Category Archives: economy

OUR FUTURE AND OUR MEGASITE

This is a column written for publication in the Asheboro Courier-Tribune  – relevant for Piedmont Triad readers and perhaps for others living where industrial megasites are under consideration.

“If you don’t know where you want to go, you’re likely to wind up someplace else.” – Yogi Berra, baseball philosopher. The attribution of the quotation is questionable, but its wisdom is beyond doubt.

We know the trajectory and history of our local economy and we know that the work that has sustained our families and communities has been disappearing. We lost thousands of jobs to automation and to places where labor is cheap. The reasons are simple. Private capital flows to ventures that produce high profits. Profitability is improved when expensive labor is replaced by automation or when work is moved to places with cheap labor. The good news is that we get to create our own future. Continue reading OUR FUTURE AND OUR MEGASITE

Your Christmas Gift From Wall Street

Congress and taxpayers bailed out too-big-to-fail financial firms that now seem interested only in profits; not in repairing damage that they did. This column demonstrates how Wall Street firms and Congress subsidize each other at the expense of the middle class. Continue reading Your Christmas Gift From Wall Street

An Economy Divided Against Itself

On June 16, 1858 a  little-known candidate for the Illinois Senate spoke these words, “A house divided against itself cannot stand. I believe this government cannot endure, permanently, half slave and half free. I do not expect the Union to be dissolved — I do not expect the house to fall — but I do expect it will cease to be divided. It will become all one thing or all the other. Either the opponents of slavery will arrest the further spread of it, and place it where the public mind shall rest in the belief that it is in the course of ultimate extinction; or its advocates will push it forward, till it shall become lawful in all the States, old as well as new — North as well as South.”  Abraham Lincoln was defeated in that election.

Twenty-first Century America is a house divided.  Like Lincoln, we should expect that our nation will cease to be divided, not that it will fall.  Like the America of 1858, we must choose our destiny.  We may become a commonwealth where everyone has opportunity to develop her or his full potential; benefitting financially and socially from personal efforts. Or we may become a winner-take-all nation where the wealthy grant only subsistence to those who labor. Continue reading An Economy Divided Against Itself

How To Fix Obamacare

If your loved one  is seriously ill or injured and can’t pay for health care, should America provide what she/he needs? If health care costs are beyond the reach of many Americans,  should government take action? If you answer “yes”, the next steps are about how to achieve the goals; and it’s time for fact based solutions to the problems of American health care. Continue reading How To Fix Obamacare

Legislators like Tillis betrayed military families and the poor

Thom Tillis and other red-state legislators made it easy for big banks and financial companies to prey on the poor with interest rates as high as 36%. The legislators accepted large contributions from financial industry representatives, and it appears that  Tillis got more than any other legislator in the nation.   Ignoring the advice of military leaders, these lawmakers sold out low income families trying to  climb into the middle class. Click here for specifics.  It’s wrong for elected leaders to help big companies take advantage of the poor.  Kudos to the NY Times for their research and follow-up.

WHY WOULD RENEE ELLMERS ELIMINATE EPA?

Congresswoman Renee Ellmers (R – NC) wants to eliminate the Environmental Protection Agency (EPA), the  federal agency that sets and enforces standards for safe water and air.  She should justify her goal.  We need congressional representatives who think carefully and speak wisely about such important matters.  Her statement seems reckless, and if she can’t justify it then she does not belong in our Congress.  Continue reading WHY WOULD RENEE ELLMERS ELIMINATE EPA?

JUST SAY YES TO MEDICAID

The decision by North Carolina’s governing Republicans (every single one of them) to reject Medicaid expansion will cost the state’s residents $37 billion by 2022. That is roughly enough money to run the entire state government for 21 months. They looked at the money and just said “no”. They looked at uninsured people living in poverty and just said “no”. They looked at hospitals and doctors who care for uninsured people, and they just said “no”. And they just said “no” to unemployed workers who would have found jobs in the Medicaid expansion. Continue reading JUST SAY YES TO MEDICAID

THE ARTIFICIAL INTELLIGENCE ECONOMY

What if our economy could grow so rapidly as to greatly increase the amount of money, goods, and services that are available – a good thing, right? What if one result of that growth is that the future economy has no place for you – not so good? These are more than hypothetical questions for millions of people around the world. Businesses are making more products with fewer employees and lower wages. In the US, corporate profits have doubled since 2000 but inflation adjusted household income has dropped from $56,000 to $51,000. After tax corporate profits are up from 5 percent of American GDP to 11 percent – a record high level.   Simultaneously employee compensation has dropped from 47 percent of GDP to 43 percent. Continue reading THE ARTIFICIAL INTELLIGENCE ECONOMY

NO MONEY FOR A RAISE?

