TWO REPORTS: Teachers make up only 50% of all Education Jobs

Parents, concerned citizens and taxpayers have long been concerned about the growing number of non-teaching jobs in public schools. Taxpayers want their property tax dollars to go primarily to the classroom. Two recent studies show that, overtime, education funding is increasingly going to non-teaching jobs.

Visual Editor at The Daily Signal and digital media associate at The Heritage Foundation, Kelsey Harris reports, “Even though the Obama Administration proposes spending $25 billion specifically to ‘provide support for hundreds of thousands of education jobs’ in order to ‘keep teachers in the classroom,’ research by both Heritage and The Fordham Institute reveal alarming numbers: only half of education jobs belong to teachers.”

The Fordham Institutes Matt Richmond writes, “The number of non-teaching staff in the United States (those employed by school systems but not serving as classroom teachers) has grown by 130 percent since 1970. Non-teachers—more than three million strong—now comprise half of the public school workforce. Their salaries and benefits absorb one-quarter of current education expenditures. ”

To show how teachers are no longer the majority The Fordham Institute and Heritage provide the following four charts and map (NOTE: For a larger view click on the chart/map):

Chart 1 & 2: Only half of education jobs are teachers:

Hidden-Half-Report chart 1

chart2-1 (1)

Chart 3: How education staffing has outpaced student enrollment:

chart1600

Chart 4: The farther a school is from a city, the more non-teaching staff it has:

Hidden half report chart 2

Map showing the number of teachers aides per 1,000 students by state:

Final-National-Map-Web

 

EDITORS NOTE: Click on the chart/map for a larger view.

CLICHES OF PROGRESSIVISM #19 – “Big Government Is a Check on Big Business”

A myth runs through most of America today, and it goes like this: Big business hates government and yearns for an unregulated market. But the reality is the opposite: Big government can be highly profitable for big business.

Many regulations restrict competition that would otherwise challenge existing firms. At the same time, government institutions—many created during the New Deal—funnel money to the largest corporations.

When government regulates X industry, it imposes high costs that hurt smaller firms and reduce competition. Imagine that the Department of Energy imposes a new rule that dishwashers must be more energy efficient. Coming up with designs, retrofitting factories to produce these energy-efficient models, and navigating the forms and licenses around this rule might cost a dishwasher-producing firm thousands of dollars. An industry giant, with more revenue and sizeable profit margins, can absorb this cost. A small dishwasher factory that’s only a year or two old, with little revenue and less profit, cannot. The latter would have to shut down. That means less competition for the industry giant, enabling it to grow even bigger and seize even more market share.

Barriers to entry, such as expensive licenses, also cripple start-ups and reduce competition. The Progressive New Republic speaks favorably of how Dwolla, an Iowa-based start-up that processes payments and competes with credit card agencies, had to pay $200,000 for a license to operate. Rather than hire employees or build a better product to compete with its entrenched competition, Dwolla was forced to spend its first $200,000 on a permission slip. Dwolla could afford it; but how many less-well-funded competitors were forced from the market? How many were deterred from even starting a payment-processing business by this six-figure barrier to entry?

For big businesses, which often sacrifice agility for size, smaller competitors are a major threat. By limiting smaller competition, government helps the industry giants at the expense of everyone else. Barriers to entry can kill the next innovative firm before it can become a threat to its giant competition. When this happens, we don’t even know it: The killed-before-it-can-live company is a classic example of the “unseen” costs of regulation.

While regulations minimize competition, government entities subsidize big business. The Export-Import Bank, established in 1934 as part of the New Deal, exists to subsidize exports by U.S.-based firms. The primary beneficiaries? Large corporations. From 2009 to 2014, for instance, the Ex-Im Bank financed over one-quarter of Boeing’s planes. Farm bills, a key element of the New Deal that still exists today, subsidize huge farms at the expense of smaller ones. The program uses a variety of methods, from crop insurance to direct payments, to subsidize farmers. The program is ostensibly designed to protect small farmers. But 75 percent of total subsidies—$126 billion from 2004 to 2013—go to the biggest 10 percent of farming companies. The program taxes consumers to funnel money to large farms.

Nor are these programs unique. National Journalism Center graduate Tim Carney argues, “The history of big business is one of cooperation with big government.” In the time of Teddy Roosevelt, big meat packers lobbied for federal meat inspection, knowing that the costs around compliance would crush their smaller competitors. New Deal legislation was only passed with help from the national Chamber of Commerce and the American Bankers Association. The Marshall Plan, which subsidized the sale of billions of dollars of goods to Europe, was implemented by a committee of businessmen. President Johnson created the Transportation Department in 1966, overcoming resistance from shipping interests by agreeing to exempt them from the new rules. Costly regulations for thee, but not for me.

If Progressives want to see what free enterprise looks like, they need only look at the Internet. For the past 20 years, it’s been largely unregulated. The result? Start-ups erupt and die every year. New competitors like Facebook bring down existing giants like MySpace and are in turn challenged by a wealth of social media competitors. Yahoo was the Internet search king until two college kids founded Google. Google has been recently accused of monopoly status, but competitors like DuckDuckGo spring up every day.

Let’s imagine if the Internet—a playground of creative destruction—had been as subject to big government as brick and mortar businesses have been. Yahoo would have been subsidized. Facebook would have had to pay six figures to get a licensing fee, crushing college-kid Zuckerberg before he got started and preserving MySpace’s market dominance. Businesses that learned to play the lobbying game would have been allowed to write regulations to crush their competitors.

For those who doubt, the proof of business’s collusion with big government is in the pudding. In 2014, a surprising number of libertarian-leaning men and women are in Congress. How has big business responded? K Street has spent millions of dollars working to replace laissez-faire advocates with those who are establishment-friendly. Sadly, cronyist businesses are fighting to keep free market advocates out of power.

A final note: I have criticized Progressives here, but the institution of big government, which enables businesses to hire lobbyists to write regulations or give themselves a subsidy, is the primary problem. The bigger government grows, the more powerful a tool it becomes for businesses prone to use it for private advantage. That’s not capitalism; it’s what one economist properly labeled “crapitalism.”

