Crush Liberalism

The MSM’s economic ignorance on unemployment

Brilliant analysis by the Georgia Public Policy Foundation:

The mainstream media dusted off its copy of Casablanca this week and offered its best imitation of Claude Rains to declare, ‘We’re shocked – shocked! Unemployment has increased 10 percent!’ Really? Well, it did increase from 5.0 percent in April to 5.5 percent in May, the month that offers scores of freshly minted high-school and college graduates seeking full-time employment. The media that pride themselves on understanding nuance are shocked that May unemployment has increased relative to April? However, there is more to unemployment numbers than the arrival of new grads – specifically, the 40 percent increase in the minimum wage – $5.15 per hour to $7.25 – that Congress passed in 2007. To minimize accountability for their actions, however, Congress delayed implementation until 2008. Businesses, being consumers of labor, responded to the increased cost just as consumers have responded to the increased price of gas – by reducing their consumption. In the case of the motorist, reduction means combining trips and shopping closer to home. For business, it is reduced payrolls and increased work loads for remaining employees.

Minimum wage is a payoff for unions.  It is not, nor will it ever be, a way to lift people out from poverty.  After all, the overwhelming majority of minimum wage earners are high school students, college students, or interns/trainees.  These workers are the ones who get shafted, because those that are lucky enough to NOT lose their jobs are having to pay more for everything.

June 23, 2008 - Posted by crushliberalism | economic ignorance, media bias