Posts by Nick Cassella

Sorry Liberals, Education is not the Solution To Everything

Sorry Liberals, Education is not the Solution To Everything

I am one of those progressives who is adamant about the necessity of free public college. In a recent column , I warned that Hillary Clinton’s opposition to such a policy would end up “only hurting [her] own precious credibility on economic matters as well as the economic wellbeing of Americans.” The evidence bears out this claim. According to the National Center for Education Statistics , “in 2013 median earnings for young adults with a bachelor’s degree were $48,500, compared with $23,900 for those without a high school credential, $30,000 for those with a high school credential, and $37,500 for those with an associate’s degree.” Clearly, some form of postsecondary education helps increase the earnings of Americans. That would suggest it is a necessary step in an economy where wages are frustratingly stagnant. My clear-eyed solution to this matter was giving a dose of reality while reading Thomas Frank’s Listen, Liberal . In this fantastic book, Frank (a big liberal himself) argues that, “to the liberal class, every big economic problem is really an education problem, a failure by the losers to learn the right skills and get the credentials everyone knows you’ll need in the society of the future.” He cites a bevy of influential liberal thinkers who attest to these privileged beliefs, including Thomas Friedman — a thinker who has greatly influenced me on educational policy. In this instance, Friedman is quoted as saying, “improving educational outcomes for more young people is now the most important lever for increasing economic growth and narrowing income inequality.” Frank highlights how education is the source of economic prosperity for liberals. It “is a fixed idea,” he argues, “as open to evidence-based refutation as creationism is to fundamentalists: if poor people want to stop being poor, poor people must go to college.” What’s peculiar about this position is that it’s not “really an answer at all; it’s a moral judgment, handed down by the successful from
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Daily Clips: April 8th, 2016

Daily Clips: April 8th, 2016

Obama pursued transformation as GOP chose self-destruction:  While at first glance this headline seems to be rather editorialized, Fareed Zakaria’s  take on the state of US politics is remarkably honest. First, he lays out why he thinks Obama has succeeded at being a “transformational president”: 1. He saved the economy. 2. He created health care, where now 90 percent of Americans are covered. 3. He helped transform US energy policy. He gives this example: “solar costs have plummeted by 70 percent and solar generation is up 3,000 percent.” 4. Obama has pursued a limited foreign policy that curtails “US involvement in establishing political order in the Middle East, focusing instead on counterterrorism.” For the most part, I agree with Zakaria’s praise. It’s a very good article which I’d highly recommend. Pope says weapons manufacturers can’t call themselves Christian:  I guess you can rape children and still be Christian, however. A Republican judge’s ruling threatens a key pillar of post-crisis financial regulation: Great read on the GOP’s blind hatred of financial regulations. Tweet of the day: 54% of people murdered with guns in 2010 were under the age of 30: https://t.co/6odZ9psgQl — American Progress (@amprog) April 8, 2016

Daily Clips: April 7th, 2016

Daily Clips: April 7th, 2016

/r/politics needs to be renamed to /r/sanders. Seriously.  Police fatally shoot unarmed black men at disproportionate rates, study finds :  Black men accounted for about 40 percent of the unarmed people fatally shot by police and when adjusted by population were seven times as likely as unarmed white men to die from police gunfire, The Post found. Why Republicans cry political correctness: Dressing up bigotry and authoritarianism as truth-telling is the right wing’s favorite talking point. Their false victimization is so nauseating. Tweet of the day: Rand Paul: I'll support Trump if he's the nominee. https://t.co/E8UKdke5tw Because fascism = liberty. — Bruce Bartlett (@BruceBartlett) April 1, 2016

