Obama Takes the Credit, Workers Suffer the Consequences – Ep.91
The Peter Schiff Show Podcast
Peter Schiff
4.6 • 5.9K Ratings
🗓️ 1 July 2015
⏱️ 21 minutes
🧾️ Download transcript
Summary
* One more time President Obama seeks to buy Democratic votes with a free lunch by appealing to workers
* Promising more overtime pay, to go into effect in 2016
* Raises the threshold for overtime pay requirements
* Workers who earn salaries of $50,000 or less must be paid overtime for hours worked over 40 hours per week
* This prevents workers who put in extra hours on their own time to try to advance
* This could cause employers to reduce salaries to factor in overtime
* It will be harder for employers to change existing work agreements
* This will adversely affect workers on flexible schedules, such as those who work at home in 2016
* Employers will have to seek more control over workers' schedules
* New law will disproportionately hurt women, the very constituency Democrats claim to protect
* Those who have variable workloads throughout the year will be adversely affected
* This law eliminates choice and increases costs, but it's great politics
* Followup on Puerto Rico: Minimum Wage
* Puerto Rico is an example of the adverse effects of a minimum wage law that has devastated an economy
* Puerto Rico's has more than 20% unemployment
* Puerto Rico labor force participation rate is 42-43%
* The minimum wage has priced out more than half of the labor force
* There is no entry level work in Puerto Rico
* If the minimum wage is so good, why does it not work in Puerto Rico?
* Puerto Rico is a real-life case study on the adverse effects of minimum wage laws
* Puerto Rico's only advantage is its tax law for incoming businesses which will increase demand for labor
* Recent comments on my last podcast questioned my support for Puerto Rico
* I never advised buying Puerto Rican debt - I knew it was a problem
* It makes sense to move to Puerto Rico to take advantage of the new tax laws
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Transcript
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| 0:00.0 | Well, one more time, President Barack Obama is looking to give out a free lunch to buy |
| 0:16.1 | votes by promising something for nothing. |
| 0:19.1 | Although I guess it's not votes for him because he's not running again, but I guess votes |
| 0:23.4 | for the Democratic Party, maybe votes for Hillary Clinton in the future, by appealing |
| 0:29.2 | to workers and promising them more overtime pay. |
| 0:33.9 | This is a new law that I suppose is going to be implemented in 2016, which will delay |
| 0:41.3 | somewhat the negative ramifications of this seemingly positive legislation. |
| 0:47.4 | But what President Obama is going to do is he's going to raise the threshold by which |
| 0:53.6 | overtime pay is required. |
| 0:56.0 | The way this works is, and I don't know the exact numbers, I'm just going to guesstimate |
| 0:59.7 | them. |
| 1:00.7 | But the way the rules are, if you have workers that are earning below a certain amount |
| 1:05.4 | of money, maybe it's like $25,000 or something like that, that if they work more than 40 |
| 1:11.0 | hours in any given week, that they need to be paid time and a half for any hour that |
| 1:16.4 | they work that exceeds 40 in that week. |
| 1:20.0 | And so usually when people earn less than that amount of money, they are not salaried workers. |
| 1:24.8 | They are hourly workers and their boss needs to clock their hours. |
| 1:29.2 | They have to punch in and punch out or you have to monitor how long they work because |
| 1:34.7 | if they work more than eight hours, you're legally obligated to pay overtime. |
| 1:39.4 | And if you don't and they can prove that they did work more than the eight hours and they |
| 1:43.0 | weren't paid overtime, well now you can be sued. |
| 1:46.5 | But if you pay workers more than that, you can put them on salary. |
... |
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