Tag Archives: Economics

Is there evidence of systemic racism in the United States?

Systemic racism is the idea that people can’t lift themselves out of poverty by making good decisions, because powerful groups in society that hold the poor down, regardless of their decisions. Do you think that America is a place where no matter what choices you make, you’ll never be able to be more prosperous? That’s what the leaders of Black Lives Matter think.

Here’s what Nikole Hannah-Jones, creator of the 1619 Project, says in the New York Times (a former newspaper):

To summarize, none of the actions we are told black people must take if they want to “lift themselves” out of poverty and gain financial stability — not marrying, not getting educated, not saving more, not owning a home — can mitigate 400 years of racialized plundering.

Got that? It doesn’t matter what individual choices a non-white person takes in America, they’re going to be poor. The “systemic racism” of the powerful whites will always keep them down. Single motherhood doesn’t make people poor, and marriage doesn’t make people wealthier. Dropping out of high school doesn’t make you poor, and getting a Masters degree in computer science won’t make you wealthier.

But let’s take a look at the data from the 2019 Census, and see the evidence:

Income By Ethnicity in America
Income By Ethnicity in America

White people are doing a bad job of keeping non-whites down

Well, it looks like at least SOME people of color are able to do well in America despite all the “systemic racism” that keeps non-whites down. And do you know what those non-white groups at the top have in common? They’ve made good decisions, they’ve worked hard, they haven’t blamed other people when they fail, and they’ve saved their money instead of spending it on shiny junk.

Let’s look at some decisions that the non-whites who are prosperous have made, that those further down have not.

Asians marry before they have children, so the kids have two parentsAsians marry before they have children, so the kids have two parents

Education and marriage

This article is written by the far-left radical Nicholas Kristof, writing in the radically-leftist New York Times (a former newspaper).

Excerpt:

A new scholarly book, “The Asian American Achievement Paradox,” by Jennifer Lee and Min Zhou, notes that Asian-American immigrants in recent decades have started with one advantage: They are highly educated, more so even than the average American. These immigrants are disproportionately doctors, research scientists and other highly educated professionals.

It’s not surprising that the children of Asian-American doctors would flourish in the United States. But Lee and Zhou note that kids of working-class Asian-Americans often also thrive, showing remarkable upward mobility.

[…]There’s also evidence that Americans believe that A’s go to smart kids, while Asians are more likely to think that they go to hard workers… Asian-American kids are allowed no excuse for getting B’s — or even an A-. The joke is that an A- is an “Asian F.”

One reason Asians students do so well is because their parents are usually married:

Strong two-parent families are a factor, too. Divorce rates are much lower for many Asian-American communities than for Americans as a whole, and there’s evidence that two-parent households are less likely to sink into poverty and also have better outcomes for boys in particular.

American blacks have a 73% out-of-wedlock birth rate. A huge difference compared to Asians.

So, when Nikole Hannah-Jones tells you that education and marriage don’t matter, she’s just wrong.

Compound interest

Education and marriage are important, but so is saving your money. The wealthiest people in America are typically the ones who are experts at saving money early, and investing it. They know about the law of compound interest. If you invest money early and leave it alone, then it will grow into a fortune by the time you are read to stop working.

This graph explains compound interest:

Don't trust people with non-STEM degrees to tell you how to get richInvesting $24,000 from age 21 to 41 vs investing $24000 from age 47 to 67

What does Nikole Hannah-Jones say when she looks at that graph? She doesn’t think that saving money makes a difference to having more or less wealth. She thinks skin color determines whether saving money makes you wealthy or not. The graph clearly shows what we should be recommending to young people of color. They need to stop spending money and start saving it, and the earlier the better. It doesn’t matter what your skin color is, saving money early JUST WORKS.

Similarly, when she says that home ownership doesn’t make you more wealthy, this is just terrible advice. It’s always better to pay down your own mortgage (at least when interest rates are low like they are now) than to pay someone else rent. You have to live somewhere, and paying for your own home is better because it costs about the same as rent, and then you get to keep the home when you’re done paying for it.

Communism

Nikole Hannah-Jones does have a “solution” to disparities in wealth. Her solution is communism. She wants to transfer money from those who earn, to those who don’t. But we already have tried that in the 20st century and it resulted in the deaths of over 100 million people. That’s not my opinion, that’s all documented in a book published by Harvard University Press.

Socialism Communism Countries Per Capita GDP Income
Socialism Communism Countries Per Capita GDP Income

You don’t even have to read the book to know the truth – just look at countries that score low on the Index of Economic Freedom, and compare their GDP per capita to countries that score high on the Index of Economic Freedom. The more communist a nation goes, the less wealth there is for the citizens. That’s why people in Venezuela are eating zoo animals and selling their bodies in prostitution for food, while nearby capitalist countries like Panama and Chile prosper. Nikole Hannah-Jones wants to reduce economic freedom, but we know by looking at other countries that this lowers per-capita GDP.

There’s a lot more than could be said here, but the point is that we need to be telling American blacks to make decisions that match the decisions of other successful non-white communities in America. We need to start teaching young people basic economics so they don’t fall prey to charlatans.

Wage gap: are women paid less than men because of discrimination?

The pay gap is caused by women's own choices
The pay gap is caused by women’s preference for having children

Liberal feminist Hanna Rosin takes a look at this question in the far-left Slate, of all places.

Excerpt:

The official Bureau of Labor Department statistics show that the median earnings of full-time female workers is 77 percent of the median earnings of full-time male workers. But that is very different than “77 cents on the dollar for doing the same work as men.” The latter gives the impression that a man and a woman standing next to each other doing the same job for the same number of hours get paid different salaries. That’s not at all the case. “Full time” officially means 35 hours, but men work more hours than women. That’s the first problem: We could be comparing men working 40 hours to women working 35.

How to get a more accurate measure? First, instead of comparing annual wages, start by comparing average weekly wages. This is considered a slightly more accurate measure because it eliminates variables like time off during the year or annual bonuses (and yes, men get higher bonuses, but let’s shelve that for a moment in our quest for a pure wage gap number). By this measure, women earn 81 percent of what men earn, although it varies widely by race. African-American women, for example, earn 94 percent of what African-American men earn in a typical week. Then, when you restrict the comparison to men and women working 40 hours a week, the gap narrows to 87 percent.

But we’re still not close to measuring women “doing the same work as men.” For that, we’d have to adjust for many other factors that go into determining salary. Economists Francine Blau and Lawrence Kahn did that in a recent paper, “The Gender Pay Gap.”.”They first accounted for education and experience. That didn’t shift the gap very much, because women generally have at least as much and usually more education than men, and since the 1980s they have been gaining the experience. The fact that men are more likely to be in unions and have their salaries protected accounts for about 4 percent of the gap. The big differences are in occupation and industry. Women congregate in different professions than men do, and the largely male professions tend to be higher-paying. If you account for those differences, and then compare a woman and a man doing the same job, the pay gap narrows to 91 percent. So, you could accurately say in that Obama ad that, “women get paid 91 cents on the dollar for doing the same work as men.”

I believe that the remainder of the gap can be accounted for by looking at other voluntary factors that differentiate men and women.

The Heritage Foundation says that a recent study puts the number at 95 cents per dollar.

Excerpt:

Women are more likely than men to work in industries with more flexible schedules. Women are also more likely to spend time outside the labor force to care for children. These choices have benefits, but they also reduce pay—for both men and women. When economists control for such factors, they find the gender gap largely disappears.

A 2009 study commissioned by the Department of Labor found that after controlling for occupation, experience, and other choices, women earn 95 percent as much as men do. In 2005, June O’Neil, the former director of the Congressional Budget Office, found that “There is no gender gap in wages among men and women with similar family roles.” Different choices—not discrimination—account for different employment and wage outcomes.

A popular article by Carrie Lukas in the Wall Street Journal agrees.

Excerpt:

The Department of Labor’s Time Use survey shows that full-time working women spend an average of 8.01 hours per day on the job, compared to 8.75 hours for full-time working men. One would expect that someone who works 9% more would also earn more. This one fact alone accounts for more than a third of the wage gap.

[…]Recent studies have shown that the wage gap shrinks—or even reverses—when relevant factors are taken into account and comparisons are made between men and women in similar circumstances. In a 2010 study of single, childless urban workers between the ages of 22 and 30, the research firm Reach Advisors found that women earned an average of 8% more than their male counterparts. Given that women are outpacing men in educational attainment, and that our economy is increasingly geared toward knowledge-based jobs, it makes sense that women’s earnings are going up compared to men’s.

When women make different choices about education and labor that are more like what men choose, they earn just as much or more than men.

Are feminists right to think that gender-neutral marriage makes women happier?

Male And Female Happiness After Feminism And Socialism
Male and female happiness throughout America’s adoption of radical feminism

I was reading this article by a feminist fiction writer on Vox, where she explains that although feminists have gotten what they wanted (careers, contraceptives, promiscuity, abortion, no-fault-divorce, daycare, etc. it hasn’t made them happier. So, what does this feminist fiction writer think would make feminists happier?

She gives two reasons why women women are still unhappy after feminism has been adopted by our society:

  • men don’t do enough housework
  • women are not as successful as men because they are discriminated against, the so-called “glass ceiling”

I think those complaints are pretty popular among feminists. Let’s take a look at some studies to see if her opinions are supported by peer-reviewed studies.

First study:

COUPLES who share housework duties run a higher risk of divorce than couples where the woman does most of the chores, a study has found.

The divorce rate among couples who shared housework equally was around 50 per cent higher than among those where the woman did most of the work.

“The more a man does in the home, the higher the divorce rate,” Thomas Hansen, co-author of the study entitled Equality in the Home, said.

Second study:

Researchers at the University of Illinois examined data on nearly 1,500 men and 1,800 women, aged between 52 and 60. Their well-being was evaluated through surveys.

