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Capitalistpig Asset Management’s Jonathan Hoenig on the impact of minimum wage increases on the economy and job creation.
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It is -- great weight debate minimum wage higher except for ten states in two cities starting on January 1 and while efforts in congress.
In several other states are also trying to push through increases in the new year.
So are we say raising the minimum wage can have a downside for already struggling local economies here with me this one of them Jonathan.
-- -- portfolio manager capital asset -- oh my goodness and it doesn't if -- Tribune.
-- -- Mary Christmas 10 so you sort of -- yourself for our show to help pay -- are you wearing clothes.
It's I Wear clothes -- full of of your book actually so I've got -- -- they and that.
Happy to talk about the minimum wage and you're right I mean it does destroy jobs if it kills the economy in fact it hurts the low skilled workers they're proponents of -- higher minimum wage often seek to us specifically protect I -- advocates of higher minimum wage the most of -- that -- -- arbitrary.
Like employers is picking on Barack -- -- -- -- in reality it's based on supply and demand it's based on the real.
You know everything you're saying ruins that makes so much sense although it is really hard to take what you're saying seriously -- your head is -- up through a giant box -- He -- -- -- -- war on Christmas people don't mind that it.
Hello let let let's let's talk about this any way.
You know some people's make the argument that if you pay workers more that they will spend more and that will fuel the economy -- -- the first thing that you hear right and I people's -- when they're making this debate he do you buy that.
That's the -- 10 PM and that's essentially cash for clunkers and it's all the stimulus programs.
-- that failed notion Elizabeth -- if you give people money to spend it.
That's gonna create more wealth -- to work with any of that quote stimulus programs.
It's because spending money doesn't create more -- we need more investment we need more jobs in -- to get back the higher minimum wage I mean.
Components would rather have so many.
Not making say six -- to seven bucks an hour a washing dishes then they know that have been having no -- -- having equal low paying job.
It hurts wealth creation for all especially those on the bottom -- -- -- relatively no skills.
Yeah I was trying to make the argument that the money to pay people more you know doesn't come from a money tree comes from inside the company that they have money set aside to they're gonna pay their workers at UP each one more it means that they hire fewer.
The response to me on that is always will corporations are sitting on record profits right now they're not investing you were just saying we need to -- They're not investing -- just how all this cash so why not force them to pay workers more giant president I mean that the.
And it is most of the actual cost of hiring a worker when you account -- fight -- and Social Security all the regulatory cost.
Is -- one point five.
Times they're actual salary so.
You'll may actually employing someone and it's a country so typical in you think back to how the great innovators started guys like Steve Jobs when he walked in and -- Bill Hewlett -- a for a job.
You know there wasn't this regulatory my monster that makes it so difficult -- more expensive to hire people and of course minimum wage is -- big part of it.
Yeah also a moral to if people want to work for five or six bucks an hour it's their right to do so and of course -- the employer's right to offer that job as well.
Yeah -- I'm struggling with a very serious commentary coming out of the top the president but let me ask you.
-- you know this -- the only thing they can do is raise prices companies and ordered to pay people more money.
And you know people said to be well.
You know if you go into -- -- wherever you people don't mind paying more they know the reason whether paying more -- about the workers have a living wage.
What's your response to that giant present.
-- I don't think that I think living wages actually -- a loaded term I mean.
It's used as a justification for this massive regular story with regulatory state essentially -- job creation especially on the low land.
And I mean I think and you know I think consumers would certainly five from someplace that they felt like there -- getting value for their money.
Yeah I don't think it's their job to make that decision nor is it government's job to say what the fair wager not between employers employees it's a fair trade that's what a job is.
-- I mean I love your embracing and and celebrating Christmas is very pro Christmas admits the war on -- well thought process that went into.
I'm going to get a giant box and wrap it up and then you don't like randomly Wear it on television and -- -- we had no good morning that you're doing this at all this is a complete surprise to me.
Christmas is such a wonderful holiday and most of -- so much to celebrate man's mind is created so much wealth in this country.
Lot of friends -- gonna be open tomorrow morning and I think it's a wonderful time to step back and just appreciate the strip the country and culture that we do live that.
Jonathan I love you so much Merry Christmas they are telling me to -- funeral has no pun intended and so we are going to be on her way thank you so much and happy here -- I really hope he's not naked underneath that giant -- in the URE.
