Category: Education in America

How Do You Solve a Problem Like Ohio?

Our industrial heartland has withered away, in that there are fewer manufacturing jobs than ever, while manufacturing revenues have never been higher. Forty years of promises by politicians have come to nothing: These people are victims of a world order in which corporations have either exported or automated those jobs, with no responsibility to workers. It is left to the towns of Middle America and the federal government to clean up their mess.

This world order we live in today was born in 1980, with Thatcher and Reagan. According to Ian Welsh, the world order made a few core promises:

If the rich have more money, they will create more jobs.

Lower taxes will lead to more prosperity.

Increases in housing and stock market prices will increase prosperity for everyone.

Trade deals and globalization will make everyone better off.

Those promises were not kept, and in America’s Midwest, economic stress is now the order of the day. That stress has contributed to rising rates of drug addiction and falling life expectancy.

Understandably frustrated, Ohioans and other Midwesterners gave Donald Trump a victory in November. His win has refocused attention by pundits and pols on the plight of our failing de-industrialized areas. While we have economic growth, we also have growing inequality. Here is a graphic illustration of the problem, comparing the US with the EU:

The Economist reports that from 1880 to 1980, the incomes of poorer and richer American states tended to converge, at a rate of nearly 2% per year. The chart above shows that the pattern no longer exists. This causes us to ask if the shift of resources and people from places in decline to places that are growing is simply taking longer to adjust, or has the current world order failed our people? In econo-speak, the gains in some regions should compensate those regions and towns harmed by the shift, leaving everyone better off.

But that is a political and financial lie promulgated by the very corporations that benefited, and by their political and economist cheerleaders.

With economic decline, some towns and cities became poverty traps. A shrinking tax base means deterioration in local services (think Detroit). Public education that might provide the young with new skills and thus opportunities, fails. Those that remain are on government subsidies or hold low-wage service jobs, or both. It is impossible to tell these citizens that the decay of their home town is an acceptable cost of the rough-and-tumble of the global economy.

Politicians are short on solutions. Since housing costs have risen sharply in towns and cities that are growing, underemployed Americans are less likely to move, and those who do, are less likely to head for richer places. Enrico Moretti of the University of California, Berkeley and Chang-tai Hsieh of the University of Chicago argue that our GDP could be 13.5% higher if this wasn’t the situation in America.

But if moving isn’t an option, what can be done to improve the outlook for those who are left behind?

Would more government subsidies help? Prosperous tax payers already support poorer ones. Subsidies for health insurance costs with Obamacare, as well as industrial tax incentives provide some cushion, but they are not likely to deliver long-run economic recovery, and they have not stemmed the growth of populist political sentiment.

To be fair, many people in Ohio and elsewhere want good jobs, but without having to move too far to get them. That may be impossible.

In the 19th century, the federal government gave land to states, which they could sell to raise proceeds for “land-grant universities”. Those universities, including some that are among our finest, were given a practical task: to develop and disseminate new techniques in agriculture and engineering. They went on to become centers of advanced research and, in some cases, hubs of local innovation and economic growth.

Politicians and academic economists might disdain a modern-day version of the program, one that would train workers, foster new ideas, and strengthen weakened regional economies.

But if our politicians do not provide answers, our populist insurgents will.

Time for a Christmas song. Here is Elvis with “Santa Claus Is Back in Town & Blue Christmas”, from his comeback special on NBC. This was recorded over six days in June, 1968 and aired on December 1, 1968. Elvis flubs “Santa Claus is Back in Town”:

https://www.youtube.com/watch?v=WgLpMwkfOgw

Despite his flub, he does get this line right:

“You don’t see me comin in no big black Cadillac”

Kind of like out-of-work Ohioans.

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Capitalism Is Past Its Sell-By Date

“This is a government of the people, by the people, and for the people no longer. It is a government of corporations, by corporations, and for corporations…” – Rutherford B. Hayes (March, 1888)

Nearly 130 years ago at the height of the Gilded Age, President Hayes had it right. Capitalism then was an economic free-for-all. Today, capitalism again is rewarding too few people. And data show that the problem is worse than we thought. The WSJ reported on a study by economists from Stanford, Harvard and the University of California that found:

Barely half of 30-year-olds earn more than their parents did at a similar age, a research team found, an enormous decline from the early 1970s when the incomes of nearly all offspring outpaced their parents.

