It is not often that you see a juxtaposition between these two concepts: income inequality and school reform.
But I would like to argue here that they are related and they matter.
In a recent column, Paul Krugman reviews the evidence about income inequality.
The rich have grown dramatically richer, while the poor have gained nothing from the economic recovery.
Here are the basic facts, as he describes them:
The data in question have been compiled for the past decade by the economists Thomas Piketty and Emmanuel Saez, who use I.R.S. numbers to estimate the concentration of income in America’s upper strata. According to their estimates, top income shares took a hit during the Great Recession, as things like capital gains and Wall Street bonuses temporarily dried up. But the rich have come roaring back, to such an extent that 95 percent of the gains from economic recovery since 2009 have gone to the famous 1 percent. In fact, more than 60 percent of the gains went to the top 0.1 percent, people with annual incomes of more than $1.9 million.
Basically, while the great majority of Americans are still living in a depressed economy, the rich have recovered just about all their losses and are powering ahead.
The people at the top–that is, the ones who think the current distribution of income is just fine and is the result of meritocracy–like to assure us that if we just test kids more often, raise standards higher, adopt the Common Core, fire more teachers, and open more charter schools, then we can heal the divisions in our society.
But of course this is nonsense. As Krugman points out, even college graduates are having a hard time in this economy, many burdened by college debt and unable to find jobs that pay what they expected and hoped for.
These numbers should (but probably won’t) finally kill claims that rising inequality is all about the highly educated doing better than those with less training. Only a small fraction of college graduates make it into the charmed circle of the 1 percent. Meanwhile, many, even most, highly educated young people are having a very rough time. They have their degrees, often acquired at the cost of heavy debts, but many remain unemployed or underemployed, while many more find that they are employed in jobs that make no use of their expensive educations. The college graduate serving lattes at Starbucks is a cliché, but he reflects a very real situation.
What’s driving these huge income gains at the top? There’s intense debate on that point, with some economists still claiming that incredibly high incomes reflect comparably incredible contributions to the economy. I guess I’d note that a large proportion of those superhigh incomes come from the financial industry, which is, as you may remember, the industry that taxpayers had to bail out after its looming collapse threatened to take down the whole economy.
In any case, however, whatever is causing the growing concentration of income at the top, the effect of that concentration is to undermine all the values that define America. Year by year, we’re diverging from our ideals. Inherited privilege is crowding out equality of opportunity; the power of money is crowding out effective democracy.
Another story in the New York Times showed just how stark the current income inequality is. It says:
The top 10 percent of earners took more than half of the country’s total income in 2012, the highest level recorded since the government began collecting the relevant data a century ago, according to an updated study by the prominent economists Emmanuel Saez and Thomas Piketty.
The top 1 percent took more than one-fifth of the income earned by Americans, one of the highest levels on record since 1913, when the government instituted an income tax.
The figures underscore that even after the recession the country remains in a new Gilded Age, with income as concentrated as it was in the years that preceded the Depression of the 1930s, if not more so.
The wizards of the financial industry, who have benefited so handsomely in the past few years, are the biggest boosters of charter schools. That is supposedly the way to open the path to opportunity for the lucky few, and perhaps it will.
But wouldn’t it make more sense to change our tax structure, so that the gap between the haves and the have-nots was not so outrageous?
I recall reading a book a few years ago called The Spirit Level: Why Greater Equality Makes Societies Stronger by Kate Pickett and Richard Wilkinson, which argued that societies that are more equal are happier, less violent, heathier, and better on almost every measure one can imagine.
I am not making a plea here for socialism or for onerous taxation, but for the kind of society I remember from my childhood, when the distribution of wealth was not as unequal as it is today. We had people who were rich, but they were not billionaires; they did not have private jets or own half a dozen houses or employ a fleet of servants.
Unless we do something in our political economy to bring up those who struggle for daily subsistence, this will not be a society of equality of opportunity, but one where inherited wealth determines one’s fate in life.
And no school reform will be strong enough to overcome those basic economic facts.

And–at a time when many food pantries are closing down in record numbers (as reported by the Greater Chicago Food Depository)–Republicans have voted to shrink the Federal Food Stamp Program.
It just goes on & on, ad nauseum.
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typical reaction.
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In a humane society, caring about the people who are going hungry and disgust over the lack of empathy from politicians and mean spirited citizens SHOULD be a typical reaction.
Whatever you traded your heart in for is consuming your soul.
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Consult with Lucifer to verify what trade he made with Harlan . . . .
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If it was immortality, may God spare us from seeing him live out eternity right here
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Yes retiredbutmissthekids, yes it does. Michelle Rhee and her entourage have every bit of data we do yet continue to blatantly attempt to hoodwink the vulnerable. It’s so despicable; pure greed. Rhee’s and her entourages’ parents must be ashamed of them.
