Earlier quoted context omitted.
This is what seems logical, but most of the time the second thing will happen, because there are many people who think every job is better than no job. There are lesser jobs than people, so the companies have the bigger lever.
Before there was minimum wage established in the US there was this job of pump attendant. Pump attendant was someone who would pump your gas into your car. These were jobs that paid next to nothing. These jobs disappeared almost immediately after the minimal wage law was enacted. Now, think about it. A 16-year old would come to the gas station after school and pump gas for (let's say) 2usd/hour. But he would also lea…
"It's illegal to hire him, pay him and let him grow to better position."
That's ridiculous. Managers take chances on noobs all the time, especially at the lower levels.
"Again, the unemployment rate among the young is the highest among all group ages"
Hello Arab Spring, coming soon to a failed state near you. Historically a graph with a y-axis of "desperate angry unemployed young men" tends to peak around revolutions and upheavals. The future is on a path that is aimed much more toward France in the 1790s than USA in the 1950s. There are probably startup implications to this trend toward inequality for awhile, then revolution.