Julian Adorney
Economic Historian, Entrepreneur, Fiction Writer

Summary

  • Big Government and Big Business often play well together, at the expense of start-ups, little guys, and consumers.
  • Artificial, politically instigated barriers to entry make markets less competitive and dynamic, and make established firms more monopolistic.
  • A free market (true capitalism, not its adulterated “crapitalism” version) maximizes competition and, therefore, service to the consumer.

For further information, see:

“Of Meat and Myth” by Lawrence W. Reed
“Atlas Shrugged and the Corporate State” by Sheldon Richman
“Ending Corporate Welfare As We Know It” by Lawrence W. Reed
“The Rise of Big Business and the Growth of Government” by Robert Higgs
“Theodore Roosevelt: Big Government Man” by Jim Powell

ABOUT JULIAN ADORNEY

Julian Adorney is an economic historian, entrepreneur, and fiction writer. He writes for the Ludwig von Mises Institute and other websites. You can find his collected work at adorney.liberty.me.

EDITORS NOTE: The featured image is courtesy of FEE and Shutterstock.

INFOGRAPHIC: How Unions Are Chewing Through Taxpayer Dollars

Nicole Rusenko and Kelsey Harris write and graphically display on The Daily Signal:

Did you know your tax dollars are financing unions?

Thanks to what the federal government calls “official time,” government workers spent 2.4 million hours on union work in 2010. In fact, the Internal Revenue Service alone has 286 full-time employees who work exclusively for the National Treasury Employees Union.

Check out the infographic below for more details on whose special interests (and pockets) your money is going.

WARNING: This infographic may upset your stomach and shrink your wallet.

OfficialTime_Infographic_Rusenko-011

COMMENTARY BY

Portrait of Nicole Rusenko Nicole Rusenko@ncrusen20

Nicole Rusenko is a senior designer at The Heritage Foundation.

 

Portrait of Kelsey Harris

Kelsey Harris
Kelsey Harris is the visual editor at The Daily Signal and digital media associate at The Heritage Foundation.

Did you know all of the Sarasota County School Board/Union salary and benefit negotiations are open to the public?

I didn’t think so.

If you go to the Sarasota County School District website in the lower right is a section titled “Upcoming Events”. If you click on the small print “Click for Monthly Calendars” you will learn that the School Board has since June 11th, 2014 been negotiating salaries and benefits with the Sarasota County Classified/Teachers Association (SC/TA). These negotiations are normally scheduled each Wednesday from 3:00 – 5:00 p.m. The next scheduled School Board and SC/TA meeting will be on Wednesday, July 30, 2014. All negotiations are held at the SC/TA offices located at 4675 South Tamiami Trail, Sarasota, FL.

What you can’t find on the website is that all of these negotiations are open to the public. 

According to Scott Ferguson, Communications Specialist Sarasota County Schools, “The meeting location and dates/times are posted to our website for public notification; members of the public may attend if they wish.”

You would think the Sarasota County School Board members would want the public to know about these negotiations since salaries and benefits make up such a large portion of the district budget. According to the 2013-2014 Final Budget General Fund Executive Summary salaries and benefits make up approximately 78% of the total budget.

Why should taxpayers care about the Sarasota County School Board Budget? Because 76% of the money comes directly from local property taxes. About 23% comes from the state and less than 5% comes from the federal government.

Another reason these negotiation are important is because President Obama’s Race to the Top for Student Success, codified in Florida Senate Bill 736, requires all teachers be evaluated and paid based on performance measures.

According to the White House website on Race To The Top (RTTT):

Race to the Top marks a historic moment in American education. This initiative offers bold incentives to states willing to spur systemic reform to improve teaching and learning in America’s schools. Race to the Top has ushered in significant change in our education system, particularly in raising standards and aligning policies and structures to the goal of college and career readiness. Race to the Top has helped drive states nationwide to pursue higher standards, improve teacher effectiveness, use data effectively in the classroom, and adopt new strategies to help struggling schools.

Improve teacher effectiveness means performance pay for teachers. Specifically Florida’s RTTT for Student Success: Reforms teacher evaluations; Ends Professional Service Contracts for new teachers hired after July 1, 2011; Creates 2 pay schedules after July 1, 2014: “Performance” and “Grandfathered” Pay Schedules; Eliminates pay supplements for advanced degrees out of certification area; and Ends “last-in-first-out” for reduction in force decisions.

The Florida Education Association describes President Obama’s Race to the Top for Student Success (SB 736) thusly:

Despite all the talk about local control and less government, this bill reduces a school district’s flexibility and authority over teacher evaluations, pay schedules and working conditions. This bill gives new power and authority to the Department of Education and the Florida Legislature.

RTTT for Student Success is a component of Common Core State Standards, renamed Florida Standards.

According to the June 11, 2014 Bargaining Negotiation Notes, “Some conversation ref. highly effective teachers, summer school and performance pay – parties tabled the discussion for later.” To see a sample of the new PRIDE Teacher Evaluation Form click here or the PRIDE Document Checklist click here. Ferguson states, “Topics/proposals to be discussed at future meetings have not yet been determined.”

Taxpayers and interested citizens may want to sit in on these negotiations that will define “effective teachers” and lay out teacher “performance pay” and evaluation standards. Don’t you think?

Question from our readers: Why doesn’t the Sarasota County School Board hold all of these negotiations in the District chambers and televise them?

AGENDA: Grinding America Down

All American citizens who hold their FREEDOM dear, and support family values should watch the below listed video entitled “AGENDA: Grinding America Down.”   We’ve received thousands of E-mails each week for 5 years; “AGENDA: Grinding America Down” is one of the most significant presentations we’ve viewed over these past 5 years.

Before you watch “AGENDA: Grinding America Down”, please watch this 19 second video:

The video is about the values you want to ensure your children & your extended family members benefit from, it supports the different religious faiths that provide the foundation upon which human values are based, it’s about supporting the members of the US Armed Forces—many of whom gave their last full measure of devotion in order to defend the Republic—it is mainly about the FREEDOMS accorded to all American citizens in the US Constitution by the Founding Fathers.

