New book shows that poverty affects brain and makes it harder to think, work, learn

Thanks to Cass Sunstein for reviewing Scarcity: Why Having Too Little Means So Much in the latest New York Review of Books. In Scarcity, Sendhil Mullainathan and Eldar Shafir collect and analyze an impressive amount of research to demonstrate that those who suffer a scarcity of a resource—say food or money—dedicate more of their brain to addressing that scarcity, thereby degrading their ability to attend to their daily tasks, in school or on the job.

According to Mullainathan and Shafir, scarcity “puts people in a kind of cognitive tunnel, limiting what they are able to see. It depletes their self-control. It makes them more impulsive and sometimes a bit dumb. What we often consider a part of people’s basic character—an inability to learn, a propensity to anger or impatience—may well be a product of their feeling of scarcity,” to quote Sunstein. The book cites a ton of empirical research that shows that the effects of scarcity cut across all possible types of scarcity.

The most striking study mentioned in the review tested Indian sugar cane workers before the harvest when they were broke and after the harvest when they had lots of money. The difference in scores amounted to 9 or 10 points on an I.Q. test, which measures certain intellectual capabilities correlated with success in school and in professional employment.  On an I.Q. test, ten points means a lot: for example, about 28% of the population scores between 106-115, while only 9% of the population scores between 116-125.

In other words, not only do rich and upper middle class children have the advantages of classes and lessons, summer camps, trips abroad, private tutors, SAT prep courses and the doors that money and business contacts can offer. The wealthy also have an inherent advantage in that their brains are not drained by scarcity concerns as the brains of poor children are.  The easiest way to improve our educational system would be to end poverty, which would enable formerly poor children to focus their brain on learning and not on the anxiety of not knowing when the next meal will be.

A few years back, the mainstream media and politicians were completely enamored by an article titled “Growth in a Time of Debt” by Carmen Reinhart and Kenneth Rogoff, which concluded that countries with public debt greater than 90 percent of GDP suffered measurably slower economic growth. In This Time Is Different, the two right-wing economists ostensibly fleshed out the theory with examples across the centuries.  Mainstream politicians and journalists throughout the world embraced this “new discovery,” using it to bolster assertions that we had to deal with the debt instead of pumping money into the economy.

The problem was that Reinhart and Rogoff miscalculated in a number of places and even made typographical errors. When their bad math was corrected, it was found that there was no correlation between levels of debt and economic growth.

Many people wanted to believe Reinhart and Rogoff were right because they wanted to cut the budget, regardless of the pain and the economic havoc it caused. Of course it didn’t work out—Europe’s austerity program backfired and the U.S. limited “rescue” of its economy produced uneven and weak results. Through it all, inequality continued to grow, especially in the United States. The distribution of wealth in this country is now less equitable than it has been in more than in a century.

As of this writing, a Google key word search yields about 3,000 mentions of Scarcity, which is not even a drop in the ocean of web pages floating around cyberspace.  It’s still too early to tell, but I’m betting the mainstream news media is going to ignore Scarcity for the most part and few politicians outside maybe Bill de Blasio will reference it.

But imagine if Scarcity captured the imagination of politicians and pundits the way that Reinhart & Rogoff’s bogus research did, or the way Michael Harrington’s poignant expose of poverty, The Other America, did in the early 1960’s?

What if our various governments started to create public policies and new laws to address the implications of Scarcity: Why Having Too Little Means So Much? If Scarcity is true (and the Sunstein’s extensive review makes we want to read it as soon as I can), that puts a whole new light on Republican efforts to decrease funding for food stamps and unemployment benefits. The very nature of poverty distorts and weakens the thinking process, so that once people fall into poverty it is very hard to escape.  It makes sense then to be as generous as possible with these benefits in times of economic distress, to keep as many people out of poverty as possible.

Widespread knowledge of the findings by Mullainathan and Shafir would lean the debate over minimum wage and health care decidedly to the left, as think tank pundits and government policy makers quoted the book to assert the need to protect Americans from the negative effect of scarcity in general, and of medical care in particular.

Scarcity also serves as an epiphany for the great challenge facing the United States in the area of education. Rich people are spending more to educate their children while their state and federal representatives continue to cut budgets for public schools.  Meanwhile, a college education has become a major drain on the finances of most families.  Equal opportunity movements focused on voting and jobs in the 20th century. In the 21st century, the real battle ground for equal opportunity may be over education.