#SaveYourSavings Shows That Democrats Are Clueless on Millennials, Too

#SaveYourSavings Shows That Democrats Are Clueless on Millennials, Too

You may have missed it this morning, but  #SaveYourSavings was trending on Twitter. It was coordinated by the Department of Labor, and various Democratic leaders like Senators Elizabeth Warren and Cory Booker helped promote the cause. Glad to be here w/ @LaborSec & @CoryBooker to talk about @USDOL ’s new conflict of interest rule! #SaveYourSavings pic.twitter.com/2vkIzKYk6Y — Elizabeth Warren (@SenWarren) April 6, 2016 According to NPR , the hashtag was created to celebrate the Labor Department’s unveiling of a new rule “imposing limits on how financial advisers and brokers may offer advice to people saving for retirement.” That’s a worthy cause. In fact, the hashtag would be worthwhile even if it just called attention to the dismal level of savings in our country. If you can believe it, most Americans have less than $1,000 in savings  right now. That’s truly awful for our citizens and our economy. However, while promoting this noble cause via Twitter, Booker and Warren displayed some real tone-deafness when it comes to my generation’s economic plight. First off, Warren provided an eye-opening reminder to millennials: Remember: Paying off your student loans & getting out of debt is an investment in your future too. #SaveYourSavings — Elizabeth Warren (@SenWarren) April 6, 2016 That’s her fix?! And this is supposed to be our nation’s revolutionary progressive?! But it gets worse. See this exchange between Cory Booker and a millennial: What steps should millennials take now in order to prepare for a better future? #SaveYourSavings — Corrina (@Tailoring_Ri) April 6, 2016 Start saving now. Just a few $$$ a day (skip the coffee). Over decades it'll add up to thousands #SaveYourSavings https://t.co/ZYikX8MTJM — Cory Booker (@CoryBooker) April 6, 2016 What a condescending “solution,” for a couple of reasons. 1) Urging millennials to spend less unfortunately takes money out of the economy — something which is desperately needed when consumption accounts for 70% of GDP and 2) it’s not even really a solution. These statements are akin to  Jeb’s widely panned statement that Americans who aren’t earning enough “need to work
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Daily Clips: April 6th, 2016

Daily Clips: April 6th, 2016

The gig economy is powered by old people:  Here at Skunk Works we are fascinated with the promise and the perils of the gig economy. If you don’t know our opinions on the matter, you should listen to our podcast episode on the subject  — it gives a great overview. Today, Bloomberg View highlighted a recent study by Lawrence F. Katz and Alan Krueger which finds, among other things, that the growth of the gig economy is actually “being driven not so much by struggling millennials lining up gigs online as by 60-year-olds working as independent contractors.” What’s unclear, they say, “is whether they’re doing this because they’re semi-retired and value freedom and flexibility, or because they’ve been downsized out of a full-time, full-benefit job and have to settle for contract work.” Are robots job creators?   Two schools of economic thinking have for many years been engaged in a debate about the potential effects of automation on jobs, employment and human activity: Will new technology spawn mass unemployment, as the robots take jobs away from humans? Or will the jobs robots take over release or unveil—or even create—demand for new human jobs? When the poor move, do they move up? …the federal government still does very little to incentivize racially and economically integrated neighborhoods—chiefly because of the political peril involved, but also because scholars and housing experts have failed to resolve whether promoting integrated neighborhoods would even be desirable or beneficial. A wave of new research, however, is helping to settle the experts’ debate, and may pave the way to fulfilling the Fair Housing Act’s original promise. Tweet of the day: 78% support. Among business owners. For secure scheduling. According to a Republican pollster. https://t.co/Wz8PxNJp08 — Working Washington (@workingwa) April 6, 2016

Daily Clips: April 5th, 2016

Daily Clips: April 5th, 2016

Why did the CDC stop researching gun violence? The failure of the CDC to invest in studies of gun violence has greatly inhibited the ability of social scientists, law enforcement agencies, and policymakers to understand the scope and causes of shootings — while also limiting understanding of interventions that might save lives… Today, less than  $5 million is spent each year on gun studies. A single HIV or cancer study can cost twice as much… Frieden [the CDC’s Director], who declined an interview for this story, has faced public criticism for not addressing— or even acknowledging —gun violence as a public health issue. Low-skilled immigrants are good for the working class:  Noah Smith points out that “new research shows that low-skilled immigrants may do a lot more for the native-born working class than we thought.” David Brooks writes another awful article: When I went to go see David Brooks speak in Seattle last month , he told the crowd that he usually consults “200 to 300 pages of research” for his columns. Think of this claim as you read his latest work: Odder still, people are often plagued by a sense of powerlessness, a loss of efficacy. The liberation of the individual was supposed to lead to mass empowerment. But it turns out that people can effectively pursue their goals only when they know who they are — when they have firm identities. Strong identities can come only when people are embedded in a rich social fabric. They can come only when we have defined social roles — father, plumber, Little League coach. They can come only when we are seen and admired by our neighbors and loved ones in a certain way. As Ralph Waldo Emerson put it, “Other men are lenses through which we read our own minds.” If this is the payoff he is getting from hundreds of pages of research, then I think Brooks needs to rethink his approach. Tweet of the day: #Same pic.twitter.com/H1h3aEUtOy — MoveOn.org (@MoveOn)
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Daily Clips: April 4th, 2016

