Paul Singer: Minimum wage hike would 'destroy' jobs

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Rich hedge fund managers feel poor's pain

Billionaire hedge fund manager Paul Singer feels for the poor but thinks increasing the minimum wage is a terrible idea.

"Put bluntly, these policies would destroy jobs and cause companies and even entire industries to move elsewhere.These movements are politically motivated–a way for politicians to fake compassion," Singer wrote in a letter to investors of his $23.3 billion Elliott Management on Jan. 27.

"If they gain traction, millions more people will make the transition from gainful employment to government dependency as jobs get priced out of existence by the rise in employment costs. Such policies would inexorably lead to lower economic growth, higher unemployment and a citizenry that is less and less self-sufficient."

Singer's comments come as President Barack Obama is set to in his State of the Union speech Tuesday night and recently acted to raise pay for federal contract workers.

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