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I am not sure what this really signifies since (a) 99.9% of us are actually all in the same boat in terms of gains/losses over the last 5 plus years and (b) My guess is that the top 0.1% always sent their kids to private schools for security if nothing else.
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“99.9% of us are actually all in the same boat”
Oh really? Over the past five years, did your place of employment cut all full time jobs and make every employee an independent contractor? Did you see your already low (for the cost of living in your city) gross income gradually go from $500 per week to $12.50 per week today, while your rent was raised $400 per month –not to mention the increases in other living expenses.
That’s what happened to me and I have three college degrees and 45 years of experience. After 4 years of looking, I was lucky to finally find a second job last year, but I have no way of knowing how much I will be paid each month there, because it’s based on such a convoluted formula. Plus they lowered the amount that we will be permitted to earn this calendar year. So, after being paid today, I just figured out that I am probably not going to be able to pay my rent in November, December and January. My landlord won’t put up with that, so I’m at risk of becoming homeless –for the 4th time in the past two years.
Are we really in the same boat???
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If you still have children in the picture, Google Family Promise of
(the city & state where you live). They can help you and keep the family intact. This organization started in New York and has spread around the country. I volunteer for it in my city. It is the only organization in my city that can keep a family in need of shelter together rather than having males in one place and females in another. Besides helping with emergency shelter and other basic needs on an emergency basis, the organization helps the people it serves to find permanent solutions. Its success rate in my city is high.
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Thanks, but nope, no kids or other family in the picture. And based on my experiences the last few times I faced this crisis, the only programs that exist in my area are just for families.
It was that second job that saved me before, but I’m back where I was because they reduced our earnings there, too. I’ve been looking for a third job but to no avail. (Why do job recruiters seek people out on LinkedIn and ask to connect and then not hire you? –This happened twice already from people at the same school, including once after being denied a job there. WTF?)
If I can just make it through until next summer, I’ll start to collect my Social Security retirement benefits then and that should help a lot. But it’s a big IF because that’s still a long ways off and I have the landlord from hell…
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Yep, it’s the Obama Economy, including the ACA. What a joke. Such is the fate of people under socialism. How’s that Hope and Change working for you?
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Sorry, Harlan, can’t blame Obama for the economy when it tanked under Bush. Obama’s culpable for letting the banksters slide, but that’s about supporting neo-liberal cronies (from both sides of the aisle) not socialism.
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After five years, still blame Bush? Ho, ho, ho. It’s OBAMA’s economy now. And it was the Democrats who created the mortgage funding bubble through Freddie May and Fannie Mac insisting on pushing sub-prime mortgages. Of course, Wall Street KNEW they were worthless mortgages, but packaged them anyway hoping the A ratings from the ratings agencies would get them through. No excuses for them. But the Democrats created the bubble that brought on the crash and The Great Depression. But keep on drinking that Kool Aid, CT, defending the indefensible. Maybe it will stop tasting so bitter. Sort of like religion, ain’t it, Pie in the Sky Bye and Bye. Socialism is the same thing, but preaches Riches for All; We reverse the Fall.
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Do you have any idea how ignorant you sound calling Obama a socialist, Harlan? Might as well call the Pope a feminist.
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Really, Dienne. And the revisionist history being proffered is just nonsense.
Harlan, you sound like a fool denying what we were all there to personally witness. Subprime Lending Expanded Significantly from 2004 – 06 under Bush http://en.wikipedia.org/wiki/File:U.S._Home_Ownership_and_Subprime_Origination_Share.png At the end of Bush’s second term, it all began to fall apart. Lehman Bros went belly up in Sept 08 and the Dow Jones crashed in Oct 08. Obama was not sworn in until Jan 09. Bush had 8 years to create the mess that Obama inherited. I am not defending Obama. I can’t stand what a hypocrite he is.
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Socialist, statist, maybe even communist. Much the same thing. I suspect you think the government should have its hand in every aspect of life, too, even when it seems obvious, to me at least, that about 80% is just stupid make work for bureaucrats and Democrats. I have ceased to care whether people think me ignorant. If they really DID think I was ignorant, they would teach me, but most here just dismiss me. Smiley, actually did teach me something. That’s worthwhile posting what I think I know. But most don’t care to educate people they despise and so content themselves with personal abuse. Which to ME, seems to prove their own ignorance and incompetence philosophically, but it may not really mean that. Linda, for instance, got her facts wrong about rich people being able to stash money overseas any more. Anyone with a green card or a citizen MUST now disclose all foreign bank accounts even if they are not working in the country. The Swiss banks paid big fines, and the oldest one even went out of business for helping Americans do the. To ME it’s a symptom of too high tax rates here, anathema to Linda and many others. The last estimate I heard of the total wealth of the top 400 richest people in the US was 2 trillion. If it were all confiscated, that would cut the debt to 16 trillion. The rich just don’t HAVE the money to pay for all the expenditures liberals want. Every school district in Michigan is in a line to go over the cliff of bankruptcy. Prudent districts are far back in the line, but two were dissolved at the end of the summer, their staffs let go, and their students sent to neighboring districts. THAT is what Michigan is facing. So, when anyone, even Diane, says “tax the rich” I can only be puzzled by the naivete both economically AND politically. Just won’t happen. The whole economy has to start to grow again, and THAT won’t happen until we have a Republican in the White House, and a Tea Party Congress. Enjoy.
