Friday, August 28, 2009

18.5%

That's the July unemployment rate for 16-21 year-olds. Why? Three words: minimum wage increases. Basic economics, people. Increase a business' costs with no corresponding increase in output or revenue, and you have a problem. In that kind of environment, the easiest short-run solution for business owners is to lower employment costs (ie. fire existing employees or, alternatively, not hire additional employees), which means more teens (and other lower-wage workers) get left on the sidelines. Those jobs were neither created nor saved.
It's not rocket science.

No comments:

Post a Comment

Comment here or write us at GrimpHQ@gmail.com