For the past 30 years, we have passed laws and followed policies that increase the number of people facing scarcities of money, food, health care and now education. We have in effect degraded our intellectual stock by putting more panic into more people. Creating a more unequal society has weakened our collective ability to learn and to work. If our leaders believed the message of Scarcity they would pursue an entirely different set of policies that would resemble the policies our nation pursued in the 1950’s, 1960’s and early 1970’s. You know, when we had general prosperity, a lower rate of poverty, a more equal distribution of the wealth, strong unions, mostly great public schools—and, not coincidentally, much higher taxes on the wealthy.

 

For your reading pleasure, another poem from OpEdge author’s book

I’ve been occasionally posting one of the poems from my book, Music from Words. My hope is that some dear readers will buy one or more copies of the book. The best place to buy Music from Words is either from the publisher, Bellday Books or from Amazon or another online book store. You can also order it at virtually all brick-and-mortar book stores.

This time, I present “Liana to Rafflesia” from the section of Music from Words titled “Love Songs. “Liana to Rafflesia appeared in Ellipsis about eight years ago.

The rafflesia is the largest flower in the world, more than a yard in diameter.  It is an epiphyte, which means it doesn’t grow in soil, but rather on bark or other surfaces.  The rafflesia spends most of its life as a filament of fiber inside the liana vine, then pops up on the liana bark and a few weeks later is this enormous flower.   The narrator of this poem is a liana that is in love with a rafflesia.

Liana to rafflesia

And still I love you,

rootless, leafless, stemless parasite.

 

Your filaments entwine inside me, vegetate,

migrate to my woody skin, form a knot.

 

The knot becomes a bud becomes a globe

becomes a russet cabbage slowly swelling

becomes enormous leathered flower,

vermillion petals stretch a meter.

 

Stamen and pistil embrace, create

a white corona at your center

seven splendid days until you shrivel,

plummet from my bark to steamy jungle floor.

 

And still I climb the lower slopes

in love with you as you deplete me,

as I deplete you, be your rafflesia

and you as my liana, letting me

suck life inside your vine,

complete my blooming

in and on your body.

 

Our parasitic sport

becomes our need becomes our love.

–     Marc Jampole

 

Originally published in Ellipsis #41 (Spring 2005) and  Music from Words (Bellday Books, 2007)

Study implies the American dream has been reduced to a series of financial goals

Debt free and financially secure at retirement. That’s how people now define the American dream, according to a new study by Credit.com.

Here are all the results:

Define the American Dream

Retiring financially secure:  27.9%

Being debt-free:  23%

Owning a home: 18.2%

Graduating from college (paying off student loans):  6.0%

Joining the 1%:  3%

Other; 11.4%

None: .2%

Don’t know/no response: 8.5%

Only one problem with the survey: Credit.com gave these options to the participants, as opposed to asking the open-ended question, What is the American dream? Everything that Credit.com asked about has to do with money: Nothing aspirational or non-material. Just a bunch of financial objectives, each of which may require credit or other financial services.

The natural question is whether Credit.com’s selection of options reflects its natural concern for money matters or does it reflect the social ideals of the 21st century. In other words, is it more subtle propaganda from the financial industry or a true representation of how we now define the American dream?

The concept of the American dream sounds as if it has been around since Europeans rediscovered North America at the end of the 15th century. The actual term, however, can only be traced back to James Truslow Adams (1878-1949), born rich. Adams first used the term in his The Epic of America, written at the height of the depression in 1931. To Adams, the American dream is “of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement…It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position.” (Thanks, Wikipedia!)

That pretty much sounds like the dream imagined by Martin Luther King 50 years ago, a dream that’s defined in public terms as a more perfect society. This American dream is defined by opportunity, fairness, democracy and the pursuit of happiness. King tinges the dream with social justice as well, the idea that we must not only create opportunity for everyone, but also make certain that everyone has a minimum living standard deserving of all human beings.

