Posts Tagged ‘teens’

Teen Unemployment Another Proof Of How Desperately Wrong Obama, Democrat Policies Are And How Much They Hurt Little People

August 18, 2011

Just over two years ago I wrote an article titled, “Minimum Wage Increase Means Maximum Employment Decrease.”  And I began thus:

The Democrats raised the national minimum wage from $6.55 to $7.25. They claim that the additional earnings will help the economy. Just like their stimulus did (right?).

Of course, raising the minimum wage is effectively a tax increase imposed primarily on small businesses. Things always seem so easy when your spending other peoples’ money.

The road to hell is paved with good intentions, goes the saying. Whoever first said that surely must have had Democrats in mind.

The economist who literally wrote the book on Minimum Wages predicts that the minimum wage hike will result in the loss of 300,000 jobs. And that’s a HUGE number, consider there are only 2.8 million minimum wage workers; it’s 10.7% of the total minimum wage work force!

THAT’S the way to help the economy! THAT’S the way to help poor workers!

That article cites articles and sources AND MADE A PREDICTION.  And that prediction was that the minimum wage increase would result in far fewer jobs and hurt the poorest people.  You should read it now, given what you are about to see below:

Average Teen Unemployment Rate in D.C. is 50.1%, Analysis Shows
Friday, August 12, 2011
By Penny Starr

(CNSNews.com) – An analysis based on U.S. Census Bureau data by the Employment Policies Institute (EPI) shows that the average unemployment rate for teens ages 16 to 19 in the District of Columbia was 50.1 percent as of June 2011. This corresponds with data from the Bureau of Labor Statistics (BLS) showing that for D.C. the annual average unemployment rate for teens in 2010 was 49.8 percent.

Michael Saltsman, research fellow at EPI, provided the 50.1 percent figure to CNSNews.com as an update of an analysis he compiled based on the Census Bureau’s Current Population Survey.

The 50.1 percent figure is almost double the average teen unemployment rate in June 2007 in the District, when it was 26.2 percent, according to Saltsman.

Since 2007, the rate has increased each year: 29.5 percent in June 2008, 44.7 percent in 2009 and 48.8 percent in 2010, based on EPI’s analysis.

“We’re in the midst of the third summer in a row where teen unemployment has been above 20 percent,” Saltsman said when he announced his report on July 8.

The Bureau of Labor Statistics (BLS) does not keep monthly unemployment rates on teens, but its data showing the average annual unemployment rate for teens ages 16 to 19 in D.C. for 2010 was 49.8 percent.

The state with the second highest unemployment in the EPI analysis, California, also closely mirrors the BLS annual average for 2010 — 34.4 percent compared to EPI’s 34.6 percent.

The latest data from the BLS on average teen unemployment nationwide – all 50 states and the District of Columbia — as of July 2011 was 25 percent.

“Young people are facing more competition for fewer jobs, a lingering consequence of the recession and wage mandates that have eliminated entry-level opportunities,” Saltsman said. “The consequences for this generation of young people missing out on their first job are severe, including an increased risk of earning low wages and being unemployed again in future years.”

Saltsman’s analysis, which was released on July 8, ranked the 20 states with the highest average teen unemployment through May 2011: the first column shows the actual teen unemployment rate over the teen labor force; the second column reflects the number of discouraged teen workers added to the unemployment rate (also compiled from Census Bureau data).

District of Columbia – 49.0 percent, 52.2 percent

California – 34.6 percent, 36.2 percent

Georgia – 34.6 percent, 35.7 percent

Nevada – 34.3 percent, 36.4 percent

Washington – 33.2 percent, 34.2 percent

Idaho – 31.8 percent, 33.1 percent

West Virginia – 30.2 percent, 32.9 percent

Missouri – 29.6 percent, 31.2 percent

Florida – 29.4 percent, 31.4 percent

Kentucky – 29.0 percent, 30.3 percent

South Carolina – 28.5 percent, 29.0 percent

Rhode Island – 28.0 percent, 29.6 percent

Michigan – 27.6 percent, 29.1 percent

Mississippi – 27.5 percent, 30.7 percent

Tennessee – 26.9 percent, 27.4 percent

Arizona – 26.7 percent, 28.2 percent

Arkansas – 26.7 percent, 28.2 percent

Colorado – 26.1 percent, 26.7 percent

Illinois – 26.1 percent, 27.5 percent

Oregon – 25.8 percent, 26.4 percent

Two years ago Democrats hiked the minimum wage.  Two years ago Barack Obama signed it into law.  Two years ago Democrats predicted that this would lead to greater prosperity.  Two years ago conservative economists predicted it would be a total disaster.

Who was right???  Who was totally freaking WRONG???

Democrats are genuinely evil people.  And to the extent they actually have good intentions, THE ROAD TO HELL IS PAVED WITH DEMOCRAT INTENTIONS.  Paved high and deep and wide.

Democrats demonize their opponents as being hateful and greedy.  And then Democrats cynically assure the poorest and most needy and most ignorant that they will help those people and make their lives better.

