According to the Department of Labor, "
The July 2009 unemployment rates for young men (19.7 percent), women (17.3 percent), whites (16.4 percent), blacks (31.2 percent), Asians (16.3 percent), and Hispanics (21.7 percent) increased from a year earlier. In July 2009, 4.4 million youth were unemployed, up by nearly 1.0 million from July 2008."
Bluegrass Institute's free market champion and Board Chair, Kathy Gornik explains that the Chamber would do well to return to basic rules of free markets and advocate for a "minimum-wage holiday" to open the market to youth looking for jobs. This would ease the burdens of a minimum-wage for companies needing help but without the ability to bring on new, full wage hires. She explains,
It would be a lot easier to provide employment for these economically disadvantaged 18 to 24 year olds by having a "minimum-wage holiday". The idea would be to suspend, say just for the summer, the minimum wage law just for this group. It would be interesting to see how employers would respond. My bet is that you would see a lot of $5.00/hr. jobs done the normal way, not through a special program. The employment experience would be wonderful for these kids, and it would give them the work experience they need to get their foot on the low rung of the employment ladder with a basis for moving up, rather than standing on the ground and nowhere to go. And they'd be doing it all on their own.
The root of the problem is the minimum wage law. I wish the Chamber could promote the fundamental principles that determine a successful economy rather than support programs that must band-aid the damage caused by the violation of those principles. I know it would be politically unpopular, but the truth often is. If there was a group I would hope could stand up for free trade and rights of contract (violated by minimum wage law), I would hope it would be the Chamber. Alas, I remain disappointed.
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