Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Wednesday, October 17, 2012

Cut Education Spending

http://www.clevelandleader.com/files/an%20education.jpg

On economic and education issues, we often have subjective views contrasting the stark reality. Education spending by local, state and federal governments is no different.

From 2011, but still quite relevant:
If President Obama cares about restoring sanity to federal finances, he will demand deep cuts to education spending. That's right: In tonight's State of the Union address, he will call to axe most of Washington's educationally worthless outlays.

Unfortunately, Mr. Obama is likely to prove that he doesn't care all that much about attacking the nation's crushing debt. According to several sources, he'll not only place education spending off limits, he might make increasing it a focal point of tonight's address.

But wait: Debt or no debt, isn't having an educated citizenry crucial to the nation's future? Isn't he right to protect education funding?

Education is, indeed, very important. But while Washington spends huge sums on things that are education-related, the riches produce almost nothing of educational value. If anything, the feds keep stuffing donuts into an already obese system.

Federal elementary and secondary education spending has risen mightily since the early 1970s, when Washington first started immersing itself in education. In 1970, according to the federal Digest of Education Statistics, Uncle Sam spent an inflation-adjusted $31.5 billion on public K-12 education. By 2009 that had ballooned to $82.9 billion.

On a per-pupil basis, in 1970 the feds spent $435 per student. By 2006 — the latest year with available data — it was $1,015, a 133 percent increase. And it's not like state and local spending was dropping: Real, overall, per-pupil spending rose from $5,593 in 1970 to $12,463 in 2006, and today we beat almost every other industrialized nation in education funding.

What do we have to show for this?

Certainly more public school employees: Between 1969 and 2007, pupil-to-staff ratios were close to halved. Not coincidentally, these same people politick powerfully for ever more spending and against reforms that will challenge their bloated monopoly. They also routinely defeat efforts to hold them accountable for results.

This constant feeding of special interests is why we've gotten zilch in the outcome that really matters — learning. Since the early 1970s, scores on the National Assessment of Educational Progress — the "Nation's Report Card" — have been utterly stagnant for 17-year-olds, our schools' "final products." In 1973 the average math score was 304 (out of 500). In 2008 it was just 306. In reading, the 1971 average was 285. In 2008 it was up a single point, hitting 286.

More: For the Nation's Sake, Cut Education Spending

http://farm6.staticflickr.com/5446/6999198058_0d743838d7_z.jpg

Without a stabilization of the education system (if it deserves to be sustained by government at all in the long-term) it will continue to bloat until it collapses under it's own weight. With excessive spending increases by government at all levels, budget deficits and inflating debt, it's not just public education that needs to be on the chopping block, but the neck of government itself.

And a bit more recently,

Cuts such as those that would be made to federal education programs through sequestration are both necessary and overdue. Not only does the federal government have no constitutional authority to fund and administer education programs — no mention is made of education in the specific, enumerated powers given to the federal government in Article I, Section 8 — but the last forty-plus years of federal involvement in education provide a clear demonstration of futility.

Start with preschool. The primary federal preschool program is Head Start, which in FY 2012 received almost $8 billion. The program has existed since 1965 and has cost roughly $180 billion through its lifespan. Despite its longevity, the program has failed to demonstrate lasting benefits. Indeed, a 2010 federal study found that the program had only two statistically significant positive cognitive effects that lasted through first grade, and negative mathematics effects for kindergarten students who entered Head Start when three years old.1 In the vast majority of measures no meaningful effects were found one way or the other.

Unfortunately, the essentially nonexistent positive effects of Head Start are not the program's only problem. As reports from the Government Accountability Office, local media outlets, and other sources have revealed, Head Start has long suffered from serious waste and abuse. Indeed, GAO reports in 2000, 2005, and 2008 found widespread noncompliance with financial management standards and very poor efforts to remediate the problem.2

More: Sequestration Needed for Federal Education Programs

Saturday, September 22, 2012

A Maoist Lack of Economic Knowledge


Need a good laugh? Head over to the Maoist Rebel News to see the sorry excuse for results in public education. It's actually quite sad. Jason Unruhe tries and fails to criticize the Mises Academy providing economic educational programs for lowering their costs, but completely ignore rising revenues as a result. He really doesn't come across as educated on the issues he discusses on his blog or his YouTube channel.

Not only is the Marxist position one of constant failure throughout history (but just won't quite die entirely), but there are so many unwilling to work to achieve their goals that they just fall back on criticizing those who do excel in their fields through hard work and determination. MRN is one of those happily supporting failure (with minimal followers, including a whopping 341 "likes" on Facebook). Bless their hearts, they know not what they do. If anything, he's simply giving free advertizing through his site to the Academy (where's your Maoist academy, d-bag?), as he hardly gives compelling reasons to support socialism over liberty. Good luck with that, Jason...