Once James created the concept, it didn’t take American industry, led by the advertising industry, to privatize and commercial the American dream: Privatization involved making the dream a matter of an individual attaining success as opposed to society becoming just and equitable. Commercialization derived from the fact that industry defined this success solely in terms of material possessions. No wonder the media, entertainment and advertising industries have all been called the “great American dream machine.”

A perusal of the contents of the first few pages of a Google search of “the American dream” reveals that most people writing on the subject combine the public and the private versions of the American Dream.  Virtually every definition spoke of the American dream being the opportunity to work hard and achieve success.

For the most part since the Baby Boomer’s parents came home from World War II, the private part of the American dream has comprised owning a home and living a car-and-mall-centered life in the suburbs. We know the suburban dream has failed. We have created a society with a bottomless thirst for fossil fuels and a natural predilection to waste. It’s a social order that cannot be sustained over time, because of the twin demons of global warming and resource shortages.

I would assert that the suburban lifestyle isolates people and individuals, leading to a greater sense of privilege and self-satisfaction among the happy and successful, a greater sense of isolation and hopelessness among the unhappy or struggling. The privatization of the American dream has inured us to the suffering of others, so that many of us are only too willing to deny food stamps to the hungry and starve schools of funds because we send our kids to private schools or don’t have any.  By only including individual dreams and making them all the attainment of financial goals, Credit.com feeds into this isolating selfishness.

The Credit.com study ends with a few questions about who will achieve the American dream. About 78% think that they will attain their dream—be it financial security at retirement or owning their own home—but only 41% think that others will attain the American dream. I infer from these twin answers that Americans do not believe that their own success or aspirations are tied to those of others or to society as a whole.  It’s every person for him- or herself as we each pursue our individual success in isolation from everyone else.  This approach will surely work for the wealthy captain of industry, but for the 99% without wealth it is a less sure path than working together and helping each other. Remember that in Martin Luther King’s dream, we all walk together, black and white, rich and poor.

NYC mayoral debate shows news media ignorance and focus on the irrelevant

We saw what was wrong with political coverage in the last debate between the major contenders for the Democratic nominee for mayor of New York City: the media is ignorant and creates irrelevant sideshows.

The very first question by a Wall Street Journal reporter was ridiculously irrelevant to the issues: share a recent example of each candidate or candidate’s family facing economic uncertainty.  None of the five candidates could answer the question, because all are well-off and all have been enjoying good times for at least a decade, something that the reporter should have known if he had done his homework.  Was he just stupid or did he want to make a point—that these folks are mostly rich or near rich? Or maybe he was trying to trap a candidate into making up a saccharine and unbelievable sob story?

After all the candidates—a very bright bunch if you ask me—all admitted that things were going pretty well for them lately and evoked childhood or parental struggles, the panel of reporters noted that none of the candidates answered the question.  But how could they talk about struggles if they weren’t having them? And why would they? Virtually everyone with a serious chance at a major office these days is doing well. Otherwise, others wouldn’t notice their leadership skills or give money to their campaigns. Some could be struggling with family or personal issues, some may have faced financial problems in the past, but most people running for a major office, be it governor or mayor of the nation’s largest city, are at least well-off.

The question was irrelevant and may have also revealed the reporter’s ignorance.

As part of his answer to this inessential question about financial hardship, John Liu, the only candidate who appeared to be rattled throughout the proceedings, accused the Election Board of setting up two of his aides as part of a vendetta to deny him matching contributions. Instead of ignoring this desperate plea from a desperate candidate, the reporters chose to ask the other candidates if they thought Liu was set up.  Inequitable distribution of the wealth, mass transit for the outer boroughs, the controversial “stop-and-frisk” policy—these issues stayed on hold while the candidates hemmed and hawed about Liu’s irrelevant accusations.

Later in the debate, another reporter ignorantly chided the frontrunner Bill DeBlasio for saying that he would keep confidential his negotiations with the unions covering New York City workers, who have been without a contract for six years now.  Doesn’t the reporter know that it is standard practice to keep collective bargaining negotiations confidential? Confidentiality allows both sides to explore areas that could be controversial, especially if taken out of the context of a full contract. Confidentiality allows either side to make statements and then back down. It allows either side to make accusations for which they can later apologize with no loss of face on either side.

