Archives for category: Economy

John Ogozalek, a graduate of Vassar College who teaches in upstate New York, wrote the following:


HALF the consumers in the U.S. have just had their financial pants pulled down in public, so to speak. And, it’s all due to the bungling of credit reporting giant Equifax, which was hacked yet again.

Meanwhile, citizens continue to be force fed the lie that the free market is always better -better schools, better health care, better everything.

And, here’s the real kick in the teeth. CNBC (see link below) reported that if you agree to Equifax’s offer to help monitor your credit, you “may be giving up key consumer rights”. Wow.

But readers of Diane’s blog are well familiar with this narrative. We’ve been living it for years now, as our schools are pillaged by the greedheads.

They screw you over, then use the chaos and confusion they’ve sown to screw you over even MORE.

The cheapos at Equifax are offering a measly one year of their dubious credit monitoring. Ha! Anyone who has ever had their credit information and identity stolen knows you enter a sickening, house of mirrors world where months, even years of your time are chewed up just reclaiming your “self”, your good name. You call a supposed number to get help, then have to detail your private, financial information over the line. But, how do you even know THAT NUMBER is really legit?

Here’s the truth about the free market. When you call to give them business, there’s always a person there who is ready to take your money. But, when you call to get help, well, take a number. Or, get ready to push lots of numbers, and maybe talk to someone eventually,. This is what privatization of schools will bring us. You are a number.

I’m always amazed by the school where I work. The PUBLIC school. Call there on any given day and within a minute you’ll not only have a real person helping you, but you can go right to the top and talk to one of our principals, too.

I had an issue a couple years ago with a classified student who needed some assistance and within one hour I had a team of wonderful teachers and counselors all over the challenge. And, it was solved in a great way. This is the norm where I work.

What’s that song say….you don’t know what you’ve lost until it’s gone?

Save our public schools!

https://www.cnbc.com/2017/09/08/3-reasons-breach-victims-might-not-want-equifax-credit-monitoring.html

An official projection of the new jobs that will be available, from the U.S. Bureau of Labor Statistics, from 2014-2024.

Notice how few require any post secondary education. Notice that you don’t need a high test score or the Common Core for most of them.

Education raises wages and prospects for the future. But most new jobs are low-wage, low education.

Laura Chapman recounts the failed efforts to predict the jobs of the future:


In 2004, Achieve,Inc, the Education Trust, and Thomas B. Fordham Foundation, and William and Flora Hewett Foundation started marketing the myth that specific high school requirements would provide the necessary “college and career readiness” for “high-performance, high- growth jobs.”

The report: Ready or Not: Creating a High School Diploma that Counts was designed to say that American education had one main mission, preparing students for those jobs—projected to “ support a family well above the poverty level, provide benefits, and offer clear pathways for career advancement through further education and training. (p. 105).”

The writers relied on the 2002–03, Bureau of Labor Statistics, Occupational Outlook Handbook, and course taking patterns and transcripts of a cohort of students who graduated from high schools in 1992 in order to make absurd claims about the “proper curriculum content” for entry into high-growth, well-paying jobs.

This effort, called the American Diploma Project, morphed into the Common Core State Standards, with math and ELA the be-all and end-all of education and the meme of “college and career readiness” implanted as if the only thing that mattered in education.

There was not an ounce of reliable information in that report. The economy tanked in 2008. It has not yet recovered.

Now the tech industry is pushing computer everything into school. Here is a recent account of who is doing this and how well. https://www.nytimes.com/2017/06/27/technology/education-partovi-computer-science-coding-apple-microsoft.html

Here are the Bureau of Labor statistics job projections for the next 10 years 2014-2014. These projections are modified every two years. A typical US worker has held 11 jobs before the age 44.

People who say that career planning should begin in pre-school and kindergarten are really doing damage to education. The “college and career” meme has been marketed as if there is nothing more that matters, and that these two emphases will guarantee a great future for students and the economy. NOT, NOT, NOT.