Lack of economic education:

Mises Institute Succumbs to Market Forces - YouTube

"Formal education will make you a living; self education will make you a fortune." - Jim Rohn

I went over to Jason's Maoist Rebel News Facebook page for his "news" outlet and began to refute (or refuse as he misuses language) various criticisms and misconceptions he has toward libertarianism and capitalism, but am starting to feel bad about it. I feel like I'm making fun of a mentally challenged person. Should I cease my interjections and let him go about his merry way, being the village idiot, or should I continue to try to help him see the err of his position through education? I have this damned cricket on my shoulder reminding me that I need to be nice, even to the statists...

Wednesday, July 25, 2012

Virtual Mises University Conference

Everyone at the Mises Institute is thrilled to offer an exciting new dimension to the Mises U experience. We now have the technology to bring Mises University's unrivaled instruction in the Austrian Theory of Economics to students across the world. 
Please take advantage of the academic and social forums as well as the chat room to get to know your fellow students and build a network of brilliant young Austrians. In the quest for free markets and individual liberty, one can never have too many friends on your side! 
And it's just $20! The week is nearly halfway complete, but the wealth of free market knowledge is abound and well worth the low cost.



Virtual Mises University Conference

Tuesday, July 24, 2012

US Dept of Education Releases Sequestration Impact

http://www.herinst.org/BusinessManagedDemocracy/education/choice/images/School_Choice.jpg

One one hand, I hate to see education opportunities dwindle for any social segment, but, beyond that, there is a fallacy that all services must be provided by the state. When states are unable to provide services due to budgetary restrictions, it is incumbent on the private market to step in a take over those services, as private markets are forced to operate competitively and efficiently in order to survive over the long term. Governments do not operate at the margin, nor do they operate beyond the short term. Once again, we find that state intervention into markets creates the inefficiencies that puts those services at risk.
Letter sent to all state chiefs with the attached charts that says sequestration would not impact 2012-13 school year.

From: Honeysett, Adam
Sent: Friday, July 20, 2012 05:59 PM
Subject: Memo from Deputy Secretary Miller re: Sequester Impact


July 20, 2012

Memorandum to:  Chief State School Officers

From:  Anthony W. Miller, Deputy Secretary, U.S. Department of Education
                       
Subject:  Clarification of Sequester Impact on Four Accounts with Advance Funding


The Budget Control Act (BCA) of 2011 established a Joint Select Committee in Congress charged with the task of developing a proposal to achieve at least $1.2 trillion in deficit reduction.  Unfortunately, last November, the Joint Committee announced that it could not reach agreement on a deficit reduction plan.  This failure triggered enforcement via automatic funding cuts, called sequestration, for fiscal year 2013, unless Congress prevents this from taking place by sending the President a balanced deficit reduction plan that does away with sequestration before it goes into effect on January 2, 2013. 

Many of you have asked technical questions about how the Department of Education would implement the BCA sequestration in our four appropriations accounts that receive fiscal year 2013 budgetary resources from both 2012 advance appropriations and 2013 regular appropriations.  The 2012 advance appropriations become available in October 2012 for school year 2012-13.  The 2013 regular appropriations become available in July 2013 for school year 2013-14.  Most of the funds in the four accounts with advance appropriations—Education for the Disadvantaged (Title I, ESEA), School Improvement Programs (Title II, ESEA), Special Education (IDEA Part B), and Career, Technical, and Adult Education—get distributed by formula to States and then to local school districts or other entities. 

If Congress does not act to avoid sequestration, and assuming the 2013 appropriations for these four accounts are structured similarly to past appropriations (which they are under the pending House and Senate appropriations bills), the Department will take the sequester from funds that would become available in July 2013 for school year 2013-14, not from the 2012 advance appropriations available in October 2012.  The amount of the reduction will be calculated by applying the sequester percentage (to be determined by the Office of Management and Budget) to the fiscal year 2013 budgetary resources from both the 2012 advance appropriations and the 2013 regular appropriations that are available for the four accounts.  The calculated sequester amount will then get subtracted from the July 2013 funding.  The net effect will be to cut the funding level for the programs in the four accounts with advance funding by the same percentage as all other programs, projects, and activities.

It has come to our attention that some States may have urged school districts to hold back on spending for the 2012-13 school year because of the possibility of sequestration.  Assuming Congress enacts a 2013 appropriations bill that is structured similarly to the pending House or Senate bills—a reasonable assumption based on past practice—there is no reason to believe that a sequestration would affect funding for the 2012-13 school year. 

While a large sequestration of education appropriations would decrease funding for schools and students across the country, the potential for sequestration should not upset planning and hiring decisions for the immediately upcoming 2012-13 school year.  Federal funds have already been appropriated and will be provided for this school year, through grants made in July 2012 and advance funds that will be obligated in October 2012.

Most other Department elementary and secondary programs award funds late in the fiscal year for the following school year, either through a formula or following a competition for discretionary grants, so the impact of the BCA on these programs will not be felt until the 2013-14 school year as well.  However, the major exception where the BCA sequester could reduce funds for the 2012-13 school year is the $1.2 billion Impact Aid program.  Impact Aid provides funds to some 1,192 school districts serving about 949,000 students.  About 52,000 of those students are in districts that rely heavily on Impact Aid for a large share of their funds.  These districts could experience more significant short-term funding problems due to sequestration than other districts.