Using tax and census data, they identified the income of 30-year-olds starting in 1970, and compared it with the earnings of their parents when they were about the same age. In 1970, 92% of American 30-year-olds earned more than their parents did at a similar age. By 2014, that number fell to 51%. Here is a chart showing the results:

wsj-30-year-olds-make-less

And we know that real median household income in the US today is basically the same as in 1989. The paper doesn’t provide specific reasons for the decline in incomes for younger Americans, but it generally blames slower economic growth and, especially, the rapidly widening income gap between the top 20% and the rest of society.

They found that the inability of children to out-earn their parents is greatest in the Midwest. This underlines that those who voted for Trump have a point: The Midwest has been hit harder by import competition, especially from Japan and China, and by technological changes, than other regions of the US.

When looking only at males nationally, the decline is even starker: In 2014, only 41% of 30-year-old men earned more than their fathers at a similar age.

There are some issues with the study worth mentioning: Most kids born in the 1940s did well in their thirties, maybe because their parents were 30 during the Depression and WWII. By the 1960s, an industrialized economy brought significantly higher wages to 30 year olds. A high denominator in the ratio of parent’s income to child’s income (compared to the past) made it more difficult for succeeding generations to exceed their parents’ incomes.

The economy also has shifted in the past 30 years and is now service-based, as factories moved overseas, and automation became prevalent. This change swapped higher wage manufacturing jobs for mostly lower wage service jobs. That alone could make it all but impossible for young adults to hit the ratios that their parents did relative to their grandparents.

Maybe the American Dream didn’t die; it just never really existed in the sense of broadly-based income mobility. Have another look at the chart, upward mobility (as measured by making more than your parents) has been declining since the mid-1940s.

Why? Between rising globalization and rapid advances in automation, we now have more people than jobs. And no matter whom we elect, this trend will continue. Those manufacturing jobs are never coming back. Even in China, robots are now displacing workers in factories.

We don’t need “good paying manufacturing jobs”; we need good paying jobs.

This is the most serious challenge capitalism has faced in the US. Without improving personal income, there will be fewer who can afford college, or afford to buy the things that capitalism produces. Low personal income growth puts sand in the gears of our economy.

The left offers a critique of contemporary global capitalism but no real practical alternative. Neither does the right, but their memes of America First, nostalgia for a golden (gilded?) age, and more tax cuts seem like less of a stretch than a Bernie Sanders-like frontal assault on capitalism.

No one in either party has a plan for a world in which robots displace the demand for labor on a large scale. And the under-30 cohort is now spending at least 4 times more (in the case of Wrongo’s university, 10 times) for a college education than what their parents paid, and they are earning less.

If people matter at all to our leaders, and if 90+% of them lack the means to live without working, America must make employment our top priority, despite the fact that many have been deemed redundant by capitalists in the private sector.

Surplus labor drives the price of labor down; allowing the employer class to afford a pool boy, or a nanny, or another cook.

And it makes the waiters more attentive to Mr. Trump.

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Monday Wake Up Call – December 12, 2016

“The American Dream: You have to be asleep to believe it.” – George Carlin

According to the College and University Food Bank Alliance, there are now 400 food banks in colleges and universities in the US. Four years ago, when the organization began, it only had 15 members.

Many students experience hunger. While the economy has rebounded, the cost of college continues to rise faster than median family income. The average total costs rose 10% over the past five years at public colleges and by 12% at private institutions, while median family income rose 7% over the same time period.

A new report shows that the college campus hunger problem is bigger than we thought. It surveyed more than 3,000 students at a mix of 34 community and four-year colleges, finding that 48% experienced food insecurity in the past 30 days. The data suggest that hunger is more common among college students than the US population as a whole. The study found that:

 56% of food insecure students were currently employed, more than half received a federal grant, and 18% had received a private scholarship. These are kids who are doing the right thing, but they continue to fall behind.

One reason that colleges and universities have felt the need to take student hunger upon themselves is that the US Congress has been feckless in providing solutions to college student hunger.

Legislation on Pell Grants are the responsibility of the Education and Workforce Committee, but when it comes to the Supplemental Nutrition Assistance Program (SNAP), those bills go through the Committee on Agriculture. That makes it more difficult to get a comprehensive policy enacted.

One example: Representative Bobby Scott, (D-VA), added an amendment to the Child Nutrition Act that would have expanded the National School Lunch Program to help college students. Students who qualified for financial aid would also qualify for subsidized lunches, according to the legislation. But when the amendment was considered by the House Education and Workforce Committee, it failed to pass.

