18% unemployment among young people

Yesterday an economic report showing that 18% of young people looking for a job were unemployed. Notice it says "looking for a job." one in five young people who want a job can not find one. It is not a surprise to me knowing the current situation we have in our nation and the laws that are in place to help that 18 percent as well. You say "What Jess"? What does the laws that are in place to help them got to do with the situation? It have everything to do with it... It is causing it!

Wages is a cost to an employer. The employer pays rent, wages, interest, capital, etc... Wages is by far the highest cost to most employers. In other words the pay that a person gets is a cost to the employer. If vehicles had a new tax put on them that raised the price what would be the consumers reaction? If you said buy fewer vehicles then go to the front of the class your right as Professor Walter Williams would say at George Mason University. The same is true to employers. If the cost of wages goes up then he will buy less and instead save that money or buy more capital (machines) as a substitute for it.

With minimum wages recently rising to well above $7.00/hr the cost to employers is significant. When talking about a company that employs 100,000 employees and 90,000 work at minimum wage, the price to the employer per hour of work has increased over $180,000/hr. That is well over $1,000,000/day if those employees are working 8 hour shifts. It is understandable that those employees would love high wages and we would love them to have them. But why not make it $12.00/hr if $7.50 is good? The fact is the market (employee/employer) is in the best position to decide how much pay is needed to do a job. If the employee wants more he can ask for it the employer can deny or comply. If enough employees believe they are worth more then the employer will have to comply or will risk losing his/her workforce. But when government takes that job then bad decisions can come about without the cost being seen... until the news comes on and reports: "18% unemployment among young people" who typically work at those low wages.