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Javier E

A Big Safety Net and Strong Job Market Can Coexist. Just Ask Scandinavia. - NYTimes.com - 0 views

  • It is a simple idea supported by both economic theory and most people’s intuition: If welfare benefits are generous and taxes high, fewer people will work. Why bother being industrious, after all, if you can get a check from the government for sitting around
  • The idea may be backward.
  • Some of the highest employment rates in the advanced world are in places with the highest taxes and most generous welfare systems, namely Scandinavian countries.
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  • The United States and many other nations with relatively low taxes and a smaller social safety net actually have substantially lower rates of employment.
  • In Denmark, someone who enters the labor force at an average salary loses 86 percent of earnings to a combination of taxes and lost eligibility for welfare benefits; that number is only 37 percent in the United States. Yet the percentage of Danes between the ages of 20 and 59 with a job is 10 percentage points higher than in the United States.
  • In short, more people may work when countries offer public services that directly make working easier, such as subsidized care for children and the old; generous sick leave policies; and cheap and accessible transportation. If the goal is to get more people working, what’s important about a social welfare plan may be more about what the money is spent on than how much is spent.
  • There are countless differences between Northern European countries and the rest of the world beyond child care policies and the like. The Scandinavian countries may have cultures that encourage more people to work, especially women.
  • In Scandinavian countries, working parents have the option of heavily subsidized child care. Leave policies make it easy for parents to take off work to care for a sick child. Heavily subsidized public transportation may make it easier for a person in a low-wage job to get to and from work. And free or inexpensive education may make it easier to get the training to move from the unemployment rolls to a job.
  • In the United States, the major policies aimed at helping the working poor are devised around tax subsidies that put more cash in people’s pockets so long as they work, most notably through the Earned-income tax credit and Child Tax Credit.
  • There is a solid correlation, by Mr. Kleven’s calculations, between what countries spend on employment subsidies — like child care, preschool and care for older adults — and what percentage of their working-age population is in the labor force.
  • Collectively, these policies and subsidies create flexibility such that a person on the fence between taking a job versus staying at home to care for children or parents may be more likely to take a job.
  • , it could mean that more direct aid to the working poor could help coax Americans into the labor force more effectively than the tax credits that have been a mainstay for compromise between Republicans and Democrats for the last generation.
  • wages for entry-level work are much higher in the Nordic countries than in the United States, reflecting a higher minimum wage, stronger labor unions and cultural norms that lead to higher pay
  • The employment subsidies Mr. Kleven cites surely help coax more Scandinavians into the work force, Mr. Greenstein agrees, but shouldn’t be viewed in isolation.
  • Every country has a mix of taxes, welfare benefits and policies to promote work that reflects its politics and culture. In the large, diverse United States, there is deep skepticism of social welfare programs and direct government spending, along with a greater commitment to keeping taxes low.
Emilio Ergueta

Pressure Rises for Higher Taxes - NYTimes.com - 0 views

  • The Democratic presidential candidate Martin O’Malley wants to raise capital gains taxes. His rival Bernie Sanders seeks to tax stock trades and increase personal income tax rates.
  • But they also reflect a broader shift in tax politics that is rippling through the Republican world, too. Pressure to raise taxes, at least on the wealthy, is rising.
  • The Tea Party push to slash spending has lost steam and generated a backlash. Defense hawks want more money for the Pentagon, while other Republicans seek additional cash for highway projects. The largest potential targets for further cuts, Social Security and Medicare for the elderly, are hardly politically inviting.
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  • oth parties, at least rhetorically, have embraced the need for Washington to address stagnant middle-class wages and rising income inequality.
  • Enacting significant remedies — whether through new middle-class tax benefits or spending programs — requires cash Washington doesn’t have.
  • Antipathy toward taxes remains a core tenet of Republican economic policy.
katherineharron

The stimulus bill includes a tax break for the 1% (opinion) - CNN - 0 views

  • We face a frightening pandemic. More than 100,000 American have been infected with Covid-19, while tens of millions more continue to shelter at home. Meanwhile, the markets are crashing.
  • While health care workers and local governments frantically race against the clock to keep up with the escalating medical caseloads while trying to keep themselves and their families safe, Congress was still able to find the time to give money away to rich people.
  • Now here is what changed in the historic $2 trillion stimulus bill. Previously, if a married couple had depreciation deductions that exceeded their real estate business income, the couple could claim that "loss" to write off taxes on a maximum of $500,000 in income from other sources, like wages from a day job.
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  • Under the change, our rich taxpayer couple -- and this applies only for individuals, not corporations -- can now deduct an unlimited amount of "excess losses" in real estate against income from other sources. So now real estate moguls with lucrative day jobs or bountiful capital gains from other investments can go back to living tax-free, the Kushner way, before limits were put in place as part of the 2017 tax reform bill.
Javier E

Did Republicans Pressure CRS to Withdraw Taxes Report? - NYTimes.com - 0 views

  • In a brazen example of putting ideology ahead of reality, Senate Republicans seem to have pressured the Congressional Research Service to withdraw a report debunking conservative economic orthodoxy. Cutting tax rates at the top appears “to have little or no relation to the size of the economic pie,” the report said. “However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution.” So charging the rich lower tax rates doesn’t promote economic growth; it merely increases economic inequality.
  • The CRS is a highly respected, independent agency that prepares reports for members of Congress and routinely issues findings that disappoint or even irritate their clients, who usually just grin and bear it, or at least bear it. But Congressional Republicans seem to think that the CRS should function like Pravda.
  • Don Stewart, a spokesman for the Senate Republican leader, Mitch McConnell, said Mr. McConnell and other senators “raised concerns about the methodology and other flaws” in the CRS report. Antonia Ferrier, a spokeswoman for the Senate Finance Committee, said the panel had relayed its objections to the CRS. “We had a good discussion,” she said, “Then it was pulled.”
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  • In case you don’t speak fluent bureaucratese, “good discussion” means that the Republicans made it clear the report had to go. And “it was pulled” means the CRS obeyed. The Times quoted a person with knowledge of the deliberations as saying the decision on Sept. 28 to withdraw the report was “made against the advice of the research service’s economics division” and that the author, Thomas Hungerford, stood by its findings.
mcginnisca

Donald Trump says Washington Post is Amazon tax shelter. Huh? - Dec. 7, 2015 - 0 views

  • stock would crumble like a paper bag."
  • "big tax shelter" for Amazon since the paper is "losing a fortune."
  • Amazon is a "no profit" company.
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  • Trump didn't elaborate on Amazon's tax figures. He actually didn't cite any.
  • Trump's claims don't really hold up.
  • Amazon paid $167 million in income taxes in 2014 -- the first full year after Bezos acquired the paper. And that was despite the fact that Amazon reported a pre-tax loss in 2014.
  • So Trump is wrong when he said that Amazon is unprofitable.
sissij

Which Trump Will the World See? - The New York Times - 0 views

  • By advocating an expansive budget through tax cuts and infrastructure spending, Mr. Trump’s plan would most likely lower national savings and propel the United States dollar ever higher, creating the very conditions to widen rather than to narrow the trade deficit.
  • He is doing so in the unrealistic hope that these policies will cause the economy to accelerate from its present 2 percent growth rate to between 3 and 4 percent. And he is counting on such faster economic growth to generate additional tax revenue.
  • A further basic weakness of Mr. Trump’s budget proposal is that it would add stimulus to the economy at the very time that the economy is at or very close to full employment.
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  • If he does go down that path, he will risk inviting trade retaliation by our trade partners, which could lead the global economy down the road to the beggar-thy-neighbor policies of the 1930s.
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    This article discussed flaws in Trump's economic policy and his relationship with foreign countries. It's surprising for me to see that tax plays a very complicated role in diplomacy. Increasing or decreasing the tax revenue affects how much money the government has. Mr. Trump is definitely a very successful entrepreneur, but earning money for a government is more complicated than eating money for a company because you have to take care of the benefit of your people, not only yourself. --Sissi (12/20/2016)
Duncan H

