Obama Takes the Credit, Workers Suffer the Consequences – Ep.91

* 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 Our Sponsors: * Check out FRE and use my code LISTEN20 for a great deal: https://frepouch.com * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy