Inflation is the business the Federal Reserve is in. It creates inflation, it has been creating it for years and it manifests itself in many different ways: higher prices being one of them. Wages are simply a price of labor. But what is happening through out the country is this push for the minimum wage increase. Look at what is happening in Los Angeles, they just increased their minimum wage to 15 dollars which is going to be phased in over the next 5 years, which will delay the damage somewhat.
But while this is going to be problematic for businesses it is going to be a much bigger problem for all the workers in Los Angeles who cannot get jobs because what the law does is, it says that if you have minimum skills and if you cannot convince an employer to pay you 15 dollars an hour, it is illegal for you to work, so many people will not get jobs.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
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