Guest: Linda Gorman
Listen to this. Congress enacts a law requiring employers to pay every employee 25% more than they are worth. Pretty good deal, at least for the workers. But what about the rest of us? Should we have to pay more for goods and services to make up for costs employers can’t cover? This is what Obama wants, according to his State of the Union message. When he embraces minimum wage laws, a statute with a strong racist history, the initial result is simply involuntary income transfers from unsuspecting consumers to undeserving workers. Eventually, the overpaid workers get replaced by workers who are worth higher wages and unskilled workers get replaced by machines. Good for the overpaid workers (at least until they get fired) but bad for the country. In last Sunday’s encore episode, Linda Gorman of the Independent Institute joins Bob to discuss this contentious and misunderstood issue which harms the people it is supposed to protect. Minimum Wage: the issue that affects all of us, all the time.