“Worsening Jobs Crisis”: America’s Middle Class Is Burning To The Ground, While Washington Fiddles With Scandal Nonsense
At last, some excellent economic news for folks long-mired in the stagnant labor market!
At least, those were the headlines recently trumpeted across the country. “Jobs Spring Back,” exclaimed a typical headline or report that companies added a better than expected 165,000 private-sector jobs in April. Wow — the thunderous, three-year boom of prosperity that has rained riches on Wall Street is finally beginning to shower on our streets, right?
Well, as dry-land farmers can tell you, thunder ain’t rain. Read beneath the joyful headlines hailing April’s uptick in job numbers, and you’ll see the parched truth.
For example, more than a third of working-age Americans are either out of work or have given up on finding a job. Also, last month’s hiring increase was almost entirely for receptionists, waiters, clerks, temp workers, car-rental agents and other low-wage positions with no benefits or upwardly mobile possibilities. On the other hand, manufacturing — generally the source of good, middle-class jobs — did not add workers in April and has cut some 10,000 jobs in the last year.
Especially problematic was the continued rise in underemployment — people wanting full-time work, but having to take part-time and temporary jobs. Underemployment is also pounding college graduates. While they’ve been more successful than non-grads at landing jobs, they’re not getting jobs that fit their career goals or even require the degrees they spent money and time to obtain. Indeed, many of those rental agents and restaurant employees you encounter hold four-year degrees, forcing everyone else to scramble for the few, even lower-paid jobs further down the skill ladder.
Meanwhile, the next graduating class is already beginning to flood into the labor market from colleges and high schools with nowhere to go.
In May, another headline shouted: “Stock Market Soars.” It expressed delight that the Dow Jones Average topped 15,000 for the first time in its history.
Yet this index of Wall Street wealth gives a totally false picture of our nation’s true economic health. Yes, the privileged few are doing extremely well. But the workaday many are struggling — and falling further and further behind as the jobs market sinks steadily from mere recession down into depression.
The monthly unemployment reports don’t tell the depths of misery that’s out here in the real world, beyond the view of Wall Street and Washington elites. For example, President Obama hailed the news that unemployment dipped to 7.5 percent in April. Unstated, though, was the stark reality that this good-news dip was not due to a jump in job offerings, but to a bad-news labor market so weak and discouraging that more and more Americans are dropping out of it or never entering it.
More than a third of our working-age population is no longer even in the job market, and only 58.6 percent of us are employed. Put the opposite way, 41 percent of the potential workforce is not working — about 102 million people. One more statistic, and it’s a chiller: More than one out of five American families report that, last year, not a single family member had a job.
Our people are trapped in a jobs crisis that is sucking the economic vitality out of our nation, but our leaders refuse even to acknowledge it, much less cope with it. In fact, corporate chieftains are deliberately exacerbating the crisis by hoarding trillions of dollars that ought to be rushed into job-creating expansions, and politicians keep adding to the casualties by gleefully eliminating the middle-class jobs of hundreds of thousands of teachers, firefighters, police and other valuable public employees.
America’s middle class is burning to the ground, while Washington fiddles with nonsense and Wall Street feathers its own nest. It’s disgraceful.
By: Jim Hightower, The National Memo, May 15, 2013
“Keeping The Outcry At Manageable Levels”: The Perverse Policy Math Of The GOP’s Sequester
So we’re 10 weeks in, and the GOP’s sequester strategy is coming into sharper focus. If a cut affects Americans residing at the higher end of the socioeconomic ladder, move heaven and earth to make it right. But if it affects folks who may have less means … crickets.
So while everyone knows about the heroic efforts of Republicans to rein in flight delays and restart White House tours, we hear a lot less about those who are losing the assistance they need to send their kids to school, eat a hot meal or just make it until they find their next job.
And one is left to wonder: How did a country like America ever get here? The answer is that it’s all part of the GOP’s long game against government.
It starts with a perverse kind of policy math that says if a government cut creates an inconvenience we should do something about it. But if a cut takes away something that’s critical to your survival today or the life trajectory of your kids, well, you’re out of luck.
