A Forbes Columnist opines on the spike in teenage black unemployment:
Today black teen unemployment is more than 40 percent; nearly double that for white teens. In 2007, prior to the Great Recession, the black teen unemployment rate was about 29 percent. There is no doubt the increase in the federal minimum wage from $5.15 to $7.25 per hour contributed to the higher unemployment rate. If Congress passes a new minimum wage law that makes it illegal for employers to pay less than $9 per hour, and for workers to accept less than that amount, we can expect further erosion of the market for unskilled workers, especially black teens.
Sure, we can look to other pieces of research that say that the effects are modest, or that they’re worth it, but even that research still tells us that the negative effects are going to be concentrated down onto teens and more especially black teens. There’s more in two NBER papers for those who want more detail.
My basic objection to a minimum wage at any level (yes, I do think it should be $0 an hour) is that whatever the bad effects upon employment those effects are inevitably going to be visited upon those already being shafted by the current set up of society: those black teens. As they are being and is this really the time to be making them even worse off?