Tuesday, June 10, 2008

The Wages of "Compassion"

Last week we wrote at length about the unemployment leap to 5.5%. Drilling down into the data it was clear that the jump was due entirely to the 16-24 year old summer job search by kids like Poindexter * pictured here. Some of this jump was due to the way the data was massaged differently, but there was actually an underlying problem-- Democrat legislation enacted last summer destroyed many thousands of summer jobs this year.

The folks at IBD can tell you all about it here. The idea that raising the minimum wage decreases employment isn't any big revelation. It always happens that way. But most of us had probably forgotten that one of the first moves the new Democrat Congress made last year was to pass job-killing legislation. They are soooo compassionate and caring. Just ask Poindexter.

* - Poindexter used to head up our analysis area. I fired him this month to save his salary and benefits cost in anticipation of the large tax increases coming after January 2009.