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There are totalitarians of the left and totalitarians of the right. It makes no difference whether they spout blue words or red words. Totalitarianism is totalitarianism. We have two criminal gangs in the United States that fight over the loot and that periodically wrest control of the graft machine from the other. These left-right spats are a distraction from what’s really happening. They are a form of circus to keep the people from paying attention to what is really going on. Before the last election, I made a list of 40 pressing issues–where Romney stood, where Obama stood, what Romney would likely do, what Obama would likely do. The only difference I could see between the two was that one wears boxers and the other wears magic Mormon underwear.
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Dienne, Obama is as much of a socialist as Harlan Underhill is a communist . . . .
Give it up on educating Harlan. He attended Harlan University, works for Harlan Inc., worships at the Harlan Church of Latter Day Impulsivity, and listens to W-JHU.
I am sincerely jealous that I cannot be more simplistic and probably happier in my approach to thinking and reacting as Harlan is.
Harlan should open a school (charter, private, but NOT public) and educate the public how to be like him . . . .
Vouchers, anyone?
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I love it Robert. I DID try to open my own school about 10 years ago, with another teacher, but we couldn’t bring it off. Pure private, though. No vouchers. In today’s climate I bet we could get a charter approved. Pity though. One of the women who attended our group planning meetings, DID however succeed, but she had been going to school for five years or so preparing for it. It’s still going after three years, renting space in the local Unitarian church and slowly adding students. I should go out and observe one day.
The longer I think about, the MORE I become convinced it’s the right way to go for some students and teachers. On the other hand my grandson and granddaughters seem to be thriving in our quite good public school system, which is only 18 million in the hole financially.
It’s an amazing phenomenon, that the Democrat political leadership should be SO hostile to public schools. I still can’t figure that one out, but we’ll see what happens.
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Harlan, Did you ask the same question when it was Democrats in the Clinton administration, not Republicans, who instituted welfare reform? The repeal of Glass Steagall and the signing of NAFTA also occurred under Clinton. Maybe you didn’t realize that Clinton promoted charter schools, too.
Ever since Clinton, the Democratic party has been dominated by “New Democrats” who are neo-liberals that describe themselves as centrists and who are more likely to promote free market policies than social policies.
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Clinton looks better and better from a distance. The Democrats of today seem to me as having no conscience, no competence, and certainly not even the political sense Clinton had. Moreover, Hilary ain’t Bill. No hope there. Biden? Fuhgeddaboudit. It will take three generations to repair the damage Obama’s done , and even then the lost opportunity cost under both Bush and Obama will never be recovered.
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Harlan,
It sounds as though your peer wanted to be simply off the grid, which is not a bad idea. The reformy notion and set of motivations for getting off the grid is NOT the same thing.
It sounds as though teachers in your comment would have had more autonomy in this school. I do wonder about the percentage of LD and ESL kids who attend it.
And thank you for being nice. I am unaccustomed to it.
It is always fun to spar with you . . . . . keeps me on my toes.
You know, we do overlapo strongly in some areas. I loathe Obama as much as you do. But he does not act alone, and both parties are rotten to the core. . . .most members therein in both legislative bodies.
I think we need a third party. As long as the nefarious Koch brothers fund your tea party, I will be looking for another beverage . . . . .
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Harlan is right about the Clintons.
He is also spot on (I hate this new idom that is creeping into modern day usage) with his view of the democrats. However we have staunchly virtuous examples of democrats (a tiny minority) like Bernie Sanders of Vermont, Elizabeth Warren from my (newer) home state of Massachusetts, Dennis Kucinich, maybe even Sherrod Brown.
Nancy Pelosi-Bela-Lugosi, Harry Reid, Obama, the Clintons, Biden, etc. are the worst, most McDonald’s version of Democrats, and among the biggest traitors to the working class. They are all but a sad and dangerous joke.
But don’t get me started on the GOP. . . . just as bad, but more honest about what they are about. .. what you see is mostly, but not all the time, what you get. With the Democrats, what you see is hardly what you ever get.
In the future, I will vote for neither.
AND, with the Democrats, listen to not only what they put forth as rhetoric, but hone in on what they DON’T say. That is critical to understanding their trickery. They are socailly liberal and fiscally conservative. Why don’t they be both fiscally and socially progressive? They won’t because they have been bought and paid for by those who fund their campaigns. They war monger just as much as the next guy. They give the biggest hand jobs – pardon my crudeness – to corporate America.
