Recommendations
from author/editor Walter Antoniotti
Educational  Poverty  Work Socialism  Elections  Government
Return to U.S. Wellbeing 7/3\9/19

   
Follow Historical Education Advise

 

Philosophical Changes

Confucius "It does not matter how slowly you go as long as you don't stop.

E. Forster "Spoon feeding ... teaches us nothing but the shape of the spoon."

A. Kohn homework doesn't help young students.  

A. Greenspan education reform will take many years. See Year-round calendar.

Plato "Do not train a child to learn by force of harshness; but direct them to it by what amused their minds so that you may be better able to discover with accuracy the peculiar bent of the genius of each."

T. Cowen best students special, others should be motivated

P. Drucker emphasize what learners do well. See Special Intelligence

 

Economic Realities

J. Heckman The highest rate of return in early childhood development comes from investing as early as possible,
from birth through age five ...

L. Thurow small payoff from little bit more education

F. Pryor and D. Schaffer poor graduates got low level jobs

P. Krugman: rising wage premium for higher education is over. 

C. Murray more investing in our best and brightest

Please Visit Educating the Class of 2034
 

Bipartisan College Transparency Needs

too many students are ill-served by college

colleges are insufficiently responsible for student outcomes

too many students wind up with too much debt

taxpayers are not confident that dollars are being invested wisely

the higher education ‘market’ is in the grips of dysfunction

Transparency Recommendations

reporting completion rates

loan repayments

earnings by program as well as by the college

and much more.

Source “Mapping Out Common Ground on Accountability in Higher Education.” by ,

Recommendation:
Laboratories of Democracy
Federal Involvement Limited to Block Grants

1. Local Community Prioritize Goals Community Choose and Prioritize Goals
2. Individualized Curriculums Determined at State or County Level
 3.
Educating the Class of 2034 proposed Timeline

 

Cost Effective Poverty Investing

Tax Credits are the Best Investment

 Wage subsidies/income credits not labor regulation and higher minimum wages  are best for countering globalization and technological change.

 

Is Even More Poverty Investment
 a Good Investment?

 

 

 

Many Make Less-Than Half the Median Income

Source – Noah Smith, Bloomberg 

 

But Families on Median Income Live Well

Image result for median income by country

Editor's Note: CBO Needs to Report How Medium Income Family Lives
 

Recommendation:
 

We Need the CBO to Report Periodically on how Poor People live.

Low Wages
Are Not The Problem

 

 

 

Problem: Changing Nature of Work
This affects the firm, employee skills, the terms on which people work, and how government policy should responds. Source

The More We Spend on Young People, The Less That Work

      Government Bailing Out Rural Areas
 
Composition of Average Real GDP by Sector: Metro and Nonmetro Counties U.S. Metro U.S. Nonmetro
Private Goods-Producing 17.9% 32.4%
Private Service-Providing 70.1% 51.9%
Government and
Government Owned Enterprises
11.9% 15.7%
SOURCES: Bureau of Economic Analysis and authors' calculations.

The authors pointed out the sizable difference in the share of GDP generated by the private service-providing sector in urban and rural counties: In urban counties, about 70% of their GDP comes from this sector; in rural counties, this share is 52%.

“A key reason for this difference is due to what economists call agglomeration effects," they wrote. “In other words, firms (particularly service firms) experience greater productivity by locating in cities where they have easier access to resources like airports and large pools of consumers.

Cities Got More Jobs

 

Fewer Young Rural Workers Work

 

Increasing Minimum Wages Job Loss is Temporary

Source: Canary in the coal mine? NYC small businesses struggle to survive $15 minimum wage hike: ‘They’re shutting down’

Political System Change Needed?
1. Democratic Socialism
 
is an economic system modified by Democracy Principles
with state ownership of key industries and
a strong emphasis on individual wellbeing
followed in Great Britain and most of Western Europe.
Today it is just a bit more capitalism because Ms. Thatcher influenced a country, a continent and then Ronal Reagan.
2. Totalitarian Communism
is an economic system
 modified by Totalitarian Principles
with concern for anarchy as affected by individual wellbeing.
Today, China and Russia use
Totalitarian government controlled Capitalism.
 
3. Democratic Capitalism

 is an economic system modified by Democracy Principles
with an emphasis on business and individual opportunity with some concerns for individual wellbeing followed in the US.

Government Departments report to the President, managed by Civil Service Administrators with under the influence of, and often captured by interest groups.

4. Capitalistic Democracy
is a  Democratic political system
 modified by its capitalistic economic system
 to be developed during the 21st Century.

Government Departments are profit centers under the supervision of the General Accounting Office and Comptroller of the Currency.

Government Functions
regulate and control society.

1. Regulators protect society from improper behavior associated with white collar crime with an undisciplined fine system.
6. Treasury and the Federal Reserve are manned by capitalists who used big money from Wall Street to get their appointments. These people believe Wall Street is the heart of capitalism and protect it, and when finished with their government service, return to wall street.

