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    Footnote Failure: Gap Between Productivity and Pay Is Overstated

      Paul Krugman and many others argue that compensation has not grown as fast as productivity. However, most of the apparent gap between the growth of pay and the growth of productivity is a statistical illusion. On the surface, the numbers appear to show pay and productivity diverging. Hourly wages … More

    Raising the Minimum Wage to $9 Would Harm Most Vulnerable Job Seekers

    President Obama’s budget proposes raising the minimum wage to $9 an hour. This would hurt the very workers the President wants to help. When the price of something rises, people—both consumers and employers—purchase less of it. Americans responded to the higher cost of gas by driving less. Businesses similarly respond … More

    Smaller Paycheck? Welcome to Obama's Post-Fiscal-Cliff World

    Working Americans receiving their first full paycheck of the year may have had a rude awakening today. Despite all the President’s promises not to raise taxes on the middle class, he did exactly that. By allowing the payroll tax holiday to expire at the end of 2012, President Obama and … More

    Do Government Workers Make More than Private Sector Workers?

    The Heritage Foundation has posted a new working paper that considers whether public workers in California are overpaid compared to their private sector counterparts. The paper’s findings are summarized today in a Wall Street Journal op-ed, coauthored by myself and AEI’s Andrew Biggs. We argue that previous public-private comparisons at … More