Both parties are largely rotten and stink more than a decaying run over skunk in the middle of Route 66.
We need a serious third party made up of mostly cloned Bernie Sanders and Elizabeth Warrens . . . .
Never underestimate the power of a people over the course of centuries and how their societies evolve . . . . .
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Let me urge all to sign the petition supporting Elizabeth Warren’s proposal to reenact Glass-Stegall. We’ve been fooled once. Shame on them. Let’s not be fooled again and draw the shame on us.
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NIce to see glimpses of your humanity Harlan.
Here’s a link to Elizabeth Warren’s Glass Steagall petition: http://my.elizabethwarren.com/page/s/glass-steagall
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I knew I spoke too soon. Billionaires still have fortunes stashed in tax havens abroad, like the Cayman Islands –which did not agree to report tax evaders to the US until next July, so the wealthy have time to scramble. That’s why US companies are investing in foreign companies, like Microsoft’s recent purchase of Nokia, to keep their money offshore, according to Robert Reich.
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Has anyone ever told you that you are an angry drunk, Harlan?
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Sometimes, CT, I suppose my tone does come across like an angry drunk’s. I apologize for the tone. I’ll try to achieve a more rational, reasonable tone. I really don’t think these economic matters are matters of “heart,” but only of consequences of choices. A stance of misplaced moral superiority is as much a substitute for truly rational debate as one of my rants. I fear the consequences of even more borrowing. I’d rather not see the country unable to pay its debts. If it is to pay its debts, and in addition, see the economy growing again, I suspect the best way is to cut government spending, even if it may please us to soak the rich.
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Harlan, I’m shocked.
You and Liz?
Just kidding . . . .
You are right about Glass Stegall . . .
And i’m stealing your “ho-ho-ho”. . . . it’s funny.
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Cosmic Tinkerer:
I am confused. Do you mean the current version of GLass Stegall allows for this year of “scrambling”? If not and it is a decent piece of legislation, why get angry at Harlan?
Please clarify your motivations here. You know how I view Harlan. There seem to be some release valves here, but you are canceling them out and I’d like to understand why. Why is he an “angry drunk”?
I am not defending him but want to understand where you are coming from when you say you “spoke too soon” . . .
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Robert, The posts are not in order. Harlan added a nasty post last night which is higher up in that thread.
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RR, Sorry, I meant higher up in THIS thread. Check his entry from Sept 22 at 8:05 pm
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“A stance of misplaced moral superiority is as much a substitute for truly rational debate as one of my rants.”
Harlam, I think you are confusing “misplaced moral superiority” with advocacy for the down-trodden. I empathize with the 4 million people who will be losing their Food Stamps, because I personally know what it feels like to go to bed hungry.
I don’t get Food Stamps, but I had to go to a food pantry once, not all that long ago. The people there were kind, but the experience was incredibly humiliating for me personally.
I don’t think too many professionals with multiple college degrees and decades of experience expect to have to fight for basic survival when they reach their 60s and they’re still working. I don’t want much. I’ve not gone on vacation in 15 years. I just want to be able to pay my living expenses. I think anyone who works hard for a living deserves that, too. I feel wealthy when my refrigerator is full.
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Who has trodden you down?
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Cosmic Tinkerer,
I hope you realize how amazing and inspiring and powerful you are . . . . . No patronage here, just the truth. I appreciate your humility and humanity.
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Thank you so much, Robert, for your understanding and for your kind words, though I would never have characterized myself that way.
Maybe you can help Harlan to comprehend what it means to be the working poor. Like many GOP and Tea Partiers, he defends the rich and blames those in poverty for “consequences of choices,” as if one would choose to have a low-paying job when there are better paying positions available. There are not many decent paying jobs today, as “poverty, income levels stay persistently unchanged”
People have found that a college education is no longer a ticket to the middle class, as “millions of college graduates over all—not just recent ones—suffer a mismatch between education and employment, holding jobs that don’t require a costly college degree.” Many bar tenders, cab drivers, retail workers, etc. are college grads, because when you need to eat and pay the rent, you take what work you can get. http://chronicle.com/article/Millions-of-Graduates-Hold/136879/
There are many highly profitable companies, like Walmart, that pay their workers unlivable wages and refer their employees to government assistance programs, such as Food Stamps, to pick up their slack. That is corporate welfare, but those who defend the rich and oppose Food Stamps seem to be just fine with this set-up and cutting Food Stamps.
