Youth Unemployment: Minimum Wage Law Needs To Be Killed NOW


The state of unemployment in the US among young Americans is even worse now than in 2007. The Natonal Review blog, the Agenda, sums up some facts from The Progressive Policy Institute and the picture is really bad.

  • The percentage of non-student Americans between the ages of 16-24 who are not working full-time is ten percent less this year than it was in 2007. Now, just over a third, 36 percent, have full time work.
  • For those who did not get a high school diploma, only 14 percent have full time jobs.
  • For non-students between the ages of 16-24, who did not have full-time jobs, only 5.6 out of 17 million have part time jobs.
  • Almost half of those 17 million youths (8.4 million of them) are not even “in the labor force”—in other words they have given up looking for a job and are not even trying.

After showing some charts from the Bureau of Labor Statistics, Diana Carew writes for PPI,

“Together, these charts suggest the problem facing young Americans is structural. If worsening labor market conditions were a temporary effect of the recession, we would have expected to see improvement with the recovery. Instead, young Americans appear stuck in their post-recessionary state.”

I hate seeing this horrible economy even called a “recovery,” but Carew is right that we are seeing structural unemployment that is hitting the youth in a devastating way.

Yet the solution is not mentioned by her nor by the National Review post: Get rid of the minimum wage law. Kill it. Do it yesterday.

I know establishment economists sneer at this idea, because they have convinced themselves on the basis of their own exotic numbers that higher minimum wage laws don’t cause “that much” unemployment. But society naturally resists the damage done by government price controls as much as it can (in this case: controlling the price of labor) until the pressure becomes too great. The results of minimum wage law are not a flat ratio. The damage done to the economy is more like a stretched rubber band.  It suddenly snaps.

It is obvious that this structural change requires a structural response. We need to destroy and denounce all minimum wage laws. Remember, the price of present youth unemployment is going to pursue them into adulthood. The National Review quotes The Economist:

“Take two men with the same education, literacy and numeracy scores, places of residence, parents’ education and IQ. If one of them spends a year unemployed before the age of 23, ten years later he can expect to earn 23% less than the other. For women the gap is 16%. The penalty persists, though it shrinks; at 42 it is 12% for women and 15% for men.”

Youth unemployment is a killer. It sends reverberations of impoverishment far into the future. Furthermore, if we allowed wages to fall, prices would inevitably fall as well. We might finally get the reset and full recovery for this economy that we need.







Comments

comments

Posted in Business, Economy, Jobs Tagged with: , ,
  • Mr Bob

    Gee, I wonder if the GOP would do something other then spend their time voting to repeal Obamacare (which was a GOP idea) for another 40+ times & work with congress trying to improve our economy if that would help!

    • chamuiel

      Mrs. Bob Is that you BoobE?

    • RacerJim

      Goodness, I wonder if the Democrats, specifically Reid and Obama, would listen to “We the people”, specifically economists and small business owners, for once & work with Congress to get rid of the biggest hindrance to improving our economy –Obamacare.

    • Luci Tomlin

      You are the perfect proof of reincarnation! You could not possibly have gotten that dumb in one trip! Read, research, examine, and use common sense! If after THAT you still don’t “get it”, you might want to make reservations for a return trip somewhere in your future!

    • Evermyrtle

      The Democrats don’t have time to take care of their business, they are too busy meddling in the business of the GOP, but what they really love, is to pry into the affairs of GOD’S children. They intend to shove GOD out of everything American, breaking all of the laws of the people who have made America great; at it’s prime, the greatest nation in the world At that time we were 90% Christian, and practiced living by GOD’S laws. The more we lose Christianity the more power we lose. We are in shambles now, with “hate GOD, show GOD laws which we have made and accepted by only anti-GOD masses. Christians will stick to GOD, forever, we will not follow anti-GOD laws..

  • Evermyrtle

    Well boobie if everything that has gone wrong with the USA is the fault of the GOP, it is far past time that the Democrats wake out of their drug induced slumber and make some attempt to put a stop to this destructive path that the GOP is on. Big problem, the Democrats are at the head of the line of destruction of the USA. They have elected a non-citizen president and worked with him to destroy everything Godly that was left in the USA. They have worked with him to pass anti-GOD, anti-America laws until we are only a shadow of the old USA who loved and worshiped the CREATOR, the LORD GOD ALMIGHTY and HIS SON JESUS CHRIST. HE is a stranger to the set that is ruling America. They claim all of the invisible good that has been done and blame all the very visible on the GOP. Boobie, we do have some GOP members that are not good for America and believe it or not , I believe that may be a few Democrats that are Christian and do what they can for the country. One problem for them they are simply are out shouted and cannot be heard. And boobie they are almost as unfair and lying pros as are you. It seems that the following scripture describes America’ ruling class:

    Daniel 11: 36 And the king shall do according to his will; and he shall exalt himself, and magnify himself above every god, and shall speak marvelous things against the GOD OF GODS, and shall prosper till the indignation be accomplished: for that that is determined shall be done.

