It’s frustrating when popular TV economists perpetuate economic myths that have been thoroughly debunked. Last week, Becky Quick, host of CNBC’s “On the Money”, interviewed Bethany McLean, Contributing Editor over at Vanity Fair. They discussed the subject of equal pay for women; unfortunately, they both asserted that women only earn 77% of pay that men do, a charge that is simply untrue, but endlessly repeated.
Factors such as education paths, child bearing choices, hours worked, and job risk are not always equal for men and women. Taking these items into consideration, the gender wage gap shrinks almost entirely, with likely no more than a 5% variance. This is also supported by the simple economic reality that if women actually did make 23% less than men in wage costs, businesses would almost entirely hire women as a means to minimize labor costs and maximize profits. Since this does not actually happen, it is obvious that the 23% wage disparity is merely a distortion perpetuated by the Left, and most notably by the White House.
It’s one thing for partisan politicians to spew such nonsense, but for an economics reporter to peddle it as well is absolutely irritating and reckless. She should know better.