Tag Archives: Teen

Minimum wage: doing what feels good doesn’t produce good results

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.

Study finds that teens who lose their virginity are more likely to divorce

The UK Daily Mail reports on a study that shows that women who lose their virginity as teenagers are more likely to divorce.

Excerpt:

Women who lost their virginity as young teenagers are more likely to divorce – especially if it was unwanted, according to new research.

The University of Iowa study shows that 31 per cent of women who had sex for the first time as teens divorced within five years, and 47 per cent within 10 years.

Among women who delayed sex until adulthood, 15 per cent divorced at five years, compared to 27 per cent at 10 years.

The findings were published in the April issue of the Journal of Marriage and Family.

Author Anthony Paik, associate professor of sociology in the university’s College of Liberal Arts and Sciences, examined the responses of 3,793 married and divorced women to the 2002 National Survey of Family Growth.

The study showed, however, that if a young woman made the choice to lose her virginity as a teenager, there was no direct link to a marital split later in life.

If the sexual act took place before the age of 16 women were shown more likely to divorce, even if it was wanted.

Thirty-one percent of women who lost their virginity during adolescence had premarital sex with multiple partners, compared to 24 per cent of those who waited.

Twenty-nine percent experienced premarital conceptions, versus 15 percent who waited.

One in four women who had sex as a teen had a baby before they were married, compared to only one in ten who waited until adulthood.

Only one per cent of women surveyed said they chose to have sex at age 13 or younger, compared to five per cent at age 14 or 15, and 10 per cent at age 16 or 17.

Forty two per cent reported that their first sexual intercourse before age 18 that was not completely wanted.

Fifty eight per cent of the group waited until age 18 or older to have sex. Of those, 22 per cent said it was unwanted, compared to 21 per cent who said it was wanted.

Researchers concluded sex itself may not increase the probability of divorce, while factors such as a higher number of sexual partners, pregnancy, or out-of-wedlock birth increased the risk for some.

If you’re still a virgin, like me, (and I’m in my mid-thirties now, and I’m saving my first kiss for my engagement), then there is nothing wrong with you. If you want a stable marriage, then you don’t have sex before you’re married. There are tons of virgins out there, and there is a huge difference in the quality of romantic relationships when both parties exercise self-control with physical touching. Don’t let it go too far – you lose some of what love and marriage can be.

Related posts

Does improved access to contraception reduce the number of abortions?

This article from the liberal New York Times answers that question. (H/T Mary)

Excerpt: (links removed)

To begin with, a lack of contraceptive access simply doesn’t seem to be a significant factor in unplanned pregnancy in the United States. When the Alan Guttmacher Institute surveyed more than 10,000 women who had procured abortions in 2000 and 2001, it found that only 12 percent cited problems obtaining birth control as a reason for their pregnancies. A recent Centers for Disease Control and Prevention study of teenage mothers found similar results: Only 13 percent of the teens reported having had trouble getting contraception.

At the same time, if liberal social policies really led inexorably to fewer unplanned pregnancies and thus fewer abortions, you would expect “blue” regions of the country to have lower teen pregnancy rates and fewer abortions per capita than demographically similar “red” regions.

But that isn’t what the data show. Instead, abortion rates are frequently higher in more liberal states, where access is often largely unrestricted, than in more conservative states, which are more likely to have parental consent laws, waiting periods, and so on. “Safe, legal and rare” is a nice slogan, but liberal policies don’t always seem to deliver the “rare” part.

What’s more, another Guttmacher Institute study suggests that liberal states don’t necessarily do better than conservative ones at preventing teenagers from getting pregnant in the first place. Instead, the lower teenage birth rates in many blue states are mostly just a consequence of (again) their higher abortion rates. Liberal California, for instance, has a higher teen pregnancy rate than socially conservative Alabama; the Californian teenage birth rate is only lower because the Californian abortion rate is more than twice as high.

These are realities liberals should keep in mind when tempted to rail against conservatives for rejecting the intuitive-seeming promise of “more condoms, fewer abortions.” What’s intuitive isn’t always true, and if social conservatives haven’t figured out how to make all good things go together in post-sexual-revolution America, neither have social liberals.

At the very least, American conservatives are hardly crazy to reject a model for sex, marriage and family that seems to depend heavily on higher-than-average abortion rates. They’ve seen that future in places like liberal, cosmopolitan New York, where two in five pregnancies end in abortion. And it isn’t a pretty sight.

This is similar to what we know from other countries like Spain, where increased sex education has led to higher rates of abortion.

What happens in other countries?

Here’s the article from Life Site News.

Excerpt:

Abortion advocates often promote contraception by claiming that as contraception use increases, the number of “unwanted” pregnancies and therefore abortions will decrease. But a new study out of Spain has found the exact opposite, suggesting that contraception actually increases abortion rates.

The authors, who published their findings in the January 2011 issue of the journal Contraception, conducted surveys of about 2,000 Spanish women aged 15 to 49 every two years from 1997 to 2007.  They found that over this period the number of women using contraceptives increased from 49.1% to 79.9%.

Yet they noted that in the same time frame the country’s abortion rate more than doubled from 5.52 per 1,000 women to 11.49.

This UK Daily Mail story explains how more contraception means more abortion in the UK.

Excerpt:

Most pregnancies among girls under 18 ended in abortion last year.

Out of around 40,000 pregnancies more than 20,000 were terminated – the first time more had chosen this option than become mothers.

The figure is higher than 2007, when it just hit 50 per cent, and consistent with a steady upwards trend since the Government started its controversial Teenage Pregnancy Strategy in 1999.

Figures out on May 21 will also show that for the first time the number of abortions performed on women living in England and Wales topped 200,000.

The teenage pregnancy strategy, which has cost taxpayers more than £300million, was meant to halve the number of conceptions among girls under 18 in England between 1998 and 2010.

Ministers have tried to slash teenage pregnancies by freely handing out contraceptives and expanding sex education.

But the fall in pregnancy rates has not met Government targets, and in 2007 the rate actually rose.

Teenage pregnancy rates are now higher than they were in 1995. Pregnancies among girls under 16 – below the age of consent – are also at the highest level since 1998.

So handing out contraceptives left and right at taxpayer expense raised the rate of abortion.

Birth control pills and breast cancer

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).

These are all things to think about when we start talking about using contraceptives as a way to reduce abortions.