Saturday, June 07, 2008

Unemployment and the minimum wage: another brilliant Democratic plan implodes

So the mainstream media is trumpeting bad news for the economy: a big jump in unemployment from 5.1% to 5.5%. A certain Mr. Patterico analyzes the numbers and comes to a not-so-shocking conclusion.

[Unemployment] didn’t spike due to a big loss of payroll jobs — those declined only by 49,000 in April. That would be only .0004% in an economy of about 138 million workers.

...the unemployment rate for the 16-24 age group was up dramatically compared to other groups. Unemployment in that group rose 2.4%, compared to increasing by only .4% in the group of workers 25 and older.

Who does this age group represent? How about high school and college students coming into the job market for the summer... And what do many such job seekers get paid? Minimum wage – which Congress increased last year from $5.15 to $5.85, and which will increase again next month to $6.55, and then again next year to $7.25...

Read the whole thing.

The fact that the Democrat Party survives -- despite its insane policies that inevitably crash and burn -- never fails to amaze me.

Hat tip: Larwyn

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