April 15, 2014

Dems Play Politics With Bogus 77-cent Differential in Male-Female Pay

An economist serving on a second-term president’s Council of Economic Advisers might expect to weigh in on fundamental issues, restructuring the tax system or making entitlement programs sustainable over the long term. Barack Obama once talked of addressing such issues, and Republican leaders such as House Ways and Means Chairman Dave Camp are doing so. But that’s not what University of Michigan economist and CEA member Betsey Stevenson finds herself doing. Instead, she is defending the use of misleading statistics in support of legislation addressing a minor problem.

An economist serving on a second-term president’s Council of Economic Advisers might expect to weigh in on fundamental issues, restructuring the tax system or making entitlement programs sustainable over the long term. Barack Obama once talked of addressing such issues, and Republican leaders such as House Ways and Means Chairman Dave Camp are doing so.

But that’s not what University of Michigan economist and CEA member Betsey Stevenson finds herself doing. Instead, she is defending the use of misleading statistics in support of legislation addressing a minor problem.

The legislation is Obama’s latest pay equity measure, which failed to pass in the Senate last week. The misleading statistic is 77 cents, cited repeatedly by Obama as the amount women earn for every dollar earned by men.

When challenged on this by MSNBC’s Irin Cannon, Stevenson admitted that the 77 cents figure is misleading. “If I said that 77 cents was equal pay for equal work, then I completely misspoke,” she admitted.

“There are a lot of things that go into that 77 cents figure,” she went on. “There are a lot of things that contribute, and no one’s trying to say that it’s all about discrimination, but I don’t think there’s a better figure.”

Of course some people are trying to say that “it’s all about discrimination”– starting with Stevenson’s boss, President Obama, and including the political ad-makers preparing to cut 30-second spots accusing Republicans of a “war on women.”

So Stevenson is fibbing about that. And when she says, “there are a lot of things that contribute” to male-female earnings disparities, she is indicating that she understands the weakness of using the 77 cents number.

This isn’t controversial stuff. As my American Enterprise Institute colleague Christina Hoff Sommers writes in the Daily Beast, the 77 cents “does not account for differences in occupations, positions, education, job tenure or hours worked per week.”

Those factors are acknowledged in a 2012 Bureau of Labor Statistics report cited by AEI scholars Mark Perry and Andrew Biggs in the Wall Street Journal. It shows that (1) men tend to work longer hours than women, (2) men tend to take riskier jobs with premium pay and (3) female college graduates tend to specialize in lower-paid fields than male college graduates.

As a result, the BLS concludes, women who worked 40-hour weeks earned 88 percent of what similar men did. Single women who never married earned 96 percent of men’s earnings.

Stevenson concedes that not all the differential comes from discrimination or sexism. “Some of women’s choices come because they are disproportionately balancing the needs of work and family,” she told MSNBC.

By “disproportionately,” she presumably means that more women than men choose to stay home to care for children. “Which of these choices should we consider legitimate choices,” she asks, “and which of them should we consider things that we have a societal obligation to try to mitigate?”

This raises the specter of government bureaucrats intervening in marital decision-making, pushing more husbands to stay home with the kids. Even the Obama administration stops short of that.

The Democrats’ problem is that sex discrimination by employers was outlawed by the Equal Pay Act signed by John Kennedy in 1963 – 51 years ago. To make “the war on women” an issue and rally single women to the polls, the Obama Democrats have had to concoct new legislation putting new burdens on small employers and ginning up business, as the 2009 Lilly Ledbetter Act’s extended statute of limitations did, for their trial lawyer contributors.

Such legislation attacks a problem very largely solved. The male-female pay differential for those working at similar levels has been reduced nearly, but not quite, to the vanishing point. Remaining differences result almost entirely from personal choices by women and men.

Those choices shifted sharply 40 years ago but haven’t changed much lately. The percentage of mothers seeing full-time work as an ideal, Pew Research Center reports, was 30 percent in 1997 and 32 percent in 2012.

By any realistic standard the equal pay problem is minor, certainly in comparison to the growth-stifling effects of the current tax code and the unsustainable trajectory of current entitlement programs.

But this president, unlike his two predecessors, has chosen not to address such major problems in his second term. And so Betsey Stevenson has to defend the indefensible 77 cents statistic.

COPYRIGHT 2014 THE WASHINGTON EXAMINER
DISTRIBUTED BY CREATORS.COM

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.