The U.S. Department of Education's Robert Shireman compared the growth of for-profit colleges like Corinthian, the Art Institute and Strayer, all of whom have announced that they will establish campuses in Milwaukee, to the Wall Street firms that caused the nation's financial collapse.
Shireman called the colleges out by name for the vast and quickly increasing sums of federal student aid money they are drawing down and noted that most of them are accredited by agencies composed of their peers, creating a conflict of interest reminiscent of that between Wall Street and the accrediting agencies that turned a blind eye to the reckless trading that created the worst financial panic since the Great Depression.
The full story from Inside Higher Ed is linked.
Friday, April 30, 2010
Thursday, April 29, 2010
Lunatic fringe in control of Arizona
Timothy Eagan writes:
While the fringe that controls (Arizona) state government goes after the fastest-growing ethnic group in the country with a law that makes a mockery of American values, Arizona crumbles. Its state parks are orphans, left to volunteers. Its university system is being slashed and picked to death. They even considered a plan to sell the House and Senate buildings. What business will want to relocate to such a place?
It will cost these hot-heads running the state. Probably not this year. But soon enough, because Americans have always considered the West a place that looks to tomorrow through a lens of hope, instead of hiding in the past, in fear.
The column is linked.
While the fringe that controls (Arizona) state government goes after the fastest-growing ethnic group in the country with a law that makes a mockery of American values, Arizona crumbles. Its state parks are orphans, left to volunteers. Its university system is being slashed and picked to death. They even considered a plan to sell the House and Senate buildings. What business will want to relocate to such a place?
It will cost these hot-heads running the state. Probably not this year. But soon enough, because Americans have always considered the West a place that looks to tomorrow through a lens of hope, instead of hiding in the past, in fear.
The column is linked.
Friday, April 23, 2010
The Journal Sentinel's latest man bites dog story
In the Milwaukee Journal Sentinel's latest man bites dog story Katelyn Ferral writes:
More than 65% of Midwest chief financial officers and senior comptrollers said cutting corporate and personal income taxes is the best way to create jobs, according to a national survey conducted by Grant Thornton this month.
Thirty-five percent of those polled said cutting personal income taxes would be most effective in creating employment opportunities, while 32% said cutting corporate tax rates would best allow companies to hire.
What will the MJS tell us next, that alcoholics prefer beer to sparkling water?
Economic policy, including tax policy, should be based on facts not opinions, even those of highly paid CFOs.
The United States enacted the largest tax cut in its history in 2001 ($1.3 trillion) and followed that up with additional capital gains and dividend tax cuts in 2003.
The total value of the 2001-2003 tax cuts was $1.8 trillion.
More than 50% of the $1.8 trillion tax cuts went to the richest 1%, CEOs and CFOs included who averaged over $900,000 annually.
The result-the weakest job creation of any post World War II business cycle.
If cutting top marginal income rates led to job creation we should have had a job boom. Instead we had the opposite. And a large proportion of the private sector jobs that were created (finance, real estate and construction) were the result of the housing bubble. Once that burst all of those jobs were eliminated.
We experienced much greater job growth during every other post WWII business cycles, including those in the 50s, 60s, 70s and 90s, when the top marginal tax rate was significantly higher than it was during the 2001-2007 business cycle.
High income personal income tax cuts, such as the 2001 tax cuts or those advocated by the CFOs, are weak economic engines because high income earners are less likely to spend their additional income than less affluent people.
More than 65% of Midwest chief financial officers and senior comptrollers said cutting corporate and personal income taxes is the best way to create jobs, according to a national survey conducted by Grant Thornton this month.
Thirty-five percent of those polled said cutting personal income taxes would be most effective in creating employment opportunities, while 32% said cutting corporate tax rates would best allow companies to hire.
What will the MJS tell us next, that alcoholics prefer beer to sparkling water?
Economic policy, including tax policy, should be based on facts not opinions, even those of highly paid CFOs.
The United States enacted the largest tax cut in its history in 2001 ($1.3 trillion) and followed that up with additional capital gains and dividend tax cuts in 2003.
The total value of the 2001-2003 tax cuts was $1.8 trillion.
More than 50% of the $1.8 trillion tax cuts went to the richest 1%, CEOs and CFOs included who averaged over $900,000 annually.
The result-the weakest job creation of any post World War II business cycle.
If cutting top marginal income rates led to job creation we should have had a job boom. Instead we had the opposite. And a large proportion of the private sector jobs that were created (finance, real estate and construction) were the result of the housing bubble. Once that burst all of those jobs were eliminated.