What Mitt Lost While He Won - NYTimes.com - 0 views

  • In the end, Mitt Romney didn’t lose the Michigan primary, and he didn’t lose his near-lock on the Republican nomination. Rick Santorum isn’t going away, but a solid victory in Michigan and an easy win in Arizona leaves the Romney campaign’s basic math more or less intact. If their candidate can keep winning contests in the West and Northeast and holding serve across the Midwest, Romney’s rivals won’t be able to stop him from grinding out a victory.
  • But the frontrunner did lose something in the days leading up to the Michigan vote. He lost his general election narrative.
  • From the very first debates onward, Romney has spent the primary campaign walking a fine line — trying to assuage widespread right-wing doubts about his ideological reliability, while crafting a persona and a policy portfolio that will appeal to moderates as well as conservatives come November.
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  • Romney had sketched out an economic plan that avoided the supply-side gimmicks and outright crankery embraced by many of his rivals. He had backed the smartest conservative thinking on entitlements and was rewarded with bipartisan cover when Oregon Democratic Senator Ron Wyden endorsed a similar model for Medicare reform.
  • Thanks to his own smooth evasiveness and the blunders of his rivals, meanwhile, he had managed to sidestep the obvious resemblances between his Massachusetts health care bill and the White House’s Affordable Care Act. And by selling himself as a turnaround artist rather than an ideologue, a champion of the middle class rather than a defender of his fellow 1 percenters, he seemed well-positioned to campaign on competence, experience and sound economic stewardship in the general election.
  • But then came the South Carolina primary, and Romney’s fumbling, tone-deaf responses to Newt Gingrich’s attacks on his career at Bain Capital. His awkwardness didn’t have direct policy implications, but it revealed a surprising inability to defend his own chosen electoral narrative against fairly obvious attacks. And with the businessman-turnaround artist narrative compromised, it became much easier for Romney’s rivals to turn the focus to his moderate past and long list of flip-flops.
  • It was to change this dynamic, presumably, that Romney’s campaign decided to have him come out for the first time with a big tax reform plan of his own, which he unveiled last week in a speech at Ford Field. In its broadest strokes, the plan isn’t terrible: It promises lower rates and a broader base, which is the goal of just about every sensible tax reform proposal, and it cuts rates for most taxpayers, not just businesses and the rich. But the Romney campaign has declined to explain exactly how the cuts will be paid for, offering vague promises of loophole closing and spending cuts that suggest a return to supply-side irresponsibility.
  • If left unrevised and unaddressed, this irresponsibility threatens to demolish the pillars of Romney’s general-election argument. First, it will make it considerably harder for him to attack the White House’s record on deficits, which would otherwise be a central part of the case against the president. Second, it will make Romney’s own vision for entitlement reform easy to demagogue and dismiss, since President Obama will have grounds to argue that his opponent only wants to cut Medicare and Social Security in order to cut taxes on the rich.
  • Both of these problems, needless to say, will be exacerbated if Romney continues to be unable to talk about his wealth in anything save the most clueless and flatfooted fashion. The White House might prefer to face Rick Santorum in the general election, but an out-of-touch rich guy running on Medicare cuts and an ill-considered tax plan will make for a pretty inviting target in his own right.
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    What does this bode for the future?
Javier E

Why Americans Don't Want to Soak the Rich - NYTimes.com - 0 views

  • How you make sense of this seeming paradox of rising inequality and flat or declining support for redistribution depends on your ideological assumptions.
  • If you’re conservative, a compelling answer might be this: Americans are seeking less redistribution because they have come to their senses. They realized the very high tax rates and generous social spending that prevailed in the middle decades of the 20th century came at a high economic cost, and that low taxes on the rich encouraged greater investment and entrepreneurship, spurring faster economic growth that ultimately made everybody better off
  • If you’re a liberal, the answer might be more like this: Americans have been hoodwinked by conservative politicians and media outlets, and have come to view redistribution as a dirty word because they don’t recognize the ways it benefits them. This barrage of misinformation has led them to view any redistributive efforts as welfare that goes to somebody else, particularly to someone with a different color skin.
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  • New research offers a bit more evidence on what may be occurring. It doesn’t disprove either the conventional liberal or conservative argument. But it does show some of the ways that Americans’ attitudes toward redistribution are more complex than either would suggest.
  • respondents favored less redistribution if they believed that the person had already grown accustomed to a higher income. The psychology seems to be something like this: Rich people who have been rich for a while have gotten used to their money, so it would be unfair to tax them heavily. But people who have just gotten rich have not become accustomed to higher levels of after-tax income, so it wouldn’t be as harmful to raise their taxes in the interest of greater equality.
  • The shift away from a belief in redistribution has been stronger among older Americans than any other age group.
  • The fact that American seniors already receive government-provided health care may make them view any talk of greater redistribution as taking away what they already have, the researchers suggest.
  • Our views on proper tax levels and redistribution may be shaped by seemingly extraneous factors, like whether we believe the rich are already used to being rich, and whether we are already getting government benefits.
  • In other words, the question isn’t, Why don’t Americans want to soak the rich more? It may be, Who exactly is being counted as rich and who is perceived to be benefiting from the soaking?
Javier E

How to Raise a University's Profile: Pricing and Packaging - NYTimes.com - 0 views

