College Graduates Punished by Economic Policy

Make no mistake about it, college graduates aren’t getting the short end of the stick just because of the economy. The policies of the Federal Reserve and the rest of the government are designed to create wage discipline, a fancy term for downward pressure on wages. This wage discipline as a deliberate policy is now more than thirty years old and the results are easy to see. We have college professors paid slightly more than McDonald’s workers. We have airline pilots who make a little more than twenty thousand dollars a year while flying as much as seventy-two hours a week. I’m sure you can think of more examples.

But these crippling salaries are just the beginning of problems. Studies show that when you start out working beneath your education, your salary never recovers.

And so, it seems, that today’s generation is less likely to make as much as their parents regardless of education or ability.

Is that really what we want for our young people and our nation?

James Pilant

College Graduates Are Increasingly Likely To Work Low-Quality Jobs | ThinkProgress

Today’s recent college graduates are more likely to work in jobs that don’t require a degree, pay little, and are part-time than in the past, according to new research by the Federal Reserve Bank of New York.

While it is common for graduates to work lower quality jobs right out of school and move up the longer they keep working, the share who find themselves in this position has risen while the quality has dropped. The underemployment rate, or the rate of graduates working jobs that don’t require a degree, has risen since 2001 and jumped sharply after the recession to the point where 44 percent were in these jobs in 2012. This “suggest[s] that it has become more difficult over the past decade for recent college graduates to find jobs that utilize their degrees,” the authors note.

Even worse, these non-college jobs are more and more likely to pay poorly. Well paid jobs that don’t require a degree, such as electricians, dental hygienists, or mechanics, are those that pay an average of $45,000 a year. Low-paid jobs, on the other hand, such as bartenders, food servers, and cashiers, pay below $25,000 on average. The authors report that “the share of underemployed college graduates in good non-college jobs has fallen sharply, while the share working in low-wage jobs%

via College Graduates Are Increasingly Likely To Work Low-Quality Jobs | ThinkProgress.

Banks Get 60%, Retirees get 20%

And the banks helped create the problems through one sided deals with the Detroit. If anyone deserves a smaller cut, it’s the people who harmed the city not those who made life bearable for the citizens.

James Pilant

Judge Rules Detroit Is Trying To Give Banks ‘Too Much Money’

While the $300 million debt involved in Thursday’s decision is a tiny fraction of the city’s overall debt burden, the specifics of the debts involved here make this deal central to emergency manager Kevyn Orr’s plans for bringing Detroit out of bankruptcy. They come from a deal made by corrupt, jailed ex-Mayor Kwame Kilpatrick (D). Kilpatrick entered into risky deals that went bad, and because Kilpatrick used revenue from the city’s casinos as collateral for the loans, the banks have been able to keep Detroit from making use of casino money throughout the bankruptcy proceedings. A deal to resolve the interest rate swaps with UBS and Bank of America would bring that casino cash back into city hands, potentially financing much-needed quality-of-life improvements for city residents.

Orr first tried to pay the banks roughly 80 cents on the dollar to clear the debts. When Rhodes rejected that deal, Orr’s team came back with a revised proposal to pay 60 cents on the dollar for the debts. The same group of decision makers has proposed paying the city’s retired workers less than 20 cents on the dollar of what they are owed in pensions and health care benefits. Retirees told ThinkProgress that the health care cuts Orr proposes would leave some of them choosing between food and prescription medications, while others have%2

via Judge Rules Detroit Is Trying To Give Banks ‘Too Much Money’.

Unpaid Internships, A Career Pathway for the Wealthy

The scourge of unpaid internships must stop. It’s give an enormous advantage to those with the money to live without income. It’s a slap in the face to every highly skilled motivated American who has to pass on these opportunities they lack inherited wealth or well placed families.

These are jobs, period. Most of us can’t work for no money. But these jobs provide vital contacts for later careers specifically politics and lobbying.

Essentially these are an extension of the charmed lives of the children of the wealthy, you know, the pompous fools proclaiming they got everything they have through hard work and intelligence when their every move was cushioned by private and public wealth. It is an ongoing somber warning to the 99% that you are not a player in this game.

