Obama is signing more executive orders without going through
Congress. This time it relates to
ensuring equal pay between different races and different genders.
One executive order will require that federal government
contractors publish wage data by gender and race to supposedly ensure that they
are complying with equal-pay laws.
There is no word yet if Obama will issue a similar executive
order to prevent unequal pay between various religious groups, political
parties, and age groups. And what
about making sure that wages are equal between tall people and short
people? And let’s not forget about
comparing wages between overweight people and skinny people.
Of course, I am being sarcastic with identifying all of
these other groups. Not only is
the government involvement here morally wrong, it is ridiculous to think that
the government could solve a problem of unequal pay if such a problem even
It is actually the free market that brings us closer to
paying people what they are worth in terms of production. It is not to say that the free market
is perfect and that everything is always in equilibrium. It is just that the free market is the best
mechanism for getting closer to equilibrium. In this case, that equilibrium is measured in earnings for
what people produce.
Most employers are not going to arbitrarily discriminate
strictly based on gender or race because they would just be hurting their own
bottom line. Most employers care
about their profitability more than any personal biases. They are going to pay the most to the
workers who they perceive as the most productive and for those they want to
In a free market, if an employer is paying a male worker
more than a female worker and they are truly equal in their production,
reliability, etc., then this just presents an opportunity for other employers
to pay the female worker more and hire her away from her present employer. She may or may not make exactly the
same as the male worker, but the free market will generally work towards this
The problem here is that nobody is equal. There are differences between men and
women. The obvious thing is that
women have babies and are more likely to take a leave of absence from work, or
even quit work. This is a major
cost to an employer and the employer may consider this when hiring and
determining a wage.
But there are many other differences between men and
women. This is all generally
speaking of course, as all individuals are unique. Men are more likely to take jobs that require travel and
that require longer hours. Men are
more likely to do jobs that are more dangerous. Men are more likely to take on sales jobs.
There is also a genetic difference that determines what the
genders choose. Men are more
likely to get into higher paying professions such as engineering or law. Men are more likely to be doctors,
while women are more likely to be nurses.
Again, this is very generalized, but it is just a fact of human nature.
Does anyone really think using the force of government is
going to correct any unfairness?
Maybe some of it is unfair, particularly to a woman who doesn’t plan to
have any kids. But we have to
acknowledge that the free market is more likely going to correct this situation
over the government.
This will probably be like most other government laws and
programs. It will end up resulting
in the exact opposite of the stated intentions of the law (or executive order).
Just as age discrimination laws end up making it harder for
older people to find a job, this Obama dictate will end up making it harder for
women to find a job, or perhaps making them truly underpaid.
I can envision employers trying to avoid being accused of
gender discrimination, so they may hire a woman and classify her job
differently than a man, even though they are doing similar work. So if the woman’s salary is lower, he
won’t get in trouble because her job classification is different.
We can’t be certain of all of the negative consequences, but
you can be sure there will be some.
It is ironic that gay women earn more than heterosexual
women. Is Obama going to do
something to “correct” this situation?
This statistic actually makes perfect sense in that many gay women are
more likely to be career oriented and less likely to be tied down by
children. And the semi-free market
has accounted for this difference as reflected in the statistics.
This whole topic of equal pay is just more politically
correct garbage coming from Obama and other political hacks. They are trying to stir up emotion and
set up conflict between men and women, employees and employers, and left and
Meanwhile, pay no attention to the federal government
spending almost $4 trillion per year.
If you want to talk about a wage gap, let’s look at the politicians and
lobbyists in Washington DC in comparison to the average citizen whose money
they suck away.