This reporter has obviously never seen any news releases about collective bargaining, most of which include a statement that the party issuing the news release won’t negotiate in public.  Now, the average person in the street hasn’t seen these news releases either, but the average person in the street is not a reporter. A reporter is supposed to know a little bit about what he or she is covering.  This reporter was trying to create a controversy around DeBlasio, but one that is irrelevant because no matter what any of the candidates may say now, every single one of them will keep the union negotiations confidential, because that’s what their lawyers will tell them to do!

The reporter should have known that. In her ignorance, she tried to create a firestorm about an irrelevancy. Again, it didn’t work, because the other candidates except Weiner all agreed they would keep negotiations confidential. The candidates focused on the more important issues of their desire to negotiate a fair contract and whether the workers would receive retroactive pay increases for the full six years.

Next day coverage of the debate boiled down analyzing how the trailing candidates ganged up on DeBlasio. To my mind, the gang-up didn’t really occur. There were short side attacks on most of the candidates, plus several of the other candidates defended DeBlasio from what they said were unfair attacks. For the media to talk about a collectively imagined gang-up rather than the real differences between the candidates sets exactly the wrong standard for election campaigning.

Ignorance and irrelevancy seem to go hand and hand when the news media frame how they will cover the issues. We often blame politicians for making purposely ignorant statements. It is hard to believe, for example, that Chris Christie really has doubts about human-caused climate disruption or that several Republican U.S. Senators really believes that Obama acts from unpatriotic motives.

But last night’s debate among five highly intelligent and mostly competent candidates showed that the news media is also to blame for the deplorable state of political discourse.

Bloody civil war in Iraq should remind us what could go wrong in Syria

Secretary of State John Kerry gave an impassioned rationale for attacking Syria. He tried to build the case for the absolute moral imperative to punish Bashar al-Assad for using chemical weapons on his own people and to prevent him from doing it again.

Kerry detailed the horror of the act for the listening world. Then he promised that U.S. military actions, with or without the support of allies, would be different from Iraq and Afghanistan, because it would not require “boots on the ground.” In other words, we’re going to do a little bombing, then leave Syria to continue its dance of death.

While I join Secretary Kerry and every other ethical and sane human being alive in condemning the Syrian government for using this weapon of mass destruction, I do not share his thirst for military action.

Kerry can list many reasons to bomb Syria, including the fact al-Assad used chemical weapons on his own people, the fact that we warned him not to do it (another version of the “let’s kill thousands to save face” strategy) and the assumption that failure to act will embolden al-Assad and other U.S. bêtes noire like Iran and North Korea to go farther.

I can think of only one reason not to use force against al-Assad, but it trumps all of Kerry’s rationales: it will likely backfire and plunge Syria into an intensified cycle of violence between a weakened Ba’athist government and a splintered opposition that includes forces that truly despise the United States.

If you need to remind yourself what will happen in Syria, read the article titled “Bloodier than Ever” in the latest Economist. I’ll state my case my excerpting the first paragraph:

“…the scale and scope of recent attacks have shaken even the most hardened Iraqis. More than 500 have been killed in bombings this month, after some 1,000 perished violently in July—the highest number since civil strife tailed off five years ago. Yet these figures, tallied by Iraq Body Count, an independent web-based monitoring organisation, are only the most visible cause for alarm. Car-bombings and suicide-bombers have been a fact of life in central and northern Iraq for most of the past decade, but recent attacks reveal a level of co-ordination not seen for several years.”

In other words, the civil war not only continues in Iraq, but is intensifying again. Later in the article, we find out that al-Qaeda launched an attack on prisons at Abu Ghraib and Taji last month, enabling 500 prisoners to escape. Still later, we learn that the violence is spreading to the south of Iraq, formerly one of the most peaceful parts of the country.

What a mess! And the Syrian mess will be just as bloody and violent and last just as long if we bomb Syria.

Let’s face it. With or without a violent U.S. response, the Syrian people are going to go through a lot of suffering over the coming years, certainly if al-Assad prevails and certainly during a continued civil war. It’s likely that the overthrow of the Syrian Ba’athists will produce a permanently fractured state like Iraq instead of the one strong (and hopefully pro-western) government for which we might all hope. It’s also possible that Syria may end up with another blood-thirsty strong man.

