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Home Publications Blogs Beat the Press Where Does Ezekiel Emanuel Get His Wage Data?

Where Does Ezekiel Emanuel Get His Wage Data?

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Saturday, 21 January 2012 22:29

Ezekiel Emanuel told readers of the necessity of controlling health care costs in order to allow workers to see real wage growth and to free up spending for other areas of the budget. To make this case he comments:

"During those 30 years [1980-2010], the only sustained period when real hourly earnings increased was 1990 through 1998 — which coincided almost exactly with a period of unusually low increases in health care costs."

That is not what the data from the Bureau of Labor Statistics show. In fact, there was essentially no real wage growth from 1990 to 1996. However, wages grew at a healthy rate from 1996 to 2001. The major factors behind the stronger wage growth of the late 90s were the uptick in productivity growth beginning in the middle of 1995 and the low unemployment rate in the years 1996-2001.

realwages

Source: Bureau of Labor Statistics.

It is also worth noting that in discussing ways to control costs, Emanuel never mentions increased trade. Every other country in the world pays far less for their health care than the United States even though they have comparable outcomes. This suggests the possibility for large gains from more trade. Unfortunately, discussions of health care policy are dominated by protectionists who do not want to see the industry exposed to increased international competition.

Comments (5)Add Comment
ACA Creates Perverse Incentives to Distribute Phony Wage Data
written by izzatzo, January 22, 2012 4:04 AM
Obviously Emanuel is getting the flawed data from medical doctors in the GOP campaign, paid handsomely to write research designed to bring down the ACA that cuts into their monopoly rents.

Of course this criminal practice will cease shortly with the new law that requires reporters be provided conflict-of-interest information describing how much money their subjects are paid to lie to them.

Stupid liberals.
...
written by bmz, January 22, 2012 9:48 AM
It would be helpful if you would hyperlink your chart, so we can check out the source of your data. That vertical jump at the end of 2008 is counterintuitive.
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written by Andrew Clearfield, January 22, 2012 1:21 PM
Why will more trade help bring down costs?
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written by liberal, January 22, 2012 7:47 PM
Andrew Clearfield wrote,
Why will more trade help bring down costs?


Dean's reasoning is that doctors in other countries are paid much less than doctors here. So if their protectionist barriers are removed, there will be more competition and their wages will decline. More generally, medical services as a whole are cheaper in other countries.
...
written by jamzo, January 23, 2012 10:08 AM
ezekiel emanuel md has been campaigning for a health care voucher system for many years

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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