I worked for a non-profit college that turned out to be a shell for a multi-billion dollar corporation. The school was managed by one of the corporation’s for-profit subsidiaries. They exploited professors, made all faculty independent contractors and then lowered teacher pay even further. This arrangement was very suspicious to our regional accrediting body, but the corporation continued to play the shell game. They even tried to pull one over on our accreditors by switching out one corporate management firm overseeing the school for another. Our accreditors were onto them though and that cost the school its accreditation –and most of its students. The corporation sold off our school and dramatically increased their profits by rapidly expanding into the K12 market. Their consequences were a big payoff. My consequences were a job that now pays me $12.50 per week for 16 weeks of work.
As soon as I realized what was happening, I began looking for other work, but it took me four years to find something –and even then, it was just a part time job. I am still looking for more work, but I’ve been unable to find either a full time job or an additional part time job. My other job cut our pay this year, too, so now I’m at risk of becoming homeless come winter.
These are not the “consequences” of my “choices.” I’ve had very few choices. In this economy, these are the consequences of a country that has chosen to value money and billionaires over common human beings.
These are the same billionaires and politicians who tout “choice” as the answer to education’s problems. Sadly, if things don’t change, the kids being forced to focus on “college and career readiness” from P through 12 are very likely to graduate from college and discover what few choices there really are in the work world, while saddled with a mountain of student loan debts.
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Are you, or anyone, entitled to a living wage job?
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Not if “promote the general Welfare” means that some of us are “entitled” to starve to death.
Workers have a right to be classified correctly as employees and at least earn minimum wage.
Why, would you feel grateful to find yourself grossing $12.50 per week after working at your job for five years?
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Pretty low wages, but I’m interested in the words “right” and “entitled.” Of course, your pay is “unfair.” But do you have a “right” to more? If so, someone has a “duty” to give it to you. How do you compel someone to perform that duty?
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Workers have very few rights in this country. The deck is stacked in favor of employers. However, being correctly classified as an employee is one of those rights and it’s enforceable, if reported to the authorities. People haven’t been willing to do that where I work because the school is now under new ownership and could too easily go under at this point, so it’s not worth the risk.
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CT:
Have you ever been an employer?
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Yes, Bernie. I worked as Director of several different child care centers, both non-profit and for-profit.
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CT:
Frankly then I am surprised. I ran a business for 25 years with 30 or more employees. It was non-union. There were still a host of things that needed to be done to avoid legal action when we had to let people go – which was thankfully a rare occurrence.
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You don’t have to go through hoops when you want to let go of independent contractors, because they are not legally considered to be your employees. You can identify a violation of their contract and let them go, or you can just not rehire them.
I was also in charge of an education program in higher ed and responsible for hiring adjuncts. They were considered part timers there but contingent faculty, so their contracts stipulated that they were not guaranteed a job if something came up. The college’s policy was to not rehire if there were issues. This is rather common in higher ed, in my experience, where teacher’s contracts might be for as short as a 5 week term.
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Most non-unionized businesses hire on fire-at-will contracts, my son tells me. We teachers, who have deep human experience over many years to offer, continuity one might say, OUGHT to be guaranteed the privilege of continuing once having proved ourselves. But no one else has that kind of a deal. The last two years of my 42 year ‘career’ were on fire-at-will contracts because my school’s enrollment had been dropping (because of the character of the administrator). With a new headmaster, enrollment rebounded by 100 students, from 400 to 500. Irony was that the board imposed the arrangement on administrators first, and then gave them the power to impose in on the faculty. Just fart in the wrong direction, and you were gone, on some excuse or other. No, it’s not just or fair, but then life isn’t fair in general. The only question for we citizens is to what extent it can be made fair by proper social legislation. You and I only disagree with respect to what the limits of social legislation are. At some point one loses more by seeking perfection than by seeking only liberty. Or at least, so I see it.
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How would you change it? My wife is an adjunct. Her job essentially depends on the numbers of students in the program. She is having a hard time persuading her colleagues that they should be thinking hard about how to attract new students and retain existing students. Their “not my job” attitude guarantees greater employment uncertainty and lower incomes.
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It’s a quandary and I think it really depends on the situation. In my experience, public colleges are the least likely to engage in much marketing because, they often say, they don’t have to in order to attract students. Things might be changing though, with so many students opting for online colleges in different states.
When my private college wasn’t promoting my program, I made program cards and brochures and did the marketing myself, including at professional conferences. I could do that readily as full time faculty and a Program Coordinator, but an adjunct would have to volunteer and get permission to do it, probably for no pay. I didn’t get any additional remuneration for marketing and I paid for the marketing materials I made myself, but I did get my college to pay for the conferences.
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CT:
But you did the right thing. I hoped it worked out. One analogy I always think about is the farmer who waits for rain and the farmer who digs a well or builds a pond. We cannot become victims – not without doing all that can be done.
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Thanks, Bernie. I’ve always been an action-oriented person who tries to do whatever I can.
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Be sure to catch Moyers and Company tonight on PBS. Bill Moyers will be discussing “Inequality for All” with Robert Reich.