Daily Clips: April 4th, 2016

Panama Papers:  If we had to look at “meta-narratives” which surround the 2010s, then economic and social inequality would have to be top candidates. After Piketty stirred the conversation with “Capital” and Nick Hanauer warned of “ pitchforks “, the Panama Papers have entered the public conversation. What exactly are the Panama Papers? They are “a massive document link” which “reveals a global web of corruption and tax avoidance.” As always, Matthew Yglesias at Vox explains it best: Here are a few of the highlights the team found, with links to the full stories where you can read the details: Vladimir Putin’s inner circle appears to control about $2 billion worth of offshore assets. The prime minister of Iceland secretly owned the debt of failed Icelandic banks  while he was involved in political negotiations over their fate. The family of Pakistan’s prime minister owns millions of dollars’ worth of real estate via offshore accounts. Ukrainian President Petro Poroshenko pledged to sell his Ukrainian business interests during his campaign, but appears instead to have transferred them to an offshore company he controls . Climate change puts trillions of dollars of financial assets at risk:  Unsurprising. What’s the right minimum wage?   But in the policy debate, it is the job loss argument that overwhelmingly dominates. On this score, minimum wage advocates have been helped by the facts—the best research now shows that large hikes in the local statutory wage floor has no discernible effect on employment. Many jobs that fail to pay a living wage reflect the collapse of worker bargaining power over the course of the last four decades. The evidence speaks loudly: Forced to pay higher wages, employers find ways to adjust, through productivity gains, lower worker turnover, lower wage increases for higher wage workers, price increases that have little effect on consumer demand, and even reduced profit margins. Above all, a necessary condition for stronger worker bargaining power in the absence of collective bargaining is a strong macroeconomy. With sufficient time to adjust, jobs that cannot pay a minimally decent wage should be driven out of the labor market. Tweet
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Daily Clips: April 1st, 2016

Daily Clips: April 1st, 2016

Let me just begin by saying there will be no shi**y April Fools Jokes on this particular page. Inequality is about so much more than money:  In many ways, we use inequality as a euphemism for describing a very, very complex problem. This piece pivots from “Piketty’s opus” about inequality, and its particular focus on wealth, and shifts the attention to “psychology and culture.” The author argues that these elements of inequality fundamentally transform and influence societies as well, However, for too long our political discourse on this issue has been examined solely through the economic lens. A worthy read. NY state reaches deal to raise minimum wage toward $15 an hour : Another one bites the dust. US economy adds 215,000 jobs in March, jobless rate ticks up to 5 percent : “This is confirmation that the U.S. economy is basically the one economy in the globe that can go it alone,” said Tara Sinclair, chief economist at jobs site Indeed and economics professor at George Washington University. “It can potentially be a positive contributor to global growth at a time when everyone else is slowing.” Tweet of the day: Research: Even modest reductions in neighborhood poverty rates produce lifetime earning gains for poor kids. https://t.co/VjWVGPbyTG — Joe Cortright (@Joe_Cortright) March 30, 2016  

Daily Clips: March 31st, 2016

Daily Clips: March 31st, 2016

100 CEOs have more saved up for retirement than 41 percent of US families combined : Inequality is not inherently bad, but this level of wealth inequality is absolutely horrific. Especially when you consider that growth is a consequence of the middle class and that most Americans’ wages have hardly grown. Speaking of which… US jobs market is firming up, manufacturing regaining footing: Labor market strength, however, has not been accompanied by robust wage growth, making it unlikely the Federal Reserve will raise interest rates soon. The U.S. central bank is also keeping a cautious eye on international developments. Women are already punished for trying to end their pregnancies:  After Trump’s despicable comments on abortion yesterday, finally the 2016 contest has turned its gaze towards this vital right. Donald Trump doesn’t speak for the pro-life movement.  Yeah, but he most certainly speaks for the party which represents the pro-life movement. Tweet of the day: Pew Research poll: 75% of voters say the media has given Donald Trump too much attention. https://t.co/g2J5qplDd0 pic.twitter.com/OMHJ6E9HJE — Nate Silver (@NateSilver538) March 31, 2016

Daily Clips: March 30th, 2016

Daily Clips: March 30th, 2016

ACA’s newest policy holders are sicker and costlier : Good thing they have health care now. Kansas tried tax cuts. Its neighbor didn’t. Guess which one worked?  As many of you know, Kansas Governor Brownback is big a trickle down proponent. After he promised 25,000 jobs a year after enacting extensive tax cuts, “Kansas actually lost 5,400 jobs over the 12 months ending in February.” Vermont could change the marijuana legalization movement:  Up until now, all of the states which have legalized marijuana have done so via the ballot. Vermont is looking like it could be the first state to buck this trend. Here are some interesting differences between Vermont’s approach and Washington State: There are a few other ways Vermont’s bill stands out: After watching Colorado struggle with how to regulate edibles, Vermont won’t be legalizing those at all. Lawmakers also resisted marijuana advocates’ lobbying to allow people to grow marijuana plants in their own homes. And if you want to invest in one of Vermont’s marijuana stores, you’ll have to move to the state and become a resident; no out-of-state funding is allowed. Tweet of the day: POLL: Half of Americans Support Proposed Islamophobic Policies https://t.co/rqYvZOo07T pic.twitter.com/nJWQS1Dado — Colorlines.com (@Colorlines) March 30, 2016