Tag Archives: Young Adult

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.

J. Warner Wallace on the importance of engaging young people with training

This post by J. Warner Wallace made it onto Pastor Matt‘s three must-read posts of the week.

Excerpt: (links removed)

I’ve been writing this week about my recent experience at Summit Worldview Academy and the nature of student training. There are a number of similar worldview programs around the country (including the Centurions Program and the Worldview Academy), and I’m always impressed to see how many students are interested in this kind of intensive preparation. To be sure, there are always some students at these conferences who are present because their parents demanded their attendance, but these young people are always in the vast minority. Most students come (and put themselves through the rigorous material) because they heard about it through a friend who highly recommended the experience. And while there are some fun opportunities to hike, relax and play games along the way, these activities (commonly associated with youth group retreats) are typically few and far between at worldview camps. Students are here to roll up their sleeves and get to work. They’re far more interested in learning than lounging. Youth pastors can glean somethingfrom worldview academies.

I have to confess: When I was a new youth pastor, I was more likely to provide my students with pizza than preparation. I thought the only way to attract students in the first place was to satisfy their desire for entertainment and social interaction. I simply tried to wedge in the important stuff (theological and apologetics training, Spiritual formation and Biblical literacy) along the way. It took me a year or so to find a better approach. I eventually realized my students would willingly delay their desire for fun if I could effectively show them their need for truth. I began to take them to places where their worldview was tested and I did my best to demonstrate their deficiencies. As a result, the Utah and Berkeley trips became a regular offering of my ministry. It wasn’t long before my students were ready to do whatever it took to better defend themselves. They were more than willing to delay their desire for what they used to think of as fun to achieve a greater goal. Along the way, they discovered how satisfying it is to learn the truth, articulate it effectively, and engage the world.

It turns out that students are willing to raise the bar and do much more than we expect of them in most youth groups across the country. If you’re a youth pastor or are serving in a youth ministry, think about what your students are typically willing to do in order to succeed on their club sports team or to prepare for their next academic AP test. Our students are already working hard to prepare themselves in some area of their young lives; why aren’t we willing to ask them to prepare this rigorously as Christians? It’s time to show students why it’s so important to equip themselves as Christian ambassadors. It’s time to stop teaching and start training.

Wallace has also posted a new podcast on this very topic.

The Please Convince Me podcast is my favorite podcast. There is just something about the way he speaks about Christian topics that is so practical and real-world. I even like it better than all the political and policy podcasts that I listen to. This particular episode is so good.  I never had parents and youth pastors and pastors that sounded like this.

I blogged before about another podcast that he did about training a group of students to defend the faith at the University of California at Berkeley . That’s what our youth pastors should be doing instead of working to hard at entertaining the young adults. He really knows what it is like to deal with young people, and he has a real passion for teaching high school students about how to defend their worldview before they get to university. I would really like to see more pastors looking at young people in this way – as people in need of training who will be facing challenges in college. Without the training, our young people will be the ones who are changed. I don’t think that a lot of pastors and parents are working on projects like this the way that Wallace is. That needs to change.

Real unemployment rate for youth is 22.9%

I found an article  from the Wall Street Journal via Lonely Conservative in Captain Capitalism’s latest round-up .

Excerpt:

When the recession began in December, 2007, 59.2% of the under-25 population was in the labor force, meaning they were either working or looking for work. Today, that figure has fallen to 54.5%. That may not sound like a big drop, but it makes a huge difference. If the so-called participation rate had remained unchanged, there would be 1.8 million more young people in the labor force today than there actually are. Counting those people as unemployed, rather than out of the labor force, would push the unemployment rate up to 22.9%. That’s only a hair better than the 23.9% youth unemployment rate in the euro zone, and has shown only very modest improvement during the recovery.

The decline in the participation rate among the young can’t all be attributed to the recession. Labor force participation among young people peaked at just under 70% in 1989, and has trended downward ever since, primarily due to rising rates of college attendance.

The decline accelerated during the recession, as many young people sought refuge in college or other forms of education or training. In a normal cycle, that might have worked out well, leaving a generation of highly educated workers ready to re-enter the job market when the economy recovered. Instead, they have been graduating into a labor market that remains deeply challenged, especially for those without much work experience. To make matters worse, many graduates are carrying hefty debt burdens, and those who can find work are often being forced to low-skill jobs.

But are these young people victims? Or are they doing this to themselves?

Young UK socialists rejoice over Maggie Thatcher's death
Young UK socialists rejoice over Maggie Thatcher’s death

I was looking over the Captain’s blog and I found a post where he argues that young people are not victims.

He writes:

However, before we all jump on the baby boomer generation (and don’t worry, history will be INCREDIBLY harsh on them) we have to look at our own generational selves in the mirror.  Specifically, whether we deserve all these programs or not.

Of course, the question is moot and academic.  I don’t think there will be any money to be paid out in the first place, but let’s just say there was.  Do our generations really deserve all the unicorns, puppies, hope, and change the government says we’re entitled to?  I say no and here is the reason why.

Gen X and Gen Y are doing the EXACT same thing as their baby boomer predecessors did.  They are spending more money than they make.  They expect other people to take care of themselves.  They are entitled WAY more than the baby boomers ever were.  And (most importantly) THEY VOTED IN DROVES FOR BARACK OBAMA and thus THE MORTGAGING OF THEIR OWN FUTURES.

Much as I loathe the baby boomers, the successive generations, mine included, are worse.  Despite BLATANT and OBVIOUS financial problems our generations faced, we lacked the adult maturity (let alone simple 2nd grade mathematics) to turn this country around.  And while the baby boomers have been voting more and more conservative, it is the younger generations through galactic stupidity, ignorance and selfishness that merely nailed a couple more nails in the US-coffin and thus our own futures.