  • I talked to a half-dozen of Hugh Moren’s fellow students. A highly indebted senior who was terrified of the weak job market described George Washington, where he had invested considerable time getting and doing internships, as “the world’s most expensive trade school.” Another mentioned the abundance of rich students whose parents were giving them a fancy-sounding diploma the way they might a new car. There are serious students here, he acknowledged, but: “You can go to G.W. and essentially buy a degree.”
  • A recent study from the Organization for Economic Cooperation and Development found that, on average, American college graduates score well below college graduates from most other industrialized countries in mathematics. In literacy (“understanding, evaluating, using and engaging with written text”), scores are just average. This comes on the heels of Richard Arum and Josipa Roksa’s “Academically Adrift,” a study that found “limited or no learning” among many college students.Instead of focusing on undergraduate learning, nu
  • colleges have been engaged in the kind of building spree I saw at George Washington. Recreation centers with world-class workout facilities and lazy rivers rise out of construction pits even as students and parents are handed staggeringly large tuition bills. Colleges compete to hire famous professors even as undergraduates wander through academic programs that often lack rigor or coherence. Campuses vie to become the next Harvard — or at least the next George Washington — while ignoring the growing cost and suspect quality of undergraduate education.
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  • Mr. Trachtenberg understood the centrality of the university as a physical place. New structures were a visceral sign of progress. They told visitors, donors and civic leaders that the institution was, like beams and scaffolding rising from the earth, ascending. He added new programs, recruited more students, and followed the dictate of constant expansion.
  • the American research university had evolved into a complicated and somewhat peculiar organization. It was built to be all things to all people: to teach undergraduates, produce knowledge, socialize young men and women, train workers for jobs, anchor local economies, even put on weekend sports events. And excellence was defined by similarity to old, elite institutions. Universities were judged by the quality of their scholars, the size of their endowments, the beauty of their buildings and the test scores of their incoming students.
  • John Silber embarked on a huge building campaign while bringing luminaries like Saul Bellow and Elie Wiesel on board to teach and lend their prestige to the B.U. name, creating a bigger, more famous and much more costly institution. He had helped write a game plan for the aspiring college president.
  • GWU is, for all intents and purposes, a for-profit organization. Best example: study abroad. Their top program, a partnering with Sciences Po, costs each student (30 of them, on a program with 'prestige' status?) a full semester's tuition. It costs GW, according to Sciences Po website, €1000. A neat $20,000 profit per student (who is in digging her/himself deeper and deeper in debt.) Moreover, the school takes a $500 admin fee for the study abroad application! With no guarantee that all credits transfer. Students often lose a partial semester, GW profits again. Nor does GW offer help with an antiquated, one-shot/no transfers, tricky registration process. It's tough luck in gay Paris.Just one of many examples. Dorms with extreme mold, off-campus housing impossible for freshmen and sophomores. Required meal plan: Chick-o-Filet etc. Classes with over 300 students (required).This is not Harvard, but costs same.Emotional problems? Counselors too few. Suicides continue and are not appropriately addressed. Caring environment? Extension so and so, please hold.It's an impressive campus, I'm an alum. If you apply, make sure the DC experience is worth the price: good are internships, a few colleges like Elliot School, post-grad.GWU uses undergrad $$ directly for building projects, like the medical center to which students have NO access. (Student health facility is underfunded, outsourced.)Outstanding professors still make a difference. But is that enough?
  • Mr. Trachtenberg, however, understood something crucial about the modern university. It had come to inhabit a market for luxury goods. People don’t buy Gucci bags merely for their beauty and functionality. They buy them because other people will know they can afford the price of purchase. The great virtue of a luxury good, from the manufacturer’s standpoint, isn’t just that people will pay extra money for the feeling associated with a name brand. It’s that the high price is, in and of itself, a crucial part of what people are buying.
  • Mr. Trachtenberg convinced people that George Washington was worth a lot more money by charging a lot more money. Unlike most college presidents, he was surprisingly candid about his strategy. College is like vodka, he liked to explain.
  • The Absolut Rolex plan worked. The number of applicants surged from some 6,000 to 20,000, the average SAT score of students rose by nearly 200 points, and the endowment jumped from $200 million to almost $1 billion.
  • The university became a magnet for the children of new money who didn’t quite have the SATs or family connections required for admission to Stanford or Yale. It also aggressively recruited international students, rich families from Asia and the Middle East who believed, as nearly everyone did, that American universities were the best in the world.
  • U.S. News & World Report now ranks the university at No. 54 nationwide, just outside the “first tier.”
  • The watch and vodka analogies are correct. Personally, I used car analogies when discussing college choices with my kids. We were in the fortunate position of being able to comfortably send our kids to any college in the country and have them leave debt free. Notwithstanding, I told them that they would be going to a state school unless they were able to get into one of about 40 schools that I felt, in whatever arbitrary manner I decided, that was worth the extra cost. They both ended up going to state schools.College is by and large a commodity and you get out of it what you put into it. Both of my kids worked hard in college and were involved in school life. They both left the schools better people and the schools better schools for them being there. They are both now successful adults.I believe too many people look for the prestige of a named school and that is not what college should be primarily about.
  • In 2013, only 14 percent of the university’s 10,000 undergraduates received a grant — a figure on a par with elite schools but far below the national average. The average undergraduate borrower leaves with about $30,800 in debt.
  • When I talk to the best high school students in my state I always stress the benefits of the honors college experience at an affordable public university. For students who won't qualify for a public honors college. the regular pubic university experience is far preferable to the huge debt of places like GW.
  • Carey would do well to look beyond high ticket private universities (which after all are still private enterprises) and what he describes as the Olympian heights of higher education (which for some reason seems also to embitter him) and look at the system overall . The withdrawal of public support was never a policy choice; it was a political choice, "packaged and branded" as some tax cutting palaver all wrapped up in the argument that a free-market should decide how much college should cost and how many seats we need. In such an environment, trustees at private universities are no more solely responsible for turning their degrees into commodities than the administrations of state universities are for raising the number of out-of-state students in order to offset the loss of support from their legislatures. No doubt, we will hear more about market based solutions and technology from Mr. Carey
  • I went to GW back in the 60s. It was affordable and it got me away from home in New York. While I was there, Newsweek famously published a article about the DC Universities - GW, Georgetown, American and Catholic - dubbing them the Pony league, the schools for the children of wealthy middle class New Yorkers who couldn't get into the Ivy League. Nobody really complained. But that wasn't me. I went because I wanted to be where the action was in the 60s, and as we used to say - "GW was literally a stone's throw from the White House. And we could prove it." Back then, the two biggest alumni names were Jackie Kennedy, who's taken some classes there, and J. Edgar Hoover. Now, according to the glossy magazine they send me each month, it's the actress Kerry Washington. There's some sort of progress there, but I'm a GW alum and not properly trained to understand it.
  • This explains a lot of the modern, emerging mentality. It encompasses the culture of enforced grade inflation, cheating and anti-intellectualism in much of higher education. It is consistent with our culture of misleading statistics and information, cronyism and fake quality, the "best and the brightest" being only schemers and glad handers. The wisdom and creativity engendered by an honest, rigorous academic education are replaced by the disingenuous quick fix, the winner-take-all mentality that neglects the common good.
  • I attended nearby Georgetown University and graduated in 1985. Relative to state schools and elite schools, it was expensive then. I took out loans. I had Pell grants. I had work-study and GSL. I paid my debt of $15,000 off in ten years. Would I have done it differently? Yes: I would have continued on to graduate school and not worried about paying off those big loans right after college. My career work out and I am grateful for the education I received and paid for. But I would not recommend to my nieces and nephews debts north of $100,000 for a BA in liberal arts. Go community. Then go state. Then punch your ticket to Harvard, Yale or Stanford — if you are good enough.
  • American universities appear to have more and more drifted away from educating individuals and citizens to becoming high priced trade schools and purveyors of occupational licenses. Lost in the process is the concept of expanding a student's ability to appreciate broadly and deeply, as well as the belief that a republican democracy needs an educated citizenry, not a trained citizenry, to function well.Both the Heisman Trophy winner and the producer of a successful tech I.P.O. likely have much in common, a college education whose rewards are limited to the financial. I don't know if I find this more sad on the individual level or more worrisome for the future of America.
  • This is now a consumer world for everything, including institutions once thought to float above the Shakespearean briars of the work-a-day world such as higher education, law and medicine. Students get this. Parents get this. Everything is negotiable: financial aid, a spot in the nicest dorm, tix to the big game. But through all this, there are faculty - lots of 'em - who work away from the fluff to link the ambitions of the students with the reality and rigor of the 21st century. The job of the student is to get beyond the visible hype of the surroundings and find those faculty members. They will make sure your investment is worth it
  • My experience in managing or working with GW alumni in their 20's or 30's has not been good. Virtually all have been mentally lazy and/or had a stunning sense of entitlement. Basically they've been all talk and no results. That's been quite a contrast to the graduates from VA/MD state universities.
  • More and more, I notice what my debt-financed contributions to the revenue streams of my vendors earn them, not me. My banks earned enough to pay ridiculous bonuses to employees for reckless risk-taking. My satellite tv operator earned enough to overpay ESPN for sports programming that I never watch--and that, in turn, overpays these idiotic pro athletes and college sports administrators. My health insurer earned enough to defeat one-payor insurance; to enable the opaque, inefficient billing practices of hospitals and other providers; and to feed the behemoth pharmaceutical industry. My church earned enough to buy the silence of sex abuse victims and oppose progressive political candidates. And my govt earned enough to continue ag subsidies, inefficient defense spending, and obsolete transportation and energy policies.
  • as the parent of GWU freshman I am grateful for every opportunity afforded her. She has a generous merit scholarship, is in the honors program with some small classes, and has access to internships that can be done while at school. GWU also gave her AP credits to advance her to sophomore status. Had she attended the state flagship school (where she was accepted into that exclusive honors program) she would have a great education but little else. It's not possible to do foreign affairs related internship far from D.C. or Manhattan. She went to a very competitive high school where for the one or two ivy league schools in which she was interested, she didn't have the same level of connections or wealth as many of her peers. Whether because of the Common Application or other factors, getting into a good school with financial help is difficult for a middle class student like my daughter who had a 4.0 GPA and 2300 on the SAT. She also worked after school.The bottom line - GWU offered more money than perceived "higher tier" universities, and brought tuition to almost that of our state school system. And by the way, I think she is also getting a very good education.
