Archives for category: Economy

In a brilliant essay in the Los Angeles Times, Susan Ochshorn says that the United States is squandering its future by not investing in the well-being of children.

Ochshorn, an advocate for early childhood education, cites an Urban Institute study showing that “federal spending on children fell by $2 billion from 2010 to 2011, the first dip in 30 years. The children’s share of the budget pie was reduced from 10.7% to 10.4%. By 2022, the children’s portion of the budget is expected to drop to 8% and their share of GDP is expected to drop from 2.5% to 1.9%, which will include significant cuts in early care and education. With the Census Bureau reporting nearly 25% of the nation’s children younger than age 6 in poverty, this is not good news.”

It is a cliche to say that “children are our future,” but it is actually true. Children are our future, and if we neglect their basic needs, we sacrifice the future.

Ochshorn writes: “We now know more than ever about how to nurture human capital, with eye-popping technology offering graphic evidence of the rapid pace and complexity of brain development in the first years of life. The bottom line is that kids need time for sensitive, stimulating interactions with adults to promote growth, resilience and mastery, the foundations for their healthy development and academic success. They need access to good healthcare and nutrition, and high-quality early learning settings, not to mention viable communities invested in their well-being.”

Her article cites numerous authoritative sources to demonstrate one basic fact: We are not investing in the well-being of children. Instead, we are spending more and more to test them and to hold their teachers accountable. This is not good social policy. This is criminal neglect.

 

Electablog comments on an interview that Detroit’s emergency manager Kevyn Orr gave to the Wall Street Journal.

Orr said that the union workers who built the city’s great manufacturing base were “dumb, lazy, happy, and rich.”

This, apparently, is what he thinks caused the ruination of Detroit: All those dumb, rich working stiffs in unions.

Nothing about those dumb, rich executives who sat on their fat salaries while Japan designed a better, more fuel-efficient car.

Nothing about the happy, rich corporate executives who outsourced basic industries to low-wage countries.

Electablog says:

“What Mr. Orr seems to forget is that it was the rise of the manufacturing industry in the United States along with the labor unions that created the middle class. The men and women he degrades with this callous statement worked hard every day in the factories that built things in this country. To describe them as dumb, lazy, and rich is beyond absurd and is incredibly insulting. Detroit’s problems don’t stem from union workers being able to make a decent wage with benefits and a pension. This country is strong, both economically and socially, because workers had enough money in their pockets to buy the things they were building.”

 

The New York Times reports that Amazon is involved in labor disputes in Germany, one of its biggest markets, because of Amazon’s antipathy to union labor.

Germany has strong unions.

Amazon eventually plans to bring in robots to do the work of people and fears that  unions will be an obstacle.

Robots never form a union and don’t ask for higher wages, health care or pensions.

The article says:

Last year, the company spent $775 million to buy a manufacturer of robots that it plans to eventually deploy in its warehouses, though it has not said when they would come to Germany. The last thing it wants is to have to get approval from unions for such changes.

“This really isn’t about higher wages,” Mr. Clark said. “It isn’t a cost question for us. It’s about what our relationship is with our people.”

“We’re still a developing industry,” he added — despite the fact that Amazon posted revenue of $15.7 billion in the last quarter and the company is enjoying a buoyant stock price.

In the United States, Amazon successfully thwarted efforts to unionize.

Imagine that: a company with revenues of $15.7 billion claiming to be “a developing industry.”

Amazing what lengths some billionaires will go to to prevent paying low-level workers a living wage.

 

This is one of the most powerful articles I have read in a long time.

Robert Putnam describes life in his home town of Port Clinton, Ohio, population 6,059, as he was growing up in the 50s.

Port Clinton was “ a passable embodiment of the American dream, a place that offered decent opportunity for the children of bankers and factory workers alike.”

But today, “wealthy kids park BMW convertibles in the Port Clinton High School lot next to decrepit “junkers” in which homeless classmates live. The American dream has morphed into a split-screen American nightmare. And the story of this small town, and the divergent destinies of its children, turns out to be sadly representative of America.

“Growing up, almost all my classmates lived with two parents in homes their parents owned and in neighborhoods where everyone knew everyone else’s first name. Some dads worked in the local auto-part factories or gypsum mines, while others, like my dad, were small businessmen. In that era of strong unions and full employment, few families experienced joblessness or serious economic insecurity. Very few P.C.H.S. students came from wealthy backgrounds, and those few made every effort to hide that fact.”

Putnam and his generation grew up in a healthy society, where opportunity was widely available and many did well in life. Nearly three-quarters got more education than their parents and succeeded economically as well.

But then manufacturing collapsed; jobs were outsourced. The social fabric of the community wore thin.

The social impact of those economic hammer blows was initially cushioned by the family and community bonds that had been so strong in my youth. But as successive graduating P.C.H.S. classes entered an ever worsening local economy, the social fabric of the 1950s and 1960s was gradually shredded. Juvenile-delinquency rates began to skyrocket in the 1980s and were triple the national average by 2010. Not surprisingly, given falling wages and loosening norms, single-parent households in Ottawa County doubled from 10 percent in 1970 to 20 percent in 2010, while the divorce rate more than quadrupled. In Port Clinton itself, the epicenter of the local economic collapse in the 1980s, the rate of births out of wedlock quadrupled between 1978 and 1990, topping out at about 40 percent, nearly twice the race-adjusted national average (itself rising rapidly).