Like I said, I doubt there will even be any money for Gen Y, Gen X and any future generations to make good on all those socialist entitlement goodies we promised ourselves.  But before we start blaming previous generation’s for our current problems, we should start blaming ourselves for making our future problems worse.

We should be careful about pitying young people who are struggling to find work, and who won’t get a dime from social programs like Social Security and Medicare. They are voting to punish employers with taxes and regulations. Most of them don’t know or care about what they are doing – they don’t connect their vote to their unemployed status. They think that education means jobs, and that they can vote in order to feel good and be liked, and still find work. They think that if they pay into these entitlement programs, then the money will be there. They trust Obama and they vote for him. They are not victims.

Who is responsible for building up the faith of children? Parents or pastors?

This article is from Probe Ministries. (H/T The Poached Egg)

Excerpt:

In 2010, we commissioned a survey to help us examine the causes and potential opportunities to change the marked shift in the thinking of young adults over the last decade. We surveyed over 800 born again, young adults across America to get an understanding for what they thought about spiritual and cultural issues and how they felt about their beliefs and actions. One area of questioning was, “When you think about how you developed the religious beliefs you hold today, who do you feel had the greatest influence on you? Did your beliefs come from your family, your friends, your church, your independent studies, your college professors, or others?”

The answers we received to this question were not shocking but still sobering. Over sixty-five percent of the respondents reported that the source that had the greatest influence on their religious beliefs was a family member, with the vast majority of those saying it was parents or grandparents. Over twenty percent of the respondents pointed to another influential individual such as a pastor, youth leader, or college professor. Only about eleven percent stated that something less personal such as a youth group or the Bible was the greatest influencer of their religious beliefs.

As Christian Smith noted, “What the best empirical evidence shows . . . is that . . . when it comes to religion, parents are in fact hugelyimportant.”{5}In fact, “religious commitments, practices, and investments made during childhood and the teenage years, by parents and others in families and religious communities, matter – they make a difference.”{6}

Of those who stated that a family member was the primary influence, over seven out of ten stated it was their mother or grandmother while less than three out of ten said it was their father or grandfather. So clearly amongst born again young adults, the female side of the family has a greater influence in passing down religious beliefs than do the males. One can postulate that this may be due to a combination of greater spiritual involvement on the female side of the family and a higher level of communication with their children. However, the rate of fatherly influence almost doubles for young adults with a biblical worldview compared to those without such a worldview. So it appears that fathers who hold a biblical worldview are much more likely to be involved in establishing the spiritual beliefs of their children.

Less than one out of ten of the respondents listed a pastor as the primary source of influence, and only three percent listed a youth group. These church-related functions may have an important role in helping to shape our religious beliefs, but our survey shows that it is at best a secondary role for the vast majority of people. We are mistaken if we are relying on the church to pass on the right type of beliefs to our children. Parents, what you communicate through your lives is picked up by your children. What are you communicating to them concerning religious beliefs?

I have been working through a Bible study with a regular WK-reader (Tracy) and we are going through Deuteronomy right now. Today (Thursday) I read Deuteronomy 6-8. And here are a couple of verses that I think you should see related to this topic.

Deuteronomy 6:4-9:

Hear, O Israel: The Lord our God, the Lord is one.

Love the Lord your God with all your heart and with all your soul and with all your strength.

These commandments that I give you today are to be on your hearts.

Impress them on your children. Talk about them when you sit at home and when you walk along the road, when you lie down and when you get up.

Tie them as symbols on your hands and bind them on your foreheads.

Write them on the doorframes of your houses and on your gates.

It’s our responsibility to teach our children, and if you don’t have children, then you just pick someone else who is willing to listen to you. We must all make an effort.

Sean McDowell surveys the beliefs of today’s young adults

The article is here on Conversant life.

Excerpt:

  • Skeptics and perspectivalists: “Most have great difficulty grasping the idea that a reality that is objective to their own awareness or construction of it may exist that could have a significant bearing on their lives. In philosophical terms, most emerging adults functionally are soft ontological antirealists and epistemological skeptics and perspectivalists…” (45)
  • Everybody’s different: “Nearly any question asked of them about any norm, experience, rule of thumb, expectation, or belief in life is very likely to get an answer beginning with the phrase, ‘Well, everybody’s different, but for me…’” (48).
  • Individualism: “The absolute authority for every person’s beliefs or actions is his or her own sovereign self” (49).
  • Settling down is for later: “But they also want to relish it [young adulthood] as the time to be young, have fun, and avoid major responsibilities…Later, when they settle down they’ll be sober, faithful, and responsible adults. The assumption seems to be, ‘Whatever happens in my early twenties stays in my early twenties’” (57).
  • Relationships are amorphous: “Old clear-cut labels, like ‘just friends,’ dating, courting, and engaged, for instance, are too black-and-white for the way many emerging adults relate today…” (58).
  • Cohabit to avoid divorce: “The vast majority of emerging adults nonetheless believe that cohabiting is a smart if not absolutely necessary experience and phase for moving toward an eventual successful and happy marriage” (62).

I think it would useful to engage these guys to think throught their beliefs more rationally. On the one hand they want to cause no harm, on that other hand they are totally uninformed about the likely outcomes of their own behavioral choices. E.g. – cohabitation increases the risk of divorce by 50%. Break-ups hurt – and certain behaviors affect the likelihood of a messy break-up. Bad behaviors undermine your view of the trustworthiness of the opposite sex, as well as your ability to be content in a monogamous relationship with responsibilities.