Tag Archives: Democrat

Why is the unemployment rate for young people so high?

A few of the policies that are causing the problem are explained in this article from the American Enterprise Institute. I have highlighted the policies that discourage employers in the snippet I excerpted below.

Excerpt:

If Washington is serious about helping this vulnerable population, it should focus on increasing workers’ take home pay and lowering the business employment costs. Conventional wisdom preaches increasing minimum wages. But a far more effective policy would be to simply exempt younger workers and their employers from paying taxes related to their employment.

People in the workforce typically get their start when they are young – beginning with some entry level job where they learn basic job skills, develop effective work habits, and earn a modest wage. This important first step gives them a chance at earning wages and achieving a level of success that facilitates advance up the economic ladder. Work habits and skills are generally learned early in life or unfortunately for too many, not learned at all.

The long term damage caused by this lack of employment is very large. Income mobility has declined. The sad fact is the probability of people at the bottom moving up the income ladder is lower than it was 20 and 30 years ago. Many studies have demonstrated that three factors determine most of the difference between those who start in poverty and stay there and those who don’t – finishing high school; avoiding becoming a teenage parent, and getting a full-time job. Those who do all three have only a 2 percent chance of living in poverty and a 75 percent chance of joining the middle class.

Many economists and social scientists have suggested both demand and supply reasons why youth unemployment is so high. On the demand side, the national safety net – Food Stamps, Earned Income Tax, welfare and subsidy programs of all kinds – substantially reduce the relative benefit of working. In other words, the wage premium for working versus taking advantage of benefit programs on an after-tax basis is simply too small to encourage many people to work.

If a young person enters the work force at the minimum wage, he grosses $7.25 per hour. From this, in a place like Los Angeles, he pays federal and state income taxes and Medicare and Social Security payroll taxes which total $1.11. So, out of the $7.25 earned, he keeps just over $6. If he is single and without children, he won’t qualify for the Earned Income Tax Credit (EITC) or food stamps.

On the supply side, the cost of employing young people is high relative to their economic contribution to potential employers. An entry-level employee costs his employer much more than $7.25. In addition to his wages, the employer also pays Social Security and Medicare taxes, plus unemployment insurance, that add on an average of 92 cents. So today, the new employee costs the business $8.13 per hour, of which the young employee keeps only three-quarters.

This cost will increase further when the Affordable Care Act kicks in. Beginning in 2015, if the employer has more than 50 employees, he will have to provide health insurance for full-time workers or pay a $2,000 fine – which comes to $.96 per hour. That will make an abysmal employment situation even worse.

Overall, public policy ought to be aimed at encouraging businesses to create entry level jobs. Perversely, attempts to increase the minimum wage and institute so-called living wages would do the exact opposite. If government wanted to help create a permanent economic underclass, it would implement exactly the policies that are in place. All of us who want people to enjoy earned success ought to be outraged at these government policies.

This is important, because very often the policies proposed by people on the left are not designed to solve the problem. Thomas Sowell argues that the real purpose of leftist policies is for leftist leaders to feel self-important by getting applause from those who are economically ignorant. They push policies that sound good but that don’t actually work.

The good news is that young people are waking up. According to a Harvard University survey, 57% of young adults now disapprove of Obamacare. Even they are starting to think about what is happening to them. Maybe they can avoid the slavery that awaits them under the Democrat’s massive program of intergenerational theft, but I’m not optimistic. They have really short attention spans, and you don’t learn the fundamentals of economics on Instagram and Pinterest.

Obama administration betrays Christian pastor imprisoned in Iran

Letitia posted this article by Jay Sekulow from Fox News.

Excerpt:

In its quest for a “deal” with the hostile, jihadist Iranian regime, The Obama administration has thrown an American Christian, Saeed Abedini, under the bus – the latest American victim in the administration’s continual, naïve (at best) quest to bargain with Islamic radicals.

[…]Pastor Saeed Abedini, an Idaho resident, last year received permission to enter Iran to help build an orphanage.