  • This article reinforces something I have learned during my daughter's college application process. Most students choose a school based on emotion (reputation) and not value. This luxury good analogy holds up.
  • The entire education problem can be solved by MOOCs lots and lots of them plus a few closely monitored tests and personal interviews with people. Of course many many people make MONEY off of our entirely inefficient way of "educating" -- are we even really doing that -- getting a degree does NOT mean one is actually educated
  • As a first-generation college graduate I entered GW ambitious but left saddled with debt, and crestfallen at the hard-hitting realization that my four undergraduate years were an aberration from what life is actually like post-college: not as simple as getting an [unpaid] internship with a fancy titled institution, as most Colonials do. I knew how to get in to college, but what do you do after the recess of life ends?I learned more about networking, resume plumping (designated responses to constituents...errr....replied to emails), and elevator pitches than actual theory, economic principles, strong writing skills, critical thinking, analysis, and philosophy. While relatively easy to get a job after graduating (for many with a GW degree this is sadly not the case) sustaining one and excelling in it is much harder. It's never enough just to be able to open a new door, you also need to be prepared to navigate your way through that next opportunity.
  • this is a very telling article. Aimless and directionless high school graduates are matched only by aimless and directionless institutes of higher learning. Each child and each parent should start with a goal - before handing over their hard earned tuition dollars, and/or leaving a trail of broken debt in the aftermath of a substandard, unfocused education.
  • it is no longer the most expensive university in America. It is the 46th.Others have been implementing the Absolut Rolex Plan. John Sexton turned New York University into a global higher-education player by selling the dream of downtown living to students raised on “Sex and the City.” Northeastern followed Boston University up the ladder. Under Steven B. Sample, the University of Southern California became a U.S. News top-25 university. Washington University in St. Louis did the same.
  • I currently attend GW, and I have to say, this article completely misrepresents the situation. I have yet to meet a single person who is paying the full $60k tuition - I myself am paying $30k, because the school gave me $30k in grants. As for the quality of education, Foreign Policy rated GW the #8 best school in the world for undergraduate education in international affairs, Princeton Review ranks it as one of the best schools for political science, and U.S. News ranks the law school #20. The author also ignores the role that an expanding research profile plays in growing a university's prestige and educational power.
  • And in hundreds of regional universities and community colleges, presidents and deans and department chairmen have watched this spectacle of ascension and said to themselves, “That could be me.” Agricultural schools and technical institutes are lobbying state legislatures for tuition increases and Ph.D. programs, fitness centers and arenas for sport. Presidents and boards are drawing up plans to raise tuition, recruit “better” students and add academic programs. They all want to go in one direction — up! — and they are all moving with a single vision of what they want to be.
  • this is the same playbook used by hospitals the past 30 years or so. It is how Hackensack Hospital became Hackensack Medical Center and McComb Hospital became Southwest Mississippi Regional Medical Center. No wonder the results have been the same in healthcare and higher education; both have priced themselves out of reach for average Americans.
  • a world where a college is rated not by the quality of its output, but instaed, by the quality of its inputs. A world where there is practically no work to be done by the administration because the college's reputation is made before the first class even begins! This is isanity! But this is the swill that the mammoth college marketing departments nationwide have shoved down America's throat. Colleges are ranked not by the quality of their graduates, but rather, by the test scores of their incoming students!
  • The Pew Foundation has been doing surveys on what students learn, how much homework they do, how much time they spend with professors etc. All good stuff to know before a student chooses a school. It is called the National Survey of Student Engagement (NSSE - called Nessy). It turns out that the higher ranked schools do NOT allow their information to be released to the public. It is SECRET.Why do you think that is?
  • The article blames "the standard university organizational model left teaching responsibilities to autonomous academic departments and individual faculty members, each of which taught and tested in its own way." This is the view of someone who has never taught at a university, nor thought much about how education there actually happens. Once undergraduates get beyond the general requirements, their educations _have_ to depend on "autonomous departments" because it's only those departments know what the requirements for given degree can be, and can grant the necessary accreditation of a given student. The idea that some administrator could know what's necessary for degrees in everything from engineering to fiction writing is nonsense, except that's what the people who only know the theory of education (but not its practice) actually seem to think. In the classroom itself, you have tremendously talented people, who nevertheless have their own particular strengths and approaches. Don't you think it's a good idea to let them do what they do best rather than trying to make everyone teach the same way? Don't you think supervision of young teachers by older colleagues, who actually know their field and its pedagogy, rather than some administrator, who knows nothing of the subject, is a good idea?
  • it makes me very sad to see how expensive some public schools have become. Used to be you could work your way through a public school without loans, but not any more. Like you, I had the advantage of a largely-scholarship paid undergraduate education at a top private college. However, I was also offered a virtually free spot in my state university's (then new) honors college
  • My daughter attended a good community college for a couple of classes during her senior year of high school and I could immediately see how such places are laboratories for failure. They seem like high schools in atmosphere and appearance. Students rush in by car and rush out again when the class is over.The four year residency college creates a completely different feel. On arrival, you get the sense that you are engaging in something important, something apart and one that will require your full attention. I don't say this is for everyone or that the model is not flawed in some ways (students actually only spend 2 1/2 yrs. on campus to get the four yr. degree). College is supposed to be a 60 hour per week job. Anything less than that and the student is seeking himself or herself
  • This. Is. STUNNING. I have always wondered, especially as my kids have approached college age, why American colleges have felt justified in raising tuition at a rate that has well exceeded inflation, year after year after year. (Nobody needs a dorm with luxury suites and a lazy river pool at college!) And as it turns out, they did it to become luxury brands. Just that simple. Incredible.I don't even blame this guy at GWU for doing what he did. He wasn't made responsible for all of American higher ed. But I do think we all need to realize what happened, and why. This is front page stuff.
  • I agree with you, but, unfortunately, given the choice between low tuition, primitive dorms, and no athletic center VS expensive & luxurious, the customers (and their parents) are choosing the latter. As long as this is the case, there is little incentive to provide bare-bones and cheap education.
  • Wesleyan University in CT is one school that is moving down the rankings. Syracuse University is another. Reed College is a third. Why? Because these schools try hard to stay out of the marketing game. (With its new president, Syracuse has jumped back into the game.) Bryn Mawr College, outside Philadelphia hasn't fared well over the past few decades in the rankings, which is true of practically every women's college. Wellesley is by far the highest ranked women's college, but even there the acceptance rate is significantly higher than one finds at comparable coed liberal arts colleges like Amherst & Williams. University of Chicago is another fascinating case for Mr. Carey to study (I'm sure he does in his forthcoming book, which I look forward to reading). Although it has always enjoyed an illustrious academic reputation, until recently Chicago's undergraduate reputation paled in comparison to peer institutions on the two coasts. A few years ago, Chicago changed its game plan to more closely resemble Harvard and Stanford in undergraduate amenities, and lo and behold, its rankings shot up. It was a very cynical move on the president's part to reassemble the football team, but it was a shrewd move because athletics draw more money than academics ever can (except at engineering schools like Cal Tech & MIT), and more money draws richer students from fancier secondary schools with higher test scores, which lead to higher rankings - and the beat goes on.
  • College INDUSTRY is out of control. Sorry, NYU, GW, BU are not worth the price. Are state schools any better? We have the University of Michigan, which is really not a state school, but a university that gives a discount to people who live in Michigan. Why? When you have an undergraduate body 40+% out-of-state that pays tuition of over $50K/year, you tell me?Perhaps the solution is two years of community college followed by two at places like U of M or Michigan State - get the same diploma at the end for much less and beat the system.
  • In one recent yr., the majority of undergrad professors at Harvard, according to Boston.com, where adjuncts. That means low pay, no benefits, no office, temp workers. Harvard.Easily available student loans fueled this arms race of amenities and frills that in which colleges now engage. They moved the cost of education onto the backs of people, kids, who don't understand what they are doing.Students in colleges these days are customers and the customers must be able to get through. If it requires dumbing things down, so be it. On top of tuition, G.W. U. is known by its students as the land of added fees on top of added fees. The joke around campus was that they would soon be installing pay toilets in the student union. No one was laughing.
  • You could written the same story about my alma mater, American University. The place reeked of ambition and upward mobility decades ago and still does. Whoever's running it now must look at its measly half-billion-dollar endowment and compare it to GWU's $1.5 billion and seethe with envy, while GWU's president sets his sights on an Ivy League-size endowment. And both get back to their real jobs: 24/7 fundraising,Which is what university presidents are all about these days. Money - including million-dollar salaries for themselves (GWU's president made more than Harvard's in 2011) - pride, cachet, power, a mansion, first-class all the way. They should just be honest about it and change their university's motto to Ostende mihi pecuniam! (please excuse my questionable Latin)Whether the students are actually learning anything is up to them, I guess - if they do, it's thanks to the professors, adjuncts and the administrative staff, who do the actual work of educating and keep the school running.
  • When I was in HS (70s), many of my richer friends went to GW and I was then of the impression that GW was a 'good' school. As I age, I have come to realize that this place is just another façade to the emptiness that has become America. All too often are we faced with a dilemma: damned if we do, damned if we don't. Yep, 'education' has become a trap for all too many of our citizen.
  • I transferred to GWU from a state school. I am forever grateful that I did. I wanted to get a good rigorous education and go to one of the best International Affairs schools in the world. Even though the state school I went to was dirt-cheap, the education and the faculty was awful. I transferred to GW and was amazed at the professors at that university. An ambassador or a prominent IA scholar taught every class. GW is an expensive school, but that is the free market. If you want a good education you need to be willing to pay for it or join the military. I did the latter and my school was completely free with no debt and I received an amazing education. If young people aren't willing to make some sort of sacrifice to get ahead or just expect everything to be given to then our country is in a sad state.We need to stop blaming universities like GWU that strive to attract better students, better professors, and better infrastructure. They are doing what is expected in America, to better oneself.
