Week in Review
We are in the worst economic recovery since that following the Great Depression. Why? Because of Democrats. Who are all Keynesians. And that’s a big problem as all of our worst economic times were given to us by those who adhere dogmatically to Keynesian economics. That school of economics that gave us the Great Depression. The stagflation of the Seventies. The dot-com bubble. The bursting of the dot-com bubble. And the dot-com recession. As well as the subprime mortgage crisis and the Great Recession. In all of these events the Keynesians in power followed Keynesian economic policies to avoid recessions. And then to pull us out of recessions when their avoidance didn’t work. Then doubling down on the things that didn’t work previously. In particular artificially low interest rates. Which have been around zero for the last 5 years. And massive federal spending to stimulate the economy when the private sector wasn’t spending. Two pillars of Keynesian economics. Neither of which have done anything to help improve the worst economic recovery since that following the Great Depression.
This is the problem with all the ‘noted’ economists the government likes to cite. They embrace poor economic principles. Proven wrong over and over again. They can come up with some impressive looking charts and graphs but their analysis is all wrong. And the fact that we’re in the worst economic recovery since that following the Great Depression proves it better than any chart and graph. They’re wrong. And continue to be wrong. Yet they provide the economic policies for our country. Some of the greatest nonsense you will ever hear. Things you wouldn’t do in your business. Or in your personal life (see Student Loans Are A Drag On The Economy And Society by Josh Freedman posted 2/11/2014 on Forbes).
While loans are intended to expand college access to a broader population, the nature of risk that they entail also produces the opposite result. Low- and middle-income students worried about the consequences of taking out a loan will be more likely to decide that college attendance is not worth the risk…
Studies have found that high debt levels not only deter access at the beginning, but can also drive students away from completing college once they have already started… students who start college but do not graduate are stuck with loan repayments and no college degree. They still have to repay their loans but do not have the economic boost of a college degree to help them have enough income to cover this cost.
First of all, why is it when it comes to a college education no one ever demands that we lower the cost. Like we do with greedy oil executives who keep the price of gasoline high. Why is it no one attacks the greedy people in higher education that keep education so costly?
The problem is too many people are going to college for the wrong reason. There is a reason why there is a list of the best party colleges every year. Because a lot of these kids want to go to these schools. Which explains why colleges in Colorado are seeing a spike in out-of-state applications. Because these kids want to go to a college where they can party with legal marijuana. And to make that partying easier they’re majoring in easier degree programs that the college assured these kids would provide them a comfortable living after graduation. So they can get that profitable tuition out of these kids. Often times paid for by these kids’ student loan borrowings. So the colleges are misleading a lot of these kids to make a buck. Leaving them saddled with a lot of student loan debt if they quit. Or even more student loan debt if they stay in until graduation. While getting a degree that can’t get them a job.
A second issue with increasing levels of student loan debt is the effect on the economy… Individuals with more student loan debt were less likely than individuals without student loan debt to purchase homes or cars.
Yes, having too much debt is a bad thing. It reduces your disposable income. Preventing you from purchasing a house or a car. Yet these same economic advisors have no problem with raising taxes and devaluing the currency (i.e., printing money) to pay for all of the government’s stimulus spending. Higher taxes reduce our paychecks. And devaluing the currency raises real prices. Reducing what we can buy with our smaller paychecks. No, a Keynesian has no problem with debt at the federal level that affects everyone. But student loan debt is just a terrible thing for those kids who dropped out of college or who didn’t get a degree that an employer could use.
In the wake of the financial crash, households have been trying to deleverage, or pay down their debt so they can have a healthier financial outlook, reduce the amount of their income that they use to service their debt, and begin investing and consuming again…
A look at the data suggests that student loans have slowed down households in the process of paying down debt. Since 2008 — the peak level of household debt — households lowered their levels every type of debt except student loan debt. Student loans have continued to grow throughout this process of deleveraging.
Of course the one thing missing from this analysis is the horrible economy President Obama’s Keynesian policies have given us. Since he became president he has destroyed some 10,948,000 jobs. Based on the number that were out of the labor force in the January 2014 BLS jobs report (91,455,000) and how many were out of the labor force when he entered office (80,507,000). This is why people are struggling with debt levels. There are no jobs. If there was a robust economy flush with jobs people wouldn’t worry about taking on debt to invest in the future. As long as they got a useful college degree in a high-tech economy. And not something useless like women’s studies or poetry.
But aren’t people facing poor job prospects just taking out more loans to avoid working as baristas at coffee shops that drip the coffee super slowly for no apparent reason? This does not appear to be the case from the debt data. Student loan debt has grown at almost exactly the same rate since the crash as it had been the previous five years — i.e. steadily and without fail.
Student loan credit level has been steadily rising because the cost of a college education has been steadily rising. Again, where is the outrage at our greedy educators getting rich by loading up these kids with student loan debt for a degree they can’t use in a high-tech economy?