Government Investment
1. Investments
in areas like defense, education, and aid to the poor are made based on lobbyist activity as long as there is a perceived positive marginal benefit.
5. IRS is managed as a typical government agency begging money form congress.

Taxes

1. Politicians controlled by Interested Groups set policy.
3. Capitally gains taxes are minimized.

Corporate gaming the regulation process
receive the minimum fines needed to keep the voters happy.

Government Functions regulate
and control society.

1. Regulators charge fines that cover all costs plus a reasonable return on invested capital. Example, the IRS and FBI fraud division,  should be profit centers paying all of its cost plus a 10% return on invested capital. Whenever possible, investigations would be contracted  with the federal government paying a percentage of the collections.
5. IRS is an incentive based profit center which throws a party for its biggest clients, the rich who pay a lot of taxes

Government Investment
1. Investments  are always funneled to the areas with the largest measured marginal benefit. Areas like defense, education, and aid to the poor must compete with each other, and with basic research, health care, and lower taxes.
6. Treasury and the Federal Reserve
are manned by equally apportioned bankers, company finance people, academics, and career civil servants.

Taxes

1. Administratively expensive taxes
like tolls are not allowed.
3. Capital gains
are divided into long, Intermediate, short term with tax rates inversely related to time.

Corporations gaming the regulation process
pay fines so steep the Justice Department makes a profit  helping to pay for the Defense Department.


Editor's Take:

The Constitution was Designed to put checks and Balances on Majority Rule.

As time as passed, the fear of anarchy from majority rule has lessened.

Making economic wellbeing  "a right" also creates a second major federal responsibility.

This creates the potential conflict with securing natural rights.

The Supreme Court, the final arbiter on natural rights,
was created to settle conflict between conflicting natural rights
or between natural rights and the majority.
Almost the final Arbitrators, it must yield to a Constitutional Amendment. 

Should protecting natural rights be the ultimate goal?
Now the Court must choose
between a natural right and something adding, like economic wellbeing!

George's wants to limit the scope of federal government activities.

Editor's Questions: Would requires cost effectiveness help?

Would eliminating federal grants to states make U.S. more Federalists?

Make Supreme Court responsibility More Tolerable?

Could Libertarians, Conservatives and Liberal Unit Around Cost Effectiveness?

Source  Conservatism vs. Progressivism

 

The Nature of
Democratic Elections

Modern Republican Theory Basics

(1) popular self-governance by the political community

(2) individual liberties protected from government and  social interference

(3) equality

Complications

All values matter but they are sometimes in conflict
and
emphasizing or choosing one over the others creates political anxiety.

Adding to political system complications are changing social, economic, and technological modernity.

Continuous unprecedented changes cause society unhappiness which limits political control or change.

(4) communal or national preservation

(5) economic and material modernization.

 

Why Republicans Appeal to the White Working Class

Political appeal traces to Henry Clay and Andrew Jackson.

Clay Republicans see an integrated and interconnected economy.  Workers and owners share a fate. Republicans increases overall prosperity by helping businesses.

Jackson Democrats see workers/owners class divide where owners enrich themselves at worker expense.  Democrats will redistribute profits to the workers.

Democrats received an enormous working class boost from the 1935 National Labor Relations Act which  made unions a major political force. Democrats were hurt when the decline of organized labor hurt workers.

Democrats appeal to gay rights and environmentalism has little to offer the white working class. Democrats are hurt by movements that emphasize these issues as they cast (by implication or explicitly) the white working class as part of the nations problem. 

Democrats were helped by increased African Americans voting following the 1965 Voting Rights Act. Recently  Latin America immigrants joined Blacks. Democrats were hurt as this leads to economic policies that often run contrary to white working class interests.

Abortion has universally increased voter constitution.

Free trade was defended by Post-war Republicans because it helped  America  conquer both international markets and Communism. Democrats were divided into the historically free-trader South and protectionist working-class Midwest. Democrats remain split today while Republican are more skeptical.

Intersectional differences give the Republicans an edge with the white working class should the two sides fight to a draw over economic issues.

American Business
Makes Good Investments

Government Industrial Policy
Not Needed

 
America’s private non-residential investment is, at about 14% of
GDP, in line with its long-term average. But less money is being put into structures and equipment, more into intellectual property. In America IP now accounts for about one-third of non-residential investment, up from a fifth in the 1980s.

Rather than stopping spending what is needed is Cost Effectiveness.

 

 

Investing in College
Made Little Change in Median Income
for Recent College Graduates.

 

Make Loan Forgiveness
Cost Effective

by moving federal college educations funds
 
from loans and grants
to first time college students
 to limited undergraduate loan forgiveness.

See
Is Financial Aid Welfare?

Economics of Investing in College

For a few
 More Academic Education,
Means Work and More Income

 

U.S. Funds Social Security Well

Social Security is Not a Problem.
As Baby Boomers Cohort Decreases, their use of funds decrease,
and this should help with the Medicare funding problem.