Wages, taxes, the role of unions, and a new term, “income inequality” spark lively and sometimes angry discussions across our state and nation. There are people working more than one low wage job who still qualify for food stamps and can’t support a family. Others can’t find even a minimum wage job. Some of our leaders say that developing higher levels of skill and education will bring higher wages, a true statement but an unsatisfactory answer to those who are underpaid to do necessary work.  The work of those who prepare and serve fast food is honest work done by honest people who deserve a living wage. The same can be said for those who mop the floors of the schools, pick the peaches that I hope to eat soon and mow the grass along the highways. Continue reading NO MONEY FOR A RAISE?

COMMON CORE STANDARDS

Apparently taking their cue from right wing talk radio and Fox News pundits, leaders of the North Carolina Legislature have begun an assault on the Common Core Standards for education. Some want to repeal the standards which our school systems have been working to implement since they were adopted in 2010 by you know who – the North Carolina Legislature.

What better way to finish demoralizing underpaid and underappreciated educators than to give them the monumental job of organizing to achieve specific goals and then, at the last minute, repeal the goals? The Republicans in charge at the legislature often argue that government should be more efficient and productive, like a successful business. Today it is those legislators, not the educators who need lessons in successful business practices. The idea that we can greatly improve (or damage) education by adopting a set of standards is foolishness. It is the actions taken to achieve the goals that will make a difference. As Russell Ackoff, a renowned professor from the Wharton School of Business put it, “The only problems that have simple solutions are simple problems. The only managers with simple problems are those with simple minds.”

For many years we have known that the educational achievement of American students is lagging behind the achievement of students in many other developed nations. Since public education is largely a responsibility of states, not the federal government, the National Governor’s Association commissioned a project to study the situation and make recommendations. It was strongly supported by governors from both parties and the funding was mostly from the private sector – especially from businesses and foundations which were concerned that American graduates were not prepared for the jobs of the future (or even the present).   Educators, psychologists, business leaders and other qualified people worked for years to produce the Common Core Standards which were then adopted voluntarily by 46 states. Only after this was done did the federal government begin to use the standards too.

The Common Core Standards specify very little about curriculum (books, teaching techniques etc.) In fact, the standards anticipate that there will be variance across the country in that regard, and that there may be variance from one classroom to another based the unique styles of individual teachers or the needs of students. If there is to be standardization of curriculum or teaching techniques, it would be done by states or school districts.

How should those of us who are not educators think of the standards? I see them as mileposts for each student to pass on the journey of preparation for successful employment after high school or for college. That was also the goal of the National Governor’s Association and of the private organizations that paid for much of the research on which the standards are based.

One state, Kentucky, has led the way in implementing the standards and more recently they have begun testing to measure how they are doing. The bad news is that their educational performance still lags behind other nations. The very promising news is that in two years their test scores rose 2 percent while their high school graduation rate rose 6 percent. It is too soon to attribute that progress to the common core standards but certainly they can take pride in the achievement.

Edward Deming, who is often credited with introducing scientific process improvement as a business practice, said “Management by numerical goal is an attempt to manage without knowledge of what to do.” It is vital for legislators to understand that. The Common Core Standards provide a yardstick with which we can measure progress. They should be used for planning and improvement, not for appraisal of individual performance.   Repealing them will leave educators no generally accepted and standardized measurement and will take away their ability to compare results from various school districts and teaching methods – leaving us in a situation where policy changes will be based on opinion rather than data. Replacing them with state standards will take away our ability to compare our results with other states and will present new opportunities for politicians to insert their personal biases into educational policy. That is the opposite of good business practices.

Rather than taking the goalposts off the field, the legislature can be most helpful by doing its own job – not the jobs of the educators. There is massive evidence that children, especially low income children, do best in nations that provide high quality public pre-schools. The legislature should study how best to create and fund that service. Many legislators (in both parties) want performance-based pay for educators. If that is the case, legislators and school boards must provide management education for whoever will do the performance appraisals and the ongoing communication and coaching throughout the year. Successful performance appraisals don’t surprise people – they are merely summaries of discussions that have been ongoing. They are based on multiple job expectations, not on the results of a single test.

The most critical factor in business success is hiring the right people. That means that we need to provide adequate salaries. We have some great teachers who are terribly underpaid. We have lost some great teachers who had to leave their chosen profession in order to adequately support their families. The legislature can help by funding salaries comparable to professions requiring similar levels of education, skill and stress.

So, legislature, what’s it going to be? Will you choose a businesslike approach to improving quality or more tampering based on the opinions of talk show hosts?