Tag: Rodger Malcolm Mitchell

–Economic disaster: Congress in agreement

The debt hawks are to economics as the creationists are to biology.

By Z. BYRON WOLF ABC News; July 27, 2010; “Debt Commission: Dealing With Federal Debt Likely To Require Tax Hikes, Spending Cuts. On both sides of the aisle, lawmakers are coming to terms with hard political fact: services are going to have to be cut and taxes are going to have to go up to keep the $13 trillion-plus national debt from skyrocketing into infinity and beyond.”

Our leaders have no idea what they are talking about. Cutting services and raising taxes is not a “hard political fact.” These are the absolute worst steps we could take, not just unnecessary, but massively harmful to our economy. The infamous DEBT COMMISSION, whose assignment it is to reduce the economy’s money supply, is akin to a “blood commission,” whose job it is to reduce the blood supply. Money is the lifeblood of an economy.

The same people who complain there are not enough jobs, also want to reduce money creation, the very thing that creates jobs. Our leaders act like doctors, who apply leeches to cure anemia. The country needs lower taxes, not higher. The country needs more federal spending, not less. These politicians, totally ignorant about economics, make economic decisions with the expected result.

And don’t be fooled by statements that taxes only will be increased on the rich. That simply is not true. All taxes destroy money. Period. Destroying any money, whether currently owned by rich or poor, decreases the total money supply, which hurts the entire American economy. You cannot drain water from only one end of a bathtub. A tax on Bill Gates hurts us all. It benefits no one.

And what are the “unnecessary” services that will be cut? See: SERVICES, and decide what we should eliminate — remembering that eliminating any federal spending reduces the money supply.

I cannot express in stronger terms how outrageously harmful this all will be. I urge you to contact your Senators, your Representatives and your media, and tell them to learn economics before making these terrible economic decisions that absolutely, positively will injure us all.

If Congress were employed by Al-Qaeda, they could not hurt America more than they now wish to do. If someone told you, “I have a plan to destroy billions or even trillions of American dollars,” you rightfully would brand him a traitor. More countries die from enemies within than from enemies without.

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

No nation can tax itself into prosperity

–Salary for attending school, III

The debt hawks are to economics as the creationists are to biology.

The following article reinforces the posts, Salary for attending school and Salary for attending school, 2nd paper:
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U.S. goes from leading to lagging in young college graduates

By Daniel de Vise
Washington Post Staff Writer
Thursday, July 22, 2010; 6:07 AM

The United States has fallen from first to 12th in the share of adults ages 25 to 34 with postsecondary degrees, according to a new report from the College Board.

Canada is now the global leader in higher education among young adults, with 55.8 percent of that population holding an associate degree or better as of 2007, the year of the latest international ranking. The United States sits 11 places back, with 40.4 percent of young adults holding postsecondary credentials.

The report, to be presented Thursday to Capitol Hill policymakers, is backed by a commission of highly placed educators who have set a goal for the United States to reclaim world leadership in college completion — and attain a 55 percent completion rate — by 2025.

The campaign mirrors President Obama’s quest to reclaim world leadership in college graduates by 2020, although it gives the country five more years to get there. The Commission on Access, Admissions and Success in Higher Education set its goal in December 2008, seven months before Obama’s American Graduation Initiative.

“I don’t think what we’re saying and what the president’s saying are that different,” said Gaston Caperton, president of the College Board, the New York nonprofit agency responsible for the SAT and AP tests.

The United States ranks somewhat higher, sixth, among all nations when older adults are added to the equation, according to the report, which Caperton said would be the first of many annual reports charting progress toward the 2025 goal.

But the report focuses more heavily on younger adults, who are feared to be the first generation in the modern era that will be less well-educated than their parents.
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Educational attainment has risen gradually among 25- to 34-year-olds in recent years, according to census data, with the share holding associate degrees or better rising from 38.1 percent in 2000 to 41.6 percent in 2008, the latest figure available.