AGENDA: Grinding America Down

Using Obama’s own words, when he said that he fully intends to “fundamentally transform” our 238 year old Republic; we now have witnessed his true goal to create a Socialist State by any means necessary.  By repealing President Clinton’s requirement that welfare recipients must work for financial aid from the government, over the past 6 years, Obama has managed to enroll a record number of Americans and illegal immigrants in government welfare program with 40 million on food stamps, and millions of new recipients on the disability rolls.

Obama has been framing traditional US work ethics as the foolish belief that President Ronald Reagan once supported, with President Reagan’s thesis that anyone can lift themselves up by their bootstraps being the promise that always has been America and the success that comes about from hard work.  In order to “fundamentally transform America”,  Obama in his speeches and his bloated bureaucracy has been working to replace President Reagan’s well held belief  in American’s work ethic, that contributed to the most successful economy in the history of mankind with something that has never worked in any country in history.  Obama wants to replace American work ethic with the Marxist principal that government must distribute the wealth created by hard working Americans to those who have little interest in working.  Obama wants to more heavily tax the top 10% of successful American earners who already pay 68% of all the taxes in the nation each year (the bottom 50% of earners in America pay 3% of all the taxes).

Obama’s unrelenting attack on the Second Amendment and the right of American citizen’s to bear arms, and the protections accorded all American citizens by provisions of  the Second Amendment that is under relentless assault by the Obama administration.  Obama’s use of the IRS to suppress the rights of conservative Americans who were trying to exercise their right to participate in a national presidential elections should have a special Prosecutor assigned, but Holder refuses to appoint one.   Obama is also using Holder’s Justice Department to prevent states from issuing voter IDs to endure American citizens only vote once, in the last presidential election 7 million voters voted in two states; voter fraud was not controlled; the fear of rampant voter fraud looms large in the November election.

AGENDA Grinding America Down graph

For a larger view click on the chart

The Obama administration will eventually meet with serious and widespread “unorganized” opposition from American citizens because of his violation of Federal Laws, Immigration Laws, and provisions of the US Constitution.   The  Obama administration has been preparing for possible citizen’s unrest, by creating heavily arming federal police force swat teams in the Capital Police Force, Park Police, DHS, the Wildlife Service, the Marshal Service, in the IRS, the Postal Police, the Department of Defense Police, the Federal Protective Service, the Secret Service, and Obama ‘s National Police Force authorized & funded by the Obamacare Law, while providing DHS with armored vehicles, and purchasing excessive amounts of ammunition (more than the US Army and the US Marine Corps uses each year in training their personnel).

The most important Congressional election in 238 years will be held in about 3 months, we encourage you to support the endorsed Combat Veterans For Congress listed in the attachment.  They have the courage to stand up to bureaucratic excesses, will work to rein in the out of control spending by irresponsible members of Congress & the Obama administration, and will protect and defend the US Constitution.

Florida Sheriff would refuse any request from Dept. of Homeland Security to house illegals in his jail

Sherry Smart, a resident of Sarasota County, FL, sent an email to all of her County Commissioners. Smart wrote, “As all of you are aware we have a crisis at our borders and now it is spreading it’s tentacles across the US. Murietta, California learned about their invasion at the last moment with the assistance of their Mayor who was outraged with this Federal overreach. Next came the people of Virginia who learned about the Fed’s plan for an abandoned building and those people prevailed.  Today I read an article where Pasco County is taking in illegals and requesting more beds. I’d like to know if there are any plans in place for North Port and Sarasota County.” See the map below on the three know relocation areas for illegals in Florida.

Christine Robinson, Sarasota County Commissioner responded stating, “Excuse me for the delay in my response, I was traveling this weekend.  Thank you for writing. I am copying our Sheriff who is a separately elected constitutional officer who is solely in charge of law enforcement responsibilities with your concern.” Robinson did not say if the County would agree to house illegals.

However, Sarasota County Sheriff Thomas M. Knight (pictured above) did respond to Smart stating, “My office has a working relationship with the Department of Homeland Security/Immigration and Customs Enforcement.  I have not received any information from that group of intentions to request assistance from the Sheriff’s Office to house illegals in the Sarasota County Jail.  In fact, I would refuse the request if that should come.  I think it would be also important for you to know that since I took office in 2009, the Sheriff’s Office has recognized over 435 criminal illegal aliens who have been booked at the Sarasota County Jail – having them removed and sent to Miami – Dade County for deportation proceedings. Thank you for staying engaged.” [Emphasis mine]

numbers usa map of illegal relocations

Map of relocation areas (in red) by state. Map courtesy of Numbers USA. For a larger view click on the map.

Steve_Southerland,_Official_Portrait,_112th_Congress

Congressman Steve Southerland, II, FL District 2.

Voicing similar concerns, Neil Rice from Perry, Florida sent an email to Congressman Steve Southerland, II, FL District 2. Rice stated, “House republicans stand your ground or lose your seat. No money for illegal immigrants, with out money they can not stay. Close the borders first and completely. Send back All the illegals. DHS IS A UNCONSTITUTIONAL AGENCY AND NEEDS TO BE ABOLISHED. They are corrupt beyond words, doing what ever they wish. and committing EXTORTION against the American taxpayer.”

“This is an election year, and we are forming groups to campaign against any representative that does not abide by the U.S. Constitution, protects our country and it’s people, (no matter who gets it). We have nothing to lose anymore,” notes Rice.

Melissa Thompson, Deputy District Director for Rep. Steve Southerland, II replied, “Steve and the Republican Conference have no plans to give the President more money for the illegals.”

According to Numbers USA Florida has been targeted by the federal government to take illegals. George Fuller, from Sarasota notes, “Kansas Southern owns subsidiary FERROSUR which has two trains that leave southern Mexico every 8 to 10 days headed for the U.S. Border. This has been the most used form of transportation by illegal aliens to get through Mexico. The trains are known as La Beastia.”

There is a growing backlash across Florida and the United States against this illegal alien invasion. Many argue that America’s sovereignty is being violated as well as standing laws ignored. Is lawlessness coming to Florida?

RELATED VIDEO: Zack Interview-Security on the border between USA and Mexico. NAFBPO’s mission is “to contribute to the security and stability of the United States.”