Maybe the Obama administration cynically figures that since things are going to be a mess in Syria anyhow, we might as well send a message to Iran and Russia and work off some our excess weaponry, so we can buy some more from American arms manufacturers.  That Real Politik strategy would certainly be more consistent with the last 75 years of American foreign policy than the moral imperatives that Kerry evokes. That Kerry was careful to tiptoe around international law lends proof to this supposition, as the United States doesn’t want to box itself into holding any other entity above its own sense of imperial entitlement, not even international law.

Thinking about the suffering of the 1,500 people who died of chemical poisoning makes me physically ill. It was a repulsive act that deserves to be met with world condemnation, economic boycott, increased support of those rebels willing to commit to a western-style democracy and a temporary rapprochement with Iran—anything we can do to destabilize the Ba’athists in Syria short of military action.

For your reading pleasure, a poem from OpEdge author’s book

I’m going to start posting one the poems from my book, Music from Words, every few weeks and tell you something about it. My hope is that some dear readers will buy one or more copies of the book. The best place to buy Music from Words is either from the publisher, Bellday Books or from Amazon or another online book store. You can also order it at virtually all brick-and-mortar book stores.

We start with “July Fourth,” the first poem in the book. “July Fourth” was published years ago in the literary journal Oxford Review, which also nominated the poem for a Pushcart prize.  The poem repeats the name, Joe Venuti, many times. Venuti was a jazz violinist who began performing before 1920 and was still at it in the early 1970’s. If you like the OpEdge blog or this poem, please buy Music from Words.

JULY 4TH

And the three-year-old at the picnic

said she wanted to play the violin

and I said, just like Joe Venuti

and she said, you’re a Joe Venuti

and I said, you’re a Joe Venuti

and she pulled a tuft of grass and said,

here’s some Joe Venuti

and she pointed to a sparrow scratching in the dust

and said, there’s a Joe Venuti

and from a plastic bag she dumped

a bunch of Joe Venutis

and barbecue flames caressed the grilling Joe Venutis

and men threw the Joe Venuti, popping their gloves,

while women slurped the Joe Venuti and spit the seeds

and the sun played hide and seek in dissipating Joe Venutis

and through poplar branches Joe Venuti shadows danced

across the baby’s sleeping smile.

 

Later, like Marcus Aurelius

observing models of human behavior,

we watched the ducks glide away

after the bread was gone.

–     Marc Jampole

Originally published in Oxford Magazine, Volume 5, # 2 (Spring-Summer 1989) and Music from Words (Bellday Books, 2007).

Invading or attacking Syria would be a big mistake America and the world would regret

Regime change. It sounds so bland, so calm. So scientific. So bloodless.

Here’s what it means: using force to take over another country and then impose a new set of leaders on it or a process guaranteed to produce a new set of leaders. It’s different from a revolution, in which an entire people overthrows the rule of government, which is what happened in Egypt in late 2010. When a small group takes over its own country, that’s a coup d’état, as in Egypt this year.

Some revolutions are good like the American revolution, and some don’t work out so well, and sometimes it starts well until someone bad seizes control of the revolution, e.g., France in 1789 and Russia in 1917.

But no matter what the Truman, Eisenhower, Kennedy, Johnson, Nixon, Ford, Carter, Reagan, Bush I, Clinton, Bush II and now Obama administrations may say—no matter how tortuous their reasoning—a coup d’état is never good and regime change by external forces is never good.

Some argue that all we have to do is make a pre-emptive strike and dismantle all of Assad’s jet fighters and his chemical arms capabilities. First of all, that’s easier said than done. Nicholas Jahr emailed me earlier today with this quote from CBS News: “The U.S. has huge military advantage, so there is little doubt cruise missiles could destroy targets ranging from command centers to launchers used to fire chemical weapons” and a sarcastic statement. It all sounds so familiar—didn’t we use similar words to underestimate the resources and overestimate the positive impact of a military move in Viet Nam, Iraq and Afghanistan.

Consider, too, that even if we could execute a surgical attack that wipes out Assad’s air force in a matter of hours, wouldn’t Assad rearm with the help of Russia, which certainly could use a foreign market for its military goods?