  • "Whether the students are actually learning anything is up to them, I guess." How could it possibly be otherwise??? I am glad that you are willing to give credit to teachers and administrators, but it is not they who "do the actual work of educating." From this fallacy comes its corollary, that we should blame teachers first for "under-performing schools". This long-running show of scapegoating may suit the wallets and vanity of American parents, but it is utterly senseless. When, if ever, American culture stops reeking of arrogance, greed and anti-intellectualism, things may improve, and we may resume the habit of bothering to learn. Until then, nothing doing.
  • Universities sell knowledge and grade students on how much they have learned. Fundamentally, there is conflict of interest in thsi setup. Moreover, students who are poorly educated, even if they know this, will not criticize their school, because doing so would make it harder for them to have a career. As such, many problems with higher education remain unexposed to the public.
  • I've lectured and taught in at least five different countries in three continents and the shortest perusal of what goes on abroad would totally undermine most of these speculations. For one thing American universities are unique in their dedication to a broad based liberal arts type education. In France, Italy or Germany, for example, you select a major like mathematics or physics and then in your four years you will not take even one course in another subject. The amount of work that you do that is critically evaluated by an instructor is a tiny fraction of what is done in an American University. While half educated critics based on profoundly incomplete research write criticism like this Universities in Germany Italy, the Netherlands, South Korea and Japan as well as France have appointed committees and made studies to explain why the American system of higher education so drastically outperforms their own system. Elsewhere students do get a rather nice dose of general education but it ends in secondary school and it has the narrowness and formulaic quality that we would just normally associate with that. The character who wrote this article probably never set foot on a "campus" of the University of Paris or Rome
  • The university is part of a complex economic system and it is responding to the demands of that system. For example, students and parents choose universities that have beautiful campuses and buildings. So universities build beautiful campuses. State support of universities has greatly declined, and this decline in funding is the greatest cause of increased tuition. Therefore universities must compete for dollars and must build to attract students and parents. Also, universities are not ranked based on how they educate students -- that's difficult to measure so it is not measured. Instead universities are ranked on research publications. So while universities certainly put much effort into teaching, research has to have a priority in order for the university to survive. Also universities do not force students and parents to attend high price institutions. Reasonably priced state institutions and community colleges are available to every student. Community colleges have an advantage because they are funded by property taxes. Finally learning requires good teaching, but it also requires students that come to the university funded, prepared, and engaged. This often does not happen. Conclusion- universities have to participate in profile raising actions in order to survive. The day that funding is provided for college, ranking is based on education, and students choose campuses with simple buildings, then things will change at the university.
  • This is the inevitable result of privatizing higher education. In the not-so-distant past, we paid for great state universities through our taxes, not tuition. Then, the states shifted funding to prisons and the Federal government radically cut research support and the GI bill. Instead, today we expect universities to support themselves through tuition, and to the extent that we offered students support, it is through non-dischargeable loans. To make matters worse, the interest rates on those loans are far above the government's cost of funds -- so in effect the loans are an excise tax on education (most of which is used to support a handful of for-profit institutions that account for the most student defaults). This "consumer sovereignty" privatized model of funding education works no better than privatizing California's electrical system did in the era of Enron, or our privatized funding of medical service, or our increasingly privatized prison system: it drives up costs at the same time that it replace quality with marketing.
  • There are data in some instances on student learning, but the deeper problem, as I suspect the author already knows, is that there is nothing like a consensus on how to measure that learning, or even on when is the proper end point to emphasize (a lot of what I teach -- I know this from what students have told me -- tends to come into sharp focus years after graduation).
  • Michael (Baltimore) has hit the nail on the head. Universities are increasingly corporatized institutions in the credentialing business. Knowledge, for those few who care about it (often not those paying for the credentials) is available freely because there's no profit in it. Like many corporate entities, it is increasingly run by increasingly highly paid administrators, not faculty.
  • GWU has not defined itself in any unique way, it has merely embraced the bland, but very expensive, accoutrements of American private education: luxury dorms, food courts, spa-like gyms, endless extracurricular activities, etc. But the real culprit for this bloat that students have to bear financially is the college ranking system by US News, Princeton Review, etc. An ultimately meaningless exercise in competition that has nevertheless pushed colleges and universities to be more like one another. A sad state of affairs, and an extremely expensive one for students
  • It is long past time to realize the failure of the Reagonomics-neoliberal private profits over public good program. In education, we need to return to public institutions publicly funded. Just as we need to recognize that Medicare, Social Security, the post office, public utilities, fire departments, interstate highway system, Veterans Administration hospitals and the GI bill are models to be improved and expanded, not destroyed.
  • George Washington is actually not a Rolex watch, it is a counterfeit Rolex. The real Rolexes of higher education -- places like Hopkins, Georgetown, Duke, the Ivies etc. -- have real endowments and real financial aid. No middle class kid is required to borrow $100,000 to get a degree from those schools, because they offer generous need-based financial aid in the form of grants, not loans. The tuition at the real Rolexes is really a sticker price that only the wealthy pay -- everybody else on a sliding scale. For middle class kids who are fortunate enough to get in, Penn actually ends up costing considerably less than a state university.The fake Rolexes -- BU, NYU, Drexel in Philadelphia -- don't have the sliding scale. They bury middle class students in debt.And really, though it is foolish to borrow $100,000 or $120,000 for an undergraduate degree, I don't find the transaction morally wrong. What is morally wrong is our federal government making that loan non-dischargeable in bankruptcy, so many if these kids will be having their wages garnished for the REST OF THEIR LIVES.There is a very simple solution to this, by the way. Cap the amount of non-dischargeable student loan debt at, say, $50,000
  • The slant of this article is critical of the growth of research universities. Couldn't disagree more. Modern research universities create are incredibly engines of economic opportunity not only for the students (who pay the bills) but also for the community via the creation of blue and white collar jobs. Large research university employ tens of thousands of locals from custodial and food service workers right up to high level administrators and specialist in finance, computer services, buildings and facilities management, etc. Johns Hopkins University and the University of Maryland system employ more people than any other industry in Maryland -- including the government. Research universities typically have hospitals providing cutting-edge medical care to the community. Local business (from cafes to property rental companies) benefit from a built-in, long-term client base as well as an educated workforce. And of course they are the foundry of new knowledge which is critical for the future growth of our country.Check out the work of famed economist Dr. Julia Lane on modeling the economic value of the research university. In a nutshell, there are few better investments America can make in herself than research universities. We are the envy of the world in that regard -- and with good reason. How many *industries* (let alone jobs) have Stanford University alone catalyzed?
  • What universities have the monopoly on is the credential. Anyone can learn, from books, from free lectures on the internet, from this newspaper, etc. But only universities can endow you with the cherished degree. For some reason, people are will to pay more for one of these pieces of paper with a certain name on it -- Ivy League, Stanford, even GW -- than another -- Generic State U -- though there is no evidence one is actually worth more in the marketplace of reality than the other. But, by the laws of economics, these places are actually underpriced: after all, something like 20 times more people are trying to buy a Harvard education than are allowed to purchase one. Usually that means you raise your price.
  • Overalll a good article, except for - "This comes on the heels of Richard Arum and Josipa Roksa’s “Academically Adrift,” a study that found “limited or no learning” among many college students." The measure of learning you report was a general thinking skills exam. That's not a good measure of college gains. Most psychologists and cognitive scientists worth their salt would tell you that improvement in critical thinking skills is going to be limited to specific areas. In other words, learning critical thinking skills in math will make little change in critical thinking about political science or biology. Thus we should not expect huge improvements in general critical thinking skills, but rather improvements in a student's major and other areas of focus, such as a minor. Although who has time for a minor when it is universally acknowledged that the purpose of a university is to please and profit an employer or, if one is lucky, an investor. Finally, improved critical thinking skills are not the end all and be all of a college education even given this profit centered perspective. Learning and mastering the cumulative knowledge of past generations is arguably the most important thing to be gained, and most universities still tend to excel at that even with the increasing mandate to run education like a business and cultivate and cull the college "consumer".
  • As for community colleges, there was an article in the Times several years ago that said it much better than I could have said it myself: community colleges are places where dreams are put on hold. Without making the full commitment to study, without leaving the home environment, many, if not most, community college students are caught betwixt and between, trying to balance work responsibilities, caring for a young child or baby and attending classes. For males, the classic "end of the road" in community college is to get a car, a job and a girlfriend, one who is not in college, and that is the end of the dream. Some can make it, but most cannot.
  • as a scientist I disagree with the claim that undergrad tuition subsidizes basic research. Nearly all lab equipment and research personnel (grad students, technicians, anyone with the title "research scientist" or similar) on campus is paid for through federal grants. Professors often spend all their time outside teaching and administration writing grant proposals, as the limited federal grant funds mean ~%85 of proposals must be rejected. What is more, out of each successful grant the university levies a "tax", called "overhead", of 30-40%, nominally to pay for basic operations (utilities, office space, administrators). So in fact one might say research helps fund the university rather than the other way around. Flag
  • It's certainly overrated as a research and graduate level university. Whether it is good for getting an undergraduate education is unclear, but a big part of the appeal is getting to live in D.C..while attending college instead of living in some small college town in the corn fields.
Javier E