[youtube]http://youtu.be/ZnkSXosZhic[/youtube]

 

RELATED ARTICLES: 

Brooks County, Texas: Ranchers Round Up Illegals Who Skirt Checkpoint
First Five Steps to Solving Southern Border Crisis
On the Border, Activist’s Arrest Rattles the ‘Dreamers’
SESSIONS WARNS ALL OF CONGRESS: OBAMA’S NEW IMMIGRATION STRATEGY ‘THREATENS FOUNDATION OF OUR CONSTITUTIONAL REPUBLIC’

Food Deserts or Just Deserts? by Stewart Dompe, Adam C. Smith

The regulatory consequences of the farm bill and other interventions.

According to the United States Department of Agriculture, 23 million Americans live in so-called food deserts. A food desert is defined as an urban neighborhood or rural town without access to fresh, healthy, and affordable food. The argument goes that lack of access leads to poor dietary choices and a higher incidence of obesity, diabetes, and heart disease.

The proposed solution is a series of government grants (i.e., subsidies) that will be given to anyone, including residents, businesses, non-profits, colleges and universities, and community development corporations. There are at least 19 programs from three departments (Treasury, Health and Human Services, and Agriculture) that offer grants and other resources to combat food deserts. To the rescue!

The reality, however, is that this new policy is an attempt to redress the unintended consequences of existing policy. The stated problem of a food desert is that fresh fruits and vegetables are unavailable at affordable prices in low-income areas. The issue here is not low prices but relative prices. Low-income consumers have a choice of how to spend their food budget and obviously want the most caloric bang for their buck. Even if fruits and vegetables were available at lower prices, they must compete against heavily subsidized processed foods containing carbohydrates and corn syrup.

Where do these subsidies come from? Meet America’s favorite barrel of pork, the farm bill. Whenever someone bemoans partisan gridlock, gently remind them that the farm bill always passes with bipartisan support and, in its 2014 iteration, has a price tag of nearly $1 trillion. For years the farm bill has heavily subsidized the production of wheat, corn, and soybeans with the intended consequence of lowering the prices of products containing those goods.

So it’s no surprise—at least for anyone who recalls from their principles of economics class that demand curves slope downward—that Americans’ consumption of carbohydrates has increased substantially over time. Indeed, we eat 25% more carbohydrates today as part of our daily diet than we did 30 years ago. All sweet treats and candy are cheaper because of corn subsidies, as are breads, cereals, crackers, and everything else containing wheat. A USDA program of farmers markets and community gardens will do little to offset the literal billions spent on corn and wheat subsidies.

Another important issue affecting food availability in rural areas is population density. Those living in far-flung rural communities have to drive many miles to reach a supermarket. Supermarkets compete by offering a wide selection of goods at low prices. Without the population to generate a high turnover, they cannot justify their business model. Supermarkets, however, are not the only source of food services. In several prominent studies, stores with fewer than 20 employees were not counted. This methodology was employed because smaller stores, typically bodegas operating in ethnic neighborhoods, are less likely to have the space for fresh produce or refrigeration. This is a strong bias against smaller, family-owned businesses that operate in areas not traditionally covered by so-called big-box retailers.

Lack of population might explain the problem in rural areas, but regulation is the blight of the urban poor. Cities like New York and Washington, D.C., have made it very hard for companies like Walmart to operate in their cities. They have even passed discriminatory legislation with the express purpose of making it harder for Walmart to do business in those communities. The standard claim against Walmart is that its prices are so low that other businesses can’t compete. But if we’re trying to offer affordable produce to large numbers of people, isn’t that sort of the point? Cities that make it hard for big-box stores to operate hurt their poorest residents. Affluent suburbanites can afford to drive to (and purchase from) Whole Foods and other high-end grocers. For everyone else, zoning laws hurt those that lack the mobility to travel outside the zone or otherwise fail to meet the sticker price of these privileged establishments.

Finally, there is already an existing technological solution to the problem of availability: frozen and canned fruits and vegetables. These goods are high in nutritional content, and their packaging means that stores don’t have to worry about spoilage the way they do for their fresh produce. Fresh food has desirable qualities when it comes to taste and presentation, but it comes at a cost. Consumer demand decides whether a store carries fresh produce or not. Intervening in the market on aesthetic grounds is unlikely to create a good result for those who must actually live with the results.

Food deserts are a result of market forces being channeled through bad regulation. If the government wishes to change how people eat, it would be better off ending farm subsidies and inviting supermarkets into the cities. More generally, we as food consumers should recognize that what’s on the shelf is not just a product of poor consumer choices, but of poor government policies as well.

ABOUT STEWART DOMPE

Stewart Dompe is an instructor of economics at Johnson & Wales University. He has published articles in Econ Journal Watch and is a contributor to the forthcoming Homer Economicus: Using The Simpsons to Teach Economics.

ABOUT ADAM C. SMITH

Adam C. Smith is an assistant professor of economics and director of the Center for Free Market Studies at Johnson & Wales University. He is also a visiting scholar with the Regulatory Studies Center at George Washington University and coauthor of the forthcoming Bootleggers and Baptists: How Economic Forces and Moral Persuasion Interact to Shape Regulatory Politics.

EDITORS NOTE: The featured image is courtesy of FEE and Shutterstock.

An Increased Minimum Wage Equals Greater Unemployment

It’s June, a month famed for marriages, but it is likely to be remembered for the high rate of teen unemployment which has been soaring for a long time. By February, the national unemployment rate for youth, age 16 to 19, had reached 20.7%. By November 2013 it was three times higher than the national average of 6.6% according to the Bureau of Labor Statistics.

Teens are rivaled by the number of American men in their prime working years, a record 1-in-8,who are not in the labor force. These men, age 25-54, represent 61.1 million who are either not working or no longer looking for work. The Weekly Standard reported that “This is an all-time high dating back to when records were first kept in 1955.”

The non-partisan Congressional Budget Office released a report in February that said the wage hike to $10.10 could result in a net loss of about a half a million workers at the same time in increased wages for 16.5 million others.