“Unlike working-class kids in the class of 1959, many of their counterparts in Port Clinton today are, despite toil and talent, locked into troubled, even hopeless lives.”

What is happening to our country?

Why are the bankers and the major corporations blaming teachers and public schools for problems they not only created but benefit from?

Why do they think that adoption of the Common Core standards or the privatization of public schools will heal the deep economic and social problems caused by the outsourcing of our manufacturing base and deep income inequality?

How many shell games will Americans fall for?

EduShyster is excited to see that Morgan Spurlock has discovered charter schools, which are training minority students to be busy every minute every day. Spurlock has a CNN program called “The Inside Man” where he sees how things really work.

When Spurlock decided to find out why our schools are “failing,” This is what he did:

“The Inside Man was off on a mission. First stop: Finland, where Spurlock joined a long and growing list of American visitors who descend on that country intent on learning nothing. Then it was time to find a school that takes every single one of the elements of the Finnish success story and either ignores them completely or does the precise opposite of what the Finns do. Welcome to Williamsburg Collegiate Charter School, where there is no magical 100% solution but rather one hundred, individual 1% solutions. Let’s take a look, shall we?”

What are the secrets of this charter?

“Williamsburg Prep’s “immersion approach” relies on key special sauce ingredients like tracking the speaker plus some nifty new flavors, including lots of hand clapping and snapping. Most importantly though, neither these students, nor their hands, are ever idle. And that’s key because it is a well known historical fact that idle hands do the Devil’s work. Also, in the jobs of the future, there will not be much downtime, if you know what I mean. In other words, Williamsburg Prep looks a lot like a school in Finland, if Finland was actually called SLANTland and instead of educating students, the Finnish teachers were training seals.”

To learn more about this miraculous school, read on.

Jersey Jazzman noticed that the proportion of students rated as proficient by New York’s State Education Department is very nearly identical to the proportion in the population of the state with a four-year degree.

It occurs to him that the phrase “college and career ready” is phony. It really means “ready for a four-year college degree.”

Should students be failed unless they are ready to get a four-year bachelor’s degree?

This is nuts.

Many good jobs do not require a four-year college degree.

Some graduates with a four-year degree are waiting on tables or selling Apple products for $12 an hour.

Why should New York state penalize students who will be doing important work for society and earning a good living as plumbers, electricians, construction workers, and other careers?

He observes: “…this is all about making the public education system look as bad as possible, so privatizers can move in and teachers unions can lose power. It’s a political agenda; it has nothing to do with education. “College and career ready,” like “achievement gap” and “x months of learning,” is a useless, phony phrase designed to set the parameters of the debate in a way that favors those who would blame our country’s serious problems almost exclusively on our public schools. Be on your guard whenever you hear it used – you’re probably being conned. “

 

 

Walmart, owned by the fabulously wealthy Walton family of Arkansas, has told the city of Washington, DC, that it will not build stores there if the City Council passes a “living wage” bill. The members of the family are billionaires and at the very least multimillionaires.

Walmart wants to pay only the minimum wage of $7.50 an hour. The City Council wants a “living wage” of $12.50 an hour, reflecting the high cost of living in DC.

Walmart says it will abandon DC if required to pay such “high” wages.

Have you seen the ads that Walmart is running on national television that show how their employees are achieving their dreams because of their beneficent employer? On $7.50 an hour?

The Walton Family Foundation is happy to throw millions of dollars into DC charter schools, but not provide a wage that will allow the parents of the children in those schools to make choices about their lives.

We have heard in state after state that teachers’ pensions and wages must be curtailed because they–and other public workers–are destroying the economy. Those greedy, selfish teachers and principals!

However.

The Economic Policy Institute in DC reports that in 2012 the average CEO made 273 times the wages of the average worker.

Now it is very important to understand the concept of shared sacrifice. Your typical CEO might have insisted on wages 500 times that of the workers, but they graciously consented to a ratio of only 273:1.

Here are a few key findings:

“Average CEO compensation was $14.1 million in 2012, using a measure of CEO pay that covers CEOs of the top 350 firms and includes the value of stock options exercised in a given year (“options realized”), up 12.7 percent since 2011 and 37.4 percent since 2009. This is our preferred measure.”

Also:

“From 1978 to 2012, CEO compensation measured with options realized increased about 875 percent, a rise more than double stock market growth and substantially greater than the painfully slow 5.4 percent growth in a typical worker’s compensation over the same period.

“Using the same measure of options-realized CEO pay, the CEO-to-worker compensation ratio was 20.1-to-1 in 1965 and 29.0-to-1 in 1978, grew to 122.6-to-1 in 1995, peaked at 383.4-to-1 in 2000, and was 272.9-to-1 in 2012, far higher than it was in the 1960s, 1970s, 1980s, or 1990s.”