We experienced much greater job growth during every other post WWII business cycles, including those in the 50s, 60s, 70s and 90s, when the top marginal tax rate was significantly higher than it was during the 2001-2007 business cycle.
High income personal income tax cuts, such as the 2001 tax cuts or those advocated by the CFOs, are weak economic engines because high income earners are less likely to spend their additional income than less affluent people.
Wednesday, April 21, 2010
Huge teacher layoffs threatened
One of the main reasons the United States developed the world's strongest and most innovative economy is that it invested in education.
The commitment to provide free, universal public education made it possible for tens of millions, the children of farmers, sharecroppers and workers, many of who were immigrants from Ireland, Eastern and Southern Europe, China and elsewhere, to master the language and numeracy skills they needed to contribute to the growth of the nation and its democracy.
In establishing the University of Virginia and in his support for land grant colleges like the University of Wisconsin, Thomas Jefferson established a national precedent of public support for higher education that has continued until recent years.
Progressive states like Wisconsin built on these traditions by investing in vocational schools which today have developed into the Wisconsin Technical College System, a sophisticated post- secondary education and training system that provides local industry with the skilled workers and technicians it needs.
But in the last few years, the nation's thirty year romance with reducing taxes has combined with the Great Recession to undermine education funding at all levels. The nation's public schools are now approaching, in the words of U.S. Secretary of Education Arne Duncan, "an education catastrophe" as state budget cuts will eliminate between 100,000 and 3000,000 teaching positions.
Last year the American Recovery and Reinvestment Act was responsible for preventing 342,000 teacher layoffs, 5.5% of the country's total K-12 teaching jobs.
But this year with no additional stimulus dollars massive layoffs are expected. 90% of the nation's school districts plan to layoff teachers in the fall, up from 66% last year.
Districts in California have given pink slips to 22,000 teachers. Illinois authorities are predicting 17,000 and New York is projecting another 15,000 position will have to be eliminated to balance the budget. Across Wisconsin from Milwaukee to the Fox Valley, from Madison to Stevens Point and Menasha, teaching positions are being cut. A record 13% of the nation's school districts are considering a four day school week.
Deficit hawks will argue that we have to live within our means; that we just can't afford to keep all of these teachers. They disingenuously assert that if we spend more federal money on teaching our children we have to cut other federal spending to prevent the deficit from growing even larger. They are proposing cuts in education in the name of the protecting our children and grandchildren from having to pay the nation's growing debts.
This is nonsense. 66% of the federal budget is non-discretionary spending like Social Security, Medicare and interest on the debt. It cannot legally be cut.
Half of the remaining third is national defense spending which is for all practical purposes non- discretionary when the nation is fighting two wars. That leaves only 17% of the federal budget that can be cut. And that 17% includes education, job training, veterans benefits, food stamps, unemployment benefits, justice, environment, and research and development. What exactly do they propose we cut to pay for education? Education? Job Training? Veterans benefits?
A nation that can't afford to educate its citizens is a nation that will not prosper.
Education is an investment in the future of the nation, its economy and its people. Most economists agree that it is necessary to go into debt to jump start the economy and or to make investments in education, science, research and development and infrastructure; investments that are the basis for increased economic growth and prosperity. If we fail to make these strategic investments, economic decline is assured.
Cuts on the scale being projected also threaten the nation's economy recovery. While the economy has begun to grow, unemployment and underemployment continue to hold back growth. The federal stimulus provided a temporary increase in demand that prevented the severe recession from becoming a depression. But most of that money has now been spent. Eliminating 300,000 teachers will lead to a significant reduction in demand that could undermine the weak recovery causing a double dip recession.
Iowa Senator Tom Harkin has proposed a $23 billion school bailout bill that will help schools across the nation avoid the catastrophic layoffs that are planned. Congress should pass this bill!
A year and half ago Congress bailed out CitiGroup, Goldman Sachs and other Wall Street banks. The deficit hawks didn't demand cuts in federal spending to provide Wall Street with hundreds of billions of dollars.
Is it more important for us to keep these private investment firms alive than it is to educate our young people? Are we more more committed to investing in Wall Street speculation than in the real economy and people that produce goods and services?
Congress needs to pass Senator Harkin's emergency education funding bill now. Otherwise, we will get exactly the kind of nation we won't pay for.
The commitment to provide free, universal public education made it possible for tens of millions, the children of farmers, sharecroppers and workers, many of who were immigrants from Ireland, Eastern and Southern Europe, China and elsewhere, to master the language and numeracy skills they needed to contribute to the growth of the nation and its democracy.
