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$76,000 Per Student: Training on Getting a Minimum-Wage Job

Written by Gary North on August 2, 2012

The federal government specifies that employers are not allowed to pay less to employees than what the government has determined is a minimum wage.

At present, unemployment among teenagers in the USA is around 25%.

This is a major crisis. So, the government has responded. It has created a program to train teenagers in how to get a minimum wage job.

Such training does not come cheaply. It costs $76,000 per student.

These job training programs have been in operation for 18 months.

Sen. Tom Coburn of Oklahoma thinks this is wasted money. But he wanted to study Oklahoma to see what is going on. Key findings included:

Administrative costs are high. “In one program, just 14 cents of every dollar went to actual job training.”

Here is another: “the Job Corps program spent $36,000 on flowers and billboards.”

Some job training programs appear to segregate participants by race, gender, and background. For example, Oklahoma’s 40 job training programs have eight that target Native Americans and seven for veterans–“some of which require veterans to pursue training for ‘green skills,’ not because of labor market analysis but because politicians in Washington are imposing ideological agendas on states.”

One Oklahoma constituent went through the program had this complaint:

I attended three different federally funded job assistance programs. All three were absolutely unhelpful and contributed to my panic that I may never find a good job again. One Workforce worker advised me to ‘dumb down’ my resume and even made revisions to my Workforce posted resume that included the removal of my educational and professional accomplishments. A job counselor at a different agency advised me that a ‘good job’ was one that paid $10/hour.

The government intervenes to help poor people get minimum wages. This produces unemployment. Then the government intervenes to make jobs available for middle-class government employees. They train poor people to get into the now-clogged job market.

One intervention leads to another. The supply of government jobss never declines.

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14 thoughts on “$76,000 Per Student: Training on Getting a Minimum-Wage Job

  1. Bill McCroskey says:

    I know of a 30 or maybe early 40 something that has been in 'school' (community college) for Hotel – Motel & Restaurant Management for 18 months. Said person has a brief case a laptop and looks quite the part of a businessperson/lawyer. This person is scheduled to graduate in 6 to 8 weeks and has no offers as of yet in this chosen field and I was told by this person the market rate for these jobs are minimun wage to $8.00 an hour. 18 months of earning potentional gone NEVER to be recovered and thousands of dollars in tuition, books and travel expenses to MAYBE get a job that is available with or without this 'degree.' When I hear the rosy picture of big wages and future advancement in this 'profession' from this person I want to find a gun and shoot myself. I wish this 'student' had went to embalming school ….so they could give me a discount when I pull the trigger on myself.

  2. Just another government boondoogle to line the pockets of the "administrators" of the program. DISGRACEFUL.

  3. .14 cents of each dollar for actual job creation. The government HAS to get their cut, whether there is any money left for job training or not. Why can't the .86 cent thats left, support the worker trainee and their family while going thru the classes?

  4. MarineRecon69 says:

    Every time government gets involved in this kind of stuff this is what you get, a waste of money, just like food stamps for every dollar budgeted 80 cents goes to run the program , and twenty cents goes to the clients. How in the hell can you run anything with a 80% overhead, a business would go bankrupt with that percentage of overhead.

  5. equishare says:

    Ironically. I am having a hard time getting a good maintenance guy for $15/hour. They all want something for nothing, work slowly and ask for overtime. Then after 6 months, they quit and try to get -and often succeed- unemployment. People have no jobs ethics or pride anymore.

  6. Junk Bin says:

    send them all to the military for job training. it will do them good. if they get tossed out, everyone will know that they are not worth hiring since it is well known that a retarded monkey can get a honorable discharge

  7. so so so true! Thanks for the humor today, sure needed. This kind of stuff is going on all over America, and we the taxpayers are being ripped off, so badly, it is infuriating. Maybe sparklestheclown needs to start ranting again – Yep! Gammy Sparkles – 6 yrs. in the trenches – self appointed Breitbart warrior!!!!!!!!!!!!!!!!

  8. William 1 says:

    At 73 years of age I find this UNBELIEVABLE in the USA! Now you see that McCarthy was RIGHT AND NOW WE SEE THE IMPACT OF COMMUNISM DUMBING DOWN THE USA'S WHITE SOCIETY. Now watch this-when good ole Lydon Johnson signed forced integration into effect, the schools within 4 years had to "DUMB DOWN THE CURRICULUM in order for the blacks to even sense that they were succeeding. The number that did was so few that we had to come up with the "no child left behind" and just funnel the kids through the system and now we have a counselor suggesting the student "dumb" down their education accomplishments IN ORDER TO GET A JOB??????-thank you dumb black Americans and white American for putting the idiot Obama in ofiice-you're gonna pay for that!

  9. LarrryFrfom10EC says:

    We used to have a program to teach youth how to get a job when I was young- it was called "school".

  10. […] Read More at teapartyeconomist.com. By Gary North. […]

  11. […] It costs $76,000 per student.These job training programs have been in operation for 18 months.Read More at teapartyeconomist.com. By Gary North.Related posts:Expert:Obama’s “Job Training”Boondoggle Won’t […]

  12. […] $76,000 Per Student: Training on Getting a Minimum-Wage Job […]

  13. are you out of your friggin mind? I went from VP of Sales and Marketing for a luxury home builder, making$150K a year.When the housing bubble I was lost. I have spent the past 3+ years looking everyday for a decent job. I came to Florida to help with my dads care, (he has Alzheimers) to some nitwit to dumb down my resume. Dont assume we are all sitting on the couch watching TV…and pray to God that you have a job tomorrow

  14. Why spend 76000 on something that pays min,wage why not just give it to the student and he would be well off.