News

How Obama’s plan to raise the minimum wage will hurt young black men

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Government Spending Vs Jobs
Government Spending Vs Jobs

From Investors Business Daily.

Excerpt:

How amusing to watch Democrats wring their hands over what they can do to get businesses to create jobs, when one of the biggest job killers is the minimum wage they keep hiking.

Recall that it was Democrats who raised the federal wage floor a whopping $2.10 an hour in the middle of the recession. The record 41% increase has led to record unemployment among young people, especially black teens.

Congress started ratcheting up the minimum wage from $5.15 an hour in mid-2007, arguing it would help abate poverty. But retailers looking to slash costs eliminated low-skilled, entry-level jobs rather than pay the mandated increases.

Now 1.5 million fewer teens are working. Last year’s unemployment rate for workers ages 16 to 19 shot up to 26% from 2007’s 15%.

As for black teens, their joblessness soared to a record 43% after the final raise to $7.25 took effect in mid-2009. It helped put more than half of young black men out of work — a first.

The president proposes cranking the minimum wage even higher to $9.50. Then he wants to raise it every year thereafter as a “living wage” indexed to inflation.

Yes, this is the problem that happens when you elect someone who knows nothing whatsoever about economics. And when I say nothing, I mean he is in disagreement with virtually all economists across the ideological spectrum.

Moderate economist Gregory Mankiw of Harvard University lists the policies that are accepted by virtually all economists.

Here’s Greg’s list, together with the percentage of economists who agree:

  1. A ceiling on rents reduces the quantity and quality of housing available. (93%)
  2. Tariffs and import quotas usually reduce general economic welfare. (93%)
  3. Flexible and floating exchange rates offer an effective international monetary arrangement. (90%)
  4. Fiscal policy (e.g., tax cut and/or government expenditure increase) has a significant stimulative impact on a less than fully employed economy. (90%)
  5. The United States should not restrict employers from outsourcing work to foreign countries. (90%)
  6. The United States should eliminate agricultural subsidies. (85%)
  7. Local and state governments should eliminate subsidies to professional sports franchises. (85%)
  8. If the federal budget is to be balanced, it should be done over the business cycle rather than yearly. (85%)
  9. The gap between Social Security funds and expenditures will become unsustainably large within the next fifty years if current policies remain unchanged. (85%)
  10. Cash payments increase the welfare of recipients to a greater degree than do transfers-in-kind of equal cash value. (84%)
  11. A large federal budget deficit has an adverse effect on the economy. (83%)
  12. A minimum wage increases unemployment among young and unskilled workers. (79%)
  13. The government should restructure the welfare system along the lines of a “negative income tax.” (79%)
  14. Effluent taxes and marketable pollution permits represent a better approach to pollution control than imposition of pollution ceilings. (78%)

From CNBC, we get this article showing that any increase in the minimum wage will raise the unemployment rate for young people.

Excerpt:

A quarter of teenagers were jobless in March, representing a surprising increase from February, even as the unemployment rate for the rest of the population decreased.

This figure may only get worse if budget-strapped states raise the minimum wage, and it could also be a sign of greater structural damage underlying our economy, analysts said.

The unemployment rate for 16- to 19-year olds jumped back up to 24.5 percent in March, up from 23.9 percent the prior month, according to the latest jobs data from the Labor Department.

[…]“Even when comprehending that teen employment is volatile in nature, the data that exists serves up some shock and awe,” said Brian Sozzi, a retail research analyst with Wall Street Strategies, in a note Wednesday. “If these (wage) increases do go through, the prospect for teen employment will remain grim as employers search for workers with advanced skills to fill positions.”

Twelve states, including Illinois and Pennsylvania, are considering a hike in the minimum wage. While this has been the subject of a long-running debate, many economists and analysts say raising this pay bar may cause more teen layoffs, even as it helps teens who manage to stay employed make more.

“Minimum wage increases over the past few years has definitely made it worse,” said Peter Boockvar, chief equities strategist at Miller Tabak. “In fact, there should be zero minimum wage for teenagers, or at most, something much less than the current rate.”

Teens typically are the first to be fired and the last to be hired back in a normal economic cycle, so this rate can be considered a kind of leading indicator of employment.