Shortly after his arrival, Iran’s radical Revolutionary Guard arrested him, threw him in one of Iran’s worst prisons, and tried and convicted him on trumped-up “national security” charges – charges that had nothing to do with national security and everything to do with his Christian faith.

Even after President Obama raised Pastor Saeed’s case directly to the Iranian President Hassan Rouhani, Iran responded not by releasing Saeed but by transferring him to an even worse prison — a prison full of murderers and rapists, where his life is in danger at every moment.

The Iranian regime rebuked the president of the United States, and we’re now supposed to believe it’s acting in good faith?

President Obama is now trying to spin our stunning act of weakness as a breakthrough for peace.  In fact, we were so weak that (according to the administration) that the State Department did not even raise Pastor Saeed’s during the nuclear negotiations.

[…]Iran’s record of wrongdoing is long and sordid.

Beginning with the 1979-1981 hostage crisis, moving through repeated terrorist attacks – from the deadly Marine Barracks bombing in 1983, to the Kobar Towers bombing in 1996, to the direct intervention of Iran’s Quds force against American forces in Iraq – and including ongoing deadly support for terrorists fighting American forces in Afghanistan, Iran has proven by its deeds and words that it is America’s enemy.

If Iran had released Pastor Saeed we would have at least one concrete action to give Americans confidence that this deal was anything other than a disaster.  Instead, we are left with nothing but “commitments” from a regime that has proven itself committed only to killing and imprisoning Americans.

To make matters even worse, we have squandered a position of strength.

Iran was suffering under sanctions that were finally beginning to truly bite — wrecking its economy and causing deep discontent within Iraq. This was our opportunity to drive a hard bargain, to reach a deal that didn’t depend solely on Iranian “commitments.”

But we squandered that opportunity and left an American behind.

The Obama administration has betrayed Pastor Saeed.

One country that’s done a good job on promoting human rights and religious liberty is Canada, because they have a Conservative government led by Prime Minister Stephen Harper.

Here’s what Canada said about the deal: (H/T Dennis Prager)

The Canadian government was “deeply skeptical” on Sunday of Iran’s agreement to temporarily freeze its nuclear program, saying Ottawa’s sanctions against the regime would remain firmly in place until the new deal’s words turned into actions.

Foreign Affairs Minister John Baird appeared to take a stronger stance on the newly brokered deal than the United States and other allies, saying Canada would be watching Iran closely over the coming weeks and months.

“We have made-in-Canada foreign policy,” he told reporters on Sunday.

“We think past actions best predict future actions. And Iran has defied the United Nations Security Council, it has defied the International Atomic Energy Agency. Simply put Iran has not earned the right to have the benefit of the doubt.”

It’s striking to me that the American government is now to the left of Canada on foreign policy – making deals with dictators that actually set back the cause of freedom and universal human rights. I would not be surprised to see a full-scale war in the Middle East because of this deal. I guess that the Obama administration is so anxious to appear as if they are doing something that they don’t care if Iran nukes Israel in a few months. Because that’s what’s going to happen unless Israel attacks Iran first. Iran was threatening to nuke Israel as recently as last week. It’s hard to interpret the Democrat treaty with Iran as anything other than their stamp of approval on that plan.

John Bolton: U.S. deal with Iran is an “abject surrender”

Neville Chamberlain Obama: peace in our time
Neville Chamberlain Obama: peace in our time

The Weekly Standard featured a column by foreign policy heavyweight John Bolton.

Excerpt:

Negotiations for an “interim” arrangement over Iran’s nuclear weapons program finally succeeded this past weekend, as Security Council foreign ministers (plus Germany) flew to Geneva to meet their Iranian counterpart.  After raising expectations of a deal by first convening on November 8-10, it would have been beyond humiliating to gather again without result.  So agreement was struck despite solemn incantations earlier that “no deal is better than a bad deal.”

