More Government Interference

The Obama administration plans to require large employers to peel back the curtain on how much they pay men and women in a push to narrow long-standing earning gaps between the genders.

The Equal Employment Opportunity Commission will roll out details of the plan Friday to begin gathering a summary of pay data from employers with 100 or more workers.

Leave aside the lack of validity of the data so confiscated by the government.

Statisticians and economists note…that analyzing wage disparities is a complex undertaking, and that aggregating data about many occupations is especially tricky.

“You can’t compare apples and oranges in the same group and draw meaningful conclusions,” said David Cohen, president of DCI Consulting Group, a Washington, DC, firm that conducts pay-equity analyses for companies. “You’re going to get too many false positives and too many false negatives.”

Beyond that, far beyond that, the data are none of the government’s business absent a specific allegation of wrong-doing. If there is a specific complaint—not a blanket fishing expedition borne of this administration’s FDR-esque paranoia about business in general—then get a warrant upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized, just like the 4th Amendment requires.

The South China Sea and Chinas

Taiwan’s president, defying a rare criticism from key ally the United States, visited an island in the disputed South China Sea on Thursday to emphasize Taiwan’s sovereignty claims in the increasingly tense region.

A small correction: that’s the Republic of China, which sits on the island of Taiwan.

And good for President Ma Ying-jeou, who along with 30 staffers visited the island of Taiping in the Spratly Islands, a collection variously claimed by the RoC, Philippines, Malaysia, Vietnam, and which lie within Brunei’s EEZ, but which has been seized and occupied by the People’s Republic of China.

Each of these nations and the United States should make more of this sort of visit, independently and together, to emphasize both their competing claims (which they’re willing and capable of settling among themselves, amicably) and the illegitimacy of the PRC occupation.

Economic Progress

Gross domestic product, a broad measure of economic output, expanded at a 0.7% seasonally adjusted annualized rate in the fourth quarter, the Commerce Department said Friday. The economy had advanced 2% in the third quarter and 3.9% in the second quarter.

That good growth in the two quarters after Christmas holidays followed by slowing growth as those holidays recede into the past—and even as the next such season approaches—is all too typical of the Obama recovery. And a result of President Barack Obama’s (D) economic policies and his explosion in regulations all across the board.

November is approaching, too.

PRC Markets

The PRC stock market tanked again earlier in the week. It’s a broader drop than just a fall in the PRC’s benchmark Shanghai Composite Index, though.

China’s outstanding margin loans—money investors borrow to buy stocks—declined for 16 consecutive sessions to Jan 22, the longest losing streak on record, with 209 billion yuan ($32 billion) worth of leveraged bets unwound during the period.

“Volume is getting very thin, as there are hardly any fresh inflows, and the process of deleveraging is continuing,” said Chang Chengwei, analyst at brokerage Hengtai Futures [a PRC-based financial investments player].

Fox Business lays much of this drop off to continued low (and perhaps lowering) oil prices. It’s not just oil, though. All those erstwhile investors have had their faces rubbed in the fact that it’s not (if it ever was) a price-sensitive market; it’s a government-sensitive market. And that it never had any contact with the underlying economy; it is a purely speculation play.

Empirical Socialism

Bernie Sanders style. You remember him: the Independent Senator from Vermont, Democratic Party Presidential candidate, avowed Socialist, and as of Monday night’s Democratic Party Town Hall “debate” an avowed Democratic Socialist. In that “debate” (because it really wasn’t a debate; the three candidates appeared sequentially and answered carefully selected questions—and not even the same ones), Sanders assured us, one and all, that he really will raise taxes on us if he’s elected President.

From The Washington Examiner we get a list of just how bad his tax increase will be.SandersTaxes

To put that in perspective, the Congressional Budget Office projects that federal revenues over the next 10 years will be a total of $41.6 trillion, meaning that Sanders would raise taxes by 47% over current levels.

Guess what happens when Government takes that much money away from working Americans, removes that much money from the economy?

Yup.