And the way the sequester plays out – moving slowly across the land, knocking a handful of people out of Head Start here, reducing unemployment checks there – is the perfect way to effectuate a plan as brutal as the one Republicans conceive. Spreading out the impacts keeps the outcry at manageable levels, and ensures that there is no one critical mass of objectors – until it’s too late.
And in the mean time, the GOP gets what it’s long wanted: The slow withdrawal of government from the day-to-day lives of ordinary people. Government will continue to do many expensive things if the sequester plays out as intended: protect the country; administer justice; subsidize some industries and not others. But it will be out of the “help people go as far as their hard work and talent will take them” business. That just won’t be its role anymore.
We can certainly have a society that operates that way. There’s no rule against it. But what will America look like if the GOP gets it way?
On the one hand the amount of taxes some pay should go down. And those who are fortunate enough to be born into good life circumstances will have less competition to fear from those who are less well off – they simply will have less ways to get into a position to compete. Presumably that means wealth continues to collect at the upper ends of the socioeconomic structure, while more families fall to the bottom.
That’s not how the GOP would describe their approach, of course. But at some point we have to move past hysterical rhetoric about big government and get to the nuts and bolts of the policies they are attempting to effectuate under that banner. Now would be a good time to have that discussion.
It’s not only happening on the federal level. Texas Gov. Rick Perry has made headlines by calling on his state’s universities to find a way to provide a college education for $10,000. Now I suppose we could conclude that the governor really is concerned about people who can’t afford a more expensive education, though there’s little in his record to support that notion. More likely, this is his semester sequester. Rather than finding ways for less wealthy students to get the same quality education as their more well heeled counterparts, Perry’s putting the onus on the universities to dumb down their educational offerings for a less wealthy track.
All of this, of course, turns the way most of us think about government entirely on its head. When elected officials run for office, they do so by articulating a philosophy about how to address the problems we face – as a community, town, city or country. We vote for them when we conclude their prescriptions fit with the way we would like to see the problems we care about approached. Over the history of this country, that process – electing people who’s views align with our own – has resulted in the construction of a state that is more muscular in some areas, less so in others.
Another way of saying: Head Start didn’t just emerge like some kind of algae bloom on the national treasury. We, citizens, saw a problem, that disadvantaged kids weren’t getting a very good education. We asked our representatives to do something about it. Head Start was one of the solutions they came up with. If public polling is any indication, we like it. And if research is any guide, it works.
But the sequester means Republicans don’t have to debate the merits of Head Start. Instead, they keep the debate squarely in the frame that suits them best: that government is too big, it doesn’t work, we can slash away and no one will be the worse for it. But of course they will.
So where does this all end up? My guess is programs that people rely on sustain deep cuts, which becomes an argument to cut them even more: Look! Their performance is inexplicably worsening! And in some cases we get back to a place approximating where we were when the programs were first initiated. Over time, news reports and research bubbles up showing the deplorable circumstances under which some folks live, go to school, etc. Stirred by our conscience and the better angels of our nature we decide something has to be done. And we turn to government. Because that’s what its there for.
And at that moment, a cycle of absurd sequester stupidity will have finally run its course.
By: Anson Kaye, U. S. News and World Report, May 2, 2013
“The Great Divide”: No Rich Child Left Behind
Here’s a fact that may not surprise you: the children of the rich perform better in school, on average, than children from middle-class or poor families. Students growing up in richer families have better grades and higher standardized test scores, on average, than poorer students; they also have higher rates of participation in extracurricular activities and school leadership positions, higher graduation rates and higher rates of college enrollment and completion.
Whether you think it deeply unjust, lamentable but inevitable, or obvious and unproblematic, this is hardly news. It is true in most societies and has been true in the United States for at least as long as we have thought to ask the question and had sufficient data to verify the answer.
What is news is that in the United States over the last few decades these differences in educational success between high- and lower-income students have grown substantially.
One way to see this is to look at the scores of rich and poor students on standardized math and reading tests over the last 50 years. When I did this using information from a dozen large national studies conducted between 1960 and 2010, I found that the rich-poor gap in test scores is about 40 percent larger now than it was 30 years ago.