    • Mr Bob

      1st of all, I don’t think that everything that’s gone wrong with this country is the fault of the GOP. The GOP actually use to be a viable political party before they morphed into a cult of religious kooks. The problem of religious belief is that, once you have accepted a set of propositions unsupported by logic, evidence or rational analysis, you are then capable of believing anything without submitting it to rational consideration which is why morons like you believe in things like Obama is not a US citizen or a Christian & is a commie, socialist, Marxist, Muslim, demon, antichrist & why the Koch brothers knew EXACTLY what they were doing when they created the tea party because who else would be dumb enough to fight for their interests (against their own), wouldn’t realize they are being manipulated & actually could be convinced they are patriotic (when they are ANYTHING but).

      • RON G

        Evermyrtle. Ever notice that bobee the atheist, blames everything on religion. This from a guy who believes that the only thing in life that counts is to get rich! I’ve found that if you listen to him closely, then do just the opposite, you’ll be doing the correct thing.

    • Mr Bob

      The problem of religious belief is that, once you have accepted a set of propositions unsupported by logic, evidence or rational analysis, you are then capable of believing anything without submitting it to rational consideration.

      • chamuiel

        Once you accept that you are an Atheist, and an animal, you are truly lost.

      • Mr. Paul

        Bob,

        One of the big problems with “logic” in today’s America is that people constantly claim to be using it and that anyone who disagrees with them is not. For instance, has evolution ever been proven. In the world of true science the answer is no. Why then is it presented as fact and anyone who disagrees considered by many as irrational? It is because those who do not believe in God have declared that religion is irrational.

        Using my logic I have determined that it takes much more “faith” to believe that the complexities found in this world somehow exploded into existence and over time became more and more complex. Especially in light of the observations that things today may change and mutate but only by omission or loss of information.

        Who is really using logic? The religious man who finds that what he observes today is completely in line with his beliefs, or the man who claims that an immeasurable amount of coincidences occurred over billions of years with no witnesses and no ability to reproduce these events.

        God has been removed from our education system by people who think they know everything and have no tolerance for any opposing views.

      • Mr Bob

        Mr. Paul you do not understand the meaning of the word logic or science. It is true that the theory of evolution has not been proven – if, by that term, you mean established beyond any further possibility of doubt or refutation. On the other hand, neither has atomic theory, the theory of relativity, quantum theory, or indeed any other theory in science. The reason for this is that science does not deal in absolute proof, only in the balance of the evidence.

      • Steven

        YOU are the perfect example of accepting a position unsupported by logic and then becoming incapable of rational analysis.

        Naturally, you will reject my statement out of hand, and believe I described myself.

      • Steven

        Bob: Paul CLEARLY understands logic, and your response not only proves, but IS, his point.

      • Mr Bob

        For you KOOKS that do not understand reason or logic let me explain it to you. As an atheists, I would not say absolutely that there is no god. Both the existence and non-existence of god are impossible to prove, so the rational atheist says simply: there is insufficient evidence to support belief in a god, therefore I don’t believe in god. This is not an absolute position, just a logical conclusion.

      • mutantone

        Wow bob that describes the democrats all so well: “propositions unsupported by logic, evidence or rational analysis, you are then capable of believing anything without submitting it to rational consideration.”
        Obama care, the debit and the open support of the Muslim Brotherhoods agenda. Obama just fits that description all so well.

      • Steven

        Mr Bob: I agree that the existence of God can’t be PROVEN or DISPROVEN. That is NOT the same as the FACT (and it is a fact one way or the other), not being supported by evidence or logic. I can’t PROVE you are a human, as opposed to a computer program, but both evidence AND logic suggest the former is more likely. Your referring to those who believe as kooks BELIE your definition of an atheist, at least as the term applies to YOU.

      • Evermyrtle

        There are no problem with Christian beliefs, the problems came when we started trying to force GOD out of all of HIS businesses. HE made it all, it all belongs to HIM and the ignorant do hate this fact. All of America’s problems stems from “hate GOD leaders!”

        Proverbs 1:7 “The fear of the LORD is the beginning of knowledge but fools despise wisdom and instruction”

        Proverbs 13:13 Whoso despiseth the word shall be destroyed: but he that feareth the commandment shall be rewarded.

