What The Minimum Wage Means For The Young Turks In Germany
Since the coalition negotiation between the CDU and the SPD began, a key aspect of these talks has been the discussion on the introduction of a minimum wage in Germany. Ostensibly, the minimum wage is something good; for the German left at least. In fact, it will be detrimental for the labor market. The ones who will suffer most are the unemployed and the low- and un-skilled workers. The Turkish minority in Germany (exemplary for similar demographics) will be among those affected most.
The unemployment rate among Turks is above 20 percent. This rate is more than three times as high when compared to the national unemployment rate. In particular the Turkish youth is affected by a very high unemployment rate. The prime reason for this is that significant parts of the Turkish youth are unskilled and uneducated. The reason for this in turn is the lack of developing cognitive skills to facilitate interest in education and erudition. While there are cultural explanations for this, the failure of the German education system to abrogate this predicament of the Turkish youth is equally to blame.
This predicament of the Turkish youth will not be remedied for the foreseeable future. In fact, the continuous decline in educational standards advocated by the multiculturalist left will continue to make matters worse. Not only does this educational system fail to stimulate interest in the youth but effectively stymies what intellectual curiosity is left. Thus for the foreseeable future, large segments of Turks in Germany will have to rely on low paid jobs for a living if they do not want to end up on the government dole. Yet the migrant youth is figuratively hit by a double whammy when pursuing employment. Not only do they lack skills and education, they are also confronted with an overregulated job-market.
This overregulated job-market prevents employers from easily hiring and eventually firing low skilled labor. Adding the burden of the minimum wage will just make matters worse in that another disincentive is put in place to hire low-skilled and low-paid workers. Introducing the minimum wage will not make it more attractive to higher unskilled Turkish youth but will have the opposite effect. The effect of introducing a minimum wage in Germany would be to price low-skilled workers out of jobs.
If an employer needs help and calculates that he could afford five Euros an hour, yet the minimum wage laws required him to pay 50 percent above this, the job opportunity would not be created in the first place. What is the plausibility that someone who could afford to hire someone for five Euros an hour and would still hire for 7.50? A realistic compromise and assumption would be that he might still hire, yet for half the time and then demand of the employee to work harder to deliver more in less time. A plausible scenario where the employee gets the short end of the stick.
Thus deregulation and not even more regulation of the labor market would be conducive to increase employment among Turks and similar demographics. Instead, with continued overregulation, these people are driven into the social welfare system. And after what one of Germany’s top politicians, Katrin Göring-Eckardt said in a recent interview, that might be the aim of the political class after all. This might sound insidious to the outside observer, yet that is exactly what the vice-president of the Bundestag had to say about immigrants and being on the dole rather than being in employment.
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