But do they make these people’s lives better?  HELL NO!  Their stupid and depraved Marxist policies undermine and destroy America.  In this particular case, Barack Obama and the Democrats said, “We’re going to demand that employers pay you a wage that exceeds what your labor is worth to them so that you lose your job and all sorts of minimum wage workers lose any chance whatsoever of finding a job.  And we franklydon’t give one freaking damn about the suffering or your family’s suffering because we know that you’re the kind of poor, ignorant schmuck who will believe our demonizing the next time and the time after that and the time after that.

Let me go back to my article that I wrote TWO DAMN YEARS AGO when this stupid and evil law got passed.  After guaranteeing the Democrat policy would fail; after guaranteeing that it would lead to huge job losses for teens and other minimum wage earners; and after talking about how profoundly stupid Democrat voters are for believing these lies over and over again (as I restate above), I concluded:

Democrats are like nurses who bring thirsty patients their very favorite brand of Kool-Aid. It’s a tasty beverage; don’t worry about the fact that it is contains arsenic (which just happens to be the primary ingredient in rat poison). It’s ultimately a terrible way to die, but what the heck, it sure taste good going down.

Obama has screwed all the people he promised that he would save.  Even the reliably liberal Washington Post acknowledges that blacks have been set back DECADES under Obama’s misrule [See update below].  Black unemployment is TWICE the national average under Obama, and even überüberlib Maxine Waters is saying that rabid black support for Obama is hurting the black community.  And the black congressional caucus is tired of making excuses for this failed leader.

And women are losing ground under Obama.

And young people are getting totally screwed under Obama.

Food, fuel and shelter have gone to hell under Obama.  Poor people are more vulnerable to changes in all three than the rich people that liberals always demonize Republicans for protecting.  Obama’s economic legacy is THE HIGHEST POVERTY INCREASE IN FIFTY YEARS

It’s long past time that the American people wised up to the liberal demagogic attacks and understood that liberal policies hurt minorities, hurt women, hurt the young and hurt the poor FAR more than the conservative policies that liberals constantly demonize.

When Democrats attack the businesses that create jobs, they won’t create jobs.  When Democrats attack the people who hire workers, they won’t hire workers.  When Democrats attack the people whose capital investment makes economic expansion possible, they won’t invest.

And the people who will suffer the most are those who are closest to the bottom time and time again.

[Update, 9/14/11: It is amazing how frequently liberal newspapers purge their sites of anything that could be unflatering toward liberalism or Democrats.  The story on black unemployment was purged by the Washington PostBut it is still available here via the Associated Press].

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Miniumum Wage Increase Means Maximum Employment Decrease

July 27, 2009

The Democrats raised the national minimum wage from $6.55 to $7.25.  They claim that the additional earnings will help the economy.  Just like their stimulus did (right?).

Of course, raising the minimum wage is effectively a tax increase imposed primarily on small businesses.  Things always seem so easy when your spending other peoples’ money.

The road to hell is paved with good intentions, goes the saying.  Whoever first said that surely must have had Democrats in mind.

The economist who literally wrote the book on Minimum Wages predicts that the minimum wage hike will result in the loss of 300,000 jobs.  And that’s a HUGE number, consider there are only 2.8 million minimum wage workers; it’s 10.7% of the total minimum wage work force!

THAT’S the way to help the economy!  THAT’S the way to help poor workers!

Anthony Randazo at Reason.org has an article entitled, “My Plan to Save 300,000 Jobs by Monday,” writing:

Supporters of the minimum wage like to believe that they are helping to raise wages. But since the pool of earnings for any business is not infinite, any increase in wages decreases the firms profitability. Generally this leads to some people getting fired, and many, many others not getting a job in the first place. With an unemployment rate of 9.5%, the government should be doing everything possible to encourage firms to hire people. How does making businesses pay their employees more in this down economy help create jobs?

U. Cal-Irvine economist David Neumark estimates in a study for the National Bureau of Economic Research that the impending wage increase will kill “about 300,000 jobs for those between the ages of 16-24.” The White House has projected (not counted) that the stimulus money has created 150,000 jobs so far. Even if that is true, it will soon be wiped out by this new limitation of business development. It is pretty simple math. If you don’t raise the minimum wage, the jobs are saved. End of story.

The U.S. Bureau of Labor Statistics is on the record essentially saying that the Obama administration’s claim of having “created or saved” 150,000 jobs is tantamount to looking at clouds and seeing animals in the sky.  Which is just one among many, many reasons to laugh at the Obama “job creation” record.  Sadly, 300,000 actual real jobs lost is twice as many as the fake pretend jobs Obama claimed to “create or save.”

The Wall Street Journal has another catchy-titled article, “Mandating Unemployment: Congress prepares to kill more jobs:

Here’s some economic logic to ponder. The unemployment rate in June for American teenagers was 24%, for black teens it was 38%, and even White House economists are predicting more job losses. So how about raising the cost of that teenage labor?