FASTEST GROWING OCCUPATIONS

Bachelors degree or higher required
Number of new jobs in thousands and median salary
Physical therapists 71.8 $85,000
Nurse practioners 44.7 $100,900
Physician assistants 28.7 $101,480
Statisticians 10.1 $80,500
Operations researcher analyst 27.8 $78,300

SOME POSTSECONDARY EDUCATION REQUIRED

Web developer 39.5 $ 66,310
Physical therapy assistants 31.9 $56,610
Occupational therapy assistants 14.1 $59,010
Commercial drivers 1.6 $49,090

FASTEST GROWING JOBS OVERALL

Home health aides 348.4 $22,600
Physical therapy assistants 31.9 $56,610
Occupational therapy assistants 14.1 $59,010
Physical therapy aides 19.5 $25,680
Wind turbine service technicians 4.8 $52,260

OCCUPATIONS WITH THE MOST JOBS
Personal care aides 458.1 $21,920
Registered nurses 439.3 $68,450
Home health aides 348.3 $22,600
Food services, fast food 343.5 $19,440
Retail sales 314.2 $22,680

A few years back, I discovered that only one of the major think tanks in D.C. is not subsidized by the Gates Foundation. That is the Economic Policy Institute. Unlike other think tanks, which don’t even bother to disguise their ideological preferences, EPI makes its values clear: it advocates for economic and social justice and it is rigorous in its application of evidence.

In this report, EPI finds that the typical CEO is paid 271 times more than the typical worker.

Want a measure of the growth of inequality in our society, the engorgement of the 1%, and the shrinkage of the middle class? Consider this fact:

“While the 2016 CEO-to-worker compensation ratio of 271-to-1 is down from 299-to-1 in 2014 and 286-to-1 in 2015, it is still light years beyond the 20-to-1 ratio in 1965 and the 59-to-1 ratio in 1989. The average CEO in a large firm now earns 5.33 times the annual earnings of the average very-high-wage earner (earner in the top 0.1 percent)….

“Why it matters: Regardless of how it’s measured, CEO pay continues to be very, very high and has grown far faster in recent decades than typical worker pay. Exorbitant CEO pay means that the fruits of economic growth are not going to ordinary workers, since the higher CEO pay does not reflect correspondingly higher output. CEO compensation has risen by 807 or 937 percent (depending on how it is measured—using stock options granted or stock options realized, respectively) from 1978 to 2016. At 937 percent, that rise is more than 70 percent faster than the rise in the stock market; both measures are substantially greater than the painfully slow 11.2 percent growth in a typical worker’s annual compensation over the same period.”

Although this is not a problem that the Trump administration cares about, EPI has some straightforward fixes that a future administration might enact.

Marc Tucker says that Trump’s budget will not make America great again. It is a reverse Robin Hood plan, taking from the poor and giving to the rich.

“The first reaction is all gut. The budget, on its face, would represent a gigantic redistribution of resources from the poor to the rich. To say that that is morally bankrupt is to understate the case. There is no rational argument for such a policy.

“The administration makes three cases for its proposals. The first is that tax breaks for the rich while robbing the poor to pay for the tax cuts will generate so much growth that the taxes on the increased income will more than pay for the tax relief. That argument has been advanced again and again despite a continuing lack of evidence that it has ever actually worked out that way. If you want to see the most visible and colossal evidence for the failure of this theory, you have only to look at Kansas, which has been virtually bankrupted by Governor Sam Brownback’s determination to go down this rat hole.

“The second is that all the administration is doing is giving freeloaders an incentive to work. That may be a masterpiece of propaganda, but not a masterpiece of reasoning. Someone has to explain to me how taking away financial support to go to college from low-income high school graduates is going to give these “freeloaders” an incentive to work. I want to know how giant cuts to the National Institutes of Health research budget on life-saving drugs is giving freeloaders an incentive to work.

“The third and last argument this administration has advanced for this budget is that the evidence that the programs they plan to terminate work is either weak or nonexistent. Without conceding the strength of their evidence that they do not work—the evidence is at worst mixed—let’s just look at the logic of the argument. Almost all of these programs are intended to help vulnerable populations. Surely, if they do not work, the responsibility of government is to replace them with stronger programs intended to accomplish the same objective. Replacing them with nothing but “choice” suggests that the administration does not care what the question was as long as the answer is choice, which is the very definition of policy made on the basis not of evidence but of ideology.

