Inequality in America – Part 2

By George Noga – April 23, 2014
        Our post of February 7, 2014 addressed income inequality in America between rich and poor. Since then we have been bombarded by the Obama administration and its sycophant media about income inequality between men and women. Therefore, we now focus on gender inequality and, more importantly, on who is creating inequality in America.

Income Inequality Between Men and Women

       Firstoff, this is an old issue. For over 30 years, Democrats have waived the bloody shirt of gender inequality. They resurrect the issue whenever they feel it necessary. It has been revived now for one, and only one, reason. Polls show women disinterested and less likely to vote in November. Liberals cynically believe they can get more women to vote by patronizing them with warmed over lies. That shows what they really think of women. To their consternation, it now looks like the issue is backfiring on them as more information comes to light.
       Obama asserts women earn only 77% of what men earn. That’s roughly analogous to saying women are only 77% as strong as men without making any adjustments for height, weight or physical condition, i.e. it is meaningless. It is well known and long understood that when making appropriate adjustments for: (1) level of education; (2) type of degree (engineering vs. sociology); (3) experience; (4) hours worked; and (5) level of danger (lumberjack vs. teacher), women earn on a par (96%) with men. Moreover, deaths in the workplace are 92% men.
“It is impossible to be too cynical about any claims made by Obama; he hasabsolutely no shame or compunction about lying whenever it suits him.”
       The issue  now is backfiring on Obama. It was revealed female White House staffers earn only 88% of men. Not one Democratic senator has a female chief of staff or head of communications, whereas Republican senators have several. If Obama were correct, private businesses could hire all female workforces and gain a 23% payroll cost advantage over their competitors. That this is not happening speaks volumes about the veracity of Obama’s claims. It is impossible to be too cynical about any claims made by Obama; he has absolutely no shame or compunction about lying whenever it suits him.

The Top 10 Real Sources of Income Inequality

       To the extent income inequality is increasing, the cause is none other than Obama himself. Following are the top 10 Obama policies that are making the poor even poorer.

  1. Tobacco tax increases: Taxes on tobacco, especially in states with liberal governance, have vastly increased. Smokers are in the lowest income quintiles and they have been savaged by effete progressive ideas.
  2. Opposition to free trade: The underclass benefits more than any other group from free trade. Obama, in obeisance to labor unions, has put the kibosh on new trade agreements despite giving it lip service.
  3. Higher taxes: A variety of new and increased taxes (including Obamacare) harms the poorest cohorts. Even taxes on business harm the poor by discouraging investment, lowering productivity and stunting economic growth.
  4. Unemployment: Employment is far from where it should be; this is the worst economic recovery of all time – thanks to Obama no-growth policies. The percentage of Americans working is the lowest since 1978.
  5. Minimum wage hike: Raising the minimum wage causes unemployment among the poor. If you increase the cost of anything (labor), you always get less of it – a fundamental economic truism.
  6. Energy policy: Energy takes 25% of the income of a poor household but only 10% of a high income household. The average cost of a kilowatt hour is up 39% since 2003 – the vast majority under Obama. Need I mention Keystone?
  7. Monetary policy: Due to Obama’s horrendous spending, debt and deficits, interest rates are kept low, savaging the savings of poor elderly Americans. The little guy can get only a fraction of 1% on his money instead of the 5% that should be normal. If a retired couple has only $25,000 in savings, this costs them $100 per month.
  8. Tepid economic growth: Hyper regulation and enormous uncertainty about future taxes and regulations have cast a pall over economic growth. Companies are not expanding or hiring – again harming the poorest among us.
  9. Obamacare: Health care costs are rising along with taxes to fund it. The poorest Americans bear the brunt – not just economically – but due to doctor shortages, rationing and death panels. The legions of 49ers and 29ers are growing!
  10. School choice/charters: Teachers union wars against choice and charters condemn the poor to inferior educations and hence much lower paying jobs. They are killing poor children educationally solely to pay back unions.
       The level of hype and downright lies about inequality is unprecedented. The liberals are circling the wagons. Believe it or not, we are being told that (non existent) manmade global warming now causes greater inequality. The IMF is putting income inequality on the top of its agenda for aid to poor countries. It is good to recall the words of Milton Friedman: “A society that puts equality of outcome ahead of freedom will end up with neither equality nor freedom“. The next time you hear about inequality in America, remember that the blame lies at the foot of one Barack Hussein Obama.