Sorry to say, but that’s precisely what will happen on July 24, when the minimum wage will increase to $7.25 an hour from $6.55. The national wage floor will have increased 41% since the three-step hike was approved by the Democratic Congress in May 2007. Then the economy was humming, with an overall jobless rate of 4.5% and many entry-level jobs paying more than the minimum. That’s a hard case to make now, with a 9.5% national jobless rate and thousands of employers facing razor-thin profit margins.

There’s been a long and spirited debate among economists about who gets hurt and who benefits when the minimum wage rises. But in a 2006 National Bureau of Economic Research paper, economists David Neumark of the University of California, Irvine, and William Wascher of the Federal Reserve Bank reviewed the voluminous literature over the past 30 years and came to two almost universally acknowledged conclusions.

First, “a sizable majority of the studies give a relatively consistent (though not always statistically significant) indication of negative employment effects.”
Second, “studies that focus on the least-skilled groups [i.e., teens, and welfare moms] provide relatively overwhelming evidence of stronger disemployment effects.”

Proponents argue that millions of workers will benefit from the bigger paychecks. But about two of every three full-time minimum-wage workers get a pay raise anyway within a year on the job. Meanwhile, those who lose their jobs or who never get a job in the first place get a minimum wage of $0.

Mr. Neumark calculates that the 70-cent per-hour minimum wage hike this month would kill “about 300,000 jobs for those between the ages of 16-24.” Single working mothers would also be among those most hurt.

Keep in mind the Earned Income Tax Credit already exists to help low-wage workers and has been greatly expanded in recent years. The EITC also spreads the cost of the wage supplement to all Americans, not merely to employers, so it doesn’t raise the cost of hiring low-wage workers.

For example, consider a single mom with two kids who earns the current $6.55 minimum at a full-time, year-round job. In 2009 she receives a $5,028 EITC cash payment from Uncle Sam — or about an extra $2.50 per hour worked. Other federal income supplements, such as the refundable child tax credit, add another $1,900 or so. Thus at a wage of $6.55 an hour, her actual pay becomes $10.02 an hour — more than a 50% increase from the current minimum. (See nearby table.)

But that single mom can’t collect those checks if she doesn’t have a job, and the tragedy of a higher minimum wage is that it will prevent thousands of working moms striving to pull their families out of poverty from being hired in the first place.

If Congress were wise and compassionate, it would at least suspend the wage hike for one or two years until the job market recovers. We know this Congress won’t do that, but someone has to speak up for the poorest, least skilled Americans.

Democrats speak up all the time, of course, but that’s just rhetoric and demagoguery.  They create mess after mess, and disaster after disaster, in the name of “saving the day.”  And then they ride off to let the American people suffer the consequences of their policies, realizing that with the mainstream media’s willing participation they can attribute the agony inflicted on the poor to the Republican’s “lack of compassion.”

Minimum wage hikes clearly have more impact at the lower end of the wage distribution.  They effect low skilled workers and the primarily small business employers who hire them.  Minimum wages reduce employment.  There’s been a substantial body of evidence accumulated over 20 years of recent research and still another 80 years of other research.  And it clearly shows that, essentially – just like when the price of gas goes up people use less gas, or just like when taxing cigarettes people smoke less – when you raise the wages of extremely low-skilled labor employers invariably will try to use something else.

The 300,000 jobs won’t hit tomorrow.  You won’t pick up the paper the day after the wage hike to read the headline, “300k jobs lost,” although given our level of media propaganda you might well see a headline that reads, “300k jobs not lost, dire predictions about the minimum wage hike false.”   But the fact remains that low wage labor market is filled with jobs that turn over very quickly.  And if an employer simply slows down his or her hiring, employment will nevertheless fall pretty quickly.

This is just another in a long line of terrible economic policies in the name of “helping the poor” that will invariably end up HURTING the poor.

According to polls, 57.4% of Obama voters had no idea which party controlled the Congress for the last two years when our economy went from strong to terrible.  That makes it easy for Democrats to demagogue fiction out of fact.  For the record, it was Democrats.  The Dow Industrial Average was at 11,986.04 on November 3, 2006 when Republicans were last in control of Congress. The unemployment rate for October of 2006 was at 4.4% when Republicans last ran things.  Nancy Pelosi, Barney Frank, Harry Reid, and Chris Dodd brought us from 4.4% to 9.5% unemployment which by nearly all accounts is going to get worse and worse.

The fact of the matter is, the Republicans tried to regulate the housing industry, and Democrats – true to form – denied there was a crisis, blocked the Republican effort, and clung to Titanic-sized economic landmines in the name of “helping the poor.” Even right before the housing mortgage industry completely imploded, Barney Frank was claiming that Freddie Mae and Fannie Mac (which DOMINATE the housing mortgage industry) was “fundamentally sound.”

What we come to find out is that “fundamentally sound” just means that liberals are getting everything they want and it hasn’t completely blown up yet.

Democrats are like nurses who bring thirsty patients their very favorite brand of Kool-Aid.  It’s a tasty beverage; don’t worry about the fact that it is  contains arsenic (which just happens to be the primary ingredient in rat poison).  It’s ultimately a terrible way to die, but what the heck, it sure taste good going down.