How Poor Are the Poor? - NYTimes.com - 0 views

  • “Anyone who studies the issue seriously understands that material poverty has continued to fall in the U.S. in recent decades, primarily due to the success of anti-poverty programs” and the declining cost of “food, air-conditioning, communications, transportation, and entertainment,”
  • Despite the rising optimism, there are disagreements over how many poor people there are and the conditions they live under. There are also questions about the problem of relative poverty, what we are now calling inequality
  • There are strong theoretical justifications for the use of a relative poverty measure. The Organization for Economic Cooperation and Development puts it this way:In order to participate fully in the social life of a community, individuals may need a level of resources that is not too inferior to the norms of a community. For example, the clothing budget that allows a child not to feel ashamed of his school attire is much more related to national living standards than to strict requirements for physical survival
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  • Democratic supporters of safety net programs can use Jencks’s finding that poverty has dropped below 5 percent as evidence that the war on poverty has been successful.
  • At the same time liberals are wary of positive news because, as Jencks notes:It is easier to rally support for such an agenda by saying that the problem in question is getting worse
  • The plus side for conservatives of Jencks’s low estimate of the poverty rate is the implication that severe poverty has largely abated, which then provides justification for allowing enemies of government entitlement programs to further cut social spending.
  • At the same time, however, Jencks’s data undermines Republican claims that the war on poverty has been a failure – a claim exemplified by Ronald Reagan’s famous 1987 quip: “In the sixties we waged a war on poverty, and poverty won.”
  • Jencks’s conclusion: “The absolute poverty rate has declined dramatically since President Johnson launched his war on poverty in 1964.” At 4.8 percent, Jencks’s calculation is the lowest poverty estimate by a credible expert in the field.
  • his conclusion — that instead of the official count of 45.3 million people living in poverty, the number of poor people in America is just under 15 million — understates the scope of hardship in this country.
  • Jencks argues that the actual poverty rate has dropped over the past five decades – far below the official government level — if poverty estimates are adjusted for food and housing benefits, refundable tax credits and a better method of determining inflation rates. In Jencks’s view, the war on poverty worked.
  • using a relative measure shows that the United States lags well behind other developed countries:If you use the O.E.C.D. standard of 50 percent of median income as a poverty line, the United States looks pretty bad in cross-national relief. We have a relative poverty rate exceeded only by Chile, Turkey, Mexico and Israel (which has seen a big increase in inequality in recent years). And that rate in 2010 was essentially where it was in 1995
  • While the United States “has achieved real progress in reducing absolute poverty over the past 50 years,” according to Burtless, “the country may have made no progress at all in reducing the relative economic deprivation of folks at the bottom.”
  • the heart of the dispute: How severe is the problem of poverty?
  • Kathryn Edin, a professor of sociology at Johns Hopkins, and Luke Schaefer, a professor of social work at the University of Michigan, contend that the poverty debate overlooks crucial changes that have taken place within the population of the poor.
  • welfare reform, signed into law by President Clinton in 1996 (the Personal Responsibility and Work Opportunity Act), which limited eligibility for welfare benefits to five years. The limitation has forced many of the poor off welfare: over the past 19 years, the percentage of families falling under the official poverty line who receive welfare benefits has fallen from to 26 percent from 68 percent. Currently, three-quarters of those in poverty, under the official definition, receive no welfare payments.
  • he enactment of expanded benefits for the working poor through the earned-income tax credit and the child tax credit.According to Edin and Schaefer, the consequence of these changes, taken together, has been to divide the poor who no longer receive welfare into two groups. The first group is made up of those who have gone to work and have qualified for tax credits. Expanded tax credits lifted about 3.2 million children out of poverty in 2013
  • he second group, though, has really suffered. These are the very poor who are without work, part of a population that is struggling desperately. Edin and Schaefer write that among the losers are an estimated 3.4 million “children who over the course of a year live for at least three months under a $2 per person per day threshold.”
  • ocusing on these findings, Mishel argues, diverts attention from the more serious problem of “the failure of the labor market to adequately reward low-wage workers.”To support his case, Mishel points out that hourly pay for those in the bottom fifth grew only 7.7 percent from 1979 to 2007, while productivity grew by 64 percent, and education levels among workers in this quintile substantially improved.
caelengrubb

How We've Failed MLK Jr's Dream of Economic Justice | Time - 0 views

  • Economic justice was not new to his agenda
  • The March on Washington sought equality before the law, but also an economic bill of rights for poor white, black and brown workers. He had constantly linked civil rights and labor and poor people’s movements; as far back as 1957, he condemned “the tragic inequalities of an economic system which takes necessities from the masses to give luxuries to the classes.”
  • Trump Administration tax cuts have allowed the wealthiest Americans to pay a lower tax rate than the poorest, and multibillion-dollar companies like Amazon are often able to effectively avoid paying federal taxes.
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  • Worker and union rights established in the New Deal era are fading, and Census Bureau figures released last fall show that income inequality in the U.S. is at its highest level on record.
  • Today, nearly 40 million Americans remain poor, and a majority of students in many schools do not have enough to eat
  • One-third of African Americans there lived in poverty in 2018, the year for which the most recent data is available. Most of the city’s public-school students need subsidized lunches, and black child-poverty rates are above 50%
  • Tax and budget cuts in the 1980s and again after the 2007–2008 financial meltdown destroyed budgets and crippled education. And though the police department is now “integrated,” police-community relations remain tense and often explosive.
  • This all sounds too familiar to a country that spends twice as much on health care as any other advanced nation, where “right to work” laws subvert unions, where gun violence is at epidemic levels, where greed overpowers concern for the earth, where the top 1% of earners own more wealth than 90% of the rest of us combined.
  • To address interrelated evils, King called for a revolution of values
  • To his dying day, King saw a new dispensation of economic justice as attainable. On April 3, 1968, he told a mass meeting of sanitation strikers and their supporters to remember that “either we go up together or we go down together.”
  • More than a half-century later, that promised land of economic justice remains out of reach.
manhefnawi

