Saturday, July 12, 2014

Raising the minimum doesn’t help the unemployed

Did you notice whose unemployment rate is going up? Teens. The under 25 and part timers are the bulk of Obama's latest minimum wage move to attract voters.
“Among the major worker groups, the unemployment rates for adult women (5.3 percent) and blacks (10.7 percent) declined in June, and the rate increased for teenagers (21.0 percent). The rates for adult men (5.7 percent), whites (5.3 percent), and Hispanics (7.8 percent) showed little change. The jobless rate for Asians was 5.1 percent . . . The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) increased by 275,000 in June to 7.5 million. . . In June, average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents to $24.45, following a 6-cent increase in May.”

Both Hoover and FDR imposed policies that kept wages artificially high during the Great Depression, which was fine for those who kept their jobs but death for those looking for jobs. When the economy would start to recover, out would come another regulation, and boom, down it would go again, Same thing in smaller doses during this recession. Those who have jobs are doing well and "fat cat cronies" are wealthier than ever; those who don't, well, good luck.

Someone needs to look into this Asian unemployment rate to see why they are in such demand for American employers. They are working hard, staying in school, have a high marriage rate and only 2.4% of welfare recipients are Asian (5.1% of the population) compared to 38.8% of recipients who are whites and 39.8 % blacks, and so they have a leg up on staying employed and moving up the ladder of success. Is that fair? The good news is they are the fastest growing minority in the U.S.

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