So, naturally, President Obama in his State of the Union speech, called on Congress to raise the national minimum wage from $7.25 to $10.10 an hour. Soon after, he signed an Executive Order to raise the minimum wage for individuals working on new federal service contracts. That means that taxpayers will pay more for those services as the cost gets passed along. Does he have the power to impose the increase? Probably not.

Meanwhile in California where countless businesses are fleeing thanks to the insanity of its liberal legislature and Governor, as May ended its senate approved a measure that would lift the state pay floor to $13.00 an hour by 2017. If it becomes law, Californians will be interacting with machines for everything from banking to filling their gas tank to having a fast-food meal. Even more insane, Seattle has become home to the highest minimum wage in the nation, $15.00 an hour!

Minimum wage laws have been around a long time. Their original goal was to raise the income of the working poor, but the fact that there is still talk of raising them suggests they don’t work as intended. Letting the job market determine wages holds a greater promise of increased wages because businesses have to remain competitive and that means paying a wage that attracts skilled and even unskilled workers.

As Thomas E. Hall, the author of “Aftermath: The Unintended Consequences of Public Policies” (Cato Institute, $24.95, due in August) notes, “The living wage concept moved to the forefront during the Industrial Revolution, along with calls to end practices such as child labor and conditions poor working women faced. Massachusetts passed the nation’s first minimum wage law in 1912.

One of the outcomes of the Great Depression, 1929 to 1941, was the inclusion of a minimum wage as part of the New Deal’s National Industrial Recovery Act. Suffice to say, the NIRA, which actually encouraged businesses to collude together to set prices, failed to promote economic recovery. It was very unpopular and in 1935 the Supreme Court declared it unconstitutional.

Because liberals never learn anything from experience, the NIRA was resurrected later in the 1938 Fair Labor Standards Act that raised the minimum wage to 40 cents in 1945. “The United States has had a federal minimum wage ever since.”

Politicians and even some demented economists like the minimum wage. Every time it is raised, it appears to the general public that working people benefit. The problem is that the wage increases also include increases in unemployment as businesses try to contain costs in order to remain competitive and make a profit.

As Hall, a professor of economics at Miami University in Oxford, Ohio, notes, “The minimum wage’s first significant impact on national labor market conditions occurred in 1956, when the hourly rate was raised from 75 cents to $1.00.” The increase had its “greatest impact on teenagers because they possess the fewest marketable skills among the working-age population. Also, teens often do, or have in the past, worked at jobs easily replaceable with machinery or by conducting business in a different manner.”

The minimum wage rate, nonetheless, has continued to increase since the 1950s and, “By the early 1990s, these changes had caused to minimum wage to apply to over 90 percent of the U.S. workforce.”

Here’s the fundamental lesson about the minimum wage that continues to be ignored. “President Ronald Reagan, who occupied the White House from 1981 to 1989, did not support further increases because he believed that raising the minimum wage would discourage employment growth…during that decade, the U.S. economy created 18 million new jobs.”

As Hall succinctly points out “Remember that the minimum wage is just a government-imposed price-fixing scheme that creates winners and losers.”

Teens that stayed in school and will either be facing a summer vacation or graduating are particularly disadvantaged by a minimum wage law.

“The effects of high unemployment among this demographic group,” says Hall, “should not be discounted. One reason is that the lack of employment opportunities for young people deprives them of valuable work experience in the form of learning the responsibility of showing up for a job on time, learning to follow directions and complete tasks, learning to work with others…these skills can prove to be beneficial later in life.”

It is likely that the minimum wage is also a factor in why many men in the 25-54 age cohort are not working either. This is hardly the time to be increasing the rate unless you want to see the rate of unemployment increase for all ages and both sexes.

By contrast, in addition to the energy sector, the sector that builds machines to replace human workers is likely to do very well over the coming years.

© Alan Caruba, 2014

RELATED ARTICLE: Consumers Hit With Surcharge to Cover City’s $15 Minimum Wage

Grover Norquist — Trust me! I’m a Lobbyist!

If Grover says that crops are rotting in the fields, then damn it, crops are rotting in the fields and its time to let illegal aliens into America to harvest those crops so that we can end world hunger.

Hey America, how in the world can this guy get away with these comical policy statements and actually get Members of Congress to support his nonsense?

As we move through this micro-series you will see how Norquist’s nefarious work impacts YOU on a daily basis on the four “I”s of: Immigration, Islam, Israel and Iran.

Watch this short video and see if you can figure it out.

[youtube]http://www.youtube.com/watch?v=4r3SreAxQy0[/youtube]

Grover Norquist: Veni Vedi Visa (I came, I saw, I took your Job)

In this episode we break Grover’s immigration H1-B, VISA scam.

[youtube]http://youtu.be/6jGe9npilCw[/youtube]

Actually, it’s a brilliant scam where Wizard Norquist and his minions construct a false premise, then conceptually sell this bogus idea as the next best conservative idea to hit Washington. He then secures his target clients, collects eye-popping retainers and does the “K” Street shuffle on the heads of spineless politicians, who mechanically sign the law that the Wizard puts in their power-loving hands.

What a mess this guy has made out of the formerly honorable Conservative movement in America. Norquist has made a bit of a name for himself as a Beltway stand-up “comedian.” But none of his jokes have ever reached the level of side-splitting yuck, yucks, as when he says, with a straight face no less… “Immigration is the number one economic asset for America!”

Now, that IS funny…and destructive for serious Constitutional Conservatives… of which, the Wizard of “K” Street is not one.

As we move through this micro-series you will see how Norquist’s nefarious work impacts YOU on a daily basis in the areas of: Immigration, Islam, Israel and Iran (the Four Is).

Combat Veterans creating memorial statue to honor Benghazi heroes Glen Doherty and Tyrone Woods

scantyroneglenn

Artist’s rendering of the Glen Doherty and Tyrone Woods Memorial Statue courtesy of VeteransArt.org. For a larger view click on the image.

Glen Doherty and Tyrone Woods, the two heroes from the Benghazi attack to whom many owe their lives, will be honored in a monument created by their fellow US military combat veterans. Doherty and Woods selflessly gave their lives on September 11, 2012 knowing that there would be no reinforcements. They sacrificed their lives in service to their nation. Honoring them is both fitting and proper.

