In her ever-growing list of campaign promises, Democratic Presidential Hopeful Elizabeth Warren (D-Mass) is at it again.
This time, she has promised that once she is president she will require executive action to achieve equal pay for women of color and she would raise the federal minimum wage to $15/hour for all contractors.
Sounds good, at least at first glance… right?
Once you get into the repercussions of what she’s do to accomplish those goals, one might find that bankrupting businesses, losing jobs, and crippling a successful economy wouldn’t be worth effort.
So what exactly is she proposing, and why is it such a bad idea?
Let’s take a look at some of her promises, as reported by Vox. Assuming she becomes president, she would start:
Requiring federal contractors to report data on employees’ pay and role, broken down by race, gender, and age. Warren would direct federal agencies not to enter new contracts with companies that have bad track records on pay equity and diversity in management. Focusing on federal contractors would have wide-ranging impact because such companies employ about a quarter of the American workforce, Warren writes.
Banning forced arbitration agreements for federal contractors. These agreements, under which employees agree to settle any disputes with their employers in private arbitration rather than court, frequently harm workers, as Vox’s Alexia Fernández Campbell has written. Employees are less likely to win in arbitration than in court, and when they do win, they get less money. Warren writes that forced arbitration clauses make it harder for employees to fight wage theft, which disproportionately impacts women of color because they are disproportionately likely to work low-wage jobs.
Banning federal contractors from asking about salary history or criminal history. Asking about potential employees’ previous salary disproportionately harms women and people of color, as Campbell has reported, because they are more likely to have been underpaid in previous jobs.
Diversifying the senior ranks of the federal workforce through increased recruitment and paid fellowships. As Warren notes, black women are over represented in federal government jobs, but underrepresented in leadership.
Strengthening anti-discrimination enforcement. Warren would direct the Equal Employment Opportunity Commission to more aggressively monitor sectors of the economy that disproportionately employ women of color, like the low-wage service industry. She would also direct the EEOC to “issue first-of-its-kind guidance on enforcing claims involving the intersectional discrimination that women of color face from the interlocking biases of racism and sexism,” she writes.
So what’s so wrong about Warren’s promises?
Equal Pay for Women of Color
Let’s start with “equal pay” for women of color. Joel Griffith, who is senior fellow at the Heritage Foundation spoke on why the issue of disproportionate pay isn’t based on racism alone:
“For gender, once you account for differences in education, experience, and lifestyle choices, the gap almost completely disappears. When you adjust for education and experience or performance on cognitive tests, that takes care of the gap.”
So, if you take away education, experience, and lifestyle choices, there is no gap?
That means that the issue is not actually “racism” because it’s not based on race.
So when Elizabeth Warren starts requiring companies to hire people who aren’t educated/experienced, their quality and productivity will go down.
It seems as though thwarting charter schools in inner cities might be the actual reason for the disparity. Don’t expect a Democrat to actually fight to help women of color to attain a good education- they would rather keep them where they are in a failing public school. How sad.
Raising Minimum Wage to $15/Hour
Okay, so there are a lot of reasons why raising the minimum wage for federal contractors to $15/hour would be a disaster, but one reason in particular is that it would bankrupt our nation.
The Blaze reported on the numbers:
According to the U.S. Department of Labor, the current minimum wage for federal contractors is $10.60, set in 2014 by an executive order from former President Barack Obama.
There are reportedly around 4.1 million federal contractors, although it is not clear how many of these contractors are minimum-wage workers.