.
Frequencitee 2 years ago
And by the way, in my opinion, a living wage means that you are comfortable enough with your financial situation that you don't have to worry about living paycheck-to-paycheck, food stamps, begging for a subsistence, or unnecessarily burdening the rest of society to support you.
Do the math. Tally up your bills; power, water, groceries, gas, insurance (gotta have insurance), money allocated for savings, etc...less the cost for a mortgage and a car note. How much would you need; minimum?
Frequencitee 2 years ago
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VeniVidiVid 2 years ago
If the success or failure of a company depends on whether they are paying employees $6.25/hr or $7.25, there may be some issues with the companies business model.
So, Schiffs argument that by hiring an employee, he is investing in himself and his company, the key is the operative word "investing" which bears an underlying connotation for longevity. If my employees are taking care of me, I return the value to them in order to invest in my future.
Frequencitee 2 years ago
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All of which may be fine and rational choices. Some people will be in it for a "living wage", a "great living" wage, a "simple living" wage, "just some spare cash", etc., ad infinitum.
The point remains. If the employee and employer reach a voluntary agreement, are both adults, and no force can be proven, then it's none of my business, none your business, and none of Uncle Sam's business.
Third party observers have no valid stake in the transaction.
VeniVidiVid 2 years ago
Peter, you forgot about subminimum wage. Those teens working summer jobs that you mentioned don't have to be paid minimum wage.
But it makes sense that it'd increase because of all the inflation being created. I think the bigger issue is what Marc Faber has mentioned--will the Fed ever be able to raise interest rates to above inflation? I think there's still a lot of deleveraging left to do. Financials are entrenching themselves while manufacturing is shrinking. What a mess!
JoshuaSethComposer 2 years ago
I said to someone today, "Surely, the politicians are not as dumb as they seem." He said, "Yes, they are."
raythespian 2 years ago
In regards to minimum wage - it is being raised from $6.55 to $7.25. I've always felt that the argument for/against was a waste because at prior levels, the minimum was too low to make much of a difference. At $7.25 and in this economy, however, it might actually cause a measurable increase in unemployment.
stephen5237 2 years ago
Ack, price has no affect on demand. It only affects the quantity demanded.
RobTzu 2 years ago
He's starting to talk less like an investor and more like someone running for Connecticut Senate.
Schiff 2010!
capitalist4life 2 years ago
He seems somewhat like a dick though. I hope he runs and wins, but people look for "nice" people that they can relate to. If he answers the question "What do you think about abortion" in the wrong way, that would be the end of his run. Of course this is part of what is wrong with the way we vote for people.
etbitmydogucf 2 years ago
I see your point of view peter but here the problem. 70 percent of our gdp is consumer spending. and you know what happens when jobs cater to this? by providing tons of minimun wage jobs. no jobs are available except minimum wage. i have two college degrees and i cannot get paid more than 30 cents over minimum wage. meanwhile inflation is taking that away! so theres my two cents.
FreedomIsSecurity 2 years ago
That is an unfortunate circumstance but not really a problem with the theory. If the only jobs available are ones that pay the current minimum wage, and that minimum wage rises, that doesnt mean everyone gets a raise. It means a couple people get a raise and everyone else gets fired. Resulting in even less of those minimum wage jobs available but doing nothing about the fact that the higher paying jobs you are looking for still dont exist.
NicoBanTyralash 2 years ago
yep, i was just stating this because in the video peter schiff stated that only highschoolers who need extra spending money have these jobs, but his point regarding this is false...
FreedomIsSecurity 2 years ago
Peter once again lays out remedial economics.....something the obama administration does not understand !! Why doesnt our government understand this simple concept? Thanks again Peter, for telling it like it is..love the videos, keep em coming !!
TheNRA4ever 2 years ago
Peter, I know the goverment intervened after the crash of 29 and froze wages and farm prices. I also know that these moves increased unemployment and forced farmers to destroy produce because people could not pay the high prices. However, do not give the impression that you are out of touch with what the workers are now going through. I mean, people do have to try to support their families on minimum wage - at least in right to work states like Florida. Here minimum wage is the only wage.
cwcoonce 2 years ago
That is because our Government made sure the best jobs available (in Florida) are entry level, they basically killed everything else or corrupted it.
BIackOp 2 years ago
You are right. I have noticed that wages have been squeezed down everywhere beginning in 1981 with Reganomics. Wring out the excess income with Efficiency Studies - fire everyone making above minimum wage and hire new workers to replace them.
cwcoonce 2 years ago
That creates a huge problem for a company, not only on the public opinion which equals a huge decline in future profits but when problems come up... I bet you the newbies are not going to be as successful which costs even more money and time...
Government on the other hand, makes sure institutions are "too big to fail". I also think Government itself is a business, which is viewed upon as legitimate by its people and thus is "too big to fail"..
