Why do we have such high teen unemployment?Submitted by britterm on Tue, 08/27/2013 - 02:57
We still have high unemployment, especially among teens (and REALLY especially among black teens). Why?
An "economy" always economizes. Supply and demand. Prices.
When the supply of something increases without a rise in the demand for it, the price falls. When the supply of something stays constant while the demand for it rises, the price rises.
In this case, the something is labor. The price is the wage.
How do you raise demand for labor? You remove the barrier that the minimum wage has created on the price of unskilled labor.
People will say "how cruel, people need to make a living wage!". I'll respond "so you force them sit idle instead?" People will say "you can't ask someone to work for so little!" and I'll respond "they're not being paid solely in money - they're also gaining skills and confidence".
The fact of the matter is that people don't like to be ousted from their job by less expensive workers, so some of them (usually in a union) lobby for legislation to force unemployment on the unskilled. Those unemployed people will never be able to gain the skills necessary to take the union members job, mission accomplished. It has nothing to do with "helping the poor", although it's sold to the public as such. It has everything to do with oppression.
The solution to high unemployment is to eliminate the minimum wage. Let people work at whatever price they're willing to. Let them gain skills while making at least SOMETHING. The minimum wage may sound good, but it does not benefit the poor. It benefits those who are threatened by the poor.