New Study REKS The “Gender Pay Gap”

This new(ish) study demolishes the gender pay gap myth. Liberals and other left-of-center activists frequently point to data from the Bureau of Labor Statistics to prove that “Women, on average, earn less than men.”

Well, as many of us have suspected for a while now, that statistic is basically useless. The numbers come when you lump all of the salaries of women and compare the salaries to that of men. The problem, of course, is that women often work fewer hours than men, work vastly different jobs, and, frankly, care less about money than men. Not only that, but men are 92.2% of work-related deaths. The more dangerous the job, the higher the pay.

So, at least theoretically, there are many reasons the gender pay gap is not caused by discrimination. New academic research backs up this theory.

According to the Washington Post, the new study, published by Cornell University economists, the study finds: “after adjusting for differences in gender employment patterns, is closer to 92 percent. Even the remaining gap of 8 percentage points may not stem fully from discrimination.”

So the 79 cents on the dollar statistic is wrong, and the pay gap, when adjusted for what jobs males and females have, shrinks to 92%. And the remaining 8%?

As noted, the number of hours worked, work experience (women often leave the labor force to raise children, which reduces their work experience. Thomas Sowell explains this here), and the differences between how much men and women care about money all explain the gap.

The gender pay gap has nothing to do with discrimination; instead, it has a lot to do with how productive different workers are and what occupations they have chosen to pursue.

Obama Was Right to End Private Prisons

In my newest article, published in the Albuquerque Journal, I argue in favor of Obama’s decision to end the use of private prisons. Here are some excerpts:

While the Obama administration’s decision may seem antithetical to conservative beliefs, those who favor small government – who favor true privatization – should support the impending policy change.

So, what does “true privatization” even mean?

Conservatives believe when the government monopolizes a service (like roads), quality and efficiency fall while costs increase.

Compare this to the private marketplace, where inefficient enterprises go out of business (unless they’re bailed out by the government, of course). These market forces cause businesses to innovate, slash costs wherever possible (without reducing quality), and fire unproductive workers and administrators.

The government, however, rarely fires itself – it has no incentive to do so.

Indeed, government is generally less efficient than private industry. Private businesses have more of an incentive to produce high quality goods at low prices; governments don’t have such incentives.

So, if privatization is so great, why should conservatives support Obama’s decision to END the use of private prisons?

Easy: Private prisons aren’t very private. They don’t use market forces to provide goods and services. Instead, they rely on cronyism and unbalanced playing fields.

The current private prison complex is as crony as crony capitalism can get. The system has simply moved the monopolies around: Instead of a public monopoly, we now have private monopolies. Both are equally bad!

Private prisons receive legal and economic advantages conferred by the state a normal business would not – or, at least, should not – get in a free and open market.

Check out the full article here for more.