…the loan system allows colleges to raise prices, which causes more students to take out loans. States, facing budget pressures, have also pulled back on investment, putting even more risk on students and further increasing the need for loans.
Again, where is the outrage at our greedy educators who keep raising tuition, forcing these kids to take out more and more student loan debt?
The risk and burdens that come from forcing students to take out debt up front and pay it back later is problematic from head to toe (tassel to hem, one might say). To create a better system of higher education, we need to look at alternatives to the current debt-financed model.
So the solution is for the taxpayer to foot the bill for these useless college degrees at these party colleges? How is that going to solve any problem? All that will do is allow more people to go to a college in Denver where they can get high for 4 years. And then go to work as a barista at a coffee shop that requires no 4-year degree. How does that make anything better? Other than get more young people to vote Democrat. Then again, perhaps that is the only objective of Keynesian economics. Which is why those on the left embrace these failed policies with a religious fervor. Because it helps them win elections. Even while they’re destroying the economy.
Tags: borrowing, college, debt, Democrats, devaluing the currency, disposable income, economic recovery, Great Depression, Great Recession, greedy educators, high-tech economy, higher education, interest rates, jobs, Keynesian economics, Keynesian policies, Keynesians, loan, party colleges, spending, student, student loan, student loan debt, taxes, useless college degree, worst economic recovery
The Democrat Party is the Cool Uncle that buys Booze and Cigarettes for his Nieces and Nephews
People characterize the Republicans as being a bunch of old fogies. Out of touch. Who don’t have a clue about the world today. Unlike their children
do. Who are wise beyond their years. For they know there is nothing really bad with underage drinking and smoking. Smoking marijuana. Or doing other drugs. And there is nothing wrong with casual sex. Sexting. Or nude selfies.
This is why the children of old fogies like the Democrat Party. Because the Democrats get them. Unlike their parents. Their parents tell them they shouldn’t stay out late, drink, smoke, do drugs or have sex. While the Democrats decriminalize marijuana and work to decriminalize other drugs. Provide free birth control. And abortion without parental notification. Making the Democrat Party the cool uncle that buys booze and cigarettes for his nieces and nephews. So is it any wonder that the youth vote goes Democrat?
The ironic thing, though, is that these old fogies were once young themselves. And some were pretty wild in their youth, too. But once they became parents things changed. For when it’s their daughter they don’t want her being objectified. Encouraged to explore her sexuality by having so much casual sex that she catches a sexually transmitted disease or gets pregnant. Especially if they did in their youth. Which is the last thing they want for their little girl. Who is and will forever remain their little girl.
Keynesian Economics conditioned People to accept that Government knows Best
This is the rule. Not the exception. As kids grow up fighting their parents they reach a point in life where they realize that their parents were right all along. That if they had only spent more time on their homework and less time partying things would have turned out better. Life may have been less fun in the short-run but much better in the long-run. They’d had an earlier start in their career. A career with better pay and benefits. They could have bought a house sooner. Met someone to marry and start a family with sooner. Instead of finding themselves at 25 buried under student loan debt for a degree that can’t get them a job. And a decade or so of hooking up having conditioned men to shun any serious commitment. Leading their daughters to turn to serial dating and online dating. As they struggle to find someone else who has grown up, too.
This is what the old fogies know. That their kids don’t. You get wiser with age. Thanks to education. And experience. Two things the young just don’t have. And never will. Because by the time they grow wise from education and experience they are no longer kids. But well on their way to ‘old fogery’. Which is, of course, a problem for the Democrat Party. For a wise voting public will not help them win elections. As their Keynesian economic policies have nothing but a long record of failure. Giving us the Great Depression, the stagflation of the 1970s, the dot-com recession and the Great Recession. To name a few bad economic times Keynesian economics have given us. Things older people know from education and experience. But the kids voting Democrat don’t.
Keynesian economics ushered in the era of Big Government. And did something the Socialists could not. Conditioned people to accept that government knows best. Especially young people. Uneducated and inexperienced young people. Despite the Democrats’ horrible record concerning things economic. Because of this record the Democrats use lies and deceit to attack free market capitalism. That economic system that worked better than any other. To get people who knew no better to mistrust free market capitalism. And ask for the government to fetter unfettered capitalism. To make the world a fairer place.
The Democrats use Public Education to teach our Kids to Distrust Capitalism and to Trust Government
It sounds good to the inexperienced and uneducated. Because it feels good to think in terms of fairness. And if there is one thing the young have are emotions. They like to use their hearts. Not their brains. As they are idealistic and naïve. Unlike those old fogies who are realists. They can’t be fooled or swayed by the Democrat lies because they have learned and experienced a lot in their long lives. And heard the same old Democrat lies all through those long lives. Which is why the Democrats work so hard on the youth vote. The War on Women, their lax drug attitudes, birth control, abortion, gay rights…all of these are to get the young to think in terms of fairness. To tug on their heartstrings. To get them emotional. And keep them emotional. As well as ignorant.
