As we settle into the Obama Depression era, one thing that I and others have noticed is that many of the very youth that voted enthusiastically for Obama are the ones already feeling the consequence of his policies: they are unemployed. As one of my college-age kids put it, “our generation is so over Obama, today!”.
High youth unemployment is an inevitable consequence of socialism. In modern Europe, it has always been high. Here is an example of its pervasiveness in the U.K., for example:
In Europe, the problem has been exacerbated by extensive “social safety nets” that guarantee a pretty good lifestyle for the unemployed. Why work, when you can live comfortably on public assistance combined with the black market economy (dealing drugs, for example)? There are large swaths of the European population that, like people in our inner city projects, have no idea how to work. A young man in France with a finance degree recently reported to me that he was “happily unemployed”. Thanks to his government, he leads a comfortable existence. However, that, too, shall come to an end, for Europe faces the same economic collapse as the U.S.
I really do feel sorry for university students graduating today: for many, if not most, their degrees will be obsolete by the time the economy recovers (which could be a very long time). What employer would hire a student with, say, a business, philosophy, English, or whatever degree that has lain fallow for two, four or more years when they can hire a freshly minted graduate instead? These students’ parents, meanwhile, will often have drained hundreds of thousands of dollars from their retirement funds to fund such now worthless educations. I know of parents that have destroyed their retirement options in order to put their kids through university.
So, what happens when you have armies of unemployed young people with obsolete skills? I know that this has happened before, such as in the Great Depression. However, when economic recovery did come in the mid-to-late ’40s, workers with no education and technical skills could still find plenty of hands-on work opportunities. I don’t know that this holds true anymore in a modern economy. There’s only so many openings for baristas.