Tag Archives: Teen

Obama’s minimum wage hike will raise unemployment, especially for younger workers

Obama is proposing a hike to the minimum wage rate, so that employers are forced to pay the youngest and/or least skilled workers more money than they are worth. Will this lower unemployment?

When considering what economic policies to adopt, it is not enough to do what feels good. Liberals and conservatives agree that it is good to help the poor. Liberals think that higher minimum wage rates help the poor, and conservatives think that lower minimum wage rates help the poor. This is not a topic that is up for debate, though, because economists across the left-right spectrum agree on this one.

Take a look at this post from Harvard University economist Greg Mankiw.

He writes:

My favorite textbook covers business cycle theory toward the end of the book (the last four chapters) precisely because that theory is controversial. I believe it is better to introduce students to economics with topics about which there is more of a professional consensus. In chapter two of the book, I include a table of propositions to which most economists subscribe, based on various polls of the profession. Here is the 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%)

And that’s not all. There have actually been studies done on this, and they echo the consensus.

Consider this 2009 article from the Wall Street Journal that discusses some of the studies.

Excerpt:

Earlier this year, economist David Neumark of the University of California, Irvine, wrote on these pages that the 70-cent-an-hour increase in the minimum wage would cost some 300,000 jobs. Sure enough, the mandated increase to $7.25 took effect in July, and right on cue the August and September jobless numbers confirm the rapid disappearance of jobs for teenagers.

he September teen unemployment rate hit 25.9%, the highest rate since World War II and up from 23.8% in July. Some 330,000 teen jobs have vanished in two months. Hardest hit of all: black male teens, whose unemployment rate shot up to a catastrophic 50.4%. It was merely a terrible 39.2% in July.

[…]Two years ago Mr. Neumark and William Wascher, a Federal Reserve economist, reviewed more than 100 academic studies on the impact of the minimum wage. They found “overwhelming” evidence that the least skilled and the young suffer a loss of employment when the minimum wage is increased.

[…]State lawmakers are also at fault. At least 10 states have raised their minimum wages above the federal level in the last decade, largely in response to union lobbying and in the name of helping the working poor. Four states with among the highest wage rates are California, Massachusetts, Michigan and New York. Studies have shown in each case that their wage policies killed jobs for teens. The Massachusetts teen employment rate sank by one-third when the minimum wage rose by 88% between 1995 and 2008.

According to new numbers from the Labor Department, in 2008 only 1.1% of Americans who work 40 hours a week or more even earned the minimum wage. In other words, 98.9% of 40-hour-a-week workers earn more than the minimum. The data also show that teenagers are five times more likely to earn the minimum wage than adults. Minimum wage jobs are nearly all first-time or part-time jobs, and an estimated two of every three minimum wage workers get a pay raise within a year on the job.

You can read more about minimim wage and unemployment from my second favorite economist Walter Williams, and from my first favorite economist Thomas Sowell. This is an issue that matters to them, because they are both black, and blacks are the hardest hit by these policies – even though most blacks support these policies by voting overwhelmingly for socialists.

This issue is simple and straightforward. To help the poorest and least experienced workers, we have to take away any regulations that separate them from their first employer. From there, they will gain the experience to move up. Nobody stays in a minimum wage job all their lives. They move up when they get experience and a resume. That’s why that first job is so crucial. We have to make it easier for employers to get employees started in their careers.

Is a higher minimum wage good for younger workers and minority workers?

Let’s take a look at the data, and leave the feelings and rhetoric out of it.

Excerpt:

Battles are brewing in New York, California, Minnesota and the nation’s capital over hiking minimum wages, with Democrats having the votes to ram through hikes in all four cases.

These politicians are claiming the moral high ground, saying it will help the poorest in our communities. Don’t be fooled.

Hiking the minimum wage hurts — not helps — the lowest-paid workers, especially young black men. A 10% hike in the minimum wage causes a 2.5% drop in employment among young white men without a high school diploma and a staggering 6.5% drop among young black men without that degree.

Young black males get clobbered three times as hard because they tend to work in the fast-food and restaurant industries, where any increase in labor costs produces layoffs.