“When I say ideology, I am referring to the belief that something is true despite all the evidence to the contrary. Does the President’s Budget Director Mick Mulvaney actually believe, despite decades of evidence to the contrary and the counsel of most economists from both parties, that giant tax cuts will pay for themselves? Or could it be that ideology is not really the problem here, that greed is the problem? Are we looking at the result of a political system that has been captured in part by the very rich, people who spend their time on the golf course telling each other that it is really they who produce economic growth and are entitled to its benefits and who now happen to have the political power to enforce those views on the rest of us? Or is it both?

“That is my gut speaking, my gut honing in on the gigantic injustice that would be wreaked on the nation if this budget were in fact to become the United States government budget. And then I relax a little bit. It will not happen, I say to myself. Ronald Reagan offered a budget like this to the Congress and the Congress virtually ignored it. So it won’t happen this time either, I say to myself…

“The truth is that the administration’s budget will make enormous cuts in exactly the kind of research and development that is the key to our economic future, will cripple the universities that have driven the development of our best technologies decade after decade, will kneecap the disadvantaged students on whom the future of all of us now depends. My whole argument hinges on the idea that our people are our future and our future depends on giving our people, all of them, a world-class education and training to match. And what is the administration’s strategy for that? It is to cut the education and job training budget to ribbons and offer us choice as its sole strategy for improving student achievement. Choice well done can help at the margins, but what I just described is not a weight that choice can bear.

“The budget is a prism that casts a shining beam on who we are as a nation, what we believe in and what kind of nation we want to be. I would argue that the budget we need is neither the budget the administration has offered nor the budget we have. The Democrats will have to acknowledge that the imperative is not to keep all the social programs we have and start adding more (yes, it is true that some are not working as well as they should and it is also true that some are there not to provide needed services but to earn political support) and the Republicans will have to give up tax reduction as the holy grail of national politics (even if that costs them the open pockets of some of their richest contributors). The question we all have to ask is, in a very constrained economic environment, how much can we afford to spend on the current needs of our people while making the investments we have to make now to enjoy broadly shared prosperity tomorrow?”

Donald Trump demonized Goldman Sachs during the Presidential campaign and blasted Hillary Clinton for having the nerve to speak to them for high fees. But now he is stocking his economic team with men (yes, men) from…where else?…Goldman Sachs!

There should be a lot of room for advancement at that firm, what with all the top people leaving to join the Trump administration.

Their appointment reassures Wall Street, which can feel comfortable knowing that their friends are running the economy, not the King of Debt.

Trump has assembled a cabinet of deplorables. One of the worst is Andrew Puzder, owner of fast-food chains, who doesn’t believe in workers’ rights or minimum wage.

In this article, JoAnne Wise describes what it was like to work for Hardee’s for 21 years.

https://www.washingtonpost.com/posteverything/wp/2017/02/07/andy-puzder-will-be-a-disaster-for-workers-i-know-he-was-for-me/

“In 1984, I was hired as a cashier at Hardee’s in Columbia, S.C., making $4.25 an hour. By 2005, 21 years later, my pay was only at $8 an hour. That’s a $3.75 raise for a lifetime of work. Adjusted for inflation, it’s only a 2-cent raise.


“Andrew Puzder, the chief executive since 2000 of CKE — which owns Hardee’s, Carl’s Jr., and other fast-food companies — is now in line to become the country’s next labor secretary. The headlines ponder what this may mean for working people in America, but I already know.


“I already know what Trump/Puzder economics look like because I’m living it every day. Despite giving everything I had to Puzder’s company for 21 years, I left without a penny of savings, with no health care and no pension. Now, while I live in poverty, Trump, who promised to fix the rigged economy, has chosen for labor secretary someone who wants to rig it up even more. He’s chosen the chief executive of a company who recently made more than $10 million in a year, while I’m scraping by on Supplemental Security payments.”

Washington Post writer Catherine Rampell predicts that Trump’s choice of hardline right winger Mick Mulvaney for director of the Office of Management and Budget is the worst appointment yet. He is an ideologue who doesn’t see any reason for federal spending. She believes that Mulvany might set off a global economic crisis. I can tell you from my own brief experience in the federal government that OMB is the ultimate decider on every spending decision.