To make this trend concrete, consider two children, one from a family with income of $165,000 and one from a family with income of $15,000. These incomes are at the 90th and 10th percentiles of the income distribution nationally, meaning that 10 percent of children today grow up in families with incomes below $15,000 and 10 percent grow up in families with incomes above $165,000.
In the 1980s, on an 800-point SAT-type test scale, the average difference in test scores between two such children would have been about 90 points; today it is 125 points. This is almost twice as large as the 70-point test score gap between white and black children. Family income is now a better predictor of children’s success in school than race.
The same pattern is evident in other, more tangible, measures of educational success, like college completion. In a study similar to mine, Martha J. Bailey and Susan M. Dynarski, economists at the University of Michigan, found that the proportion of students from upper-income families who earn a bachelor’s degree has increased by 18 percentage points over a 20-year period, while the completion rate of poor students has grown by only 4 points.
In a more recent study, my graduate students and I found that 15 percent of high-income students from the high school class of 2004 enrolled in a highly selective college or university, while fewer than 5 percent of middle-income and 2 percent of low-income students did.
These widening disparities are not confined to academic outcomes: new research by the Harvard political scientist Robert D. Putnam and his colleagues shows that the rich-poor gaps in student participation in sports, extracurricular activities, volunteer work and church attendance have grown sharply as well.
In San Francisco this week, more than 14,000 educators and education scholars have gathered for the annual meeting of the American Educational Research Association. The theme this year is familiar: Can schools provide children a way out of poverty?
We are still talking about this despite decades of clucking about the crisis in American education and wave after wave of school reform.Whatever we’ve been doing in our schools, it hasn’t reduced educational inequality between children from upper- and lower-income families.
Part of knowing what we should do about this is understanding how and why these educational disparities are growing. For the past few years, alongside other scholars, I have been digging into historical data to understand just that. The results of this research don’t always match received wisdom or playground folklore.
The most potent development over the past three decades is that the test scores of children from high-income families have increased very rapidly. Before 1980, affluent students had little advantage over middle-class students in academic performance; most of the socioeconomic disparity in academics was between the middle class and the poor. But the rich now outperform the middle class by as much as the middle class outperform the poor. Just as the incomes of the affluent have grown much more rapidly than those of the middle class over the last few decades, so, too, have most of the gains in educational success accrued to the children of the rich.
Before we can figure out what’s happening here, let’s dispel a few myths.
The income gap in academic achievement is not growing because the test scores of poor students are dropping or because our schools are in decline. In fact, average test scores on the National Assessment of Educational Progress, the so-called Nation’s Report Card, have been rising — substantially in math and very slowly in reading — since the 1970s. The average 9-year-old today has math skills equal to those her parents had at age 11, a two-year improvement in a single generation. The gains are not as large in reading and they are not as large for older students, but there is no evidence that average test scores have declined over the last three decades for any age or economic group.
The widening income disparity in academic achievement is not a result of widening racial gaps in achievement, either. The achievement gaps between blacks and whites, and Hispanic and non-Hispanic whites have been narrowing slowly over the last two decades, trends that actually keep the yawning gap between higher- and lower-income students from getting even wider. If we look at the test scores of white students only, we find the same growing gap between high- and low-income children as we see in the population as a whole.
It may seem counterintuitive, but schools don’t seem to produce much of the disparity in test scores between high- and low-income students. We know this because children from rich and poor families score very differently on school readiness tests when they enter kindergarten, and this gap grows by less than 10 percent between kindergarten and high school. There is some evidence that achievement gaps between high- and low-income students actually narrow during the nine-month school year, but they widen again in the summer months.
That isn’t to say that there aren’t important differences in quality between schools serving low- and high-income students — there certainly are — but they appear to do less to reinforce the trends than conventional wisdom would have us believe.
If not the usual suspects, what’s going on? It boils down to this: The academic gap is widening because rich students are increasingly entering kindergarten much better prepared to succeed in school than middle-class students. This difference in preparation persists through elementary and high school.