This idea of combat veterans honoring their fallen brothers in arms via the fine arts is something new and unique. It helps honor the fallen while providing meaningful and creative jobs for former combat veterans.

Veterans from VeteranArt.org under the guidance of renowned sculptor Greg Marra, who made and donated the Chris Kyle statue, are doing just that, honoring these two men in everlasting bronze; these two warriors immortalized the warrior spirit and military ethos—it is only fitting these two brothers in arms, close in life and death, be immortalized together in bronze for eternity, by their fellow combat veterans.

Mr. Woods said “Thank you for honoring my son in a bronze statue.”  Kate Doherty Glenns sister stated, “ she wishes us success and luck in the process, that she is so pleased the statue will help veterans.

VeteranArt.Org received the final graces they needed to start a statue of Tyrone Woods and Glenn Doherty.

Greg Marra, founder of VeteranArt.org, has enlisted the help of local Sarasota veterans, like Jason Collins, Army Military Intelligence and Michael Scelia former US Army forward observer, for the project. Mr. Marra has a pool of veteran talent, and he can hire more veterans as he is commissioned to do other projects. Marra is training US military veterans to represent themselves in the memorial process. Marra stated “Warriors honoring warriors in bronze for eternity is my life long mission.”

Marra, who sculpted the Chris Kyle Memorial Statue, has started the sculpting process and hired veterans to help sculpt this fitting tribute of these two warriors. “I’ve  run into more vets daily that wanted to pursue art and that understood the power of art than I would ever fathom; empowering them with fine arts training, and encouraging themselves as gallant warriors instead of victims is god’s work.” What a better tribute then to have brothers in arms, immortalize two of their own who made the ultimate sacrifice protecting life.

Jason Collins and Mike Scelia veteran artists have a pet name for the statue “Dueling machine guns, which they feel fits the statue because of its heavy guns and all the casings which lay at Tyrone’s and Glenn’s feet. They added that, “Veteran art is an amazing concept and gratitude is an understatement toward how we feel about Mr. Marra, his actions show that people actually care about us, and our service to this nation.”

Veteran Art/Sculpting Our Heroes is in need of donations to make this fitting tribute a reality. The cost of this memorial, fair market value, would be $85,000 total for two life-size statues to the bronze stage. More funding might be required to get these statues bronzed. These statues will employ up to four veterans, full time—Mr. Marra is donating his time and expertise as a thank you gesture to all veterans.

This is a groundbreaking organization. No other veteran organization has a renowned artist opening his studio-for free, donating his time and services, and paying veterans to come and learn how to sculpt without taking any money for himself-only for supplies; while simultaneously—those veterans are making memorials to other veterans who have died heroically serving or helping their own countrymen and women.

Donations can be made at: SculptingOurHeroes.com  or by calling the Veteran Art studio at (941) 993-1772 or cell (267) 885-9203 or via email: veteranartorg@gmail.com. NOTE: Donations are not tax deductible. 

The View from the Bottom

It tells you everything you need to know about the utter contempt those in the White House and the circles of power that the announcement of 0.01% economic growth thus far this year was blamed on—wait for it—the weather! Specifically, a cold winter.

AA - Blame the Weather

If you have been paying any attention of late, the weather and the climate have become the reason foreverything in general and for tornadoes, floods and forest fires, in particular. The fact that these natural events have always been subject to whatever the weather is or the larger climate trends seems to have escaped the notice of too many people. If winter automatically drives down the economy to a point of invisibility, that is news to me.

I’m surprised some economist hasn’t blamed winter for the major decline in home ownership. It has hit its lowest level since the mid-1990s according to the Census Bureau. As the Wall Street Journal reported, “despite two years of recovery in the housing market there are still fewer homeowners than there were before the recession.”  Oh? The recession is over? You could have fooled me.

It is no surprise, however, that China is poised to pass the United States as the world’s leading economic power this year. The U.S. has been the global leader since 1872 when it replaced the United Kingdom and now “most economists previously thought China would pull ahead in 2019 according to the Financial Times.

Bear in mind that the U.S. has survived financial crises in the past, but the 2008 meltdown has persisted since around January 20, 2009 when a new President was sworn into office. It didn’t take him long to receive a Nobel Peace Prize that year and to preside over the first reduction in the nation’s top ranked credit rating in 2011.

Could the economic decline have something to do with the insane increase of federal government regulation? As John Merline asked in Investor’s Business Daily, “After years of rapid growth during the Obama administration, the cost of federal regulations is now bigger than the entire economics of all but nine countries in the world.” He was reporting on the annual report. “Ten Thousands Commandments”, issued by the Competitive Enterprise Institute. Compiled by Clyde Wayne Crews, this year’s report found that the “regulation tax” imposed on the economy now tops $1.86 trillion. “By comparison, Canada’s entire GDP is $1.82 trillion and India’s is $1.84 trillion.”

“The problem, Crews notes, is that the combined cost of this ‘tax’ never shows up anywhere in the federal budget—or any other official report—even though it is now bigger than individual and corporate income taxes combined.” The CEI report noted that federal regulatory costs average $14,974 per household “which is more than the typical household spends on just about anything else.”

So you don’t have to have an economics degree to figure out what is wrong. “Last year,” Merline reported, “regulators issued 3,659 rules. That’s equal to one new rule every 2 l/2 hours of every day7 or nearly two federal rules issued every business hour.” Why is this happening? Because the 2013 Federal Registered contains 79,311 pages, the fourth highest ever and the top two all-time totals were both under President Obama. Big government? No, TOO BIG Big Government.

A new poll surveying young Americans’ political attitudes was released at the end of April by Harvard University’s Institute of Politics. As indoctrinated as those 18 to 29 have been in our public schools, they are not brain-dead. The survey found that the millennials have less trust in government than ever before in the President, Congress, the Supreme Court, the military, and federal government as a whole. There is a comparable lack of confidence in Wall Street and the United Nations. Unfortunately, less than one-in-four (25%) of Americans under 30 said they would definitely vote in the forthcoming midterm elections, a decrease since last autumn, though more Republican millennials will vote than Democrats.

