What do the London riots and the recent government crackdowns on Lemonade stands across America have in common? The answer is that in each case, government has done its best to control young people, to stop them engaging in enterprise. In Britain, the project is much more advanced. So if we want to know where the war on Lemonade selling ends up, we just have to look at the smashed windows and looted shops of Clapham Junction.

Let’s start in Britain so we can see where we’re going. The first thing to know is that government has removed the incentive to work. The British unemployment rate is currently 7.7%, yet there are over 100,000 households bringing in more than $37,000 annually in government handouts (the average household income in the UK). There are 650,000 households taking home more than $25,000 in these benefits.

That, however, is only part of the story. As that essential chronicler of British national demoralization, Theodore Dalrymple, said in the Wall Street Journal yesterday, employers are no longer interested in British youth:

But while the rioters have been maintained in a condition of near-permanent unemployment by government subvention augmented by criminal activity, Britain was importing labor to man its service industries. You can travel up and down the country and you can be sure that all the decent hotels and restaurants will be manned overwhelmingly by young foreigners; not a young Briton in sight (thank God).

The reason for this is clear: The young unemployed Britons not only have the wrong attitude to work, for example regarding fixed hours as a form of oppression, but they are also dramatically badly educated. Within six months of arrival in the country, the average young Pole speaks better, more cultivated English than they do.

The icing on the cake, as it were, is that social charges on labor and the minimum wage are so high that no employer can possibly extract from the young unemployed Briton anything like the value of what it costs to employ him. And thus we have the paradox of high youth unemployment at the very same time that we suck in young workers from abroad.

The role of the minimum wage is crucial. It is around $10 per hour (slightly lower for 18-20 year olds), much higher than the US minimum of $7.25. The difference is all the more important when one considers that the US has a higher average income (around $42,000 annually), meaning that British employers are being asked to pay (roughly) over half of average wage as a minimum rather than a third in the US.

(more…)

There has been much speculation that today’s Massachusetts Senate race is a referendum on health care. That may be an understatement.  My guess is that this senate race could have even larger repercussions.

During an appearance on “Fox News Sunday,” this past week, Senate Minority Leader Mitch McConnell put it well when he said that President Obama’s plan to bring about “change” to America wasn’t merely limited to health care.  As McConnell noted,

“This arrogant attempt to have the government take over one-sixth of the economy on the heels of running banks, insurance companies, car companies, taking over the student loan business, doubling the national debt in five, tripling in 10. You’ve got … sort of widespread public revulsion.”

Indeed, health care is not all that hangs in the balance.  A September Wall Street Journal columnoutlined President Obama’s next move (presumably, after passing health care): A $100 billion a year government takeover of school loans.

(more…)