CEO On Why Youth Unemployment Is So High

One of my earliest places of employment was Carl’s Jr., part of Carl Karcher Enterprises, which also now includes Hardees.

The current CEO has written a substantive piece on the horrible job situation for young people today, immediately attributable to wrong-headed Federal policies.

Published at Zero Hedge (originally in the Wall Street Journal):

In President Obama’s speeches this year, a steady theme has been creating jobs and economic opportunity for Americans. In his State of the Union address in January he said that “what I believe unites the people of this nation . . . is the simple, profound belief in opportunity for all—the notion that if you work hard and take responsibility, you can get ahead.” And in his weekly address on Saturday, he repeated his strong appeal to young people: “As long as I hold this office, I’ll keep fighting to give more young people the chance to earn their own piece of the American Dream.”

Yet during the more than five years Mr. Obama has been in office, young people have been especially hard-hit by the slow and virtually jobless recovery. Given the destructive effect this has on individual initiative and the prospects of a productive and rewarding working life, the continuing struggle of young Americans to find jobs, start building families and contribute to society is no longer simply a matter of politics or policy. On a deeply human level, it’s profoundly sad.

[…]

Minimum-wage jobs have always been a gateway to better opportunities. In making hiring decisions, businesses must weigh the quality and value of work that entry-level employees produce against the cost of employing them. For many businesses in high-minimum-wage states or municipalities—Seattle leads the list, having approved a move to a $15 minimum wage—that trade-off is no longer working.

The bottom line on labor: Make something less expensive and businesses will use more of it. Make something more expensive and businesses will use less of it. The Congressional Budget Office has forecast a loss of 500,000 jobs should the president’s proposal to increase the federal minimum wage to $10.10 an hour become law.

[…]                                       

ObamaCare gives businesses an incentive to either eliminate entry-level jobs or keep the workers’ hours to under 30 a week. It also gives businesses a reason to reduce the hours of experienced employees to under 30 a week. These experienced employees are now working second jobs to compensate for their lost hours—resulting in fewer positions for less-experienced workers…

The government can temporarily buy votes among the uninformed, but they cannot repeal and suspend economic law. If current government trends continue, we are headed to Third World economic conditions, where employment opportunities are decreased, and more become dependent on government for daily bread.

This is a toxic mix—one that threatens to undo the American miracle. Government does not create jobs, but it sure can poison the atmosphere and make the employment situation markedly less healthy.