I’ve also read the argument that Assad is backed by Iran, so we can’t back down. This idea that invading or attacking Syria is a proxy for war with Iran is just crazy.  A much better approach is to deal directly with Iran and in a series of horse trades get them to drop Assad like a hot potato. There is much Iran and the United States could accomplish together if we were somehow able to repair the relationship. But if it can’t be repaired, shouldn’t we squirrel away all the resources we can for potential hostilities with Iran? Why dissipate resources on Iran’s proxy?

Using chemical warfare is horrible. But so is the use of drones and carpet bombing. So is torture.  So is mowing down innocent citizens who have gathered to protest. Where do you draw the line in terms of unacceptable behavior by government, behavior so heinous that it requires the world to invade and seek regime change? We knew about the forced famine in the Ukraine and did nothing. We knew what happened in Chile and not only did nothing, but provided aid to the perpetrators.

Then there is the question of what a U.S. led action will do to Syria. Many of those Syrians sitting on the fence about Assad may start to support him on principle. And we all know that the most likely leaders to replace Assad will be anti-American or will support a turn to conservative Islam or both. What could we possibly win?  Is there any scenario with any possibility of coming true in which the U.S. comes out ahead or in which a great deal of innocent blood is not shed? Keep in mind that the current borders of Syria contain large populations of Kurds, Armenians, Assyrians, Turks, Christians, Druze, Alawite Shias and Arab Sunnis.  Remember what happened to both Iraq and Yugoslavia after the demise of “strong man” government.

There must be some mix of economic sanctions we can still impose. The news that Assad used chemical weapons on his own people may move Russia finally to pressure the Assad regime. Even showering various rebel groups with weapons and money is a preferable option to attack or invasion.

I’m not up on the theories of the just war, but surely one criterion must be that the war has a possibility of achieving an outcome in keeping with the idea of justice and morality: to the western world, including the United States, that currently means a secular, free-market democracy ruled by mostly benevolent parties and leaders. There is absolutely no chance of such an outcome if the U.S. or a U.S. led ad hoc army invades or attacks Syria.

Another proof we need to tax the wealthy more: funds for investing in guitars & stamps

The market for collectibles is booming.  Be it luxury race cars, paintings, stamps, coins, vintage wines or classic guitars, wealthy people are willing to pay a lot more money than they used to for possessions imbued with special value by society or certain elite groups in society.  And why not? They have more money to spend thanks to wage stagnation and a low tax regime.

The climb in what the rich are willing to pay for a 1957 Ferrari or a Cezanne landscape has been precipitous. The Economist, for example, has put together a super index of various indices of luxury valuables. While the stock markets of the developed world have increased by 147% in the past ten years, the Economist says its “valuables index” has shot up by 211% during the same time frame.

The Economist also reports that companies are creating funds that invest in stamps, classic guitars, wine and equine blood stock (racing horses). That’s right—instead of investing in initial start-ups of solar and wind technology companies, rich folk can invest in funds that buy stamps or classic guitars and hope for continued inflation in these “valuables.”

Those who want to keep taxes on the wealthy at low levels always fall back on the old saw that wealthy people need all that money to create jobs.  But what jobs are created by bidding up the price of 50-year-old guitars or 75-year-old stamps?  None. It’s just an exchange of funds between wealthy folks who have nothing better to do with their money. They certainly aren’t investing it in creating jobs.

But the government would have a lot of things better to do with this money. It could increase unemployment and food stamp benefits, which would give money to people who would spend it immediately for goods and services, creating jobs to fill the additional demand. The government could spend it on fixing our highways and bridges and expanding mass transit, especially between suburbs and city centers, which would create jobs. It could subsidize research into alternative energy and more energy efficient technologies, which would create jobs. It could increase the number of government health, food, safety and environmental inspections, which would create jobs.

We’ve created jobs through government spending before. During the ‘50s and ‘60s when income taxes on the wealthy were much higher than today, federal and state government supported an expansion in higher education that made U.S. universities the envy of the world and a inexpensive bargain for students. During that high-tax era, we also built a wonderful interstate system of highways and improved public schools by reducing class size, hiring more specialist teachers and building state-of-the-art school buildings. As most readers will know, we now remember the ‘50s and ‘60s as an age of prosperity for most Americans. Taxes on the wealthy were not high then; they are too low now.