A new study shows that only 25% of teens will be able to find jobs this summer. And Obama thinks that this number is apparently too high. He wants to lower it by raising the price that must be paid by employers who would like to hire younger workers.

You can find out more about how raising the minimum wage increases unemployment from this comprehensive, 50-year, government study.

Excerpt:

Summary of Research on the Minimum Wage

* The minimum wage reduces employment.

Currie and Fallick (1993), Gallasch (1975), Gardner (1981), Peterson (1957), Peterson and Stewart (1969).

* The minimum wage reduces employment more among teenagers than adults.

Adie (1973); Brown, Gilroy and Kohen (1981a, 1981b); Fleisher (1981); Hammermesh (1982); Meyer and Wise (1981, 1983a); Minimum Wage Study Commission (1981); Neumark and Wascher (1992); Ragan (1977); Vandenbrink (1987); Welch (1974, 1978); Welch and Cunningham (1978).

* The minimum wage reduces employment most among black teenage males.

Al-Salam, Quester, and Welch (1981), Iden (1980), Mincer (1976), Moore (1971), Ragan (1977), Williams (1977a, 1977b).

* The minimum wage helped South African whites at the expense of blacks.

Bauer (1959).

* The minimum wage hurts blacks generally.

Behrman, Sickles and Taubman (1983); Linneman (1982).

* The minimum wage hurts the unskilled.

Krumm (1981).

* The minimum wage hurts low wage workers.

Brozen (1962), Cox and Oaxaca (1986), Gordon (1981).

* The minimum wage hurts low wage workers particularly during cyclical downturns.

Kosters and Welch (1972), Welch (1974).

* The minimum wage reduces average earnings of young workers.Meyer and Wise (1983b).

* The minimum wage reduces employment in low-wage industries, such as retailing.Cotterman (1981), Douty (1960), Fleisher (1981), Hammermesh (1981), Peterson (1981).

* The minimum wage causes employers to cut back on training.Hashimoto (1981, 1982), Leighton and Mincer (1981), Ragan (1981).

* The minimum wage encourages employers to install labor-saving devices.Trapani and Moroney (1981).

* The minimum wage increases the number of people on welfare.Brandon (1995), Leffler (1978).

* The minimum wage hurts the poor generally.

Stigler (1946).

* The minimum wage does little to reduce poverty.

Bonilla (1992), Brown (1988), Johnson and Browning (1983), Kohen and Gilroy (1981), Parsons (1980), Smith and Vavrichek (1987).

* The minimum wage helps unions.Linneman (1982), Cox and Oaxaca (1982).

* The minimum wage increases teenage crime rates.Hashimoto (1987), Phillips (1981).

* The minimum wage encourages employers to hire illegal aliens.

Beranek (1982).

* Few workers are permanently stuck at the minimum wage.

Brozen (1969), Smith and Vavrichek (1992).

* The minimum wage has reduced employment in foreign countries.Canada: Forrest (1982); Chile: Corbo (1981); Costa Rica: Gregory (1981); France: Rosa (1981).

This is why it is important for voters to understand economics. When you raise the price of labor, fewer employers will purchase labor. Supply and demand.

Commentary

Gay manager at Cisco Systems gets Dr. Frank Turek fired

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Dr. Mike Adams explains how a gay manager at Cisco Systems got Dr. Frank Turek fired for opposing same-sex marriage. Adams explains what happened in a letter addressed to the President of Cisco.

Excerpt:

I want to bring to your attention a recent decision made by your HR team that I think does not reflect your leadership of Cisco. Dr. Frank Turek was fired as a vendor for his political and religious views, even though those views were never mentioned or expressed during his work at Cisco.

[…]In 2008, Dr. Turek was hired by Cisco to design and conduct a leadership and teambuilding program for about fifty managers with your Remote Operations Services team. The program took about a year to conduct, during which he also conducted similar sessions for another business unit within Cisco. That training earned such high marks that in 2010 he was asked to design a similar program for about 200 managers within Global Technical Services. Ten separate eight-hour sessions were scheduled.

