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| Neal and Clark's Minimum Wage Debate - Text |
Segment 1:
Boortz: Clark Howard is now joining us in the studio. Okay, Clark, so you actually believe that it is the role of the government in our free enterprise economy to set wages.
Clark: Absolutely Not. I believe there should be no minimum wage whatsoever.
Boortz: What are we here for?
Clark: Because, even though I can tell you why there should be no minimum wage first, then I can tell you why there should be an increase in the minimum wage.
Boortz: Alright, fill me in.
Clark:
Number one, the minimum wage distorts the labor market and it distorts capitalism because when a man or one who should receive for his or her labor is based on supply and demand in the marketplace. We in America are no longer are an internal market. For most things, we compete against other countries and companies based all over the world. So when we have the government set minimum pay standards, what seems like a benevolent plan is actually a plan interfering in the competitive nature of the United States. Do you think any capitalist enterprise or multinational company cares where the units of production come from?
Boortz: No. And they shouldn't.
Clark: No and they don't. If I am a big company who is supposed to be there to serve my stockholders wherever they are in the world, I'm supposed to generate profit if I can generate more profit making something in Thailand than I can make making something in Indonesia I will make it in Thailand. If I can make it in the United States, I'll make it in the United States. Wherever I find the efficient source of production is where I'm going to be. Labor is just one component of my expenses. Earlier, you were mentioning Austin, a city where they have so much computer fabrication and chip and manufacturing. Much of that production has become automated and for those companies, being close to the customer is more important the labor cost.
Boortz: When we get back folks, Clark Howard is going to turn his opposition to a minimum wage in concept to his favoring an increase in the minimum wage.
Clark: That's exactly right!
Boortz: And that ought to really be good. That's like a priest buying Viagra. That will come up right after the news. Fans stay right where you are!
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