Thirty some odd years into the low-tax-on-wealthy regime started by Ronald Reagan, we have a crumbling transportation infrastructure, college education is becoming increasingly unaffordable, public pension plans are underfunded and states are throwing needy people off food stamp and unemployment insurance rolls. We have little money to invest in the technologies that will potentially save us from human-induced global warming and resource shortages. Public school districts are firing teachers everywhere. Mass transit systems are cutting routes and vehicles everywhere.

Was it worth destroying our social fabric so that the wealthy could have the money to pay more for an old painting?

I must admit that the frequent record purchases of art work and other valuables have made gossip and lifestyle columns much more interesting in our age of plutocratic conspicuous consumption. But in most other ways the country was better off when the rich paid more taxes.

Wall Street Journal gets history wrong in blaming college high costs on increased government aid

The Wall Street Journal has launched a campaign to convince the American people that increased government aid, especially under Obama, has caused the incredible rise in the cost of going to college.  In the same day, the false notion that increased government support of education is the real cause of the rise in tuition appeared twice in the Journal: in an editorial and in an Op/Ed interview of the director of the Center for College Affordability and Productivity (CCAP), which is funded by Project Liberty, a nonprofit organization with neither website nor mission statement.

It’s as ridiculously wrong as saying that blame for the real estate bubble belongs not on the banks that made bad loans, nor the investment bankers who sold these loans knowing they were suspect, but on the Clinton administration for making more money available for mortgage loans. In the case of the real estate bubble, the Wall Street Journal analysis was faulty because no federal official approved or suborned “liar loans” or selling bad paper to unknowing investors.

In the case of the high cost of college, the Journal and its columnists are trying to rewrite the facts of history. The federal government has made more money available—in loans more than grants—because the cost of college has skyrocketed. The high costs caused government to act.

I wonder of the Journal editorial staff believes that a fish makes a bear dip its paws in the river and eat it. Or that Stalin forced Hitler to invade the Soviet Union.

CCAP director, conservative economics professor Richard Vedder, does have a good point when he chides colleges for building expensive luxury dorms and climbing walls. I have a feeling that most parents would rather see their children in more modest surroundings, perhaps with fewer distractions from studying, and pay less in tuition and housing for their precious scholars. Keep in mind, though, that these colleges are not building these Taj Ma-Dorms for the poor and middle class who need to borrow, but for wealthy and upper middle class students.

Luxury amenities are trivial, though. By far the biggest reason college costs have gone up is because states are contributing less to them.  As the states have gradually cut back on support for education since the beginning of the Reagan era, college costs have ballooned beyond general inflation.

Even while the Journal editorial board blames the Obama administration, which began in 2009, for the 30-year rise in college costs, it finds room to denigrate intellectuals and the academic world. They do it in a transitional paragraph about the potential impact of the new college costs standards that President Obama wants to implement (FYI, I don’t think the standards are a good idea, but I disagree with the Journal’s reasoning):

“And we concede that this latest Obama regulatory onslaught couldn’t happen to a nicer bunch than the university elite who did so much to elect him. But while shifting control of universities from lefty professors to the U.S. Department of Education may seem like a transition between six and a half-dozen, it is not.”

I’m willing to believe the Journal when it implies or states that left-wingers people academia. Certainly virtually every scientist has liberal or left-wing views favoring evolution and human-caused global warming. Moreover academic studies in economics and sociology routinely disprove the myths espoused in the Wall Street Journal. Yes, there has been an enormous net transfer of wealth from the poor and middle class to the wealthy over the past 35 years though tax policy, privatization and union-bashing. Yes, a poor child is less likely to rise to middle class or wealthy status in the United States than virtually any other developed country. No, raising taxes on the wealthy does not destroy jobs, it creates jobs.

So many of the principles of the free market that the Wall Street Journal and its contributors promulgate have been proven false by serious objective academic research. It’s no wonder the Journal and other mass media outlets actively mock and scorn academics whenever they get a chance, be it snide side remarks in editorials or the many geekish, snobbish and ineffectual academics in mass entertainment like ”Fraser” and “The Big Bang Theory.” The believers in the religion of the unregulated free market don’t have the facts on their side, but they do control most of the ink.