My research suggests that one part of the explanation for this is rising income inequality. As you may have heard, the incomes of the rich have grown faster over the last 30 years than the incomes of the middle class and the poor. Money helps families provide cognitively stimulating experiences for their young children because it provides more stable home environments, more time for parents to read to their children, access to higher-quality child care and preschool and — in places like New York City, where 4-year-old children take tests to determine entry into gifted and talented programs — access to preschool test preparation tutors or the time to serve as tutors themselves.
But rising income inequality explains, at best, half of the increase in the rich-poor academic achievement gap. It’s not just that the rich have more money than they used to, it’s that they are using it differently. This is where things get really interesting.
High-income families are increasingly focusing their resources — their money, time and knowledge of what it takes to be successful in school — on their children’s cognitive development and educational success. They are doing this because educational success is much more important than it used to be, even for the rich.
With a college degree insufficient to ensure a high-income job, or even a job as a barista, parents are now investing more time and money in their children’s cognitive development from the earliest ages. It may seem self-evident that parents with more resources are able to invest more — more of both money and of what Mr. Putnam calls “‘Goodnight Moon’ time” — in their children’s development. But even though middle-class and poor families are also increasing the time and money they invest in their children, they are not doing so as quickly or as deeply as the rich.
The economists Richard J. Murnane and Greg J. Duncan report that from 1972 to 2006 high-income families increased the amount they spent on enrichment activities for their children by 150 percent, while the spending of low-income families grew by 57 percent over the same time period. Likewise, the amount of time parents spend with their children has grown twice as fast since 1975 among college-educated parents as it has among less-educated parents. The economists Garey Ramey and Valerie A. Ramey of the University of California, San Diego, call this escalation of early childhood investment “the rug rat race,” a phrase that nicely captures the growing perception that early childhood experiences are central to winning a lifelong educational and economic competition.
It’s not clear what we should do about all this. Partly that’s because much of our public conversation about education is focused on the wrong culprits: we blame failing schools and the behavior of the poor for trends that are really the result of deepening income inequality and the behavior of the rich.
We’re also slow to understand what’s happening, I think, because the nature of the problem — a growing educational gap between the rich and the middle class — is unfamiliar. After all, for much of the last 50 years our national conversation about educational inequality has focused almost exclusively on strategies for reducing inequalities between the educational successes of the poor and the middle class, and it has relied on programs aimed at the poor, like Head Start and Title I.
We’ve barely given a thought to what the rich were doing. With the exception of our continuing discussion about whether the rising costs of higher education are pricing the middle class out of college, we don’t have much practice talking about what economists call “upper-tail inequality” in education, much less success at reducing it.
Meanwhile, not only are the children of the rich doing better in school than even the children of the middle class, but the changing economy means that school success is increasingly necessary to future economic success, a worrisome mutual reinforcement of trends that is making our society more socially and economically immobile.
We need to start talking about this. Strangely, the rapid growth in the rich-poor educational gap provides a ray of hope: if the relationship between family income and educational success can change this rapidly, then it is not an immutable, inevitable pattern. What changed once can change again. Policy choices matter more than we have recently been taught to think.
So how can we move toward a society in which educational success is not so strongly linked to family background? Maybe we should take a lesson from the rich and invest much more heavily as a society in our children’s educational opportunities from the day they are born. Investments in early-childhood education pay very high societal dividends. That means investing in developing high-quality child care and preschool that is available to poor and middle-class children. It also means recruiting and training a cadre of skilled preschool teachers and child care providers. These are not new ideas, but we have to stop talking about how expensive and difficult they are to implement and just get on with it.
But we need to do much more than expand and improve preschool and child care. There is a lot of discussion these days about investing in teachers and “improving teacher quality,” but improving the quality of our parenting and of our children’s earliest environments may be even more important. Let’s invest in parents so they can better invest in their children.
This means finding ways of helping parents become better teachers themselves. This might include strategies to support working families so that they can read to their children more often.. It also means expanding programs like the Nurse-Family Partnership that have proved to be effective at helping single parents educate their children; but we also need to pay for research to develop new resources for single parents.