The researchers first found that men’s well-being decreased once they had exited the workforce to become home-makers.

Meanwhile, the inverse was not so for women: Women’s psychological well-being was not affected by leaving their jobs to become stay-at-home mothers.

Third study:

A study called “Egalitarianism, Housework and Sexual Frequency in Marriage,” which appeared in The American Sociological Review last year, surprised many, precisely because it went against the logical assumption that as marriages improve by becoming more equal, the sex in these marriages will improve, too. Instead, it found that when men did certain kinds of chores around the house, couples had less sex. Specifically, if men did all of what the researchers characterized as feminine chores like folding laundry, cooking or vacuuming — the kinds of things many women say they want their husbands to do — then couples had sex 1.5 fewer times per month than those with husbands who did what were considered masculine chores, like taking out the trash or fixing the car. It wasn’t just the frequency that was affected, either — at least for the wives. The more traditional the division of labor, meaning the greater the husband’s share of masculine chores compared with feminine ones, the greater his wife’s reported sexual satisfaction.

Regarding the pay gap, that is entirely caused by women’s own choices. E.g. – the choice to study creative writing instead of petroleum engineering, the choice to work 35 hour weeks instead of 70 hour weeks, etc.

Fourth study:  (summarized by AEI economist)

When the [Bureau of Labor Statistics] reports that women working full-time in 2018 earned 81.4% of what men earned working full-time, that is very much different from saying that women earned 81.4% of what men earned for doing exactly the same work while working the exact same number of hours in the same occupation, with exactly the same educational background and exactly the same years of continuous, uninterrupted work experience, and with exactly the same marital and family (e.g., number of children) status. As shown above, once we start controlling individually for the many relevant factors that affect earnings, e.g., hours worked, age, marital status, and having children, most of the raw earnings differential disappears.

Fifth study:

This study leads to the unambiguous conclusion that the differences in the compensation of men and women are the result of a multitude of factors and that the raw wage gap should not be used as the basis to justify corrective action. Indeed, there may be nothing to correct. The differences in raw wages may be almost entirely the result of the individual choices being made by both male and female workers.

I think that women are entitled to make their own decisions, but they aren’t allowed to force the rest of us to subsidize their failures and celebrate their destructive outcomes.

I could go on, but I think enough has been said to show that research is very much at odds with feminist rhetoric. They feel they know what will make them happy and we gave them everything they asked for. They eliminated shaming of promiscuity with sex education. They get preferential treatment in the schools in a female-dominated education system.They are hired because of affirmative action quotas. They get expensive daycare, government schools, welfare and other programs. Taxes are raised to equalize outcomes for divorced women who choose men for feelings, and then nuke their own marriage enterprise. We have been on a long experiment of giving feminists everything they felt they wanted, at the expense of men’s rights and children’s rights, and it hasn’t even produced the results that feminists felt it would.

The social costs of feelings-based decision-making

Let’s look at two examples of policies that feminists asked for in the past, which didn’t work out the way they wanted.

I can understand why feminists would introduce sex education. They felt that “if everyone is having sex, then I won’t be the only one chasing attention from hot no-commitment bad boys by giving them recreational sex before marriage”.  They wanted to eliminate the standards of chastity and marriage-focused dating and normalize fun-focused drunken promiscuity. And they got that. But since they didn’t consult any research and evidence about how that would affect their future marriage stability and marriage happiness, they are even more unhappy than before.

How about no-fault divorce? No-fault divorce was brought in by a coalition of feminists, Marxists and trial lawyers. The Marxists want to destroy the family in order to increase dependence on the state. The trial lawyers wanted to make money. And the feminists thought that the standard approach to courting and marriage was just too much work. They didn’t want to be chaste. They didn’t want to be sober. They didn’t want to evaluate a man for traditional husband and father roles. The no-fault divorce laws gave them an escape from the messes caused by their own feelings-driven choices. But divorce just makes makes men and women much poorer, and passes the costs of supporting single mothers onto taxpayers.

And the costs of the failures of feminism are passed onto taxpayers.

Consider this study:

This paper examines the growth of government during this century as a result of giving women the right to vote. Using cross-sectional time-series data for 1870–1940, we examine state government expenditures and revenue as well as voting by U.S. House and Senate state delegations and the passage of a wide range of different state laws. Suffrage coincided with immediate increases in state government expenditures and revenue and more liberal voting patterns for federal representatives, and these effects continued growing over time as more women took advantage of the franchise. Contrary to many recent suggestions, the gender gap is not something that has arisen since the 1970s, and it helps explain why American government started growing when it did.

We are already $28 trillion in debt, partly because of feminism’s replacement of husbands and families with higher taxes and big government. Every time we transfer money from tax-paying men to feminists to fix their mistakes, it leaves less money in the hands of the men who actually want to get married. The declining value of marriage after feminism for men explains why marriage is being delayed, and why marriage rates are plunging.