[…]Only 5% of American workers earn the federal minimum, according to the latest government data, compared with 13% in 1979. Minimum wage workers are largely first-time workers. They are learning what all of us learn on our first job: to be prompt, dress appropriately, do what the boss asks and be reliable.

First-time workers face the biggest risk of being priced out of the job market by a minimum wage hike. They aren’t worth much to an employer when they start working. They don’t have the skills.

When the government increases the minimum wage, it’s more expensive to hire first-timers. According to David Neumark and J.M. Salas, University of California economists, and William Wascher of the Federal Reserve Board, “minimum wages tend to reduce employment among teenagers.”

New York needs that like a hole in the head. Teen unemployment in New York City hit a stunning 35.6% last August, compared with 23.7% nationwide.

All teens are harmed, but black male teenagers are hit hardest by minimum wage hikes, according to a 2011 study by labor economists David Macpherson and William Evans. Unemployment among young black males is currently 29%, double the rate for young white males.

Macpherson and Evans found the reason is that one out of three young black men without a high school diploma works in the restaurant/fast-food industry, where profit margins are thin. Any labor-cost hikes compel these businesses to cut their workforce.

On top of the threatened minimum-wage hikes, businesses now face the certainty of ObamaCare, which will impose the largest government-mandated labor-cost hike in history.

In 2014, employers with 50 or more full-time workers will be required to provide a package of “essential health benefits” or pay a penalty. This government mandated package will add a whopping $1.79 an hour to the cost of hiring an employee. Maybe that’s affordable when you’re hiring lawyers or bankers, but not for hiring unskilled first-time workers.

When considering what economic policies to adopt, it is not enough to do what feels good. Liberals and conservatives agree that it is good to help the poor. Liberals think that higher minimum wage rates help the poor, and conservatives think that lower minimum wage rates help the poor. This is not a topic that is up for debate, though, because economists across the left-right spectrum agree on this one.

Take a look at this post from Harvard University economist Greg Mankiw.

He writes:

My favorite textbook covers business cycle theory toward the end of the book (the last four chapters) precisely because that theory is controversial. I believe it is better to introduce students to economics with topics about which there is more of a professional consensus. In chapter two of the book, I include a table of propositions to which most economists subscribe, based on various polls of the profession. Here is the 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%)

And that’s not all. There have actually been studies done on this, and they echo the consensus.

Consider this 2009 article from the Wall Street Journal that discusses some of the studies.

Excerpt:

Earlier this year, economist David Neumark of the University of California, Irvine, wrote on these pages that the 70-cent-an-hour increase in the minimum wage would cost some 300,000 jobs. Sure enough, the mandated increase to $7.25 took effect in July, and right on cue the August and September jobless numbers confirm the rapid disappearance of jobs for teenagers.

he September teen unemployment rate hit 25.9%, the highest rate since World War II and up from 23.8% in July. Some 330,000 teen jobs have vanished in two months. Hardest hit of all: black male teens, whose unemployment rate shot up to a catastrophic 50.4%. It was merely a terrible 39.2% in July.

[…]Two years ago Mr. Neumark and William Wascher, a Federal Reserve economist, reviewed more than 100 academic studies on the impact of the minimum wage. They found “overwhelming” evidence that the least skilled and the young suffer a loss of employment when the minimum wage is increased.

[…]State lawmakers are also at fault. At least 10 states have raised their minimum wages above the federal level in the last decade, largely in response to union lobbying and in the name of helping the working poor. Four states with among the highest wage rates are California, Massachusetts, Michigan and New York. Studies have shown in each case that their wage policies killed jobs for teens. The Massachusetts teen employment rate sank by one-third when the minimum wage rose by 88% between 1995 and 2008.

According to new numbers from the Labor Department, in 2008 only 1.1% of Americans who work 40 hours a week or more even earned the minimum wage. In other words, 98.9% of 40-hour-a-week workers earn more than the minimum. The data also show that teenagers are five times more likely to earn the minimum wage than adults. Minimum wage jobs are nearly all first-time or part-time jobs, and an estimated two of every three minimum wage workers get a pay raise within a year on the job.