The more ignorant people are the easier it is to lie to them. Anyone who knows the history of Western Civilization will understand how life became better for people as we moved closer to free market capitalism. Anyone who knows classical economics will understand how thrift, savings, free trade, sound money, etc., made America the number one economy in the world. While the Keynesian policies of today are threatening to knock America out of that number one spot. People who understand these things are not going to vote Democrat. Which is why the Democrats work hard to keep people from learning these things. By constantly lying about them. And not teaching them in the institutions they control. Our public schools. And our institutions of higher education.
The Republican equation for winning votes is a difficult equation. Knowledge + Experience + Reason = Republican Votes. It’s difficult because the Democrats have long controlled public education. Thanks to their friends in the teacher unions. And their friends running our institutions of higher education. Which spend more time teaching our kids to distrust capitalism. And to trust government. To feel more. And think less. To live for today. And not worry about tomorrow. Making it very difficult for the Republicans to get young voters to vote for them. As they are unknowledgeable (thanks to our public schools), inexperienced (because they are young) and prefer emotion over reason (because feeling is more fun than thinking). Which is why old fogies (the knowledgeable, experienced and thinking) vote Republican and the youth vote does not.
Tags: abortion, birth control, capitalism, casual sex, deceit, Democrat, Democrat Party, Democrats, distrust capitalism, drugs, education, emotions, experience, free market, free-market capitalism, government knows best, higher education, ignorant, Keynesian, Keynesian economic, lies, marijuana, old fogies, parents, public schools, Republican, Republicans, trust government, young people, youth vote
Our Universities praise Government Intervention, Vilify Capitalism and Denigrate US History
I recently saw some students on television from our most prestigious universities. I won’t say who or where they were because it doesn’t matter. For they all pretty much think the same. There were liberal Democrats. And conservative Republicans. Young people. Just into their twenties. They spoke of economics, health care, free markets, investing in education, etc. Kids too young to have experienced life. In fact, most were still on their parent’s health insurance policies. But they knew everything there was to know. Particularly the liberal Democrats.
In college kids don’t know anything. That’s why they are there. So someone can tell them all those things they don’t know. The problem is this. The people telling them what to think have a liberal bias. It’s no secret. The teachers’ unions demand pay and benefit packages well beyond what most people can get in the private sector. The government let’s them gouge taxpayers. And in return they teach our kids in public schools to become Democrat voters. Then it’s on to college. Where the anti-capitalist hippies of the Sixties went on to become college professors. Who talked about the fairness in the former Soviet Union and the former East Germany. Where they put people before profits. Admiring their love of people. And hatred of profits. While glossing over on their oppressive police states, thought crimes, prisons for political dissidents, torture and wholesale executions.
These radical hippies took over higher education. And wrote the curriculum. Which praised government intervention into the free market economy. Vilified capitalism. And denigrated the United State’s role in history. Programming our children to hate whatever they hate. And to love what they love. Even when the facts get in the way. Which they can fix with a little history revisionism.
The Arts did Very Well during the Eighty thanks to the Generosity of Gainfully Employed People
They call the Eighties the decade of greed. While at the same time calling President Reagan’s economic policies a failure. Supply-side economics. Of the Austrian school. Everyone did well. Everyone made money. Which is why they were so materialistic. Because they had good-paying jobs that allowed them to be materialistic. Allowing them to buy Sony Walkmans and CD players. Which everyone had to have. Even though no one knew what they were before they hit the stores. Proving Say’s law.
Say’s law is a part of supply-side economics. In general it states that supply creates its own demand. No one was clamoring for Sony Walkmans or CD players in the Eighties. But when these companies explained how great they were all of a sudden we were demanding them. Supply created demand. Just as PC supply created PC demand. PCs were on the market long before they were in everyone’s home. It was a tough sell in the beginning. Because no one knew what they would use them for. But they have them now. Just like the Internet. For a generation who had just mastered the recording functions on their VCRs (video cassette recorders—what we used to record TV programs on before DVRs) the Internet was a confusing thing. And many said “thank you, but no thanks.” Then people began creating content and putting it on the World Wide Web. Today, people can’t live without their Internet connection. Again, supply created demand.
This is Say’s law in action. Supply creates demand. You make it easier for people to be creative and bring things to market and they will. Two ways to do this is to lower tax rates and reduce the regulatory climate. So people are more willing to take risks. Which they will do if there is sufficient reward for taking that risk. Reagan did both during the Eighties. The economy exploded. Everybody was working. The jobs were so good that we had money for material comforts. And generous donations. The arts did very well during the Eighties thanks to the generosity of gainfully employed people.
Obamacare will take Money from the Young and Healthy to pay for the Old and Sick
But this isn’t what they’re teaching in our universities. They say that Reagan did cut taxes and created an economic boom. But at what cost? For he had record deficits. Because of those tax cuts. Which is where that history revisionism comes in. Yes, he cut tax rates. And when he did tax receipts (actual money flowing into the treasury) nearly doubled. But our universities don’t teach that. As demonstrated whenever a liberal talks about Reaganomics. Instead they attack Reagan. Capitalism. And Republicans in general. Because they all believe that limited government is best. Which threatens a ruling class.