In establishing the University of Virginia and in his support for land grant colleges like the University of Wisconsin, Thomas Jefferson established a national precedent of public support for higher education that has continued until recent years.
Progressive states like Wisconsin built on these traditions by investing in vocational schools which today have developed into the Wisconsin Technical College System, a sophisticated post- secondary education and training system that provides local industry with the skilled workers and technicians it needs.
But in the last few years, the nation's thirty year romance with reducing taxes has combined with the Great Recession to undermine education funding at all levels. The nation's public schools are now approaching, in the words of U.S. Secretary of Education Arne Duncan, "an education catastrophe" as state budget cuts will eliminate between 100,000 and 3000,000 teaching positions.
Last year the American Recovery and Reinvestment Act was responsible for preventing 342,000 teacher layoffs, 5.5% of the country's total K-12 teaching jobs.
But this year with no additional stimulus dollars massive layoffs are expected. 90% of the nation's school districts plan to layoff teachers in the fall, up from 66% last year.
Districts in California have given pink slips to 22,000 teachers. Illinois authorities are predicting 17,000 and New York is projecting another 15,000 position will have to be eliminated to balance the budget. Across Wisconsin from Milwaukee to the Fox Valley, from Madison to Stevens Point and Menasha, teaching positions are being cut. A record 13% of the nation's school districts are considering a four day school week.
Deficit hawks will argue that we have to live within our means; that we just can't afford to keep all of these teachers. They disingenuously assert that if we spend more federal money on teaching our children we have to cut other federal spending to prevent the deficit from growing even larger. They are proposing cuts in education in the name of the protecting our children and grandchildren from having to pay the nation's growing debts.
This is nonsense. 66% of the federal budget is non-discretionary spending like Social Security, Medicare and interest on the debt. It cannot legally be cut.
Half of the remaining third is national defense spending which is for all practical purposes non- discretionary when the nation is fighting two wars. That leaves only 17% of the federal budget that can be cut. And that 17% includes education, job training, veterans benefits, food stamps, unemployment benefits, justice, environment, and research and development. What exactly do they propose we cut to pay for education? Education? Job Training? Veterans benefits?
A nation that can't afford to educate its citizens is a nation that will not prosper.
Education is an investment in the future of the nation, its economy and its people. Most economists agree that it is necessary to go into debt to jump start the economy and or to make investments in education, science, research and development and infrastructure; investments that are the basis for increased economic growth and prosperity. If we fail to make these strategic investments, economic decline is assured.
Cuts on the scale being projected also threaten the nation's economy recovery. While the economy has begun to grow, unemployment and underemployment continue to hold back growth. The federal stimulus provided a temporary increase in demand that prevented the severe recession from becoming a depression. But most of that money has now been spent. Eliminating 300,000 teachers will lead to a significant reduction in demand that could undermine the weak recovery causing a double dip recession.
Iowa Senator Tom Harkin has proposed a $23 billion school bailout bill that will help schools across the nation avoid the catastrophic layoffs that are planned. Congress should pass this bill!
A year and half ago Congress bailed out CitiGroup, Goldman Sachs and other Wall Street banks. The deficit hawks didn't demand cuts in federal spending to provide Wall Street with hundreds of billions of dollars.
Is it more important for us to keep these private investment firms alive than it is to educate our young people? Are we more more committed to investing in Wall Street speculation than in the real economy and people that produce goods and services?
Congress needs to pass Senator Harkin's emergency education funding bill now. Otherwise, we will get exactly the kind of nation we won't pay for.
Tuesday, April 20, 2010
Saturday, April 10, 2010
Unions save miners' lives
An examination of recent mine disasters reveals that accidents happen far more often in non-union mines.
As United Steelworkers President Leo Gerard, whose union is one of two major U.S. unions representing mine workers, said:"This is another series of fatalities at another non-union mine."
"I can absolutely say that if these miners were members of a union, they would have been able to refuse unsafe work in our collective agreements, and they would have been able to refuse that work, and would not have been subjected to that kind of atrocious conditions."
Gerard blasted the culture "that developed during the Bush years that was against regulation, against enforcement," and noted, "we’ve seen a marked improvement since the appointments of the Obama administration into Occupational Safety and Health Administration and the Mine Safety and Health Administration, despite the holds placed by some Republicans.