The morning after completing the seventh session earlier this year, a manager in that session —who was one of the better students in that class—phoned in a complaint. It had nothing to do with content of the course or how it was conducted. In fact, the manager commented that the course was “excellent” as did most who participated. His complaint regarded Dr. Turek’s political and religious views that were never mentioned during class, but that the manager learned by “googling” Dr. Turek after class.

The manager identified himself as gay and was upset that Dr. Turek had written this book providing evidence that maintaining our current marriage laws would be best for the country. Although the manager didn’t read the book, he said that the author’s view was inconsistent with “Cisco values” and could not be tolerated. (Dr. Turek is aware of this because he was in the room when his call came in.) The manager then contacted an experienced HR professional at Cisco who had Dr. Turek fired that day without ever speaking to him. The HR professional also commended the manager for “outing” Dr. Turek.

This firing had nothing to do with course content—the program earned very high marks from participants. It had nothing to do with budget constraints—the original contract was paid in full recently. A man was fired simply because of his personal political and religious beliefs—beliefs that are undoubtedly shared by thousands of your very large and diverse workforce.

Chastity vs sexual immorality

Let me tell you about the difference between chastity and sexual immorality. In my life, I have decided to be chaste, and what I have found is that there is a constant stream of negative judgments coming from the culture, the education system, and so forth disapproving of my decision to be chaste. But you will never see me trying to use the law to censor and coerce people who disagree with me. That is because I know that chastity is a virtue, and that chastity is necessary for a stable marriage – strictly on the peer-reviewed research.

No amount of disagreement from anti-chastity activists will make me feel bad about what I have decided to do, because I have the facts. I am not offended by incorrect views because it’s a factual question, and I’m right. And I also don’t want other people who disagree with me to celebrate my views, because they don’t hold my views. And I don’t mind that they disagree with me – my Christian worldview has a place for tolerance. Even God himself allows people to rebel against him – he doesn’t swoop down on sinners and demand obedience. He lets people decide for themselves. I want the right to voice my disagreement with others – I would not force anyone to agree with me and celebrate my views against their own will.

I think we can all see how sexual immorality is different from chastity. When people do something wrong that they know is wrong, they have a different response to being judged. Instead of ignoring the judgment as I do, they try to censor, coerce and overpower those who disagree with them. This can include the use of courts or even the use of force. The feeling of being offended is so strong for some sexually immoral people that any concerns about tolerating diverse opinions, or permitting disagreement goes out the window. Even to hear the words of disagreement is sometimes too much for a person in rebellion.

Consider this passage from Matthew 14:1-2:

1 At that time Herod the tetrarch heard the reports about Jesus,

2and he said to his attendants, “This is John the Baptist; he has risen from the dead! That is why miraculous powers are at work in him.”

3 Now Herod had arrested John and bound him and put him in prison because of Herodias, his brother Philip’s wife,

4 for John had been saying to him: “It is not lawful for you to have her.”

5 Herod wanted to kill John, but he was afraid of the people, because they considered John a prophet.

6 On Herod’s birthday the daughter of Herodias danced for the guests and pleased Herod so much

7 that he promised with an oath to give her whatever she asked.

8 Prompted by her mother, she said, “Give me here on a platter the head of John the Baptist.”

9 The king was distressed, but because of his oaths and his dinner guests, he ordered that her request be granted

10 and had John beheaded in the prison.

11 His head was brought in on a platter and given to the girl, who carried it to her mother.

12 John’s disciples came and took his body and buried it. Then they went and told Jesus.

Notice that this coercion can happen with all kinds of sexual immorality – in this case, incest. The desire to not be judged about the means of pursuing pleasure is strong. No one wants to hear about the potential harm they are causing. They just want to do it, and you just need to shut up and affirm them in their self-indulgence. Celebrate Anthony Weiner. Celebrate Bill Clinton. Celebrate Tiger Woods. Celebrate Elliot Spitzer. Celebrate Arnold Schwarzenegger. Celebrate John Edwards. OR ELSE. Very few people are brave enough to talk about the victims of this adult self-indulgence. And those who do will be taken under fire for it.

