The White House and Democrats are dancing in the streets celebrating the latest government unemployment figures which dropped from 7.6% to 7.4%. They are saying that this is proof that the economy is improving and jobs are returning, but like most reports coming out of the Obama administration, they are very misleading indeed.
A number of experts are saying that the main cause for the 0.2% drop in unemployment is the number of people dropping out of the job hunting market. You have to remember that the government’s unemployment figures are solely based upon the number of people that are filing for or collecting unemployment benefits. The figures do not account for the people that have run out of unemployment benefits or who have just given up and stopped looking for jobs at this time.
One unemployment figure that the White House is not reporting is that of black teens. When Obama first ran for president in 2007-8, he promised to create more jobs for blacks and black teens. He promised to help them with a variety of programs. Part of the Stimulus package was supposed to create more jobs for blacks and black teens.
In March of 2013, the unemployment rate of black teens was a staggering 33.8%. One of every 3 black teens were unable to find a job. Only 4 months later in July of 2013, the unemployment rate of black teens jumped to 41.6%. Nearly half of America’s black teens are finding it impossible to find a job.
Now consider the fact that Obama and his fellow Democrats are pushing to raise the minimum wage from $7.25 per hour to $9 per hour. In today’s economy, many businesses, small, medium and large, are barely able to keep their doors open. Forcing them to raise minimum wages by $1.75 per hour would be too much for them handle, forcing them to lay people off or close their doors, both of which will only increase the ranks of the unemployed.
If a small businessman had 10 employees making minimum wage and is forced to increase their wages to $9 per hour. That will cost that businessman $36,400 per year. In many cases, there is no other place to draw the extra wages from except from directly out of small business owner’s pocket. Not all small business owners can afford it and will have no alternative but to either reduce staff or go out of business.
Now consider a business owner who has 100 employees making minimum wage. He’s now looking at an increase of $364,000 in annual wages. That could easily be enough to force some medium business owners to close their doors. Then add the Obamacare employer mandate that forces them to provide healthcare benefits to all full time employees. If they don’t provide the healthcare benefits, they pay a penalty to the government for each employee not covered.
Increased minimum wages and the Obamacare employer mandate will definitely force a number of businesses; small, medium and large, to lay off employees or go out of business. The unemployment rates will begin to rise, especially for black teens who often hold minimum wage jobs. It would not surprise me to see the unemployment rate for black teens to climb to 50% and higher.
This causes me to ask why so many of these same blacks continue to blindly support Obama and the Democrats, that are only making it harder on them to find jobs and become productive members of society?