Our universities teach our kids the economics school that benefits the ruling class. By supporting an ever expanding government. Keynesian economics. Which has a proven track record of failure whenever we’ve tried it. John Maynard Keynes himself advised FDR during the Great Depression. FDR didn’t think much of Keynes. But he liked his idea about government spending during times of recession. Even though it only delayed the correction—and prolonged the recession—by interfering with market forces trying to correct market prices. Giving us the Great Depression. Keynesian economics also gave us the stagflation of the Seventies. Japan’s Lost Decade in the Nineties. The American dot-com bubble and recession in the Nineties/early 2000s. The 2008 subprime mortgage crisis. And the ongoing European sovereign debt crisis. All of these crises have their roots in Keynesian economics. The school of economics of the ruling class. But what do they teach in college? Free market capitalism is bad. And Keynesian economics is gospel.
These twenty somethings were anxious to show how smart they were. How in a mere 2-4 years of college they had learned everything there was to learn. And could regurgitate the party line. Rolling their eyes at the idiots around them. Laughing with all-knowing condescension. Praising President Obama. Obamacare. Believing that it will provide more for less. When nothing in the world works that way. More costs more. Yet they naïvely bleat what they were taught. These kids who haven’t opened up a letter from their private health insurer advising them that their premiums will rise by 50%, 75%, 100%, or more, to comply with Obamacare. Because it costs more to have more. And people now have to pay more even if they don’t want more. In particular young people. For Obamacare is a transfer program. Where Obamacare will take money from the young and healthy (like these college students once they graduate) to pay for the old and sick.
These kids, of course, blame the Republicans for the government shutdown. And that their concern for our deficits is silly. For they believe we don’t have a deficit problem. Yet the smaller Reagan deficits were the end of the world as we knew it. And they don’t have a problem with members of Congress and their staff getting subsidies to pay for their Obamacare. As paying for their Cadillac health care plans with their six-figure salaries would have been too much of a burden for them. And beneath them. So we should pity them while record numbers of Americans have disappeared from the labor force. Especially during the government shutdown. Where the grooms of the stool may not be there for them. Forcing the ruling class to wipe their own bottoms after they go potty.
This is what government and the political left is turning into. A ruling class. The very thing we fought our independence from. And they are getting away with this because they control education. And because they do they can revise history. And change their failures to successes. And change conservative successes to failures. All you need are fresh young minds to corrupt. And corrupt they do. These kids talk like they know everything. But they know nothing. Which is sad. For the children are our future. God help us.
Tags: anti-capitalist, capitalism, college, demand, education, Eighties, free market economy, government shutdown, Great Depression, higher education, hippies, history revisionism, Internet, Keynes, Keynesian, Keynesian economics, Liberal Democrats, materialistic, Obamacare, public schools, Reagan, recession, ruling class, Say's Law, supply, Supply creates demand, Supply-side economics, tax cuts
Week in Review
It’s bad enough that higher education is programming our kids to become good liberals. But their getting rich in the process is just rubbing salt into the wound (see College Costs Surge 500% in U.S. Since 1985: Chart of the Day by Michelle Jamrisko & Ilan Kolet posted 8/26/2013 on Bloomberg).
The cost of higher education has surged more than 500 percent since 1985, illustrating why there have been renewed calls for change from both political parties.
The CHART OF THE DAY shows that tuition expenses have increased 538 percent in the 28-year period, compared with a 286 percent jump in medical costs and a 121 percent gain in the consumer price index. The ballooning charges have generated swelling demand for educational loans while threatening to make college unaffordable for domestic and international students.
What expenses does a college have? There are shelters (i.e., buildings) where students sit and learn. But shelter costs rose nowhere near the amount going to college did. So it’s not the buildings. So what else do colleges have? That tuition pays for? Excluding books and living expenses that are above and beyond tuition expenses? Well, the only other thing they really have are people.
College administrators and college professors. If the high tuition costs are not due the costs of the buildings on the college campus then we must be paying the people too much. In pay and benefits. So let’s crunch some numbers.
The average annual cost for a 4-year public college is about $18,000 (see The Average Cost of a U.S. College Education posted 8/24/2010 in US News and World Repot). Based on a typical enrollment of 40,000 students that comes to an annual college revenue of $720,000,000. If the college has $1.5 billion in debt on its books for capital improvements on average at 6% that comes to an annual interest expense of $90 million. Let’s assume they retire $50 million in debt every year. And their operating costs (everything else but pay and benefits for administrators and professors) are, say, $25 million. Subtracting all this from the annual tuition revenue leaves $555 million for pay and benefits each year. Assuming a professor/administrator for each 20 students that gives us 900 professors/administrators. Dividing this into that $555 million gives us about $617,000 per professor/administrator annually.