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Strange. I’m watching this now and though it’s labeled Moyers and Company and it does have segments with Robert Reich, it’s actually Frontline. I think Comcast messed up, but it’s on Moyers’ website here: http://billmoyers.com/episode/full-show-inequality-for-all/
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Two of my biggest heroes!!!!!!!!!!! Real cause celebres!
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If there is any relevance to this point at all, it is in any case fragile, but I was just thinking:
It was reported a few days ago that Bloomberg’s personal portfolio increased by 6 billion dollars last year alone. If he were “on the clock” toiling 24 hours a day, 7 days a week and 365 days a year (366 in leap years), and made the same amount every hour, what would be his rate of pay per hour? You will find that in any given hour of the year, his income exceeds by far the total lifetime gross earnings of the average hard-working American ( even those doing double tours daily at Arby’s) Yet he insists that a “living wage” is wasteful and profligate and darned unsustainable. And his august and benign world-view is defining us and our destiny as expressed in government policies.
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“But wouldn’t it make more sense to change our tax structure, so that the gap between the haves and the have-nots was not so outrageous?”
I agree with the sentiment in this post, and I’m one of many people who find the growing income gap disturbing. But people should understand that the income gap won’t be narrowed in any significant way by changes in our tax structure, unless you’re talking about a tax policy of (1) direct income redistribution using (2) tax rates that are extraordinarily high. I personally don’t think that’s a good idea, and I don’t think it squares with Diane’s statement “I am not making a plea here for socialism or for onerous taxation.” Taxes aren’t (or shouldn’t be) designed to equalize incomes, they’re designed to fund the functions of government, i.e. police, schools, roads, courts, etc.
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I believe that income distribution is temporarily screwed away from labor because of the rapid introduction of a quarter if the world’s labor force into the world economy. He labor force in China is now shrinking and the economy is growing there so they will soon be absorbing a much higher percentage of their own production. We are already seeing firms move production back to the US from abroad.
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I’m sure that is a great comfort to Cosmic Tinkerer.
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We are, of course, talking about broad trends here. It is a mistake predict the future by taking a ruler and drawing a line from past trends.
If memory serves, Cosmic has severe health problems that restrict his or her flexibility to work. That will limit earnings under almost any economic system I can think of, though of course greater or smaller levels of income transfer are possible.
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Good memory, TE. My health problems limit me to working from home, so that does restrict my job options.
I got a great chuckle out of 2old2tch’s comment though!
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It sounds like SSDI was designed to help situations like yours.
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I looked into it and was told that as long as I can work, I don’t qualify –even if the only place where I am able to work is at home.
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Time to talk to a specialist in this area. Perhaps someone here can point you to a knowledgeable resource.
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I talked to the SSDI office and they said that I would have to be unable to work for at least a year to qualify.
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I read, recently about Tata opening a call center in Arizona. Strange, but true.
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TE, I don’t really understand what you mean by this.
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Which part is confusing?
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TE, all parts.
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Let’s talk about them a step at a time. When China became part of the world economy, the initial impact was large increase in relatively unskilled workers and a large decrease in the amount of capital per worker in the world economy. Would you agree?
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I agree, but are they really unskilled? I thought one needs significant skills to operate facrtory machinery and robotics. Why is this aspect not perplexing?
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We have created a centralized monster that regulates to enrich. We have a crony capitalist system that uses the rhetoric of classical liberalism. Nothing but Newspeak from both parties. 4 to 6 trillion dollars of no-bid and phoney bid contracts for the wars in Iraq and Afghanistan. I agree, FLERP, taxation is not the way to fix this.
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Dear Flerp…you ask the operant question.
Yes, every industrialized country uses redistribution to avoid what we have going on in America today. This is called a progressive income tax. Until our recent decade of Rep name calling where redistribution was redefined by the Reps to mean socialism, this was standard economic practice….as it should be now.
Under Bush, the earned income tax rates fell for the wealthy, but not for the rest of us, and their taxable investment income tax fell to the lowest of all time. These hugely wealthy folks rarely have earned income since many do not work nor create jobs, but stash their wealth beyond the reach of the IRS in foreign bank accounts. The do NOT create the stimulus we need to pull the US out of this stagnant period.
And as Robert Shepherd and I explain herein, and of course Robert Reich, without jobs, meaning fairly paid jobs, there is no money to get the economy moving, It certainly started first with Clinton and killing Glass Steagall…and replacing that FDR law with Gramm, Bliley, Leach, then with the ridiculous Bush tax cuts for the wealthy, then to Obama and the clawing of the Reps at any Dem suggestion for fairness in taxation. Obama, being far from a Socialist, has as his closest advisors the deregulators Summers, Rubin, Geithner, etc. and the business titans like Immelt. Would that he had chosen Stiglitz, Reich, Krugman, Black, and other realistic and humane economists whom he has kept out of the picture…and out of the framing of his economic policy. Enough blame to go around with both Reps and Dems.
