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alstry (36.32)

Can You Live on Minimum Wage????

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July 07, 2009 – Comments (6)

Eateries, clothing stores and other businesses that typically hire teens in entry-level positions have been hammered by the recession and are cutting staff. Nearly 10 percent of Americans, and more than 11 percent of Californians, are unemployed. Adults with college degrees are now working in minimum-wage jobs traditionally held by teenagers.

"I'd like to get a restaurant or retail job, but it's almost impossible," said Brandon Burson, who is 16 and a senior at El Camino Fundamental High School in Sacramento. "For every one job that opens up, there are hundreds of applications."

Figures released Monday by the nonprofit Employment Policies Institute are sobering. The group puts the teen unemployment rate at 24 percent, its highest rate in 17 years.

The shaky economy, combined with a rising federal minimum wage, has squeezed many teenagers out of the job market this summer, said Kristen Lopez Eastlick, senior research analyst for the group.

The federally mandated minimum wage is set to increase to $7.25 per hour on July 24. California's minimum wage is even higher, $8 an hour.

"Because there are so many adults out of work, competition for jobs is really tough," said Terri Carpenter, spokeswoman for the Sacramento Employment & Training Agency, which helps youth prepare for and find work. "Unfortunately, because of the economy, a lot of kids will not be getting jobs this summer."

Thanks to an infusion of federal stimulus funding, SETA this year sponsored a summer youth employment program, putting 1,054 young people to work in jobs paying the minimum wage.

Iesha Shepherd, 18, is one of them. Shepherd, who is attending summer school and has numerous family commitments, needed a position with flexible hours and found one at Ace Supply Hardware in North Highlands.

"I'm very willing to work," she said.

The city of Sacramento also has a youth vocational program, but it received far more applicants this year than it could accommodate, said supervisor Cheryl Rose.

"We had 735 qualified youth applicants for 64 jobs," said Rose. "So we're not even hitting 10 percent of the need."

In recent months the agency also has been getting applications from "very overqualified" adults who want to work with children, she said. "These are people with two master's degrees, and they need work. A lot of people are out there looking."....

http://www.sacbee.com/topstories/story/2005178.html

As the pain increases, so will the stress.  How long do you think it will be before policy makers start a war, pandemic or other event to distract us from this inevitable train wreck????

Bankers getting huge bonuses as homeowners get thrown out of their homes?  Government misjudging the severity of the downturn when they are lying about the numbers?  Wall Street getting trillions of dollars while credit being cut off to the masses???

 

The protests are already starting.  The food banks are running out of food.  You can fantasize all you want about a second half recovery.........9.09 is getting closer every day.

 

6 Comments – Post Your Own

#1) On July 07, 2009 at 9:18 AM, dickseacup (66.79) wrote:

Iesha Shepherd, 18, is one of them. Shepherd, who is attending summer school and has numerous family commitments, needed a position with flexible hours and found one at Ace Supply Hardware in North Highlands.

"I'm very willing to work," she said.

She's very willing to work, as long as the employer is willing to work around her "numerous family commitments." I am glad she found an employer who was willing to do so, but if there are only enough jobs for 10% of applicants, young Iesha was very, very lucky.

Distractions from the economy?

How about a Crazy Theory:

Israel attacks Iran, US called on to support its "ally," engages "the enemy" as well.

Dots:

US gets permission to move materiel through Russia, purportedly for use in Afghanistan. Afghanistan happens to be next door to Iran.

US troops in Iraq are pulling back from cities/urban areas. This frees them up for action elsewhere. Iraq happens to be next door to Iran.

Saudi Arabia has indicated that it would allow Israel to traverse its airspace for a strike on Iran. Saudi Arabia happens to be next door to Iraq, which is next door to Iran. The US military effectively controls the airspace of Iraq and is not likely to deny the Israelis permission to traverse it. (note: it would be a shorter trip for the Israelis if they could cut through Jordan into Iraq)

Biden has said the US won't stand in the way of Israel striking Iran's nuclear installations. Obama says not true, but Dear Leader is operating under the rules of "perpetual opposite day."

