Thursday, August 9, 2007

From the Department of Economic Literacy or lack thereof

I was browsing through the news this morning and I came across this lovely item in the Politico by Roger Simon.
THE POINT: Clinton is promising “a national response” to “the crisis of the more than 4 million young people between 16 to 24 who are out of school and out of work.” Barack Obama has announced an “urban poverty” agenda that covers some of the same ground.

The programs are interesting because they show how the conversation in Washington would change with a Democratic president. Some Clinton details from a campaign prĂ©cis: “She will … launch a $100 million Public/Private Internship Initiative to give at-risk middle- and high-school students job skills and work experience during the summer. … In addition, she will offer 1.5 million disconnected youth a second chance with meaningful job training in growing industries in their own communities, including renewable energy, health care, construction and financial services.”

Thats the meat of it... and the illiteracy part comes in here. Senator Clinton and Senator Obama, who has a similar program both voted for the minimum wage increase. There are numerous studies that talk about the effect (negative) on teen employment prospects because of a minimum wage increase. This one here is my favorite. The totally ironic thing as the study points out, the very people that Senator Clinton hopes to help through her new government program, are the very SAME people the minimum wage bill that she so proudly voted for has hurt the most. The most logical thing would be to remove the distortion and get rid of the minimum wage, but thats not how politicians think. One government mistake, needs another government program to fix it... only in Washington.

A better idea, save $99,999,000 and send all of the senate to Professor Mankiw's ever so popular economics class. :)

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