It’s time for this practice to end and that the Obama White House continues to do it is not surprising. This administration is just as wired into the system of the malefactors of great wealth as any previous administration.

Let’s have a real system of interns made up of the best and brightest of those in our colleges and universities. Ability and competence are common characteristics among this great people, the Americans. Surely we can set up a program where college students can compete on the basis of ability not birth.

James Pilant

How the young elite rise in Washington, D.C. – Salon.com

What do you call an employer that refuses to pay its workers any salary at all? Answer: The White House.

President Barack Obama has called for an increase in the U.S. minimum wage. And yet his administration expects hundreds of young people each year to work at the White House for an hourly wage of zero.

…

The Obama administration, like previous administrations, allows rich parents in effect to buy résumé-enhancing jobs in the public sector for their upper-class offspring. The sale of public offices to rich families was one of the abuses of the Ancien Régime that helped to inspire the French Revolution. Like that corrupt premodern practice, unpaid internships are an inherently aristocratic institution. If you are in your late teens or early twenties, and you don’t have a personal trust fund or rich parents who can fund your living expenses as an unpaid intern in Washington, D.C., New York or San Francisco, then you are out of luck.

When I say rich kids, I mean really rich kids. We’re talking One Percenters. Even many upper-middle-class parents with professional jobs might not be able to subsidize children with unpaid internships at the White House, Washington think tanks or New York publications and media enterprises.

Because my own parents were not rich, in my twenties I could never have afforded a job as an unpaid or poorly-paid intern at any of the magazines for which I once worked in my thirties as a writer or editor — the New Republic, Harper’s Magazine or the New Yorker.  Indeed, it was my unscientific impression that the interns at these publications were much richer, in their twenties, thanks to family wealth, than most of the middle-aged editors and writers. An intern at one magazine had a party for the magazine staff at her two-story Midtown Manhattan apartment.

Unpaid internships have the effect, if not the intent, of providing the children of the super-rich with major advantages over the children of the lower 99 percent in the job market after college. Imagine what a benefit a White House internship is on a résumé. Too bad that benefit is not available to poor, working-class, middle-class or even upper-middle-class Americans, unless they are lucky enough to find an outside sponsor to pay the wages that the Obama administration refuses to pay.

It’s bad enough that elite institutions like magazines and think tanks ration opportunity by discriminating in favor of the sons and daughters of the One Percent by means of unpaid internships. A president who engages in this practice sends a signal to all other employers in the United States: As long as you call a job an “internship” you are free to discriminate against the majority of Americans who were not born into the upper class.

via How the young elite rise in Washington, D.C. – Salon.com.

Not Sure that New Regulations are Needed?

Remember the old joke about the mule.

A farmer buys a mule. The seller tells him when he wants the mule to go forward to yell, “Go Mule.” The farmer takes the mule out in the field to plow, and the mule refuses to move. He yells “Go Mule” repeatedly with no effect. So, he goes and gets the seller, and tells him the command to move isn’t working. The seller picks up a great big board and hits the mule between the eyes, then he says, “Go Mule,” and the mule goes.

The seller turns to the farmer and says, “First, you have to get his attention.”

How hard do you have to hit the public between the eyes before you get their attention? How can you in the wake of this disaster think that regulations as they stand now are “about right?” And what kind of denial do you live in, if you think there were too many regulations in the first place?

James Pilant

Americans Split On New Regulations After West Virginia Chemical Spill

Fifty-one percent of Americans in the new poll said that the government should do more to regulate companies that use, manufacture and store chemicals, while 30 percent said current regulations on those companies are about right and 7 percent said the government should do less. And 50 percent said the government should do more to regulate the safety of the public water supply, compared to 34 percent who said current regulations are about right and 5 percent who wanted less regulation.

…

The poll comes after 7,500 gallons of 4-methylcyclohexane methanol, a chemical used to clean coal, spilled into the Elk River in West Virginia earlier this month, leading to a prohibition on tap water in nine counties for about a week and forcing schools and businesses to temporarily close.

via Americans Split On New Regulations After West Virginia Chemical Spill.