QED? Not quite. But, I did say "crazy theory" and gave you some dots to connect.

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#2) On July 07, 2009 at 9:24 AM, alstry (36.32) wrote:

HOW WILL THEY COVER UP THE FRAUD?????

This from Denninger:

 

Yeah, you've got these "public" pension plans that don't like the rules that private pension plans have to use for their accounting, and this is what they're telling their "auditors":

Some public pension administrators have a strategy, though: Keep taxpayers unsuspecting. The Montana Public Employees' Retirement Board and the Montana Teachers' Retirement System declare in a recent solicitation for actuarial services that "If the Primary Actuary or the Actuarial Firm supports [market valuation] for public pension plans, their proposal may be disqualified from further consideration."

Is that kinda like "intentionally understate the shortfall or you're fired"?

Looks like it to me.

Let's be clear (again), just so nobody can claim they weren't warned:

These plans are critically underfunded - all of them.  Many of them shifted to an equity-heavy focus in 2007 just as the market topped, and some (including CALPERS) were even dumb enough to get involved in the speculative real estate bubble in 2005!  If your supposed pension is provided by these funds you have a problem and you better pay attention now, because these sorts of actuarial problems, once they get going, cannot be reversed as they take years to show up, by which time its too late to fix it.

The alleged "requirement" to make up shortfalls from the governments involved sounds all fine and well, but how do you squeeze blood from a stone?  WHEN, not if, the tax base disappears (unemployed and broke people don't pay taxes!) your pension plan can "demand" tax hikes but if the money doesn't exist then that's just too darn bad.

The American Sheeple are lining up to be sheared again.  I was warning about this over a year ago in regards to pension plans both public and private over a year ago, along with the clear and impending train wreck in state budgets.

Will the people wake up before or after "change" is all that is left in your wallet?

http://market-ticker.denninger.net/archives/1185-Government-Fraud-Pensions.html

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#3) On July 07, 2009 at 9:47 AM, Varchild2008 (84.50) wrote:

Living on Minimum Wage would be extremely easy to do because that kind of money makes you filthy rich anyhow compared to 3rd World countries..  But, I believe getting rid of Minimum Wage laws would boost the minimum wage while bringing down the cost of Necessities like Food/Beverages, Clothing, and Shelters.

Let the private sector compete for good employees by raising wage offers to prospective applicants.

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#4) On July 07, 2009 at 10:02 AM, Melaschasm (53.74) wrote:

a rising federal minimum wage, has squeezed many teenagers out of the job market this summer

Need I say more?

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#5) On July 07, 2009 at 11:52 AM, Schmacko (44.40) wrote:

"How about a Crazy Theory:

Israel attacks Iran, US called on to support its "ally," engages "the enemy" as well."

Last year there were a lot of people on these forums saying that the US was going to war with Iran before Bush left office.  I told them they were wrong.  We're not going to go to war with Iran this year either.  It's all just crazy conspiracy talk.  If we didn't do it when a bunch of neocons were running things do you really think we'll do it when Obama, who has stated he wants to engage in higher level talks/diplomacy with Iran, is in office? 

Also we aren't going to start any more wars soon and even if we did it wouldn't provide a real distraction/solution to the economy.  We're fighting on two fronts already opening up a third isn't going to help the economy.  The types of wars that help solve unemployment problems involve conscription and are fought on much bigger scales than what we're doing now.  The draft is political suicide and you won't be seeing it again any time soon.

On a different note israel may very well strike Iran, but that doesn't necessarily involve us.  There is close to 0 chance of a real protracted conventional military conflict between the two nations.  Israel sends in Jets, Iran steps up asymetrical warfare attacks, lots of finger pointing an political grnadstanding, the end.

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#6) On July 07, 2009 at 11:33 PM, jesusfreakinco (29.02) wrote:

I detassled corn as a teenager, a job that apparently only migrant workers are willing to do.  Hopefully our teenagers will take some jobs that teach them a real work ethic again.  We'll see. 

JFC

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