The Corner

Why We’re All Working So Hard

Today on Uncommon Knowledge, entrepreneur and investor Peter Thiel continues to insist that the American economy hasn’t done nearly as well in recent decades as a lot of people might suppose.  Nobel Prize-winning economist Edward Prescott, for instance, argues that Americans put in more hours each year than Europeans for the simple reason that we Americans are paid better—in large part because we’re taxed at lower rates.  Peter Thiel won’t have it.

How many women in two-income households really would choose to work if their husbands were making more money?  If you say women are working just because of marginal tax rathes, that just resonate as true with what is going on in this country.  What is the hourly rate that the average male is earning?  It has been basically flat since 1973.

For Peter Thiel’s full analysis—and my attempts to refute it—click here.

Peter Robinson — Peter M. Robinson is a research fellow at the Hoover Institution.
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