It might also mean greater business and government support for maternity and paternity leave and day care so that the middle class and the poor can get some of the educational benefits that the early academic intervention of the rich provides their children. Fundamentally, it means rethinking our still-persistent notion that educational problems should be solved by schools alone.
The more we do to ensure that all children have similar cognitively stimulating early childhood experiences, the less we will have to worry about failing schools. This in turn will enable us to let our schools focus on teaching the skills — how to solve complex problems, how to think critically and how to collaborate — essential to a growing economy and a lively democracy.
By: Sean F. Reardon, Professor of Education and Sociology, Stanford University; Published in The New York Times, Opinion Pages, April 27, 2013
“Today’s Conventional Wisdom”: It’s Not The Left That’s Changed, It’s The Economy
Have American liberals moved too far to the left? That’s long been the contention of conservatives contemplating liberal positions on a host of social issues, such as gay marriage and the legalization of undocumented immigrants. But opinion polls on these issues show that yesterday’s far-out liberal positions are quickly becoming today’s conventional wisdom.
A more nuanced conservative critique focuses on liberals’ support for a greater government role in the economy. To be sure, New York Times columnist David Brooks argued in a recent column, liberals have traditionally urged government to take up the slack in economic activity during recessions, but now, as the budget proposal of the Congressional Progressive Caucus shows, liberals believe that “government is the source of growth, job creation and prosperity” even when the economy has righted itself. The progressives’ budget, Brooks complains, proposes spending $450 billion on public works and sending $179 billion to the states so they, too, can provide more services and pave more roads. All this and more would be financed by increases in progressive taxation — draining the private sector of the capital it needs to grow, hire and produce prosperity.
Not surprisingly, liberal economists have jumped on Brooks’s arguments. Lawrence Mishel of the Economic Policy Institute argues that the economy is still performing so under par — $985 billion below its potential output if all our factories were going full tilt — that it needs a major boost from government-financed economic activity to increase production, employment and consumption. Coincidentally, the day after Brooks’s column was published, Gallup released a poll showing that 72 percent of Americans, including a majority of Republicans, would support a major federally financed infrastructure repair program and a federal program creating 1 million jobs. Nearly 80 years after Franklin Roosevelt created the Works Progress Administration, it seems the American people would like the government to re-create it.
But there’s a bigger problem with the conservative contention that government stands athwart the private sector’s capacity to create jobs and prosperity: It fails to acknowledge that the private sector no longer creates jobs and prosperity like it used to, completely apart from whatever effects governmental policy may have on job creation. Entirely on their own and well before Obamacare was a gleam in anyone’s eye, employers began cutting back or altogether dropping health coverage and retirement benefits for employees. Nor have government regulations compelled employers to increase the share of company revenue going to profits (which is at its highest level in decades) and reduce the share going to wages (which is at its lowest level in decades).
The U.S. corporations that make up the Standard & Poor’s index of the 500 largest publicly traded companies get almost half their revenue from sales abroad, according to a 2011 S&P analysis, and, despite all the hoopla about bringing manufacturing back to the States, much of their production is going to remain abroad. The rise of machines has, we all know, taken its toll on employment too. U.S. corporations are sitting on $1.7 trillion in cash, with share values and profits that render most of these businesses’ leaders happy campers. Even if the U.S. economy continues to fall far short of full employment, and even if the rate of workforce participation continues to decline, these businesses can still sell their products all over the world. Unlike in the 1930s, the shortfall in domestic consumption does not present them with a crisis but with perhaps nothing worse than a missed opportunity.
In short, the economy is working for our economic elites. The massive changes they would have to make to investment strategies and the division of corporate revenue so that the economy worked for the majority of the American people are nowhere on the horizon. The great growth machine that once was the U.S. private sector ain’t what it used to be — which is one reason each recession since 1990 has been longer, deeper and more intractable than the last. That’s the new economic reality in this country, and that’s what the budget of the Congressional Progressive Caucus responds to. It’s not that liberals have been prompted to move leftward through the readings of ancient socialist gospels or by smoking some stash left over from the ’60s. It’s that the economy has reached a dismal stability far short of its full employment potential or renewing the promise of widespread prosperity, and government investment is required to make up the difference. If anyone is smoking something, it is conservatives who foresee a rebirth of prosperity if only the private sector is left alone.
