Reuters is reporting that unemployment amount young adults is at a record levels.  Their solution: government funded jobs program and internships.

Wrong! It’s always more government (and more of your money) with these people. High unemployment among unskilled workers is a direct result of a higher minimum wage. It is true that unemployment has gone up because of the recession, but it has hit unskilled and new workers harder than other groups because of the recent increases in the minimum wage.

A few short years ago, we needed more workers. Illegal aliens were given the excuse that they do the work Americans won’t do. It was a bogus argument. We were at near full employment. They were doing the jobs that Americans wouldn’t do for a low wage. The supply of labor was low and the demand was high. The tide has changed. We are not at 10% unemployment. The supply of workers is far greater than the demand for workers. To increase the demand, we need to let the market operate. We need wages to drop.  This may not “feel” fair, but it reduces the cost of doing business and increases employment among those who need experience…and it does it without the heavy hand of government.

What unskilled laborers need is for the price of labor to match the worth of labor. Markets normally take care of this balance, but the progressives in our government want to show how fair and caring they are. Their intentions may be good, but their results and logic is atrocious.

You can leave a response, or trackback from your own site.