This is just a rough estimate but it does give you an idea about the amount of money we’re talking about here. Not all professors are making $617,000 but if you’re tenured you’re living well. Very well. And administrators typically live far better than tenured professors. This is what students are going in debt for. To give a privileged few a life others can only dream about. Worse, a lot of these students who graduate have an unmarketable degree. In an economy where employers are looking for people with math and science skills people with degrees in romantic languages or gender studies will not fare well. But the people who sold them those degrees will be doing very well. This is why we have a student loan debt problem. Students took on enormous debt for a degree they can’t use.
Everyone loves to complain about the high cost of health care. And demand that government do something about it. Well, they did. They gave us Obamacare. Which promises to squeeze hospitals and doctors. To make them do more for less. Obamacare is so bad that it is causing some doctors to retire early. Just so they don’t have to deal with it. Yet the cost of college has gone up at twice the rate of health care costs. But where is the outcry over that? Where are the people demanding that government do something? To squeeze those universities, professors and administrators? Why should they get rich at providing education. If doctors shouldn’t get rich saving lives why should educators be allowed to get rich selling unmarketable degrees? Just why is it educators can get away with being the greediest of the greedy and escape government scrutiny?
Because they teach their students to be good liberals, that’s why. And this is so valuable to Democrats that they are willing to raise the taxes on their constituents as much as it takes. Because without the programming higher education provides few would vote Democrat.
Tags: administrators, college, debt, Democrat, education, educators, health care costs, higher education, Obamacare, pay and benefits, professors, student loan, students, tuition, tuition costs, tuition expenses, universities, unmarketable degree
Another Big Reason why College Tuition has been Soaring is because of Public Sector Unions
College tuition is rising. With increases greater than the rate of inflation. With some tuition costs growing greater than costs in health care. There are many reasons for this. Unlike private sector business colleges cannot produce more with less. That is, they cannot use productivity gains to educate more students with fewer professors. Auto manufacturers can use robots to replace people on the assembly line. Reducing wage, pension and health care costs. The biggest costs that go into a car.
Universities are big campuses with lots of buildings that basically do one thing. Sit students down in front of a professor. This hasn’t change since the first days of higher education. The only things that have changed are the buildings are a lot nicer. And university employees all have better pay, pensions and health care than they used to have. Which is why tuition costs keep rising. For universities, unlike auto manufacturers, can’t speed up their assembly lines by using robots instead of people. But it’s not only the auto manufacturers and the universities that have high labor, pension and health care costs.
Another big reason why university tuition has been soaring is because of public sector unions. Who have negotiated some extremely generous union contracts. Cities and states everywhere are drowning under the costs of their labor, pension and health care costs. Forcing them to cut back spending elsewhere to pay for those generous public sector union contracts. So they’re cutting back on their subsidies for higher education. And what the state cuts the universities just tack on to the student’s tuition bill.
Universities lure High School Kids into College with Promises of a Big Paycheck for an Easy Degree
Today’s tuition costs will saddle a student with the kind of debt that can pay for a house. A very big house. One of those McMansions. Depending on where you go to college. Which is all well and fine if a student gets a high-paying job after graduating. Sadly, though, a lot aren’t. A lot are taking jobs that they could have gotten out of high school. Without that massive student loan debt. Debt they will be paying for a long, long time. Making it very difficult for them to buy a house and start a family. And the reason for this is too many students are taking degrees with no market value in a high-tech economy.
Today’s businesses are looking for people with a strong science and math background. For this is what businesses in a high-tech economy need. Not people with degrees in anthropology. Philosophy. Women’s studies. Art history. Comparative literature. Communication. Or a myriad of other degrees that a business just can’t use. Yet our universities are selling these degrees. Telling their prospective students who don’t want the heavy math load a science and engineering degree requires that these other degrees are just as good. And that they, too, can have that big paycheck. Just like engineers and chemists and doctors and physicists. All they need is a student loan. And the world can be their oyster.
So these kids starting their adult lives start that life by making one of the worst decisions of their lives. Because they really want to go to college. For the fun. Universities lure these high school kids into higher education. Appealing to them as adults. Who can live away from home out from under the judgmental eyes of their parents. For on a college campus there is a lot of fun to be had. Sex. Drugs. Alcohol. And health services. Such as birth control and access to abortion services. For all the consequence-free fun a high school graduate could ever ask for. This is the bait. And all they have to do to have all of that grownup fun is to borrow enormous sums of money that they will probably never be able to pay back.
Liberals say You should Never Rush to Judgment, Especially if we can’t Blame Conservatives
For the universities, though, it’s not just the money. For their curriculum is the product of those Sixties’ radicals. Who tried to overthrow capitalism. And replace it with communism. As they were never able to incite the workers’ revolt in the United States they changed tack. And continued their revolution from the inside. By becoming college professors. Who eventually got tenure. And went on to write the curriculum. Basically an anti-capitalist, America is responsible for all the world’s problems and an anti-religious/anti-tradition curriculum. Hence the socially liberal campus where anything goes. And those college degrees that have no market value. That advanced a relentless attack on capitalism and business. And made their students eschew American greatness.