        Proverbs 12:8 A man shall be commended according to his wisdom: but he that is of a perverse heart shall be despised

      • Thomas

        Logic?
        Ask an atheist what definitive proof he would accept to believe in God and he can’t give you an answer. It’s illogical to demand proof you can’t articulate, and the reason is because it’s a matter of faith, not proof.

    • RON G

      Excellent comment. See Mr bob is turning into the same old bobe.

      • Evermyrtle

        It makes no difference what he calls himself “BobE” sticks out all over, everything he writes, no mistake about it we know who he is.

    • Mr Bob

      And when you relieve yourself, dig a hole and cover up your excrement so that God will not see among you anything indecent and turn away from you.” Deuteronomy 23:13-14

      • Evermyrtle

        Why BoobieE does anti-GOD quote HIS WORD??? Because he is a troll, fighting to turn America into another Iran. I understand his family is “big money,” but I do wonder if he knows what will become of “his money” when the country turns Muslim Islam. He will be just as broke as the rest of us, he will become a nobody. His money and his freedom will go the same way as our will go.They will have no use for him any longer. They will even take his “silver spoon or is it gold?”

      • Evermyrtle

        Your denying GOD’S WORD is a lie, the one that you tell us most, because you continue to quote scripture, I think that is because you know, without a shadow of doubt, that it is the ‘WORD OF GOD” and hate it as such. I can think of no other reason that you continue to quote it, at the same time denying its MAKER AND MASTER..

        Of course there is that fact Satan knows GOD, JESUS CHRIST AND THE WORD and he quotes it , also when it suits hi to do so,

  • Pete0097

    My son got a job at KFC. The owner hires kids so he knows that they live with their parents and don’t need med insurance or housing. He keeps their hours less than 30 to stay out of the obamacare(sless) fiasco.

  • LarryPierson

    Minimum wage was put in place primarily to support the unions. They can demand their people get paid multiples times this amount for government contracts. The higher the minimum wage, the more the unions get, and the more money flows into the coffers of demonrat politicians.

    • Mr Bob

      Another home schooled idiot!!! The first minimum-wage laws in the United States were passed by state legislatures in the mid-nineteenth century and applied only to women and children.

      • RacerJim

        Better a home schooled idiot than a government indoctrinated minion.

    • RON G

      Larry; Bob disagreed with you so you know that your comment is correct.

  • Dadoo

    Yes, do away with the minimum wage. Most are not worth it due to the substandard education they received from the commie gubmint unions.
    This would allow small businesses to hire them instead of the criminal immigrants.
    A better idea would be to allow the economy to run… government hampers free enterprize.

  • Silas DoGood

    ANOTHER EXAMPLE OF LIBERALISM IN AMERICA. THIS GUY IS A GREAT EXAMPLE OF OBAMA, PELOSI AND HILDABEST POLITICS!!!

    San Diego beach bum Jason Greenslate has a front-row seat watching your tax dollars at work…mainly because that’s about all that’s breaking a sweat in his world.
    His schedule?

    “Wake up, go down to the beach, hang out with my friends, hit on some chicks, start drinking,” Greenslate told John Roberts of Fox News for “The Great Food Stamp Binge” special Friday.

    Though he attended college and trained as a recording engineer, Greenslate prefers bunking rent-free in dwellings of his friends, family, and occasionally girlfriends, not holding a steady job, and jamming on some tunes while barbequing lobster and noshing on sushi “all paid for by our wonderful tax dollars.”

    Greenslate, 29, gets $200 monthly from the Supplemental Nutrition Assistance Program (a.k.a. SNAP).

    With food stamp participation having increased at an annual rate of roughly 13 percent since 2008—costing taxpayers nearly $80 million last year, Red Alert Politics said—the likes of Greenslate aren’t anomalies

    In 2012, Fox News reported that 30,000 college students in Wisconsin and Michigan were enrolled in SNAP and people were selling their benefits on Facebook. Additionally, a 2010 Government Accountability Office report noted that “the amount of SNAP benefits paid in error is substantial, totaling about $2.2 billion in 2009.” Immigrant food stamp recipients were recently caught sending food back to underprivileged family members in other countries as well.

    SNAP enrollment has become easier over the years, with recipients like Greenslate only needing to provide a “birth certificate and Social Security card and fill out a form once a year,” according to Fox News. And the appeal of that “free food” and hassle-free enrollment has likely contributed to a record number of American households signing up.

    “This is the way I live and I don’t see anything changing,” Greenslate told Roberts. “Why would it be bad in any way? It’s free food. It’s awesome.”