Investment firm CEO: Walmart's minimum-wage hike is bad for America

[Newsjock]

Source: Yahoo News

Wal-Mart has announced that it will raise its lowest wages to $9 in April and $10 by February 2016, well above the national minimum wage or $7.25. ... But Peter Schiff, the CEO of Euro Pacific Capital, says the move has a darker side.

“Ultimately, it’s going to cause Wal-Mart to cut back on hiring,” he said. “I mean, if it has to pay higher wages, it may decide just to have fewer job opportunities.”

... But that’s not the only potential harm to lower-income Americans that could come from this move, according to Schiff, who has long defended Wal-Mart against pressure for the world’s largest retailer to raise its minimum wage.

“They may end up passing on some of that extra cost to their customers,” he said. “It’s not all going to be about lower profits at Wal-Mart. It also could be about higher prices for Wal-Mart customers. And of course, many of those customers are low-income workers themselves.”

Read more: http://finance.yahoo.com/blogs/talking-numbers/three-reasons-why-wal-mart-s-pay-raise-will-hurt-the-poor--schiff-233642608.html

[hr]
Previously on DU:
2014: http://www.democraticunderground.com/112762847
Banker Peter Schiff: Fracking dangers made up by private property-snatching socialists
2010: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x496330
Peter Schiff is a lying asshole!
2009: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x350623
Lawrence O'Donnell Smacks Down Peter Schiff

[Egnever]

1. Walmart saw the wrtiting on the wall, nothing more

They are just getting out in front of a national minimum wage hike to improve their image with the public. They saw it coming and made the smart decision to go ahead with it before it became law to try to burnish their image.

[guillaumeb]

2. Wal-Mart has admitted that by the end of the month

many of their customers are out of money. Raising wages will allow these customers to shop at Wal-Mart rather than go to a dollar store or do without. Plus many of their customers are also their employees.

Paying employees more leads to increased spending by these employees. Consumer spending accounts for 70% of the GDP. Increased spending helps the GDP, which in turn leads to more tax revenue to the states, which leads the states to spend more, etc.

An economic stimulus for the workers rather than the 1%. No wonder Peter Schiff is against it.

What does Peter Schiff do to earn his money, other than act as a whore for the rich? Can someone enlighten me?

[Manifestor_of_Light]

3. Does Peter need some cheese with that whine?

[Liberal In Texas]

6. Cheese and some caviar. n/t

[ladjf]

4. What a crock of right wing crap! nt

[closeupready]

5. Investment Fund personnel are not paid to give honest economic advice;

they are paid to make a profit for their investors no matter the fuck what. File this guy's claims under that.

[HappyMe]

7. This guy should pretty much just

shut his pie hole.