The Freedom to go Bankrupt?

Freedom Industries, its title apparently a hymn to free market fundamentalism, has decided to cash it all in. It’s a wonderful story of the free market in action. According to free market fundamentalists when a company does “bad” things, its customers will punish it by not buying its product and it will go out of business. This will be far more efficient and effective than government regulation; so, we shouldn’t have any. Just let the free market do its wonderful magic.

Well, this situations is just wonderful! It’s a perfect example. We can actually watch the free market in action, and see how much more effective than silly government regulation it is.

Freedom Industries does some seriously messed up stuff to 300,000 people and is held to account by its customers. Well, actually no, it declared bankruptcy and unless you think that is penalty enough (and I don’t) I’d have to say the free market isn’t doing much for us here. Because under free market fundamentalism, that is the maximum penalty.

Under free market fundamentalism, the company could have killed those three hundred thousand people, razed their homes to their ground and poured toxic wastes on their collective graves, and the company’s demise through bankruptcy would be the punishment.

Does that sound fair to you?

Right now, a poll shows a divided opinion on whether or not we should have more regulation. I don’t get it. What kind of example do you need before you get the idea that if you don’t regulate you get just this situation or worse? Hundreds of thousands of people turned on their faucets and out came toxic waste. Are they of no importance compared to the need of industry to make profit?

Do you know what the name of the company should have been?  – Freedom to Dodge Responsibility, Inc. Now, we, Americans, have to decide if that is where the story ends. Are we going to do more regulation or are we going to close our eyes, and hope the free market fixes things.

How’s the free market solved the problem so far?

James Pilant

Freedom Industries, Company Behind West Virginia Chemical Spill, Files For Bankruptcy

The company behind the massive chemical spill that made tap water unsafe for more than 300,000 West Virginians has filed for bankruptcy, according to documents obtained by The Huffington Post.According to bankruptcy filings, Freedom Industries, wholly owned by Chemstream Holdings Inc., filed for Chapter 11 bankruptcy on Friday. Freedom Industries owns the storage facility responsible for leaking up to 7,500 gallons of 4-methylcyclohexane methanol a coal-cleaning chemical also known as crude MCHM into West Virginias Elk River. Hundreds of thousands of people in nine counties were given orders not to use water for bathing or drinking for days as the company scrambled to clean up, exposing disturbing vulnerabilities in the water supply and a lack of data about hazardous chemicals and where theyre stored. A second site owned by the company was also cited for safety violations shortly after the spill.

via Freedom Industries, Company Behind West Virginia Chemical Spill, Files For Bankruptcy.

The Ethics Sage Looks at College Athletics

Steven Mintz, the Ethics Sage, and my friend has taken on the topic of whether or not our college athletes are actually getting an education. As always, I recommend you go to his site and read the whole thing as well as putting it on your favorites.

James Pilant

Are Colleges and the NCAA failing our Student-Athletes? – Ethics Sage

Looking beyond Willingham and the UNC case, NCAA sports are big business, with millions of dollars at stake for winning programs. The NCAA oversees the behavior of institutions and puts schools on probation for gross violations of the code of conduct, such as recently happened to USC, Ohio State and Penn State. Why should it turn a blind eye at recruiting standards for athlete-scholars and graduation rates? If the NCAA can oversee the way in which college sports programs are organized and run, why not impose penalties on schools with a graduation rate below standards? Of course, the devil is in the details because a school can simply graduate a college-athlete without holding him to the same standards as other graduates.

via Are Colleges and the NCAA failing our Student-Athletes? – Ethics Sage.

The Technological Revolution isn’t just a Technological Revolution

Is modern technology making oligarchy more difficult? It is harder to maintain thought control over a population equipped with the latest gadgets?

I would like to think so. Can these be used to inform the public of business ethics violations and can it cause problems for errant corporations that their bloated PR budgets can’t fix? I don’t know but I bet there are people sweating these new developments.

Jan Huss knew the power of people and the power of words. His followers changed the nature of warfare by using firearms and circled wagons against the heavily armored knights of the time. The power of an informed and aroused population is incredible. Electronics may be the new firearm when it comes to modern revolution, and may we have the luck and conviction that no matter what has been done in the name of money, that these changes be peaceful.