As to Social Security, the “lockbox” of this mandated savings insurance policy, would be enriched for all time if there was not a cap for the rich who stop paying any FICA at the earning level of only $113,000 which is a drop in the bucket for such as Bloomberg. If all the millionaires and billionaires who pay earned income tax in the US were to pay as the rest of us, 15% of each pay period, it would be a huge amount of fair and equitable redistribution.
Our system fails us. That is the key. And the rich blame it all on the poor.
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Ellen — “Income inequality” measures are generally based on *pre-tax* income. Also, “income inequality” measures generally don’t include the value of non-cash benefits that people receive, such as the benefits that citizens receive from government programs that they use.
This means two things.
First, it means that raising taxes on high earners will not directly INCREASE the incomes of lower-earners UNLESS the revenue from those higher taxes is distributed to lower-earners *as income.* However, there may be reasons why a more progressive tax code would *ultimately* and *indirectly* increase the incomes of lower-earners (for example, improved education opportunities, or welfare programs that might improve the living conditions of the poor in ways that make economic mobility easier). But these would be indirect and might not manifest themselves for a long time. It’s possible they wouldn’t manifest themselves in a significant way at all.
Second, it means that raising taxes on high earners will not REDUCE their incomes on a *pre-tax* basis UNLESS the tax increases are so high that they cause high-earners to decide to make *less* money. That would be an irrational decision under any tax system that uses progressive, marginal tax rates — i.e., where the highest applicable tax rate is applied to the last dollar earned rather than to total income. And note, of course, that the conventional wisdom held by almost all proponents of a more progressive tax code is that raising taxes will not lead people to choose to make less money.
The second point is very important because what’s made the income gap so extreme is not so much the trends at the low end or the middle, but the trends at the high end. And if your goal is to stop rich people from making as much money as they are now, raising marginal tax rates won’t get you there.
This doesn’t mean we shouldn’t have a more progressive tax code. It just means that having a more progressive tax code probably wouldn’t have much impact on income inequality.
Does this make sense?
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“Unless we do something in our political economy to bring up those who struggle for daily subsistence, this will not be a society of equality of opportunity, but one where inherited wealth determines one’s fate in life.”
So true. Educational attainment has nothing to do with one’s economic circumstances and America which is currently engaged in labor arbitrage will continue to see lower and lower standards of living.
An example:
“As amazing as it sounds, Margaret Mary, a 25-year professor, was not making ends meet. Even during the best of times, when she was teaching three classes a semester and two during the summer, she was not even clearing $25,000 a year, and she received absolutely no health care benefits. Compare this with the salary of Duquesne’s president, who makes more than $700,000 with full benefits.
Meanwhile, in the past year, her teaching load had been reduced by the university to one class a semester, which meant she was making well below $10,000 a year. With huge out-of-pocket bills from UPMC Mercy for her cancer treatment, Margaret Mary was left in abject penury. She could no longer keep her electricity on in her home, which became uninhabitable during the winter. She therefore took to working at an Eat’n Park at night and then trying to catch some sleep during the day at her office at Duquesne. When this was discovered by the university, the police were called in to eject her from her office. Still, despite her cancer and her poverty, she never missed a day of class.”
Read more: http://www.post-gazette.com/stories/opinion/perspectives/death-of-an-adjunct-
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So sad. Yes, there are many of us pauper professors. And a cardboard casket awaits us. How fitting in this throw away society.
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adjunct! College low cost labor. No tenure. Tough situation. The Obameconomy. You bought it. You’ve got it.
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Yeah, things were so great under Bush. I sure do miss him. It’s such a shame how Obama tanked the economy three months before he was even elected.
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Please stop it already, Harlan. We had this conversation several times before including THIS very week. I did not buy anything and I did not vote for Obama.
I have worked as both full time and part time faculty for the past 20 years and, in my experience, it was not until the Bush administration that colleges started hiring faculty as Independent Contractors. This is much worse than being a part timer, because it means employers don’t even have to pay minimum wage, let alone payroll taxes, unemployment compensation, etc. And I’m talking about the government allowing colleges to get away with claiming that EVERY single faculty member they employ is an independent contractor. Adjuncts now make up 75% of the professoriate across the country. Tenure track positions are very hard to come by now.
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I was not aware that it was legal to classify teachers in regular public colleges as independent contractors. I know there are few tenure track positions available, and I know that there is many classes covered by part time teachers. One of my math teachers has to work three part time jobs to get by. No one school will take him on full time. (He’s enough of a jerk for me to understand why. He’s just not mature enough to be called “full-time professional staff.” Even at the age of 50.) I haven’t, of course, been working for almost 10 years. I was extremely lucky to have full-time employment for as long as I did, 42 years. Of course, I WAS brilliant, but even so. I have applied recently for full time work again after the correction of most of my health problems, but so far no takers. I’m better now than ever, BUT staying on my feet for a full day, five days a week, does seem a little daunting to me. Still, I’d like to try it just to see if I can still do it. Not likely to happen. Your personal situation is very tough.
