Reason for Friday’s Unemployment Spike
- From: "JerryD\(upstateNY\)" <jerryd@xxxxxxxxxxxxxxxx>
- Date: Mon, 9 Jun 2008 05:07:47 -0400
Kids getting out of school/college and looking for jobs they can't find,
because the stupid Democrats raised the minimum wage, caused the spike but
the liberal media blamed Bush.
Ask yourself a few questions: Why did unemployment surge at a time when
unemployment compensation claims are historically low? More to the point,
how could unemployment spike this much without a coinciding spike in
corporate lay-offs?
The answer to all of these questions is same: because very few people lost
jobs last month. This huge jump in the size of the unemployed comes from new
entrants to the economy ? hundreds of thousands of them. In short, well over
600,000 people who were not job seekers in April became job seekers in May.
And who starts looking for work at the end of Spring? That?s right ?
students. Hundreds of thousands of students are looking for work right now,
and they?re not finding it.
Congress is to blame. Last year Congressional Democrats (along with some
Stockholm-Syndromed Republicans) passed the Fair Minimum Wage Act of 2007,
which started a phased hike of the minimum wage from $5.15 an hour to $7.25.
Free market economists warned them that this would increase unemployment ?
that rapid increases in unemployment compensation hit teens and minorities
the hardest. But the class-warriors are running the people?s house now, and
they would hear none of that, so they took to the floor, let loose the dogs
of demagoguery, and saddled America?s pizza parlors, municipal swimming
pools, house painting businesses and lawn mowing services with a huge cost
increase.
Now, we see the perfectly logical outcome of wage controls ? rising
unemployment among the most economically vulnerable. The chart above tells
the story: Friday?s unemployment spike occurred overwhelmingly among
teenagers, and secondarily among African Americans. Just like we said it
would. A kid who is at entry level of job skills may be a good deal at 5
bucks an hour, but not at 7. Our anointed leaders gets to glory in their
generosity (with other people?s money) and just so long as very few people
in the media know that a demand curve slopes downward (a good bet, there),
no one calls them on it.
This summer the left will make political lemonade out of a tough student job
market. Heck, it may provide a small army of angry unemployed youth to man
the campaign, hungry for hope and (loose) change, never once realizing that
they?re working to entrench the leftie war on business which left them
jobless this summer in the first place.
http://www.townhall.com/Columnists/JerryBowyer/2008/06/08/what_the_media_didn%e2%80%99t_tell_you_about_friday%e2%80%99s_unemployment_spike
--
JerryD(upstateNY)
.
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