James Pilant

Using Skyfall to Fight Back Against Kim Jong-un | James Jones

Kim Jong-un\’s regime recognizes the threat posed by people like Jeong, and has reportedly been sending security forces house to house, searching for illegal DVDs. Last November, he reportedly ordered the execution of as many as 80 people, some for watching foreign television.

But the formula that has sustained the totalitarian dictatorship — keeping its people isolated and afraid of the outside world–is being challenged by a tide of popular culture and new technology. Along with DVDs and thumb drives, cell phones are now proliferating in North Korea. It\’s illegal to modify them to call out of the country — but using Chinese SIM cards, some North Koreans are taking that risk. They\’re using their phones to communicate with family members who have escaped and over the phone recount their stories about the outside world.

And as footage secretly filmed inside the country and smuggled out for this week\’s FRONTLINE documentary shows, some North Koreans are privately questioning the legitimacy of the Kim dynasty itself, and publicly challenging authority in ways unimaginable a decade ago.

via Using Skyfall to Fight Back Against Kim Jong-un | James Jones.

Jack Kingston Eats Well!

What can you say? The man eats on the public dime but just hates it when children do. Scary.

James Pilant

9 worst right-wing moments of the week — polar vortex edition – Salon.com

A little while back Rep. Jack Kingston from Georgia was eager to teach the poor children of his state the lesson that “there is no such thing as a free lunch.” Not for them anyway. He helpfully suggested they be required to do some janitorial work in the cafeteria for their subsidized lunch. Well, new development: it turns out that there is such thing as free lunches, if you are Jack Kingston.

An investigation by Georgia’s WSAV Channel 3 found that Kingston, who is currently running for Senate had expensed as much as $4,182 worth of lunches for his office over the past three years, the equivalent of about 2,000 free lunches.

Want a little hypocrisy with those mashed potatoes?

via 9 worst right-wing moments of the week — polar vortex edition – Salon.com.

Testosterone Fueled Stupidity Gets Bad Rap!

In the past, men could be men, cruel, powerful, obnoxious, bad behaving bullies, and now it’s all gone. Damn those feminists. We men have had enough! Okay, okay, that’s about as much satire as I can manage this morning.

Here’s the deal, Brit Hume longs for the good old days. I don’t. Christie is a bully. That makes him a bad person. It doesn’t matter whether the world is “feminized” or not, he’s still behaving badly.

As for bad male behavior, read the news. It’s all over the place.

If we could export testosterone, the trade deficit would be gone in a minute.

James Pilant

Hume shocks Lauren Ashburn, blames ‘feminized atmosphere’ for making Christie a ‘bully’ | Crooks and Liars

Fox News analyst Brit Hume on Sunday said that New Jersey Gov. Chris Christie (R) had only gotten a reputation for being a bully because men could not be \”masculine and muscular\” in the \”feminized atmosphere\” created by the media.

During a panel discussion on the Fox News show Media Buzz, host Howard Kurtz asked if Christie\’s \”bully image\” was hurting him after his administration was accused for closing part of the busiest bridge in the world to hurt his political opponents.

\”I have to say that in this sort of feminized atmosphere in which we exist today, guys who are masculine and muscular like that in their private conduct and are kind of old-fashioned tough guys run some risks,\” Hume opined.

\”Feminized!\” Fox News contributor Lauren Ashburn gasped.

\”Atmosphere,\” Hume nodded. \”By which I mean that men today have learned the lesson the hard way that if you act like kind of an old-fashioned guy\’s guy, you\’re in constant danger of slipping out and saying something that\’s going to get you in trouble and make you look like a sexist or make you look like you seem thuggish or whatever. That\’s the atmosphere in which we operate.\”

\”This guy is very much an old-fashioned masculine, muscular guy,\” he added. \”And there are political risks associated with that. Maybe it shouldn\’t be, but t

via Hume shocks Lauren Ashburn, blames ‘feminized atmosphere’ for making Christie a ‘bully’ | Crooks and Liars.