This curriculum has helped President Obama win reelection despite a horrific economic record. And a brutal attack on the American mission in Benghazi. The result of a failed foreign policy that tried to make nice with America’s enemies. Who have been trying—and at times succeeding—to kill Americans. The Fort Hood shooting by a radical Islamist. The underwear bomber (failed Islamist plot). The Times Square bomber (failed Islamist plot). As well as other smaller and lesser known incidents. Both successful and failed Islamist plots. Then Benghazi. And the death of 4 Americans. Despite earlier witnessing an increase of anti-Western violence in the city. A resurgent al Qaeda. And an anniversary date holy to radical Islam. 9/11. The U.S. mission in Benghazi requested additional security. The Obama administration denied it as it would not fit the 2012 campaign meme. ‘Osama bin Laden is dead. And General Motors is alive.’ President Obama had won the War on Terror with the killing of bin Laden. Therefore, they couldn’t have a terrorist attack in Benghazi before the 2012 election. So the Obama administration made up the story about an anti-Islamic YouTube video that led to a spontaneous protest in front of the U.S. mission. A protest that naturally got out of hand when the people pulled RPGs and mortars out of their pockets and started a military assault on the American compound.
The Obama administration then started to disseminate the lie. They sent Secretary Rice to the Sunday morning television shows with severely edited talking points to downplay any role of radical Islam. Then President Obama and Secretary Clinton made numerous public statements denouncing that YouTube video. Even made a video to air in Pakistan. And the mainstream media, the product of that anti-capitalist, America is responsible for all the world’s problems and anti-religious/anti-tradition curriculum never questioned anything. They just dutifully carried the administration’s water. And now that signs of a cover-up are coming out the administration is saying the only reason why they made any edits to those talking points was to prevent anyone from rushing to judgment. Something they say we should never do. Especially if we can’t blame conservatives. Or Christians. Like they did with the YouTube video that proved to be a red herring. And as they—and their friends in the mainstream media—have rushed to judgment in the past. By quickly blaming radical conservatives for every other massacre. Only to see it turn out to be someone who wasn’t a conservative. But a radical Islamist(s) instead. Or someone suffering from mental illness.
Of course this wouldn’t be possible without higher education. Where college is more about making Democrat voters than giving students marketable skills. One could even blame those deaths in Benghazi on that anti-capitalist, America is responsible for all the world’s problems and anti-religious/anti-tradition curriculum. (As well as being the reason why these kids can’t find any high-paying jobs; the vote for anti-business Democrat candidates whose policies discourage economic growth.) Because protecting Americans in Benghazi would have been bad for the Democrats in 2012. So perhaps we should be addressing the high cost of higher education. And follow the example of the automotive industry. By producing more graduates with fewer professors. And put an end to the liberal Shangri la of the college campus. By replacing the bulk of higher education with online studies. For if a 15-year old girl can make medical decisions about the morning after pill by reading the contents of the packaging without consulting a doctor or parent then she can get her higher education online. Without all the fun. Or student loan debt.
Tags: 2012 election, America is responsible for all the world's problems, anti-capitalist, anti-religious, anti-tradition, Benghazi, bin Laden, college, college campus, college tuition, conservatives, curriculum, debt, Democrat, Democrat voters, health care costs, higher education, Islamist, mainstream media, Obama administration, Osama bin Laden, pension, President Obama, professor, public sector unions, radical Islam, radical Islamist, rushing to judgment, student loan, student loan debt, talking points, tuition, tuition costs, universities, University, university tuition, War on Terror, YouTube video
Week in Review
Thanks to the recent election in the US we know what’s important to women. Birth control and abortion. And we know what’s important to young people. Thanks to two states decriminalizing marijuana. So with our young people focusing more on sex and getting high is it any surprise that they’re not studying hard in high school to go on to college? No. And it’s no surprise that the United States has fallen from first to fourteenth in graduation rates. And why Europeans and Asians outperform Americans on tests. For young Americans just have other things on their mind than school (see Downward mobility haunts US education by Sean Coughlan posted 12/2/2012 on BBC News Business).
Andreas Schleicher, special adviser on education at the Organisation for Economic Co-operation and Development (OECD), says the US is now the only major economy in the world where the younger generation is not going to be better educated than the older.
“It’s something of great significance because much of today’s economic power of the United States rests on a very high degree of adult skills – and that is now at risk,” says Mr Schleicher.
“These skills are the engine of the US economy and the engine is stuttering,” says Mr Schleicher, one of the world’s most influential experts on international education comparisons…
It’s easy to overlook the dominance of US higher education in the post-war era – or how closely this was linked to its role as an economic, scientific and military superpower…
The spiralling cost of higher education in the United States is often cited as a barrier – and the collective student debt has exceeded a trillion dollars…
The rising cost of higher education is a deterrent. And there is a wider question of finance for higher education at state level.