It’s not just the youth who are unhappy. A Wall Street Journal/NBC News poll taken in late April revealed “a marked change from past decades” as “nearly half of those surveyed wanted the U.S. to be less active on the global state, with fewer than one-fifth call for more active engagement—and anti-interventionist current that sweeps across party lines.”

This is hardly a surprise as one looks back on the years since 9/11 in which engagement in Afghanistan and Iraq turned out to be failures. In this regard Obama has his finger on the pulse of Americans who are weary of military interventions, but it is equally true he has used this to impose vast reductions on the U.S. military. If they are needed, there will be far less of them and the arsenal they will need.

The poll showed that approval of Obama’s handling of foreign policy has sunk to the lowest level of his presidency with 38% approval. His overall job performance now pulls in 47% or so. Both are below half the population of likely voters. The poll also demonstrated how disenchanted they are with the economy “that many believe is stacked against them.” The views expressed correlated with income and education, rather than party affiliation.

The state of the economy reflects the factors noted; too much regulation, Obamacare’s attack on one sixth of the economy, replete with dozens of taxes within it, as well as the serious disruption of the healthcare system.  What it has also done is cause many businesses to put a cap on how many they employ, a dagger in the heart of those coming out of college with few real prospects, those seeking employment after having been laid off due to Obamacare and other factors—some 90 million still.

If the nation does survive Obama, historians will express wonder that he was reelected and that his approval ratings weren’t considerably lower. He is still being defended by the mainstream media, so that might account for the latter, but recent revelations about the Benghazi cover-up may have an impact.

The people I talk with are “hanging on”, struggling to get by on what money comes in. They are not happy and I suspect they reflect a general unhappiness from the millennials to the senior set.

They are observing the nation and the world from the bottom of the barrel.

We’re Americans. We don’t like being number two.

© Alan Caruba, 2014

EDITORS NOTE: The featured photo is by Angie Schwendemann. This file is licensed under the Creative Commons Attribution-Share Alike 2.0 Generic license.

Obamacare and minimum wage push connected?

The US Department of Labor map (above) shows minimum wage laws in the various States as of January 1, 2014. Where Federal and state law have different minimum wage rates, the higher standard applies. Minimum wage and overtime premium pay standards are applicable to non-supervisory non-farm private sector employment under state and federal laws.

  • Green States with minimum wage rates higher than the Federal
  • Yellow States with no minimum wage law
  • Blue States with minimum wage rates the same as the Federal
  • Red States with minimum wage rates lower than the Federal
  • Brown American Samoa has special minimum wage rates

We know many people are now being hired to work less than 30 hours a week so employers don’t have to provide Obamacare. Think that move has anything to do with the push by Democrats to dramatically increase the minimum wage from $7.25 to $10.10?

Well, if you do the math you will find someone working at the minimum wage of $7.25 for 40 hours grosses $290.00 a week. Someone working 29 hours a week at $10.10 an hour would gross $292.90 per week!

Not bad, work 25% less and make the same amount of money. For entry level workers this must sound like a dream come true.

How do you think the Democrats arrived at $10.10 an hour, by coincidence?

When I grew up minimum wage jobs were filled primarily by high school and college kids, , until illegal aliens took them.

Illegal aliens are excited to have a job paying $7.25 an HOUR since a worker at the Ford plant back in Mexico (thanks to Nafta) makes $7.50 per DAY.

Obama administration chooses environmentalists over unions on Keystone XL and fracking

While some environmental groups applauded the latest delay of the Keystone XL pipeline, unions whose members would be building it ripped the administration. Sean McGarvey, President of North America’s Building Trades Unions, AFL-CIO, called it “a cold, hard slap in the face for hard working Americans who are literally waiting for President Obama’s approval and the tens of thousands of jobs it will generate.”

Laborers’ International Union of North America (LIUNA) general president Terry O’Sullivan was more colorful, saying, “It’s clear the administration needs to grow a set of antlers, or perhaps take a lesson from Popeye and eat some spinach.”

The Keystone XL pipeline isn’t the only energy issue dividing anti-energy environmental groups and unions who want jobs for their members. Over the weekend, the Associated Press reported that development of shale energy using hydraulic fracturing had strong union support in Pennsylvania:

“The shale became a lifesaver and a lifeline for a lot of working families,” said Dennis Martire, the mid-Atlantic regional manager for the Laborers’ International Union, or LIUNA, which represents workers in numerous construction trades.

Martire said that as huge quantities of natural gas were extracted from the vast shale reserves over the last five years, union work on large pipeline jobs in Pennsylvania and West Virginia has increased significantly. In 2008, LIUNA members worked about 400,000 hours on such jobs; by 2012, that had risen to 5.7 million hours.

In contrast, environmental groups like the Natural Resource Defense Council who patted the administration on the back for the Keystone XL delay, strongly oppose hydraulic fracturing.

In his Keystone XL statement, McGarvey head of the building trades union asked a good question:

Why does President Obama continue to side with radicals instead of the middle class that, twice, put him office, and supports this project by a significant majority?

Out of work American union members would like to know.

[H/T Lachlan Markay at the Washington Free Beacon.]

EDITORS NOTE: The featured photo of a rig drilling for natural gas at a hydraulic fracturing site in Pennsylvania is courtesy of photographer Ty Wright/Bloomberg.

A Teachers’ Union Speaks Power to Truth: Children suffer, but they aren’t the point by Wendy McElroy

On March 22, Joshua Pechthalt delivered a “state of the union” address at the 72nd convention of the California Federation of Teachers (CFT). Union Watch, an organization that monitors California’s unions, called it “refreshingly candid.” It bluntly revealed the union’s political and social goals without wrapping them in rhetoric about educating children. Pechthalt declared:

[The CFT is] a beacon of progressive, social justice unionism. . . . That’s why we have consistently supported single payer health care reform and progressive tax reform measures. . . . The CFT is committed to the vision articulated by the civil rights movement and efforts to ensure class, race and gender equity and the just demands for comprehensive immigration reform. We understand that central to the mission of public education is the need to advocate for a different kind of society.”

Could the teachers have been any clearer?