But that’s only part of the story, as Gerard noted:"The CEO of Massey promotes himself as a union buster, promotes himself as having a record of fighting unions wherever they show up in his work place. If he spent as much time helping the workers get a union and helping us clean up his workplace we wouldn’t have these fatalities, we wouldn’t have these fines."
Massey’s accident is hardly the first that falls into this category.
Following the death of 12 miners at an explosion in January, 2006 at West Virginia’s Sago Mine, which had been cited for 200 safety violations during the prior two years, a hearing was held by the House Education and Workforce Committee.
Among those testifying were miners who had worked at both union and non-union mines.
"So I got a good taste of both sides of the spectrum," Randy Duckworth of Farmington, West Virginia told the committee. "When I was at a union-represented mine, I was greeted with a safety committee appointed by the union to oversee the health and welfare of those employees."
At a non-union mine Chuck Knisell of Morgantown, W Va., was ordered to do several things he regarded as unsafe. "I didn’t like to do it, but (my boss) said, ‘if you don’t like it, there’s the track... You’re not going to have a job. We’ve got a stack of applications this thick."
As Rep. George Miller put it, "people are in a situation where they can be intimidated if they speak out because they really don’t have the security of a safety committee" and "union representation."
In a commentary April 29, 2006 in the Pittsburgh Post-Gazette, titled "Stopping another Sago. There’s no question that union mines are safer," writer Charles McCollester was even more emphatic:
"A union presence at the Sago mine might well have prevented the disaster."
McCollester cited the numerous safety precautions won by unions in mines they represent, and added that union mines do a better job resisting efforts by cutthroat employers to slash safety standards or install "dubious products."
Ultimately, the key difference, he noted, is the voice union representation provides for the workers, he wrote:
"Critically, workers in a union mine are not afraid to speak. In a non-union operation, asking questions or challenging company mining practices or safety procedures can lead to termination. The company’s fear of knowledgeable, independent inspects was illustrated in their attempt to bar the entry of UMWA at Sago."
As United Steelworkers President Leo Gerard, whose union is one of two major U.S. unions representing mine workers, said:"This is another series of fatalities at another non-union mine."
"I can absolutely say that if these miners were members of a union, they would have been able to refuse unsafe work in our collective agreements, and they would have been able to refuse that work, and would not have been subjected to that kind of atrocious conditions."
Gerard blasted the culture "that developed during the Bush years that was against regulation, against enforcement," and noted, "we’ve seen a marked improvement since the appointments of the Obama administration into Occupational Safety and Health Administration and the Mine Safety and Health Administration, despite the holds placed by some Republicans.
But that’s only part of the story, as Gerard noted:"The CEO of Massey promotes himself as a union buster, promotes himself as having a record of fighting unions wherever they show up in his work place. If he spent as much time helping the workers get a union and helping us clean up his workplace we wouldn’t have these fatalities, we wouldn’t have these fines."
Massey’s accident is hardly the first that falls into this category.
Following the death of 12 miners at an explosion in January, 2006 at West Virginia’s Sago Mine, which had been cited for 200 safety violations during the prior two years, a hearing was held by the House Education and Workforce Committee.
Among those testifying were miners who had worked at both union and non-union mines.
"So I got a good taste of both sides of the spectrum," Randy Duckworth of Farmington, West Virginia told the committee. "When I was at a union-represented mine, I was greeted with a safety committee appointed by the union to oversee the health and welfare of those employees."
At a non-union mine Chuck Knisell of Morgantown, W Va., was ordered to do several things he regarded as unsafe. "I didn’t like to do it, but (my boss) said, ‘if you don’t like it, there’s the track... You’re not going to have a job. We’ve got a stack of applications this thick."
As Rep. George Miller put it, "people are in a situation where they can be intimidated if they speak out because they really don’t have the security of a safety committee" and "union representation."
In a commentary April 29, 2006 in the Pittsburgh Post-Gazette, titled "Stopping another Sago. There’s no question that union mines are safer," writer Charles McCollester was even more emphatic:
"A union presence at the Sago mine might well have prevented the disaster."
McCollester cited the numerous safety precautions won by unions in mines they represent, and added that union mines do a better job resisting efforts by cutthroat employers to slash safety standards or install "dubious products."
Ultimately, the key difference, he noted, is the voice union representation provides for the workers, he wrote:
"Critically, workers in a union mine are not afraid to speak. In a non-union operation, asking questions or challenging company mining practices or safety procedures can lead to termination. The company’s fear of knowledgeable, independent inspects was illustrated in their attempt to bar the entry of UMWA at Sago."
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