You can read more about minimim wage and unemployment from my second favorite economist Walter Williams, and from my first favorite economist Thomas Sowell. This is an issue that matters to them, because they are both black, and blacks are the hardest hit by these policies – even though most blacks support these policies by voting overwhelmingly for socialists.

This issue is simple and straightforward. To help the poorest and least experienced workers, we have to take away any regulations that separate them from their first employer. From there, they will gain the experience to move up. Nobody stays in a minimum wage job all their lives. They move up when they get experience and a resume. That’s why that first job is so crucial. We have to make it easier for employers to get employees started in their careers.

New study from China links abortion to breast cancer

Life News reports.

Excerpt:

A study in the Asian Pacific Journal of Cancer Prevention shows abortion increases the risk of breast cancer for women.

C. Yanhua of the First Peoples’ Hospital of Kunming in Yunnan province and his colleagues found the abortion-breast cancer association after comparing data from 263 cases of breast cancer and 457 controls without the disease. Their analysis covers the years 2009-2011.

The authors examined information on disease diagnosis, demographics, medical history, and reproductive characteristics of the patients involved and also looked at short menstrual cycle, old age at first live birth, never breastfeeding, history of oral contraceptive use, postmenopausal status and nulliparity to determine in abortion-breast cancer link exists.

They write that “multivariate model analysis revealed the significant independent positive associations with breast cancer of shorter menstrual cycle, older age at first live birth, never breastfeeding, history of oral contraception experience, increased number of abortion, menopause status, and nulliparities.”

“Number of abortion showed an increasing higher risk of breast cancer,” they added, while saying that women who had one live birth lowered their risk. “As far as women who had once a live birth, it showed decreased the risk of breast cancer compared to nulliparous.”

“This study showed an increased risk of breast cancer with times of abortion. The association between abortion and risk of breast cancer in a study in China showed that the risk factors of female breast cancer included abortion times more than two (Li et al., 2006),” they continued. “Another study found that risk was raised among women reporting at least one abortion, but no trend was seen with number of abortions (Heuch et al., 2008). In a meta-analysis study, pooled odds ratio for number of abortions greater than and equal three was statistically significant (95%CI:1.68-5.36) (Tao et al.,2011).”

“In conclusion, in this study the estrogen related risk factors of breast cancer included woman who had longer menstrual cycle, older age of first live birth, never breastfeeding, nulliparity, and number of abortions more than one. Therefore, it is recommended to women with these risk factors perform breast cancer screening tests earlier and regularly,” they said.

Previously, another study was published in Oxford University’s European Journal of Public Health, and the abstract is posted on the US National Library of Medicine National Institutes of Health (aka PubMed).

Here are the results:

With statistical controls for number of pregnancies, birth year and age at last pregnancy, the combination of induced abortion(s) and natural loss(es) was associated with more than three times higher mortality rate than only birth(s). Moderate risks were identified with only induced abortion, only natural loss and having experienced all outcomes compared with only birth(s). Risk of death was more than six times greater among women who had never been pregnant compared with those who only had birth(s). Increased risks of death were 45%, 114% and 191% for 1, 2 and 3 abortions, respectively, compared with no abortions after controlling for other reproductive outcomes and last pregnancy age. Increased risks of death were equal to 44%, 86% and 150% for 1, 2 and 3 natural losses, respectively, compared with none after including statistical controls. Finally, decreased mortality risks were observed for women who had experienced two and three or more births compared with no births.

Life Site News adds more:

A single induced abortion increases the risk of maternal death by 45 percent compared to women with no history of abortion, according to a new study of all women of reproductive age in Denmark over a 25 year period.

The study found that each additional abortion is associated with an even higher death rate. Women who had two abortions were 114 percent more likely to die during the period examined, and women had three or more abortions had a 192 percent increased risk of death.

Elevated rates of death were also observed among women who experienced miscarriages, ectopic pregnancies or other natural losses. Among women with a history of multiple pregnancies, women with a history of both abortions and natural losses, but no live births, had the highest mortality rate.

Women who had never been pregnant had the highest mortality rate overall.

However, women with a history of successful deliveries were the least likely to die during the 25 years examined.

The study is the second record linkage analysis of Danish mortality data to be published this month.