This is part of a wider problem of food insecurity. The economy may be improving, but many Americans who were hit the hardest have yet to see any improvement. In fact, in 2015, 42.2 million Americans lived in food insecure households, including 29.1 million adults and 13.1 million children. Households with children reported food insecurity at a significantly higher rate than those without children, 17% compared to 11%.

It is doubtful that this problem will be solved by the new Congress and the Trump administration.

The idea that people should work hard, pull themselves up by the bootstraps while going into debt to attend college, and then not be able to eat, despite holding down a job while they study, shouldn’t be acceptable just because our Tea Party overlords would like to watch a Darwinian test.

Virtually everything said about poverty in America is essentially about moral failure. For liberals, it’s society’s failure. For conservatives it is the moral failure of the poor. Centrists say it is the failure of institutions and individuals together in a complex combination.

Poverty violates core American values. It challenges the American dream of a promise of prosperity for anyone who works hard, something that is a central tenet of our national ethic. Here we have kids working hard and needing support to eat.

Time to wake up Congress! This is the kind of problem that shouldn’t have any opposition, but it does. To help our well-fed Congress critters wake up, here is “American Tune”, by Paul Simon from his 1973 album “There Goes Rhymin’ Simon”. In this video Paul rocks a Freddy Mercury-esque mustache as was the style in the early 1970s:

For those who read the Wrongologist in email, you can view the video here.

Simon sings about the American Dream, from the Mayflower to “the ship that sailed the moon” (the Apollo moon landing) and says “you can’t be forever blessed”. His point was that America had reached the height of human achievement, but then, we squandered our gifts.

How prescient for 1973!

Sample Lyrics:

Many’s the time I’ve been mistaken, and many times confused
And I’ve often felt forsaken, and certainly misused.
But it’s all right, it’s all right, I’m just weary to my bones
Still, you don’t expect to be bright and Bon Vivant
So far away from home, so far away from home.

I don’t know a soul who’s not been battered
Don’t have a friend who feels at ease
Don’t know a dream that’s not been shattered
Or driven to its knees.
But it’s all right, all right, We’ve lived so well so long
Still, when I think of the road we’re traveling on,
I wonder what went wrong, I can’t help it
I wonder what went wrong.

We come on a ship we call the Mayflower,
We come on a ship that sailed the moon
We come at the age’s most uncertain hour
And sing the American tune
But it’s all right, it’s all right
You can’t be forever blessed
Still, tomorrow’s gonna be another working day
And I’m trying to get some rest,
That’s all, I’m trying to get some rest.

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Sunday Cartoon Blogging – December 11, 2016

We are seeing the shape of Trump’s cabinet, and it’s clear that we will soon be working for idiots who used to be in sales. So, it’s time for some definitions: What are Kleptocracy and Kakistocracy?

Kleptocracy is a government where the rulers (kleptocrats) use their power to exploit the people and natural resources of their country in order to extend their personal wealth and power.

Kakistocracy means a state or country run by the worst, least qualified, or most unscrupulous citizens. The word comes from the Greek words kakistos (worst) and kratos (rule), with a literal meaning of government by the worst people.

Posted for your reference, in case something happens after January 20th that requires you to know about either term.

Trump’s commitment to renewable energy was on display in his Boeing tweet:

cow-hot-air-force-1

His cabinet, er, his junta:

cow-general-election

We’ve had high-ranking military men serve in high positions in our government since the beginning of the country, starting with George Washington through Andrew Jackson, Ulysses S. Grant, Dwight D. Eisenhower, through Colin Powell.  But Trump is surrounding himself with an awful lot of them, and some of them have had issues with both their temperament and civil liberties. Just like the man hiring them.

Any issue with so many generals? The NYT offers this:

cow-7-days-in-may

Man of the Year is questioned, but it is real my friends:

cow-time

 

 

 

 

 

 

 

 

 

Trump’s EPA will be his undoing in the next election:

cow-mistletoe

Pearl Harbor is hardly remembered:

cow-pearl-harbor

It’s another Family of Trump voters having quality time at home. Never have so many known so little about so much.