The report is tailored to state leaders and ranks states by college completion among young adults. The District of Columbia ranks higher than any state, with 62.2 percent of 25- to 34-year-olds holding postsecondary degrees. Maryland ranks 12th among states, with a 38.6 percent completion rate; Virginia ranks 17th, with a 36.5 percent rate.

The commission is urging state and national leaders to pursue a 10-part “action agenda,” which recommends such initiatives as universal pre-kindergarten for low-income families, better college counseling and dropout prevention, and streamlined college admissions, all of which might raise college completion rates. The group is led by William E. Kirwan, chancellor of the University System of Maryland.

“We have a real, objective way every year to look at every state and see how they’re doing,” Caperton said, “and we’re doing this with legislators all over the country.”

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

No nation can tax itself into prosperity

–Salary for attending school: 2nd paper

The debt hawks are to economics as the creationists are to biology.

In the post, Salary for attending school I suggested and discussed paying all students — elementary school, high school and college — a salary. Warren Mosler wrote to me, suggesting that a combination of salary and high school vouchers might be appropriate. Salary offers several advantages, which the earlier post described.

Additionally, vouchers might help make an otherwise unaffordable school, affordable. Beyond cost savings, the voucher adds a new dimension to school attendance. Depending on the size of the voucher, it can create competition among schools. Public high schools, being free, do not require a voucher . So would giving someone a school voucher encourage that person to select a private high school over a free public school? Does this “coupon” have the same psychological function as a retail coupon? (People are reluctant to “waste” a coupon).

And if a voucher does encourage private high school attendance, is this bad? What effect does this have on public schools? These questions have been debated for years, and I’m not sure if there has been resolution. Teachers’ unions oppose vouchers, but that is not a good measure, since teachers unions tend to oppose anything that hints of teacher evaluations. (Parents could use the vouchers to vote with their feet, regarding school quality.) “Cream skimming” is said to be a significant high school voucher problem, though that is said about any system allowing students to choose schools.

One thing I like about high school federal vouchers: The federal government, which never is cash strapped, would take some of the educational cost burden off state and local governments, which always are cash strapped. While I have questions about high school vouchers, I do propose federal funding of all elementary and high schools, with a continuation of local supervision.

This brings us to the possibility of college vouchers. For reasons clouded by history, elementary and high school education is free; college is not. There are state colleges, supported by tuition and state taxes, and private colleges, supported by tuition and donations. The federal colleges are military, i.e. West Point, and are funded by the federal government, with no tuition.

What, I wonder, would be the effect of federally funded, free colleges, comparable to the free elementary and high schools and comparable to the military colleges? What is the unique characteristic of the 12th grade, that makes it the last free grade? Why should the military schools be the only federally funded colleges? Why not continue to provide free public schooling through the 16th grade and beyond?

Again, I question vouchers, but instead I suggest federal funding of free universities, as one step toward providing additional advanced education to economic growth.

Many people claim U.S. education is in something of a crisis. New ideas are needed. My suggestions:
1. Pay a salary to all students (Salary for attending school)
2. Federal government support for elementary and high schools.
3. Federal government support of colleges.

What are your thoughts?

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

No nation can tax itself into prosperity

–$1,000 reward

The debt hawks are to economics as the creationists are to biology.

Politicians continue to worry about the size of the federal debt:

“The president knows that Republicans support extending unemployment insurance, and doing it in a fiscally responsible way by cutting spending elsewhere in the $3 trillion federal budget,” said Representative John A. Boehner of Ohio. “At what point do we pivot and start being concerned about our children and our grandchildren?” said Senator Mitch McConnell of Kentucky.

I will pay $1,000 to the first person (including you, Representative Boehner) who can demonstrate why the U.S. federal government will be unable to service its debts.

Wait, I’ll make it even easier. I’ll pay $1,000 to the first person (including you, Senator McConnell) who can demonstrate why the U.S. federal government will be unable to pay its debts, even if all taxes and all federal T-securities were eliminated. And I’ll throw in an extra $1,000 if you can show how the U.S. taxpayer and/or taxpayers’ grandchildren owe the federal debt.

Readers, please feel free to pass this on to your political representatives. I have my checkbook in hand.

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

No nation can tax itself into prosperity