By: Harold Meyerson, Opinion Writer, The Washington Post, March 21, 2013
“The Unsubstantiated Smear”: Ted Cruz, Rand Paul, And The Smear-Tacular Tea Party GOP
Texas Republican Sen. Ted Cruz has gotten a lot of grief lately, and for good reason. His speculation about whether Defense Secretary nominee Chuck Hagel received secret payments from North Korea was the kind of unsubstantiated smear that takes your breath away. But in all the ballyhoo over Cruz something else seems to have gotten lost in the shuffle: the extent to which the unsubstantiated smear has become stock in trade for Tea Party senators.
Take, for example, Wisconsin’s Ron Johnson. Earlier this month he gave a speech in which he set out to “describe” what “patriots,” “people who like freedom,” and “people who like this country” are “up against” these days. The answer: “liberals, progressives, Democrats, whatever they call themselves nowadays, Socialists, Marxists.”
That’s right, Senator Johnson. Having determined that the term “liberal” is too freighted with negative connotations, there are a lot of us Democrats calling ourselves Marxists these days. It’s a bit of rebranding and we have high hopes.
But regardless of what we call ourselves, the implication of Johnson’s observation is pretty clear: on the one side you have patriots (people like Johnson), and on the other you have people who neither love freedom nor America—those are the Democrats.
In the same speech, Johnson said “Liberals have had control of our culture now for about 20 years.” It’s part of their “diabolically simple” strategy to undo America. Wow, liberals must be a pretty nefarious bunch. Need proof? Johnson doesn’t offer much, but maybe he doesn’t need to. Twenty years ago was 1993. That year cross-dressing home wrecker Mrs. Doubtfire took the country by storm. It was pretty much everything liberals stand for in 125 minutes of heart-tugging hilarity.
And if Cruz and Johnson aren’t enough for you, take a listen to Kentucky Sen. Rand Paul. In a recent interview with NPR Paul was asked to explain how Mitt Romney could have lost in 2012. Paul’s explanation: “it is much easier to offer people something for nothing, than it is to tell people that in reality hard work and sweat equity is how a country gets rich.” That evidently appealed to Obama voters because the president said “he was going to take from the rich and give to the poor. And there’s always more poor than there are rich. So, you can see in a democracy it’s easier to sell that message.”
Oh, OK. The way to success in America is hard work. But “poor” people would rather have the spoils of success handed to them than have to work hard. So a president who promises to do that has found himself a winning message. What a terrific view of people who labor at the lower end of the socio-economic ladder, the aspirations they have for themselves and their families, and the kinds of things they think about when they go to the voting booth (to say nothing of how it characterizes Obama supporters: we’re lazy, and just looking for a handout.)
To be sure, this isn’t the first time we’ve ever heard people say things like that. Rush Limbaugh, Ann Coulter, and Dinesh D’Souza have been peddling this pabulum for years. And anyone who’s been in the middle of a congressional election with a Tea Party candidate has heard all of this and more.
But the frequency with which this kind of rhetoric emanates from conservative quarters ought not to inure us to its impact. It encourages the transformation of ideological differences into bright lines that allegedly divide good people from bad, and it gives sanction to the notion that difference is itself sufficient evidence that the other person could be engaged in any manner of nefarious conduct.
It’s the kind of thing that you’d like to think wouldn’t work in the American political system. But for the last couple of election cycles its worked like gangbusters, tapping a deep vein of grievance that animates the Tea Party, a myopic sense of victimhood and entitlement.
So holding Senator Cruz to account for his slander was a good thing. But if the recent past is any indication, the smear isn’t going anywhere. It wins votes. And that should be troubling to all of us, Democrats and Republicans, who share the pluralistic notions of democracy to which our country has long aspired.
By: Anson Kaye, U. S. News and World report, February 21, 2013
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