When the studiously centrist David Brooks writes, I usually pay close attention and nod appreciatively (HT Tyler Cown). Not this time. His May 9 op-ed about U.S. unemployment embodies blind moderation, as it seems incapable of asking deep questions about the status quo. Nowhere, for example, does Brooks consider the fact that American law makes it illegal for two consenting adults to enter a labor contract unless it meets conditions established by the public (a.k.a. 300 million strangers). Why, David, why is it illegal for me to hire a poor, inner-city, single mother or young man to do some gardening for six dollars an hour? We would both value the trade, so who is it for you to mandate that no, they must remain unemployed?
Here is Brooks:
…in 1954, about 96 percent of American men between the ages of 25 and 54 worked. Today that number is around 80 percent. One-fifth of all men in their prime working ages are not getting up and going to work.
... Part of the problem has to do with human capital. More American men lack the emotional and professional skills they would need to contribute. According to data from the Bureau of Labor Statistics, 35 percent of those without a high school diploma are out of the labor force, compared with less than 10 percent of those with a college degree.
Part of the problem has to do with structural changes in the economy. Sectors like government, health care and leisure have been growing, generating jobs for college grads.
Stop the presses! Leisure jobs require college degrees? Who is doing the fact-checking at the NY Times these days? How many college grads are changing the linen at the hotels where you travel? How many Ivy Leaguers are checking your ski lift tickets? Baby-sitting. Landscaping. Transportation. Tour guiding. Give us a break.
... The result is this: There are probably more idle men now than at any time since the Great Depression, and this time the problem is mostly structural, not cyclical. These men will find it hard to attract spouses. Many will pick up habits that have a corrosive cultural influence on those around them. The country will not benefit from their potential abilities.
Finally, some common sense. Unemployment in the early years of a working life is corrosive across multiple dimensions. It is socially stunting, creates shame, hinders skill acquisition, and leads to long-term dependency on the state for support with that whole set of dysfunctional incentives. So why continue to make it harder for unskilled Americans to get their first step on the income ladder and acquire skills?
While we're at it, let's crack down on those internships!