Think how busy they must be outsourcing jobs to low-wage nations. Tough job, but someone has to do it.

One of our regular readers and commenters Is a Tea Party activist who likes to joust with anyone who dares to express compassion for those whose lives are blighted by poverty. He scoffs at the idea that there is such a thing as communal responsibility. In his world, it is always nasty and brutish, and it is each one for himself.

So here is a story that appeared in the New York Times on July 2. It is about a woman who works for Kentucky Fried Chicken. She is a shift manager, and she is paid $7.75 an hour. She makes an extra 50 cents an hour because of her title and extra responsibilities. Her husband is unemployed. From her meager earnings, she must feed and clothe three children and pay the rent. She said, “I’m beyond not satisfied. This isn’t the life I want for my children. This isn’t the life I want for myself.” Last year, when boiling oil scalded her hands and she was out of work, she got $58 a week in workers’ compensation. A welfare queen, right?

The CEO of YUM!, which owns Taco Bell and KFC, makes $11.3 million per year. The Times says he “helped lead the battle against paid sick days.”

Fast food workers and other workers whose wages are barely above the poverty line are trying to unionize. Imagine that.

More from a reader who calls himself “Democracy”:

As I continue to point out, the U.S. already IS internationally competitive.

The World Economic Forum ranks nations each year on competitiveness. It uses “a highly comprehensive index” of the “many factors” that enable “national economies to achieve sustained economic growth and long-term prosperity.”

The U.S. is usually in the top five (if not 1 or 2). When it drops, the WEF doesn’t cite education, but stupid economic decisions and policies.

For example, when the U.S. dropped from 2nd to 4th in 2010-11, four factors were cited by the WEF for the decline: (1) weak corporate auditing and reporting standards, (2) suspect corporate ethics, (3) big deficits (brought on by Wall Street’s financial implosion) and (4) unsustainable levels of debt.


Last year (2011-12), major factors cited by the WEF are a “business community” and business leaders who are “critical toward public and private institutions,” a lack of trust in politicians and the political process with a lack of transparency in policy-making, and “a lack of macroeconomic stability” caused by decades of fiscal deficits especially deficits and debt accrued over the last decade that “are likely to weigh heavily on the country’s future growth.” The WEF did NOT cite public schools as being problematic to innovation and competitiveness.

And this year (2012-13) the WEF dropped the U.S. to 7th place, citing problems like “increasing inequality and youth unemployment” and, environmentally, “the United States is among the countries that have ratified the fewest environmental treaties.“ The WEF noted that in the U.S.,”the business community continues to be critical toward public and private institutions” and “trust in politicians is not strong.” Political dysfunction has led to “a lack of macroeconomic stability” that “continues to be the country’s greatest area of weakness.”


[Note: data on 2009, from the 2010-1011 competitiveness report can be found here: http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010-11.pdf ]

The critics continue to point the finger of blame and responsibility, though, at public schools and teachers. Seriously, you’d almost have to be a moron to buy into this stuff. And yet……

The problem in American public education is largely one of poverty. The data show it. Indeed, PISA scores (the scores usually cited by public education critics) are quite sensitive to income level. If one disaggregates U.S. scores the problem becomes clearer: the more poverty a school has, the lower its scores. The presumed do-gooders seem to think that more “competition” and ambitiousness will cause the schools to fix the effects of poverty. Those effects are pernicious.

A technical report from the American Academy of Pediatrics on the damaging effects of toxic stress in children – the kind of stress found in high-poverty urban areas – finds that such stress involves “activation of the hypothalamic-pituitary-adrenocortical axis and the sympathetic-adrenomedullary system, which results in increased levels of stress hormones, such as corticotropin-releasing hormone (CRH), cortisol, norepinephrine, and adrenaline. These changes co-occur with a network of other mediators that include elevated inflammatory cytokines and the response of the parasympathetic nervous system, which counterbalances both sympathetic activation and inflammatory responses.”

The result is that “toxic stress in young children can lead to less outwardly visible yet permanent changes in brain structure and function….chronic stress is associated with hypertrophy and overactivity in the amygdala and orbitofrontal cortex, whereas comparable levels of adversity can lead to loss of neurons and neural connections in the hippocampus and medial PFC. The functional consequences of these structural changes include more anxiety related to both hyperactivation of the amygdala and less top-down control as a result of PFC atrophy as well as impaired memory and mood control as a consequence of hippocampal reduction.”

See: http://pediatrics.aappublications.org/content/129/1/e232.full.pdf

In plain speak, alleviating poverty and its pernicious effects, and providing children with high quality environments before they get to school, and following up with health and academic and social policy programs while they are in school, results not only in high-quality education but also in a high-quality citizenry….and in promoting the general welfare of the nation. This is surely not what the “reformers” want. It might – will – require a cessation to the gaming of the “markets” and the tax system.

The public education system in a democratic republic is supposed to develop and nurture democratic character and citizenship. That’s the kind of reform we need.

And it’s exactly the kind of reform the “reformers” detest.

Including Arne Duncan.