He also says there is another “dirty little secret” of US higher education – that too many people who enrol at university fail to graduate – which pushes down the graduation rate in international comparisons.
Everyone can agree that the high cost of education is a problem. But we never seem to blame our schools for the high prices they charge. We’ll attack health insurance companies. Hospitals. Pharmaceutical companies. We attack and regulate these industries to combat their high prices. Yet we do nothing to the colleges and universities that charge high prices. Other than try to help them charge high prices by subsidizing the high cost of tuition.
And those low graduation rates? That’s pretty sad. Considering that since many students today are taking the easy degree programs. So their educational responsibilities don’t intrude on their partying time. Getting useless degrees in disciplines like gender studies. Instead of science and engineering. Degrees that are actually useful in a high-tech economy.
This decline in American education excellence just so happens to coincide with the rise of multiculturalism in our public schools. Outcomes-based education. And getting participation ribbons instead of trophies for winning. When the liberal agenda took over the educational curriculum. So instead of teaching students reading, writing and arithmetic we’re teaching them about global warming and the evils of capitalism. And how it’s okay if Heather has two mommies.
Tags: colleges, educational curriculum, engineering, high cost of education, higher education, liberal curriculum, science, tuition, universities
Week in Review
Universities are doing well. They rarely suffer during a recession. Because one thing government does during a recession is encourage people to go back to college. And get a new education. So there is always money flowing into our houses of higher education. But the people getting these degrees aren’t making out as well (see Number of U.S. households with student debt surges by Tiffany Hsu posted 9/28/2012 on the Los Angeles Times).
The share of American households with student debt has more than doubled in the last two decades, soaring to a record 19% in 2010 from 9% in 1989, according to a Pew Research Center analysis of government data…
In addition, overall household incomes continue their decade-long slide, according to the government. The median annual income slipped 1.5% last year to $50,054 compared with 2010. That’s 8.1% below the income level in 2007 and 8.9% less than the median in 1999.
More people are going to college. Yet household incomes fell this last decade. What can we conclude about this? A couple of things. A college education is not a guarantee to higher wages. For it matters what that degree is in. A degree in math or science will probably get you a high paying job. A degree in philosophy or women’s studies is not likely to get you a high paying job. If it can get you a job at all. So a lot of universities are encouraging kids to go into debt to get a degree that will bring money into the university. But it will probably not get them a job.
Another thing to take away from this is that even college students apparently want to earn a lot of money. Despite the fact they typically vote for Democrats. Who attack those who earn a lot of money. So these newly degreed kids should not be surprised that their costly degrees are not bringing them higher earnings. Because their political party makes it difficult for businesses to do well so they can hire new employees. And provide high earnings and generous benefits. Because high taxes and costly regulatory policies increases the cost of business. Reducing what businesses can spend on employees.
If newly degreed kids out of college want high paying jobs (and want to more easily repay their student loans) they would be better off voting Republican. Something to think about with the 2012 elections around the corner. And kids going to college should consider getting a degree that has market value. Even if these degrees are harder than degrees in philosophy or women’s studies.
Tags: college, college education, degrees, education, higher earnings, higher education, household incomes, job, student debt, universities
Week in Review
It’s an election year. And both the Republicans and the Democrats are trying to garner the youth vote. By making it easy for them to accumulate a massive student loan debt for what may prove to be a worthless degree in today’s economy. Because of the highest unemployment since the Great Depression. If you compare the U-6 unemployment rates. Which is currently still north of 14%. So it’s hard for new college graduates to find a job. Especially for those with degrees in the liberal arts and the social sciences. Which just aren’t in high demand in a high-tech economy. But cheap student loans translate into happy students. Later they’ll be disgruntled college graduates. But the politicians don’t care about that. Because at the time of the election they’ll be happy and grateful students looking to thank someone with their vote (see How Cheap Federal Loans May Harm Students by Rick Newman posted 6/25/2012 on US News).
The cost of a college education has been rising by about 9 percent per year over the last decade, more than three times the overall rate of inflation…For many families, education inflation is more onerous than the skyrocketing cost of healthcare, since you can’t buy insurance that pays for college.
Several factors are pushing tuition costs up, including cutbacks in state funding and an increasing number of students competing for university spots. But another pernicious cause may be a sharp increase in financial aid available to students, especially federally subsidized grants and loans…
That’s a huge commitment to college education, and a seemingly smart way for Washington to prioritize spending. Yet many experts say that all that aid artificially increases demand for a college education and the money available to pay for it, which pushes prices up. There was a disturbing parallel in the housing market a few years ago, when interest rates kept artificially low by the Federal Reserve, along with lax lending standards, generated a flood of money available for mortgages. That helped push home values far above healthy levels, creating the housing bubble that began to burst in 2006, triggering a brutal recession.