The earlier study was limited to comparing mortality rates following only the first pregnancy outcome. It found that abortion of a first pregnancy was associated with a higher rate of death compared to death rates among women who delivered a first pregnancy. The higher death rate among women who had abortions persisted for each of the first ten years following the first pregnancy outcome.

[…]Dr. Reardon is the director of the Elliot Institute, which funds research related to abortion. He believes further research is needed to explore how the outcomes observed in this latest study may be influenced by abortion’s impact on natural pregnancy losses. A new population study from Finland, for example, has found that abortion is associated with higher rates of preterm delivery, low birth weight delivery, and perinatal deaths in subsequent pregnancies.

“We knew from our previous studies of low income women in California that women who have multiple pregnancy outcomes, such as having a history of both abortion and miscarriage, have significantly different mortality rates,” Reardon said.

”But this new study is the first to examine how each experience with abortion or miscarriage contributes to higher mortality rates,” Reardon observed.

“This is called a ‘dose effect’ because each exposure, or ‘dose,’ is seen to produce more of the same effect, which is what one would expect if there is a cause-effect relationship,” he said.

Reardon believes that a truer picture of the benefits of childbirth and the risks of abortion and pregnancy loss is now emerging because of a shift to more reliable record linkage studies. Such studies have been conducted in Finland, Denmark and the United States.

Is this the only bad effect of abortion on women’s health?

Let’s see the studies and then we’ll decide.

From Life News.

Excerpt:

new study published in the Asian Pacific Journal of Cancer Prevention in February reported a very statistically significant increased risk of breast cancer for women with previous abortions as opposed to women who have never had one.

The study, consisting of 1,351 women and led by researcher Ai-Ren Jiang, reported a statistically significant 1.52-fold elevation in risk for women with induced abortions and a “significant dose-response relationship between (the risk) for breast cancer and number of induced abortions,” meaning the risk climbed with a higher number of previous abortions.

For premenopausal women who have had abortions, the numbers were relatively small, and the observed 16% risk elevation was not statistically significant. However, for those with three or more abortions, the risk climbed to a statistically significant 1.55-fold elevation.

“The results have revealed that induced abortion was related to increased risk of breast caner. Premenopausal women who had ≥3 times of induced abortion were at increased crude odds ratio (OR) (2.41, 95%CI: 1.09-5.42) and adjusted-OR (1.55, 95%CI: 1.15-5.68),” they wrote. “Postmenopausal women with a previous induced abortion were at increased crude OR (2.04, 95%CI: 1.48-2.81) and adjusted-OR (1.82, 95%CI: 1.30-2.54), and there was a significant increase trend in OR with number of induced abortions (p for trend: 0.0001).”

[…][A] Chinese study in 1995 by L. Bu and colleagues, including Janet Daling of the Fred Hutchinson Cancer Research Center, reported a statistically significant 4.5-fold elevated risk among women with previous induced abortions who developed breast cancer at or before age 35, compared to older women (who experienced a statistically significant 2.5-fold elevated risk)

Here’s the latest study from the Journal of the American Medical Association (JAMA), showing that excessive consumption of alcohol is a rish factor for breast cancer.

Excerpt:

Consumption of 3 to 6 alcoholic drinks per week is associated with a small increase in the risk of breast cancer, and consumption in both earlier and later adult life is also associated with an increased risk, according to a study in the November 2 issue of JAMA.

“In many studies, higher consumption of alcohol has been associated with an increased risk of breast cancer. However, the effect of low levels of drinking as is common in the United States has not been well quantified,” according to background information in the article. “In addition, the role of drinking patterns (i.e., frequency of drinking and ‘binge’ drinking) and consumption at different times of adult life are not well understood.”

Wendy Y. Chen, M.D., M.P.H., of Brigham and Women’s Hospital and Harvard Medical School, Boston, and colleagues examined the association of breast cancer with alcohol consumption during adult life, including quantity, frequency, and age at consumption. The study included 105,986 women enrolled in the Nurses’ Health Study who were followed up from 1980 until 2008 with an early adult alcohol assessment and 8 updated alcohol assessments. The primary outcome the researchers measured was the risk of developing invasive breast cancer.