 

 

 

Left-leaning economic columnist Eduardo Porter swallows nuclear power Kool-Aid

Eduardo Porter usually gives a reasoned argument on economic problems and it usually leads to a left-leaning solution such as raising taxes on the wealthy or more government investment. He generally approaches the myths of mainstream and conservative economic writers with a clear head.

It was therefore surprising to read Porter on the front page of The New York Times business section advocating for the increased use of nuclear generated electricity as the solution to the twin challenges of human-induced global warming and resource shortages.

Porter effortlessly runs through all the usually facts about the absolute need to reduce carbon emissions even in the face of rapidly increasing global demand for energy. But his argument hinges on a study that he says was conducted by the Organization for Economic Cooperation and the International Energy Agency that found that a nuclear generator could produce power at $50-$75 per megawatt/hour, compared to $70 to $90 for coal-generated electricity and in the hundreds of dollars for solar.  Porter conveniently forgets to tell us that Nuclear Energy Agency (NEA) was also involved in the study, but a link thankfully provided by the New York Times gives us that information. By the way, NEA is an international organization whose mission is to “assist its member countries in maintaining and further developing, through international co-operation, the scientific, technological and legal bases required for the safe, environmentally friendly and economical use of nuclear energy for peaceful purposes.” In other words, it’s a shill for the nuclear industry. It is shocking and disappointing to see a reporter I respect stoop to concealing the source of the statistics he uses!

There is so much wrong with his analysis and his use of these statistics that I don’t know where to begin.  The study itself is open to question because it uses very favorable assumptions for nuclear when it comes to construction costs and interest rates. These assumptions don’t take into account the fact that the world has still not developed a viable way to store or neutralize spent nuclear fuel, which will spew radioactive poisons into the environment for thousands of years.

Beyond these figures which aren’t quite facts, Porter makes a number of assumptions that are questionable:

  • Like so many conservatives, he acts as if electricity delivered on a national grid is the only kind of energy that matters. Not true. For example, solar energy can heat the rooms, food and water house by house for much of the year in much of the world. Solar energy could also be used in neighborhood units that supply electricity to blocks or neighborhoods (and are connected to the holy grid).
  • He assumes that tax and regulation cannot be used to “level the playing field.”  Again quoting the Nuclear Energy Agency study, Porter says that even if a tax of $30 per metric ton of carbon dioxide were placed on coal and natural gas, it would still be cheaper than wind and solar. Why that arbitrary number? Why couldn’t we tax carbon emissions as much as necessary to make solar and wind competitive?  Right now society and every individual that suffers from a pollution-related disease or a weather disaster are paying the social cost of keeping coal-generated electricity cheap. That’s the way it used to be with cigarettes, too, with society paying the cost of lost productivity and increased illness among smokers. Now we tax the hell out of cigarettes and there is no reason why couldn’t do the same with carbon emissions.
  • Porter doesn’t even discuss the possibility of catastrophic nuclear accidents such as what happened at Kyshtym (in 1957), Three Mile Island, Chernobyl and Fukushima. What he says is that younger environmentalists “don’t associate nuclear power with Chernobyl and the cold war.”  I’m not sure what the cold war has to do with anything (except that the original reason that Truman selected nuclear over the solar option in the early 50’s may have been that he was enamored with dropping bombs). But anyone who doesn’t associate nuclear power with Chernobyl is an idiot, and in Porter’s world, probably a fictional character.  Porter underestimates the justifiable fear of a nuclear accident that people feel.

Porter ends his radioactive polemic with a cry that we have to get started approving nuclear power plants now if we want nuclear power to play a leading role in combating climate change, because it takes 10 years and $5 billion to build each plant. It would be far better if that money were spent on perfecting solar and wind technologies and in priming the market for these alternative technologies with tax breaks and government purchases.

Coincidentally, this week also brought word that Fukushima is leaking poisoned water again. The many nuclear accidents, the one major catastrophe about every 10-15 years and the lack of a place to store all the poisonous byproducts makes nuclear generation of electricity a failed technology. It replaces one environmental horror story with another.  Instead of pouring more money into the nuclear cesspool, we should launch a major effort to accelerate development of alternative energy and technologies that use less energy, while promoting conservation and making the changes to our infrastructure that will reduce our dependence on fossil fuels, e.g., increase mass transit.