Employment at colleges and universities, meanwhile, has increased consistently over the last decade, in sharp contrast to the cutbacks that have occurred throughout the private sector and in state and local government. That suggests that there’s little cost pressure forcing universities to become more efficient, as many companies have been forced to do.
No one ever talks about the education bubble. But after the subprime mortgage crisis we had a Congressional investigation and passed new regulations (Dodd-Frank). And to address the high cost of health care we’ve attacked doctors, hospitals, private health insurance companies and pharmaceutical companies. Even passed Obamacare (by saying the tax wasn’t a tax). Yet educational costs are rising higher than even health care (at least from a parent’s perspective) and there’s no Congressional inquiry to find out why. There are no administrators called before Congress to explain their excessive spending or the exploding costs of tuition that pays for that spending. Or why they are even hiring more people while the private sector gets by with fewer people. No. Higher education gets a pass. Why?
Because our colleges and universities teach our young students the most important thing in life. To vote Democrat. That’s why higher education gets a pass. The Democrats always do well with the young and the college educated. Especially those in the liberal arts and the social sciences. Those courses without a lot of math. Leaving the students a lot of time to have the time of their lives. And to participate in the political activities of their leftist professors. Those professors in the liberal arts and social sciences.
Still, the Republicans hope by making this a bipartisan action that they will deny some of these student voters from the Democrat column come election day. Showing they can pander just as well as the Democrats.
Tags: college education, Democrats, education bubble, higher education, liberal arts, professors, Republicans, social sciences, student loan, tuition costs, youth vote
Greedy Taxpayers are Blamed for the High Cost of Higher Education
Both health care and tuition costs are rising. They’re out of control. Both are crises. We hear about it all the time. And we’re doing something about it. Interestingly, though, we’re trying to solve these crises differently.
We’ve identified villains in the health care industry. Doctors who order unnecessary procedures. Hospitals that carry out unnecessary procedures. Greedy pharmaceutical companies that make seniors choose between food and medicine. And greedy insurance companies who keep raising their premiums while aggressively denying claims. All who contribute to the rising cost of health care.
So we know who wears the black hats in the health care crisis. It’s a little different in the tuition crisis. Do you know who the villains are there? We are. The greedy taxpayers. Who have nothing to do with the rising cost of tuition. No. Our crime is our opposition to ever higher taxes. So we can subsidize ever more of the high cost of higher education.
The Rich Fat Cats above the Professors live like Wall Street Fat Cats
So why are costs so high? And why aren’t we blaming those who make these costs so high? Like we blame doctors, hospitals, pharmaceutical companies and insurance companies?
Universities are awash in cash. From tuition. From the state. From corporations. From benefactors. From alumni. And, of course, from college sports. A multibillion dollar industry. That doesn’t pay a dime to the athletes that generate all that cash. So universities have a lot of cash. Yet tuition costs keep going up. Why?
What are the costs of a higher education? There are classrooms. But these are long-term fixed assets. That last decades without any improvements. There are textbooks. They’re very expensive. Rarely less than $100. Which is odd. Because it’s rare to find a book at Barnes and Nobel for more than $100. So that’s a profitable enterprise. Textbook publishing. While all other publishing is bleeding red and going out of business. And there are, of course, faculty.
The life of a university professor is pretty sweet. You get to hide from the real world on campus. You have great working hours. You get a lot of time off. Sometimes all summer. And have graduate students do all of your busy work. It’s a charmed life. And students pay them well for it. And once they get tenure they can pretty much do whatever they want. And no one will ever fire them. No matter how many of their graduates can’t find a job.
And then you have all the rich fat cats above the professors who do even less. Who drive the same kind of cars the Wall Street fat cats do. And live in the same kind of houses the Wall Street fat cats live in. But no one protests these rich fat cats. Who got rich by ripping off students. Via the ever rising costs of higher education.
Getting into the University System is like being Knighted in the Old World
The university system is a microcosm of Old World aristocracy. Getting into the system is like being knighted in the Old World. And university life is like the Old World. Where no one challenges your privilege. Because that wouldn’t be proper behavior. And lacking the respect due to the privileged class.
Of course this isn’t a problem when you produce great doctors, scientists and engineers who make the world a better place. We thank those professors who work tirelessly for the betterment of society. But to those who sucker kids into worthless degree programs? Where there’s no math? Only ‘no right or wrong’ essay questions? And no jobs waiting for them in the private sector? Well, we’re not quite as enamored with these professors.
Because we’re left to clean up their mess. From students defaulting on their student loan debt. Because they can’t get a job. To the mess they make while protesting Wall Street greed. Because they can’t get a job. All the while those responsible for their plights are preparing to raise tuition costs yet again. As they always have. And always will do. Free from blame. Even though they are more blameworthy than those on Wall Street.
Tags: aristocracy, costs, doctors, graduates, greedy taxpayers, health care costs, higher education, hospitals, insurance companies, job, Old World, pharmaceuticals, professor, rich fat cats, student loan, student loan debt, students, taxpayers, textbook, tuition, tuition costs, universities, Wall Street