Reaganomics Vs. Obamanomics: Fallacies Offered By The Left - 1 views

  • From watching and participating in debates over the years regarding Reaganomics, patterns of logical fallacies and factual errors repeatedly arise among critics on the Left.  As the troublesome facts demonstrating the failures of Obamanomics accumulate, we find that almost religiously minded supporters of President Barack Obama can't deal with those facts, and exhibit analogous logical fallacies.
  • Some critics falsely argue that Reagan increased payroll taxes which are paid much more by lower and moderate income workers.  The payroll tax rate increases of the 1980s were adopted under President Carter and the Democratic Congress in 1977.  The Greenspan Commission Social Security rescue plan adopted in 1983 only advanced a couple of these already scheduled payroll tax rate increases by a year or two.  But the ultimate plan for payroll taxes is to phase them out entirely in favor of lower cost personal accounts to finance the benefits currently financed by those taxes, as discussed in previous columns in this space.
krystalxu

The Power Of Communication: Psychology Of Words And Language Revealed | Science 2.0 - 0 views

  • “I am much more interested in how you feel than how you think. I can change how you think, but how you feel is something deeper and stronger, and it's something that's inside you. How you think is on the outside, how you feel is on the inside, so that's what I need to understand.”
  • Central processing is triggered by certain queues, such as involvement and immediacy.
  • "Someone like me comes around and realizes that it's not an estate tax, it's a death tax, because you're taxed at death. And suddenly something that isn't viable achieves the support of 75 percent of the American people. It's the same tax, but nobody really knows what an estate is. But they certainly know what it means to be taxed when you die."
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  • Instead of referring to global warmer, the concept is dubbed "climate change" which lessens fears associated with global warming.
  • To better understand the way we react to information, research on communication is vital to understanding our reactions, emotions and how they build our behaviors and actions.
Javier E

The G.O.P.'s Demographic Excuse - NYTimes.com - 0 views

  • What the party really needs, much more than a better identity-politics pitch, is an economic message that would appeal across demographic lines — reaching both downscale white voters turned off by Romney’s Bain Capital background and upwardly mobile Latino voters who don’t relate to the current G.O.P. fixation on upper-bracket tax cuts. As the American Enterprise Institute’s Henry Olsen writes, it should be possible for Republicans to oppose an overweening and intrusive state while still recognizing that “government can give average people a hand up to achieve the American Dream.” It should be possible for the party to reform and streamline government while also addressing middle-class anxieties about wages, health care, education and more. The good news is that such an agenda already exists, at least in embryonic form. Thanks to four years of intellectual ferment, Republicans seeking policy renewal have a host of thinkers and ideas to draw from: Luigi Zingales and Jim Pethokoukis on crony capitalism, Ramesh Ponnuru and Robert Stein on tax policy, Frederick Hess on education reform, James Capretta on alternatives to Obamacare, and many more.
Javier E

What Can't Tech Money Buy? - The New York Times - 0 views

  • IT did not take long for the tech industry to become the new establishment, and to assign itself the rights and responsibilities that come with such prosperity.
  • Tech’s elite, lauded for their originality, are influencing media, politics and society at large with a kind of venture philanthropy, much as their industrial predecessors did more than 100 years ago.
  • The robber barons of the 19th and 20th centuries were kings of infrastructure. The people with towering wealth today are kings of information. The rise of Silicon Valley is best understood as a new industrial revolution in this tradition.
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  • In recent years, many of the industry’s elite have pledged financial support to schools, hospitals, police stations and homeless shelters, all while many of the industry’s companies have avoided paying taxes that would fund those same vital public institutions.
  • Any philanthropy seems legitimate when it aligns with your own goals.
  • We did indeed give them this mandate through our politics: loose campaign finance laws and lower tax rates. Through policies that have reinforced exceptional wealth disparities, we have allowed them not just to govern themselves, but us as well.
  • To many of Gawker’s critics, Mr. Thiel is a hero on a charitable crusade for justice. It would be safe to say that this is how his fellow Silicon Valley philanthropists would also define their giving. They are under a presumptive mandate to improve society according to their own values, purely because they have made a lot of money while most everyone else has not. The Gospel of Wealth dictates that this is not only their ability, but their responsibility.
  • the concerned public might take a different, simpler tack.Mr. Thiel told an interviewer in 2012 that he feared the result of this precipitous wealth gap. “In the history of the modern world, inequality has only been ended through Communist revolution, war or deflationary economic collapse,” he said. “It’s a disturbing question which of these three is going to happen today, or if there’s a fourth way out.”
  • If we’re lucky, there may be, but Mr. Thiel isn’t going to like it. Wealth gleaned by way of tax dodges and monopolistic business practices is wealth stolen from the public, even when it is returned in the form of supposed gifts.
  • Philanthropy has the power to do a great deal of good, but so do tax dollars allocated in an equitable democratic system. Perhaps it’s time to adopt a Gospel of Government.
dicindioha

Nervous markets take fright at prospect of Trump failing to deliver | Larry Elliott | B... - 0 views

  • Shares, oil and the US dollar were all under pressure as global financial markets took fright at the prospect that Donald Trump would fail to deliver on his growth-boosting promises.
  • stock markets in Asia and Europe fell in response to Tuesday’s sharp decline on Wall Street.
  • Markets have become increasingly impatient with the new Trump administration for failing to follow through on pledges to use a package of tax cuts and infrastructure spending to raise the US growth rate.
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  • Investors believe a failure to secure agreement on Capitol Hill to repeal Barack Obama’s healthcare act – the new administration’s first legislative test – will lead to a further sell-off on Wall Street.
  • money flowed out of the dollar and into the safe haven of the Japanese yen. Sterling rose to stand at just under $1.25 against the US currency.
  • The “repeal and replace” of Obamacare was being seen as an acid test of whether Trump could deliver on his fiscal plans and the difficulties encountered were a “bad omen” for tax reform.
  •  
    After watching inside job it is so interesting to see the way the world market flows around the major countries, and the small countries rely on the success of the big ones. It will be important to monitor whether Trump will be able to implement his campaign claims referring to the market and taxes.
Duncan H

It's Consumer Spending, Stupid - NYTimes.com - 0 views

  • using business profits to increase productivity and output — doesn’t actually drive economic growth. Consumer debt and government spending do. Private investment isn’t even necessary to promote growth.
  • Economists will tell you that private business investment causes growth because it pays for the new plant or equipment that creates jobs, improves labor productivity and increases workers’ incomes. As a result, you’ll hear politicians insisting that more incentives for private investors — lower taxes on corporate profits — will lead to faster and better-balanced growth.
  • But history shows that this is wrong.
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  • President George W. Bush’s tax cuts had similar effects between 2001 and 2007: real growth in the absence of new investment.
  • over the course of the last century, net business investment atrophied while G.D.P. per capita increased spectacularly. And the source of that growth? Increased consumer spending, coupled with and amplified by government outlays.
  • Between 1900 and 2000, real gross domestic product per capita (the output of goods and services per person) grew more than 600 percent. Meanwhile, net business investment declined 70 percent as a share of G.D.P. What’s more, in 1900 almost all investment came from the private sector — from companies, not from government — whereas in 2000, most investment was either from government spending (out of tax revenues) or “residential investment,” which means consumer spending on housing, rather than business expenditure on plants, equipment and labor.
  • According to the Organization for Economic Cooperation and Development, retained corporate earnings that remain uninvested are now close to 8 percent of G.D.P., a staggering sum in view of the unemployment crisis we face.
  • So corporate profits do not drive economic growth — they’re just restless sums of surplus capital, ready to flood speculative markets at home and abroad. In the 1920s, they inflated the stock market bubble, and then caused the Great Crash. Since the Reagan revolution, these superfluous profits have fed corporate mergers and takeovers, driven the dot-com craze, financed the “shadow banking” system of hedge funds and securitized investment vehicles, fueled monetary meltdowns in every hemisphere and inflated the housing bubble.
  • we doubt the moral worth of consumer culture. Like the abstemious ant who scolds the feckless grasshopper as winter approaches, we think that saving is the right thing to do. Even as we shop with abandon, we feel that if only we could contain our unruly desires, we’d be committing ourselves to a better future. But we’re wrong.
  • Consumer spending is not only the key to economic recovery in the short term; it’s also necessary for balanced growth in the long term. If our goal is to repair our damaged economy, we should bank on consumer culture — and that entails a redistribution of income away from profits toward wages, enabled by tax policy and enforced by government spending.
Javier E