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Based on what I’ve read, the IRS rules for classifying workers as independent contractors are no different for public and private enterprises. I’ve been misclassified at both public and private schools.
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Speaking of income inequality, the Wall Street Journal’s review of Reign of Error just went up.
online.wsj.com/article/SB10001424127887324492604579083103249025492.html
The first comment is mine.
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Oh, great. The link I posted takes you to a paywall.
You can get to the article through the Google News search for
“Reign of Error” review.
Here’s my comment, anyway:
Shouldn’t this review be accompanied by the disclosure of WSJ owner Rupert Murdoch’s considerable financial interest in for-profit corporate education reform? Please, readers, Google “Joel Klein Amplify”.
Or, better yet, buy Reign of Error and see pages 23, 24, 113, 183, 235-6, and 310.
Diane Ravitch spends a whole chapter explaining the abuse of public trust and public funds behind the drive for his “Common Core” market domination. Trevor Butterworth apparently read the whole thing and thought it was too, too preposterous to even mention that his own boss is among the plague of billionaire profiteers who see a new profit center in political domination of US education policy.
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To Ron, I just could not hold myself back from some fun. So 365 days X 24 hours in a day = 8,760 hours in a year. $6,000,000,000/8,760 = $684,431,51/hour. Would that work for you at Arby’s? As you can see these titans of reality and our future can never afford to pay a penny more as they are too on the edge. As I just analyzed at LAUSD with the I-Pads comparing the $1,000 each with the projected just last February less than $200 each with a 5 year not a 3 year warranty. Not the district says they spend about $80/student/year. $1,000/3years warranty = $333/year/student. $200/5 years warranty = $40/year/student. $40 X 650,000 = $26 million/year. $26,000,000 X 5 = $130,000,000 extra without extra expenditures by using the $200 device inside of the Textbook fund. This money can then be used for other purposes.
Now let us look at the $1,000 device. $333 – $80 = -$254/student/year from the textbook allotment. $254 x 650,000 = $165,100,000/year. 3 X $165,100,000 = -$495,000,000/3 years.
With one plan we have a positive of $26,000,000/year and with the other plan we have a negative of $165,000,000/year. Which one would you choose to do the same job?
Do the math and do the budgets. Look at these numbers. $130,000,000 extra or $495,000,000 in the hole? Is this a hard decision? Why did they choose the lose $495,000,000? This is just devices nothing else.
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It’s just just devices + hot air, nothing else.
The text books you’re imagining still have to be bought, because everything on the iPads is behind a paywall except some buggy aps. Even for those, they don’t work reliably in the hands of my frustrated 15 year old students.
The gifted ones are the most disappointed of all. They’ve fantasized about a laptop computer with online access, like the ones our culture pretends every kid has. Then they’re issued a touch-screen piece of crap instead, and it’s designed to deliver enforced drudgery and mindless pastimes to them.
The faux-authoratative calculations are drivel, as well as hot air.
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The wealth GINI in the United States is 0.801 on a scale where 0.0 is perfect equality and 1.0 is perfect inequality.
To put that it perspective, to find similar levels of inequality in wealth, you have to go to Zimbabwe, Zambia, Gabon, Namibia, South Africa, Chile, Panama, and Haiti.
In other Western democratic states, wealth inequality is quite a bit lower, with one exception: It’s as high in Denmark as it is here.
According to the AARP, 25% of Americans over 50 had ALL of their retirement savings, including equity in their homes, wiped out during the recession.
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Do not forget what Arne Duncan’s chief of staff says about the Common Core, that it is an instrument to create national markets for “products that can be brought to scale.”
Welcome to the Walmartization of American education. Big box education. You are going to love our everyday low “standards.”
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And that, dear friends, is what the Common [sic] Core [sic] State [sic] Standards [sic] are all about.
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“creating national markets for products that can be brought to scale”
One ring to rule them all.
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So sad, but true. However, it’s the funniest thing I’ve read all day!
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So sad, but true. However, that is the funniest thing that I’ve read all day!
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Sandra Stotsky of the University of Walmart has complained about the lack of International Benchmarking when the Common Core were developed. Under the Walmart model, the government should be allowing people to bring in literature demonstrating lower standards elsewhere and permit standards matching with countries like Finland. They should also provide periodic across the board “rollbacks” on standards that are too high, such as in P-3.
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Another skit for Matt Damon on SNL?
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So now I’m curious: what is Michelle Rhee’s class background? What shaped her views?
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