Publisher's Note: One of the most significant things you can do to promote Liberty is to support our mission. Please make your gift to the 2024 Patriots' Day Campaign today. Thank you! —Mark Alexander, Publisher

April 19, 2016

The Myth of the Productivity-Pay Gap

The government’s statisticians committed several errors while calculating.

The Obama administration is wrong about its assessment of the productivity-pay gap. Year over year, American workers grow more productive. They log an hour; they get more done — less time on social media, perhaps. However, as many in America’s labor force can attest, the hourly wage has stayed flat for years. The Obama administration thinks part of the cause is that Americans are working overtime yet are not getting paid for those efforts. So it wants to force a solution. As economist Veronique de Rugy writes, the Department of Labor recently moved to force employers to pay more employees overtime. This will, of course, result in less pay and fewer jobs for workers.

According to numbers crunched by the Mercatus Center, the average hourly growth has barely risen — which leads to the government’s worry — while total compensation rises with productivity. The problem is that the government’s statisticians committed several errors while calculating the two lines. For example, the government’s number crunchers measured the productivity of all workers — including people who were self-employed. But when it came to measuring hourly wages, those workers were not counted, causing skewed numbers. When the Mercatus Center took all those factors into account, it found compensation is rising alongside Americans’ productivity. This doesn’t fit the Left’s narrative, and so the Obama administration will continue to act, hurt hardworking Americans, and still claim that it — the bull in the China shop — is helping.

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.