Same-sex marriage and coercion

And that leads me to the question that gay activists often ask supporters of traditional marriage: “how would allowing same-sex marriage hurt your marriage?”. And now we know the answer. Same-sex marriage would likely,  criminalize free speech that promotes traditional marriage over same-sex marriage, as it has in other countries with same-sex marriage, such as Canada. If you are a working husband, and you are responsible for a family, you will be under a constant threat of termination should your pro-marriage views become known to your colleagues and supervisors. Also, if you teach you children to favor traditional marriage, you may be persecuted by the state.

I would like to be able to provide for my family if I choose to marry, and I would like my children to favor traditional marriage over cohabitation, or any other arrangement, because traditional marriage is best for children who need a stable environment with two loving biological parents (if possible). But if it becomes the law that my view is “offensive” and “discriminatory”, then that would affect my marriage. Sometimes, I am very glad that I am not married, because getting married in a society that is offended by marriage takes a lot of courage. It seems to me that many Christians, especially the uninformed emotional ones who would rather read vampire fiction and Dan Brown than peer-reviewed research, prefer to redefine Christianity to mean “affirming destructive behavior so that you feel good and more people like you”.

Let Dr. Turek’s story be a lesson to all of you who prefer traditional marriage. Don’t allow your opinions on marriage to be linked to your true identity, because some sexually immoral people will try to separate you from your livelihood if they can. It’s no longer safe to express a preference for traditional marriage in this society. If you do it, you are taking chances. Just look at the vandalism and stalking of Prop 8 supporters. If you want children to grow up with a mother and a father in this society, then you are a marked target to those who put adult hedonism above the rights of children – including many Christians who enjoy singing and schmoozing in the church. Just this week I got an anguished e-mail from someone who blogs under his real name who is now in the cross-hairs for expressing his preference for traditional marriage in public.

Note: Comments to this post will be strictly filtered in accordance with legislation passed by the Obama administration limiting the free discussion of sexual morality, which many liberal Christians voted for in 2008.

Related posts

Videos

Are universities teaching students how to think critically?

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Unionized teachers view the public school system as a way to indoctrinate children in anti-Americanism, socialism, moral relativism, pacifism, postmodernism, feminism, promiscuity and a host of other doctrines of the secular left. Professors collect the money taken from working parents through compulsory taxation, and then refuse to do what is best for the children’s future careers. Instead of educating children to be logical, open-minded critical thinkers, public schools indoctrinate children with the views of the secular leftist teachers.

And you can see the results of this left-wing indoctrination process in the videos below. (H/T Tina)

Affirmative Action

Redistribution of Wealth

Keynesian deficit spending

Free speech and fair debate

The only good thing about this sad turn of events is that the high unemployment rate for youth will help them to learn the way the world really is quite rapidly, after their exit from the Never-Never-Land of public school. A new study shows that only 25% of teens will be able to find jobs this summer. Imagine their surprise when everything enacted by the Obama administration, which they overwhelmingly supported, is shown to have failed to create economic growth. Who knew? They will learn that capitalism and corporations are good, and that lower taxes and less regulation are essential to job creation.

Eventually, young people will eventually realize that they have been played for suckers by the secular leftist academics. They will start to think critically about the Jon Stewart show, the Stephen Colbert show, the Rachel Maddow show, and the Ed Schulz show. They will realize that hatred and mockery are not arguments. They will learn that businessmen and economists know more about business and economics than comedians and opinion journalists. They will have to start from the bottom and unlearn everything they learned in the public schools. Unfortunately for them, that should be about the time that the austerity measures kick in to pay for the multi-trillion dollar national debt that the Obama administration ran up, thanks to their votes.

But these growing pains are only going to get worse as liberal government programs break up traditional families more and more. But again, it will be self-inflicted misery since the young people are big supporters of marriage-killing feminist, socialist and gay-rights policies. Fewer and fewer of them will grow up in traditional homes, with mothers and fathers who stick around to raise them. Won’t they be surprised to find out how much the traditional marriages they rejected as “sexist” and “intolerant” matter so much to their success. But by then it will be too late, and their meager salaries, should they be lucky enough to find a job that hasn’t been outsourced to a capitalist nation, will be automatically taxed to pay for the subsidized pensions of their wordsmithing professors. Naturally, those very entitlement programs will be bankrupt by the time they are ready to retire – too bad they opposed the privatization of those programs when they had the chance to vote to save their own futures.