Pechthalt also pointed to “the Vergara lawsuit” as “the latest attack on public education.” On January 27, the non-jury trial of Vergara v. California began before Los Angeles Superior Court Judge Rolf Treu. In the suit, nine public school students and their parents accuse state statutes of protecting the jobs of grossly incompetent teachers, which amounts to an unconstitutional denial of education. In California, students have a constitutional right to “substantially equal opportunities for learning,” which the Vergara plaintiffs claim was abrogated.

The Washington Post explained, “In states such as California, there are so many legal and procedural hurdles before a tenured teacher can be fired, they say, that it’s difficult to shed even the worst teachers.” Moreover, California school districts have an unusually short time—about 18 months—before tenure is granted. “The complaint also attacks seniority rules and ‘last in, first out’ policies, which say the newest teachers are the first to be laid off when jobs are cut, regardless of performance.”

In short, the legislature and teachers’ unions are accused of putting the interests of their members above the educational interests of children as encoded in law.

Vergara has attracted national attention and passionate debate because the judge’s ruling could change the manner in which California educators are hired and fired. It could also set a precedent for other states.

The teachers’ unions have reason to fear the ruling, which explains why the two largest ones—the CFT and the California Teachers Association (CTA)—joined the suit as defendants. Many reporters believe Judge Treu has repeatedly signaled his sympathy toward the plaintiffs. In a March 31 article, “Vergara Time Bomb: Will a Judge Tear Down California Teacher Protection Laws?,” the LA Weekly stated, “One couldn’t help but notice how Treu repeatedly interrupted the defense attorneys representing the state and teachers’ unions who intervened in the case. He probed their reasoning, after having listened silently to the plaintiffs.” Pechthalt commented on the judge’s behavior, “Unfortunately, I think that may be quite telling about where he’s going.” The arguments closed on April 1 and the decision is expected in a matter of months.

One theme that binds Pechthalt’s speech and Vergara together is the high priority that teachers’ unions have given to their own interests rather than to the goal of quality education. But equally questionable is the priority they are giving to political and social causes rather than to quality education. Even though the plaintiffs are poor minority children and their parents, the unions are casting Vergara as a “class” conflict in which they are the underdog being persecuted by rich people and corporate interests (sound familiar?). In other words, the unions wish to appear as David against Goliath. Who is cast as Goliath? Billionaires David Welch and Eli Broad as well as the corporate-friendly law firm of Gibson Dunn and Crutcher—all of whom are backing Vergara.

In his speech, Pechthalt said,

The super wealthy and their swollen circle of reactionary think tanks and echo chamber conservative media are committed to eradicating what remains of the labor movement. . . . The egalitarian mission of public education that was given new life by the social movements a half century ago now stands as an obstacle to a corporate world committed to keeping wealth and education in the hands of a few. . . . The largest corporate interests use the media and the politicians they help elect to create a narrative that attacks hard earned pensions, worker rights—including the right to unionize—and the right to vote.

In newspaper statements, union officials have hurled similar accusations of class warfare.

It is difficult to give any credence to such accusations, flowing as they do from massive, state-privileged, taxpayer-funded organizations. California’s teachers’ unions are among the most powerful in America, representing some 400,000 educators. The state’s statutes are so favorable to the unions that it is next to impossible to dismiss even educators who behave egregiously; indeed, the legislature is sometimes referred to as “union controlled.”

The Washington Post (Dec. 15) cited the average yearly salary of teachers in California at $69,324—the third highest in America. The salary does not reflect other benefits such as healthcare and pensions. Estimates of those benefits vary widely, and predictably so; the unfunded mandate of teachers’ pensions may well be the most heated political conflict in California and statistics are weapons. The Los Angeles Times gave the low end: “The average retiree last year left his or her job at age 62 with a monthly pension of $3,980 after working 25 years.” The Voice of San Diego gave the high end: “Every district employee gets a guaranteed pension, which . . . will pay them 80–90 percent of their highest salary every year until they die . . . That teacher making $73,000 today will get 80–90 percent of their final salary number which will be as high as $95,000. They are eligible for retirement beginning at the age of 55.”

A standard counter to citing the plush union pensions is that teachers do not receive Social Security; of course, neither do they pay into it. The Voice of San Diego continued, “This retirement program is dramatically more generous than Social Security, which most Americans receive. Current middle-age working Social Security recipients are slated to receive only 76 cents for every dollar taken from their paycheck. However because teachers’ unions negotiated a guaranteed pension amount, they are receiving 10–20 times any contribution they make in future retirement payments.”

There is a more fundamental reason for tearing the cloak of David off the shoulders of the union, however. It has been almost a century since the labor movement had any claim to being an underdog or the voice of workers’ rights. The New Deal turned unions into state-sponsored organizations with such legal privileges as state certification (that is, a monopoly within specific industries) and the “right” to collective bargaining. Interestingly, the new unions were championed by leaders of industry such as Gerard Swope, then-president of General Electric. Big business may not have liked the “new union,” but it was vastly preferable to wildcat strikes, slowdowns and other disruptive tactics pursued by their grassroots counterparts.

Some put an earlier date on the death of the genuine labor movement. The libertarian Karl Hess said, “We used to have a labor movement in this country, until I.W.W. leaders were killed or imprisoned. You could tell labor unions had become captive when business and government began to praise them.”

There is no measure by which California teachers’ unions are an underdog; they are a politically privileged and legally protected class. It is not clear if the wealthy supporters of Vergara are politically objectionable. Nor does it need to be. The entire issue should be educating children.

Unfortunately for them, children do not vote, nor do they send lobbyists to the legislature. In their response to Vergara, the CFT and CTA have displayed a wanton disregard for children, preferring instead to argue for their own interests and to play “class” politics to smear opponents. By contrast, the Vergara supporters have focused on the children and the quality of education. If it were up to the unions, no one would know that it was children and parents suing them for an opportunity being denied by the unions—namely, the opportunity to learn.

ABOUT WENDY MCELROY

Contributing editor Wendy McElroy is an author and the editor of ifeminists.com.

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EDITORS NOTE: The featured image is courtesy of FEE and Shutterstock.