Taking their cues from Obama's State of the Union address almost two months ago, liberal leaders continue to push for a national minimum wage increase.
Which could spell deep trouble for young people trying to break into the job market
National Journalism Center graduate and Reason columnist Vera Soliman explained in a post last week that some small businesses are already anticipating the hike. One Virginia Beach shop owner already plans to lay off 10 employees, replacing them with touch screen menus. This follows the trend of chains such as Sheetz, which has eliminated person to person ordering.
According to the Washington Post, businesses in the United States last year averaged a 7.6 percent profit margin. Obama demanded that Congress raise the minimum wage by 24 percent. The Detroit News said in February that this idea had to "come from an alternate universe." To simply survive, many businesses must raise prices (which Obamacare has already forced in some sectors) or trim labor costs.
The Detroit News also emphasized the effect on young workers. It said
The result was a plunge in working youth. Teen unemployment today is
at its highest levels since records were first kept in 1948 with only 25
percent of 16-19-year-olds working. Black teens in cities like Detroit
are already reeling from last year's 42 percent unemployment rate, a
significant increase from just a few years ago.
After the last spike in the minimum wage, Dunkelberg claims teen jobs disappeared.