In a development which was thoroughly predictable by anyone who has thought about it fewer youth were employed in July than in any July since 1948:
The Labor Department said 4.4 million youths were unemployed in July 2009, or about 1 million more than in July 2008, putting the youth jobless rate at 18.5 percent, about double the overall national percentage. Fewer young people were even trying to be part of the labor force this year than in recent years, perhaps choosing summer school, odd jobs around the house or idleness instead.
Two factors are surely responsible for this: The first is the tight economy and the second is the recent increase in the minimum wage. Ed Morrissey at Hot Air focuses on the latter:
Since 2007, Democrats have led the charge to increase the minimum wage in the US, claiming that the poor hadn't gotten a fair shake from employers. Nancy Pelosi and the late Ted Kennedy pushed hardest for mandating increases in wages despite warnings that the net effect would be to lower employment for teens and entry-level workers while creating inflationary pressures on prices, negating the gains through loss of buying power. For the second year in a row, those predictions have come true.
It is a simple matter of common sense that if employers are required to pay their workers more money they'll try to get by with fewer workers, especially in a recession. Those lucky enough to find a job will perhaps benefit from the higher wage but millions of others will get left out. Moreover, the higher wage rate usually results in higher prices which reduces everyone's real income.
Raising the minimum wage is a lousy idea, as it increases both unemployment and inflation, but Democrats push it because it makes them popular with people who don't really think about, or care about, the hidden consequences of such measures.
RLC