/watch?v=FPlhUuGRTQQ
BIackOp 2 years ago
Why has gold taken such a nose dive?
kihjin 2 years ago
So that you can buy more
koloss999 2 years ago 3
Kihjin, actually gold hasn't taken a nose dive relative to oil. However, it has dropped. The reason for this is because many people still see gold as a commodity (for jewelry and electronic use) rather than a store of wealth or as a future form of currency. So, as the stock market and oil continue to drop gold will drop to some degree, but not dramatically because many people do not see it as a commodity, but as real money.
LisaJ4Liberty 2 years ago
Because there is a sell off in the market, the dollar is strengthening and thus oil, gold/silver come down in price. There are talks of more government stimulus and meddling in the markets with oil against oil "speculators" so there was a big sell off in oil.
john5246 2 years ago
Right john, and I should have also added that ultimately I agree with what Peter has said, that gold will eventually go up dramatically in price. When that happens is anyone's guess, but it could be surprisingly soon.
LisaJ4Liberty 2 years ago
True.
(It's important to follow the DOW, but the S&P 500 should always be looked at first)
RAMKING61 2 years ago
I think people need to change their concept of government. Government should not have a political function at all, it should merely be an agency, much like the military, that protects the basic freedoms of a countries' citizens. Democracy, and even the most well crafted republic, always ends up leading to mob rule and corruption. The worst invention in the history of mankind was government. The best: free market capitalism. FMC, the new democracy.
michaelpshipley1 2 years ago 2
Technically our republic could be as close to perfect as you can get if the federal government was held down to its basic functions as the constitution outlines. Education of people has dumbed them down to think we need this massive government to survive. Free markets are essential in prosperity.
malibuhur12 2 years ago 2
I only propose one extra solution, no more taxes... All voluntary exchange, where if I don't like the services in any of the States I can opt out. That way the money supply further restraints and controls the State. And if they are ever so stupid like today, then they will fail. And other systems will emerge. Also no more monopoly on courts, police, fire department, and education among other things. These systems don't need a Gov't such as the State to manage alone or at all. Free Market is key.
BIackOp 2 years ago 2
I agree but in this case, why would we need the state at all?
NicoBanTyralash 2 years ago
We don't, and people will realize this once they have the opportunity to perform certain needed functions in a society like police, fire, security, courts.. People will realize that all this can be done without a State and has been done without a State... Ireland, Iceland, some parts of the western America. Its much more efficient because there is no such thing as too big to fail and by competition by voluntary mutual exchange you will have the best of the best set of standards.
BIackOp 2 years ago 2
"education of people has dumbed them down to think we need this massive government to survive"
It wasn't necessarily education, but the lack of freedom in the market of ideas. People act intelligently with the information they have. With social media, we get to play a much larger role in determining what information other people have, while also demonstrating what information we have.
theantirobot 2 years ago 2
I agree with you
malibuhur12 2 years ago
Min. wage laws are another tax. Wage increases = increase in payroll taxes which benefits Mordor.
nealos66 2 years ago
They get government jobs.
sonofaglitch2 2 years ago 5
Also by increasing minimum wage, all goods/services associated with minimum wage jobs will have a price increase. You cannot raise people out of poverty by increasing their salary, you have to educate them out of poverty.
limegreendream67 2 years ago
Its kinda like..
Give a man a fish, feed him for a day.
Teach a man to fish, feed him for a life time.
BIackOp 2 years ago
Attention:
This is NOT a bear-trap folks..
~
This is a REAL bear
Watch OUT !!!!!!!!!!!!!!
secretarul 2 years ago
A lot of these minimum wage earners are illegal aliens.
solohg 2 years ago
Uh.. illegal aliens are illegal, and thus labor laws don't apply to them. Therefore they probably don't get minimum wage.
latewire 2 years ago
So you're saying we've got dandruff?
AnotherUserNamedPaul 2 years ago
Nice work peter, although I do have to say that most of the "paperboys" that I know are adults who are working as a 2nd job. Most drive their cars by themselves which puts a HUGE strain on their transmission and brakes for very little money. I'm not defending them but I am saying that I don't know of anyone who is a "paperboy" and is under 20 years old in the State of Minnesota. keep up the good work!!
bajoverga 2 years ago
ur awesome peter, keep up the good work;)
aazbaby 2 years ago
Don't listen to talking heads on TV for long term investment advice, listen to guys like Peter
TajiTJ 2 years ago 2
Absolutely nailed it again. Thank you Peter.
merekee 2 years ago
The commie Obama should be thrown out of office
warpicachu 2 years ago 8
for what? talk commie look at bush wire tapping people LIKE ME!!!!
wkruk1979 2 years ago
he is a commie because he wants to control the life of the individual depriving him of his liberty and his money.
warpicachu 2 years ago
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wkruk1979 2 years ago
Don't forget that minimum wages also causes outsourcing and loss of domestic manfucturing jobs to other countries.
pepziboy 2 years ago 5
Its hysterical for Obama and Bident o claim no one knew how bad the economy was. What a joke.
nyteaparty 2 years ago 5
thats why companies keep employing illegal mexicans. because they WILL work for $5 per hour. the government just looks the other way.
jodys714 2 years ago 6