 

She writes:

 

Over the weekend, President-elect Donald Trump tapped Rep. Mick Mulvaney (R-S.C.) to be his director of the Office of Management and Budget. This Cabinet-level post is responsible for producing the federal budget, overseeing and evaluating executive branch agencies and otherwise advising the president on fiscal matters. It’s a position with tremendous, far-reaching power, even if the public doesn’t pay much attention to it.

 

Which is why it’s so concerning that Trump chose Mulvaney, who seems poised to help Trump ignite another worldwide financial crisis.

 

Mulvaney was first elected to Congress in 2010 as part of the anti-government, tea party wave. A founding member of the right-wing House Freedom Caucus, he is among Congress’s most committed fiscal hawks. He has repeatedly voted against his own party’s budget proposals because they were insufficiently conservative.

 

Mulvaney, like Trump’s other cabinet picks, is inexperienced and unqualified. His strong point of view is at odds with Trump’s promises.

 

The world must be watching in amazement as our inexperienced and ignorant new president fills out his team with equally inexperienced and ignorant cabinet leaders.

 

I think that most of these choices were made by Mike Pence, who previously served in Congress. Trump very likely never heard of any of the people he has chosen; they are not the type likely to dine at the 21 Club in Manhattan or to hobnob with the celebrity culture. Pence knows them through his evangelical, hard-right connections.

Matt Taibbi labeled Goldman Sachs “the Vampire Squid” because of its financial power and its ability to manipulate and control whatever it wants.

 

In this article, he points out that Trump ridiculed his opponents for their connections to Goldman Sachs, but is now turning the nation’s economy over to…veterans of Goldman Sachs. The Vampire Squid is now a key player in Trump’s swamp.

 

“In his final pitch to voters in the days before the election, Trump used the image of [Goldman Sachs CEO Lloyd] Blankfein in a TV ad to argue that insiders had ruined the lives of ordinary Americans to enrich themselves. Here is the narration you heard when Blankfein’s face came on screen:
“It’s a global power structure that is responsible for the economic decisions that have robbed our working class, stripped our country of its wealth and put that money into the pockets of a handful of large corporations and political entities.”

 

“One surprise election result and a mountain of jubilant #draintheswamp hashtags later, Donald Trump has filled his White House with, you guessed it, Goldman veterans.
“His chief strategist, the unabashed white-supremacist loon Steve Bannon, is a former Goldman banker, as is adviser Anthony Scaramucci. Steve Mnuchin marks the fourth Goldman-pedigreed treasury secretary in the last four presidencies, after Bob Rubin, Lawrence Summers and Hank Paulson.
“But the real shocker is the recent appointment of Goldman Chief Operating Officer Gary Cohn to the post of director of the National Economic Council. Bannon and Mnuchin were former, past Goldmanites. Cohn, meanwhile, is undoubtedly at least the number-two figure at the world’s most despised bank, if not the outright co-head with Blankfein. He has been at the center of many of its most infamous episodes, including the Greek affair.
“So much for draining the swamp.
“The new party line, emanating both from Washington and from Alt-Right yahoos on the Internet, is that people like Gary Cohn are no longer the swindling scum-lords Trump said they were a few months ago, but simply smart businessmen.”

 

 

 

I attended a lecture recently at the New York Public Library and heard Paul Krugman speak. The general atmosphere was somber, as it was clear that he was depressed about the election, as were the 1,500 or so people in the audience. To all the pundits who extract lessons for the Democrats, Krugman pointed out that Hillary now has a lead of 2.7 million votes. But she lost because of the Electoral College, which was put into the Constitution to placate the slave states. He also talked about the carelessness of the media, which pushed Trymp’s trope about the emails, when there was nothing in them. He faulted the media for making a big deal out of Trump’s over-publicized deal to save 750 or so jobs. He pointed out that 75,000 people are fired or laid off every single day, so this was an insignicant blip.
His lecture reminded me of a post-election analysis by Nate Silver. He is a numbers guru who has an interesting website. I followed him during the campaign, and he was more cautious than other pollsters but still predicted a Clinton win. By analyzing voting patterns, he discovered that the best predictor of votes for Trump or Clinton was education. Where there were high levels of BA degrees, Clinton won. Where there were the lowest, Trump won. 
Trump was right when he declared during the GOP primaries: 
“I love the uneducated!”
Let’s watch and see what he does to their healthcare, their schools, and the economy.