This interim agreement is badly skewed from America’s perspective.  Iran retains its full capacity to enrich uranium, thus abandoning a decade of Western insistence and Security Council resolutions that Iran stop all uranium-enrichment activities. Allowing Iran to continue enriching, and despite modest (indeed, utterly inadequate) measures to prevent it from increasing its enriched-uranium stockpiles and its overall nuclear infrastructure, lays the predicate for Iran fully enjoying its “right” to enrichment in any “final” agreement.  Indeed, the interim agreement itself acknowledges that a “comprehensive solution” will “involve a mutually defined enrichment program.”  This is not, as the Obama administration leaked before the deal became public, a “compromise” on Iran’s claimed “right” to enrichment. This is abject surrender by the United States.

In exchange for superficial concessions, Iran achieved three critical breakthroughs. First, it bought time to continue all aspects of its nuclear-weapons program the agreement does not cover (centrifuge manufacturing and testing; weaponization research and fabrication; and its entire ballistic missile program). Indeed, given that the interim agreement contemplates periodic renewals, Iran may have gained all of the time it needs to achieve weaponization not of simply a handful of nuclear weapons, but of dozens or more.

Second, Iran has gained legitimacy. This central banker of international terrorism and flagrant nuclear proliferator is once again part of the international club.  Much as the Syria chemical-weapons agreement buttressed Bashar al-Assad, the mullahs have escaped the political deep freezer.

Third, Iran has broken the psychological momentum and effect of the international economic sanctions. While estimates differ on Iran’s precise gain, it is considerable ($7 billion is the lowest estimate), and presages much more.  Tehran correctly assessed that a mere six-months’ easing of sanctions will make it extraordinarily hard for the West to reverse direction, even faced with systematic violations of Iran’s nuclear pledges.  Major oil-importing countries (China, India, South Korea, and others) were already chafing under U.S. sanctions, sensing President Obama had no stomach either to impose sanctions on them, or pay the domestic political price of granting further waivers.

Seven billion dollars in funding for a nation that is a known sponsor of anti-American terrorism. What kind of moron makes a deal with a regime that is on record for wanting to attack Israel with nuclear weapons? Some sort of reincarnation of Neville Chamberlain, that’s who.

Previously, the Obama administration had been accuesed of leaking details of a strike plan by Israel against Iranian nuclear facilities.

From ABC News.

Excerpt:

Two reports today about Iran’s nuclear program and the possibility of an Israeli military strike have analysts in Israel accusing the Obama administration leaking information to pressure Israel not to bomb Iran and for Iran to reach a compromise in upcoming nuclear talks.

The first report in Foreign Policy quotes anonymous American officials saying that Israel has been given access to airbases by Iran’s northern neighbor Azerbaijan from which Israel could launch air strikes or at least drones and search and rescue aircraft.

The second report from Bloomberg, based on a leaked congressional report, said that Iran’s nuclear facilities are so dispersed that it is “unclear what the ultimate effect of a strike would be…” A strike could delay Iran as little as six months, a former official told the researchers.

“It seems like a big campaign to prevent Israel from attacking,” analyst Yoel Guzansky at the Institute for National Security Studies told ABC News. “I think the [Obama] administration is really worried Jerusalem will attack and attack soon. They’re trying hard to prevent it in so many ways.”

[…]Thursday’s reports come a week after the results of a classified war game was leaked to the New York Times which predicted that an Israeli strike could lead to a wider regional war and result in hundreds of American deaths. In a column this afternoon titled “Obama Betraying Israel?” longtime defense commentator Ron Ben-Yishai at Yedioth Ahronoth newspaper angrily denounced the leaks as a “targeted assassination campaign.”

“In recent weeks the administration shifted from persuasion efforts vis-à-vis decision-makers and Israel’s public opinion to a practical, targeted assassination of potential Israeli operations in Iran,” Ben-Yishai writes. “The campaign’s aims are fully operational: To make it more difficult for Israeli decision-makers to order the IDF [Israeli Defense Forces] to carry out a strike, and what’s even graver, to erode the IDF’s capacity to launch such strike with minimal casualties.”

Maybe in the next election, Jewish-American voters will think a little more about who to vote for, in view of these facts. Or maybe it will take the actual nuclear destruction of Israel by Iran to get over their prejudices. As a supporter of peaceful democracies like Israel, I hope it doesn’t come to that.