Although most of the harm from the sequestration would not be felt in education programs until the 2013-14 school year, the damage from across-the-board cuts in that year would be severe.  The Administration has submitted a balanced plan to Congress to avoid a sequestration, and continues to urge Congress to act on that policy.  The sequestration was not meant to be implemented; it was meant to drive Congress to enact a balanced deficit reduction plan through the threat of destructive cuts.  Time remains for Members of Congress to produce such a balanced plan, and we urge Congress to do so.  Secretary Duncan will be testifying on July 25th before the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies on the potential harmful impact of sequestration on schools, teachers, and students and will be urging Congress to take action to avoid the deep and indiscriminate cuts in education and other Federal programs that sequestration would entail. However, while we wait for Congressional action, based upon past practice in appropriations, there is little reason to delay hiring for school year 2012-13 due to the threat of sequestration.

Friday, June 15, 2012

Peter Schiff on the Government Spending Addiction

"Take Two: The President's Proposal to Stimulate the Economy"



The Subcommittee on Regulatory Affairs, Stimulus Oversight, and Government Spending held a hearing, which examined the results of the Administration's economic policies thus far and explored the proposals outlined by President Obama on Thursday, September 8, 2011.


Learn more at http://oversight.house.gov


9-13-11: Oversight Productions

9/13/2011 (1 of 2) Peter Schiff Testimony Before Congress On Jobs Committee



Peter Schiff Testifies Before Congress. Part 2 IS HERE: http://www.youtube.com/watch?v=xZbQGpf3D_Q.


Full hearing is here: http://www.youtube.com/watch?v=Dgpq-lthpPQ

9/13/2011 (2 of 2) Peter Schiff Testimony Before Congress On Jobs Committee


Peter Schiff Testifies Before Congress. Full hearing is here: http://www.youtube.com/watch?v=Dgpq-lthpPQ

Mr. Schiff Returns to Washington



Does Washington have the American taxpayers' interests as their top priority? Watch as lobbyists drown out your voice and Peter fights the tide.
Peter Schiff is more educated on economics than the government workers and lobbyists who are making choices for the American people without our consent. This lack of concern for the will and needs of those who are carrying the burden through taxation is what has led to rebellions and collapses in history, including the beginning of our own nation. Why bother learning from history when it's more fun to repeat past mistakes?

Go to http://www.TinyURL.com/RealCrash to order my new book, "The Real Crash: America's Coming Bankruptcy---How to Save Yourself and Your Country"


6:06 - My Opening Statement


11:16 - "I don't know whether to go to Mr. Schiff or not, but I guess I will" - Judy Biggert (R)
I explain to Chairwoman Judy Biggert why federal involvement in home lending has created more problems than it has solved.


16:22 - "Despite all the sound and fury, there's not a lot of details..." - Robert Hurt (R)
My proposals that old regulations be repealed, rather than new ones proposed, in order for the free market to come up with solutions are repeatedly lost on Congressman Robert Hurt.


25:16 - "Mr. Schiff, I just have one question..." - Emanuel Cleaver (D)
Congressman Emanuel Cleaver II unsuccessfully tries to 'nail' me. Instead, a spirited discussion ensues in which I remind the congressman of the moral hazard and economic costs of government subsidies.


30:38 - "Maybe that happens in an Ayn Rand novel..." - Dan Sherman (D)
Congressman Dan Sherman asserts that as a practical matter the federal government, in one way or another, insures all homes, and that only characters in an Ayn Rand novel would believe otherwise.


THE HEARING:


Oversight of Federal Housing Administration's Multifamily Insurance Programs


THE PANEL:


Ms. Marie Head, Deputy Assistant Secretary, Office of Multifamily Housing Programs, Office of Housing, Federal Housing Administration


Mr. Michael Bodaken, President, National Housing Trust


Ms. Sheila Crowley, President and Chief Executive Officer, National Low Income Housing Coalition


Ms. Mary Kenney, Executive Director, Illinois Housing Development Authority, on behalf of the National Council of State Housing Agencies


Mr. Rodrigo López, President and Chief Executive Officer, AmeriSphere, on behalf of the Mortgage Bankers Association


Mr. Richard L. Mostyn, Vice Chairman and Chief Operating Officer, The Bozzuto Group, on behalf of the National Multi Housing Council


Mr. Robert F. Nielsen, Immediate Past Chairman, National Association of Home Builders


Mr. Joseph L. Pagliari, Jr., Clinical Professor of Real Estate, The University of Chicago Booth School of Business


Mr. Peter Schiff, Chief Executive Officer and Chief Global Strategist, Euro Pacific Capital


SPREAD THE WORD! Let more people take an inside look at the inner workings of Washington D.C.


FULL testimony here: http://www.youtube.com/watch?v=hEx1b4uaZ8k


Watch Peter's last testimony here:
Part 1 - http://www.youtube.com/watch?v=FLmD9TeUC54
Part 2 - http://www.youtube.com/watch?v=xZbQGpf3D_Q