Peter Schiff, the CEO of Euro Pacific Capital, recently said that "mentally retarded" people should work for $2 dollars an hour.
During an interview with Daily Show correspondent Samantha Bee, Schiff warned of the devastating effects of raising the minimum wage to $10.10 per hour, noted RawStory.com (video below).
“There’s a law in economics, supply and demand, that you learn in Econ 101, and if you increase the price of something, you decrease the demand,” claimed Schiff. “The higher you make the minimum wage, the more jobs are going to be destroyed."
However, there have been numerous studies that have found that raising the minimum wage does not destroy jobs because there is a rise in demand thanks to the greater purchasing power of well-paid workers and a reduction in turnover, which counteracts any higher wage costs.
Schiff also claimed that young people working for low wages "seem to be enjoying themselves."
“Did you ever go into a McDonald’s or Burger King?” he said. “I don’t really eat there, but they don’t seem desperate and hungry to me. They’re young kids, they seem to be enjoying themselves mostly.”
“It’s socialism that creates, you know, scarcity, that creates famine,” added Schiff. “In a free market, there’s plenty of food for everybody, especially the poor.”
But Paula Thornton Greear, a spokeswoman for the hunger charity Feeding America, told ABC News: "Nearly 49 million men, women and children worry about the source of their next meal."
Bee asked Schiff to name someone whose work might be worth $2 an hour.
“You know someone that might be? Maybe someone who is, what’s the politically correct word, you know, for mentally retarded,” replied Schiff. “I believe in the principles this country was founded on.”
“I’m not going to say that we’re all created equal,” added Schiff. “You’re worth what you’re worth.”