A Great Debate - NYTimes.com - 0 views

  • our political “debates” seldom deserve the name. For the most part representatives of the rival parties exchange one-liners: “The rich can afford to pay more” is met by “Tax increases kill jobs.” Slightly more sophisticated discussions may cite historical precedents: “There were higher tax rates during the post-war boom” versus “Reagan’s tax cuts increased revenues.”
  • Such volleys still don’t even amount to arguments: they don’t put forward generally accepted premises that support a conclusion.
  • Despite the name, candidates’ pre-election debates are exercises in looking authoritative, imposing their talking points on the questions, avoiding gaffes, and embarrassing their opponents with “zingers”
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  • There is a high level of political discussion in the editorials and op-eds of national newspapers and magazines as well as on a number of blogs, with positions often carefully formulated and supported with argument and evidence. But even here we seldom see a direct and sustained confrontation of rival positions through the dialectic of assertion, critique, response and counter-critique.
  • As a result, partisans typically remain safe in their ideological worlds, convincing themselves that they hold to obvious truths, while their opponents must be either knaves or fools — with no need to think through the strengths of their rivals’ positions or the weaknesses of their own.
  • In the second session, the Republican asks the Democrat a series of questions (no more than one minute per question and three minutes per response) on the debate topic. In the third session, the Democrat questions the Republican. In the fourth session, each side has 15 minutes to present a final argument.
  • A first condition is that the debates be focused on specific points of major disagreement.
  • Is there any way to make genuine debates — sustained back-and-forth exchanges, meeting high intellectual standards but still widely accessible — part of our political culture?
  • Here’s one suggestion for an effective exchange. The debate would consist of a series of four half-hour televised sessions, carried out on successive days. In the first session, the Republican, say, presents a pre-written case for a particular position
  • Another issue is the medium of the debate. Written discussions, in print or online could be easily arranged, but personal encounters are more vivid and will better engage public attention. They should not, however, be merely extemporaneous events, where too much will depend on quick-thinking and an engaging manner. We want remarks to be carefully prepared and open to considered responses
  • they will set much higher standards of discussion, requiring fuller explanations of positions and even modifications to make them more defensible. It’s unlikely that either side would ever simply give up its view, but, politically, they would have to react to a strong public consensus if they had not made a respectable case. Further, the quasi-official status of the participants, as representatives chosen by their parties, would make the parties’ politicians answerable to points the representatives have made.
  • The only major obstacle to implementing this proposal would be getting the parties to participate. Here, I suggest, shame would be a prime motivator.
  • Facts and reasoning will never settle political issues. All of us have fundamental commitments that are impervious to argument
  • But rationality almost always has some role in our decisions, and more rationality in our political discussion will at a minimum help many to better understand what is at stake in our disputes and why their opponents think as they do.
  • So why not give reason a chance?
proudsa

Hillary Clinton Sets Up A Fight With Bernie Sanders Over Paid Leave - 0 views

  • Democratic presidential candidate Hillary Clinton on Thursday offered new details about her plan to make sure all workers can take time off, with pay, in order to care for a newborn or sick relative.
  • During that time, the worker would be eligible to receive replacement wages, up to two-thirds of his or her salary.
  • The proposal, if enacted, would patch a major gap in America’s safety net. Workers in every other developed country are entitled to paid leave, in some cases for more than a year.
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  • Some companies provide paid leave anyway. In the last year, high-profile employers like Facebook and Goldman Sachs introduced or expanded paid leave for their employees.
  • But Clinton’s proposal differs from the bill in one crucial way. In order to finance the replacement wages that workers would get, the Gillibrand-DeLauro bill would impose a small payroll tax, of 0.4 percent, that employers and employees would split evenly.
  • Clinton has criticized that approach repeatedly because it would mean higher taxes on lower- and middle-income workers.
  • Sen. Marco Rubio (R-Fla.), the only Republican presidential candidate to address the issue formally, has said he’d offer small tax breaks to companies that offer paid leave -- an approach unlikely to have much impact, except perhaps to help well-off workers.
  • “The benefit of being one of the last countries in the world to adopt paid maternity leave is that we have been able to learn from other countries' experiences and the results are clear,” Betsey Stevenson, a University of Michigan economist and former adviser to President Barack Obama, told the Huffington Post on Thursday.
  • To advocates like Heather Boushey, chief economist and executive director of the Washington Center for Equitable Growth, that’s a welcome sign that American politics is finally talking about the challenges of parents who also have jobs.
Javier E

The Anger Wave That May Just Wipe Out Laissez-Faire Economics - The New York Times - 1 views

  • few would have guessed that the economic order built upon Mr. Reagan’s and Mrs. Thatcher’s common faith in unfettered global markets (and largely accepted by their more liberal successors Bill Clinton and Tony Blair) would be brought down by right-wing populists riding the anger of a working class that has been cast aside in the globalized economy that the two leaders trumpeted 40 years ago.
  • The so-called Brexit vote was driven by an inchoate sense among older white workers with modest education that they have been passed over, condemned by forces beyond their control to an uncertain job for little pay in a world where their livelihoods are challenged not just by cheap Asian workers halfway around the world, but closer to home by waves of immigrants of different faiths and skin tones.
  • It is the same frustration that has buoyed proto-fascist political parties across Europe. It is the same anger fueling the candidacy of Mr. Trump in the United States.
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  • Mr. Trump, the bombastic businessman who’s never held office, and Mr. Johnson, the former journalist turned mayor of London, might not put it this way, since they continue to cling to a conservative mantle. But they are riding a revolt of the working class against a 40-year-long project of the political right and its corporate backers that has dominated policy making in the English-speaking world for a generation.
  • The British political scientist Andrew Gamble at the University of Cambridge has argued that Western capitalism has experienced two transformational crises since the end of the 19th century. The first, brought about by the Depression of the 1930s, ended an era in which governments bowed to the gospel of the gold standard and were expected to butt out of the battles between labor and capital, letting markets function on their own, whatever the consequences
  • Mr. Keynes’s views ultimately prevailed, though, providing the basis for a new post-World War II orthodoxy favoring active government intervention in the economy and a robust welfare state. But that era ended when skyrocketing oil prices and economic mismanagement in the 1970s brought about a combination of inflation and unemployment that fatally undermined people’s trust in the state.
  • The Keynesian era ended when Margaret Thatcher and Ronald Reagan rode onto the scene with a version of capitalism based on tax cuts, privatization and deregulation that helped revive their engines of growth but led the workers of the world to the deeply frustrating, increasingly unequal economy of today.
  • After the Brexit vote, Lawrence Summers, former Treasury secretary under President Clinton and one of President Obama’s top economic advisers at the nadir of the Great Recession, laid out an argument for what he called “responsible nationalism,” which focused squarely on the interests of domestic workers.
  • Instead of negotiating more agreements to ease business across borders, governments would focus on deals to improve labor and environmental standards internationally. They might cut deals to prevent cross-border tax evasion.
  • There is, however, little evidence that the world’s leaders will go down that path. Despite the case for economic stimulus, austerity still rules across much of the West. In Europe, most governments have imposed stringent budget cuts — ensuring that all but the strongest economies would stall. In the United States, political polarization has brought fiscal policy — spending and taxes — to a standstill.
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