During the follow-up period, there were 7,690 cases of invasive breast cancer diagnosed among the study participants. Analyses of data indicated that a low level of alcohol consumption (5.0 to 9.9 grams per day, equivalent to 3-6 glasses of wine per week) was modestly but statistically significantly associated with a 15 percent increased risk of breast cancer. In addition, women who consumed at least 30 grams of alcohol daily on average (at least 2 drinks per day) had a 51 percent increased risk of breast cancer compared with women who never consumed alcohol.

The researchers also found that when examined separately, alcohol consumption levels at ages 18 to 40 years and after age 40 years were both strongly associated with breast cancer risk. The association with drinking in early adult life still persisted even after controlling for alcohol intake after age 40 years.

Binge drinking, but not frequency of drinking, was also associated with breast cancer risk after controlling for cumulative alcohol intake.

Now let’s take a look at some other factors that raise the risk of breast cancer.

Abortion and breast cancer

Many studies show a link between abortion and breast cancer.

Study 1: (September 2010)

Based on the expression of estrogen receptor (ER), progesterone receptor (PR) and HER2/neu (HER2), breast cancer is classified into several subtypes: luminal A (ER+ and/or PR+, HER2-), luminal B (ER+ and/or PR+, HER2+), HER2-overexpressing (ER-, PR-, and HER2+) and triple-negative (ER-, PR-, and HER2-). The aim of this case-control study is to determine reproductive factors associated with breast cancer subtypes in Chinese women. A total of 1,417 patients diagnosed with breast cancer in the First Affiliated Hospital, China Medical University, Shenyang, China between 2001 and 2009 and 1,587 matched controls without a prior breast cancer were enrolled.

[…]Postmenopause and spontaneous abortion were inversely associated with the risk of luminal tumors. By contrast, multiparity, family history of breast cancer and induced abortion increased the risk of breast cancer.

Study 2: (March 2010)

OBJECTIVE: To explore the risk factors of breast cancer for better control and prevention of the malignancy.

METHODS: The clinical data of 232 patients with pathologically established breast cancer were investigated in this 1:1 case-control study to identify the risk factors of breast cancer.

RESULTS: The history of benign breast diseases, family history of carcinoma andmultiple abortions were the statistically significant risk factors of breast cancer, while breast feeding was the protective factor.

CONCLUSION: A history of benign breast diseases, family history of carcinoma and multiple abortions are all risk factors of breast cancer.

But wait, there’s more.

Birth control pills

Many studies showed that taking birth control pills caused an increased risk of breast cancer.

Study 1: (March 2003)

RESULTS: Among the youngest age group (<35 years, n = 545), significant predictors of risk included African-American race (RR = 2.66: 95% CI 1.4-4.9) and recent use of oral contraceptives (RR = 2.26; 95% CI 1.4-3.6). Although these relationships were strongest for estrogen receptor-negative (ER-) tumors (RRs of 3.30 for race and 3.56 for recent oral contraceptive use), these associations were also apparent for young women with ER+ tumors. Delayed childbearing was a risk factor for ER+ tumors among the older premenopausal women (Ptrend < 0.01), but not for women <35 years in whom early childbearing was associated with an increased risk, reflecting a short-term increase in risk immediately following a birth.

Study 2: (October 2008)

Oral contraceptive use ≥1 year was associated with a 2.5-fold increased risk for triple-negative breast cancer (95% confidence interval, 1.4-4.3) and no significantly increased risk for non-triple-negative breast cancer (Pheterogeneity = 0.008). Furthermore, the risk among oral contraceptive users conferred by longer oral contraceptive duration and by more recent use was significantly greater for triple-negative breast cancer than non-triple-negative breast cancer (Pheterogeneity = 0.02 and 0.01, respectively).

So, things that feminists tell women are good are actually really bad. This is not even to mention things like sex-selection abortions, which is really bad for unborn women.

Conclusion

The total cost for breast cancer treatment, which raises medical insurance premiums (private health care) or taxes (single-payer health care), has been estimated to be between $1.8 billion and $3.8 billion dollars. In addition, the government spends billions of dollars each year on breast cancer research. All of this spending is costing taxpayers a lot of money, as people demand more and more government funding of breast cancer research and breast cancer treatment (with either private or single-payer health care).