I’m stepping through the door, and I’m floating in a most peculiar way…and the stars look very different today:

cow-john-glenn

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Trump Promised Jobs. That’s Why He Won

Take a good look at this map. It shows which counties switched parties in the 2016 US Presidential election compared to 2012. Red counties switched from Democrat to Republican, blue counties switched from Republican to Democrat and the vast majority in grey did not switch parties:

counties-that-changed-partys

Source: Brilliant Maps

Of course, it doesn’t show vote margin or size of the total vote in each county. The main thing this map shows is the large number of counties in the North East and Midwest that flipped to Trump, after having been Democratic counties in the prior election. The effect was large enough to deliver the normally Democratic leaning states of Iowa, Michigan, Pennsylvania, and Wisconsin into the Republican camp.

Tim Duy has an article about how economists and most politicians get so wrapped up that they miss the human element in economic dislocations. Duy makes the point that they ignore two of the negative impacts of job losses. First, they say how lost jobs free up human capital for use elsewhere in the economy. Of course, as jobs are added to the economy, skill levels and training determine whether laid-off workers are part of that equation.

“High-skilled” workers is what we need, but they are not always the kind of workers that were laid off.

Second, Duy reminds us that most workers have little ability to move to where better jobs might be found. Politicians tell us that the economy is shifting to urban and suburban areas; to higher skilled jobs; that workers must go and get retrained. That misses the point.

Most new jobs for those who were laid off will only be found if workers are able to relocate, to move from rural or devastated urban locations to geographic areas where jobs are expanding. Duy notes it is particularly difficult for rural areas:

The speed of regional labor market adjustment to shocks is agonizingly slow in any area that lacks a critical mass of population…Relative to life spans, in many cases the shocks might as well be permanent.

We don’t have answers for most of these communities. Rural and urban economic re-development is hard. The people living in these regions have experienced job losses (or no jobs growth) for decades; positive jobs growth has occurred elsewhere.

And the laid-off workforce isn’t mobile. In effect, we have limited access to housing in our major cities by pushing housing costs beyond the reach of most middle class workers. This, from Kevin Erdmann:

If you lost your manufacturing job in Buffalo, and you’re thinking of moving to New York City because there are more jobs there, you might decide not to move because it is too expensive. It is the affordability that is keeping you out. But, even here, the affordability problem is just the messenger. It is the rationing mechanism for a housing stock that is relatively fixed for political reasons.

If you decide to move to the NYC area, you see that the housing supply is largely fixed. New buildings are hard to get through zoning. Construction costs in big cities are very high. Income taxes are rising rapidly.

Erdmann makes the point that housing in big cities doesn’t move up with increased demand:

So, it doesn’t matter if Brooklyn apartments rent for $500, or $1,000, or $2,000, or $4,000. There isn’t one for you. Fixing this by fixing affordability isn’t going to change the supply curve. It’s simply substituting non-monetary rationing mechanisms for the monetary one.

Trump’s message that US firms need to consider domestic jobs as much as their bottom line, also resonated with middle and upper-middle class households. OTOH, it’s not like Trump took on the Coal Industry on behalf of workers. He blamed federal environmental policy, but that isn’t what caused the loss of coal industry jobs.

Trump doesn’t really have any answers, but he pretends to care while pretending to have answers. Pretending to care and pretending to have answers gave him the switched counties on the electoral map above. People want work. They want secure jobs.

Trump might be running a “jobs” scam, but if it fails, what is the Democrats’ alternative?

We have four years until the next election, two if you are looking at Congress. What policies will work? Will we just trade Trump’s scam for another one peddled by the establishment?

Business as usual hasn’t delivered. The idea that economic growth creates jobs is a pipe dream for many: For the past 40 years, economic growth did not improve wages.

Trump’s promise swung the election. If he fails, what will be the Democrats’ response?

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Are We Facing an Undemocratic Future?

What do you think when Trump appoints so many retired generals to cabinet-level posts in his administration? The positive side of the argument is that these are talented, well-educated individuals who bring a worldview and experience on the global stage that Trump himself lacks.

The other side of the argument is that the authoritarian president Trump risks making his government much more authoritarian than it needs to be. This from Roger Cohen in the NYT:

A quarter-century after the post-Cold War zenith of liberal democracies and neoliberal economics, illiberalism and authoritarianism are on the march. It’s open season for anyone’s inner bigot. Violence is in the air, awaiting a spark. The winning political card today, as Mr. Trump has shown…is to lead “the people” against a “rigged system,”…The postwar order — its military alliances, trade pacts, political integration and legal framework — feels flimsy, and the nature of the American power undergirding it all is suddenly unclear.

We sound like a nation that is ripe for political upheaval. Citizens are not only more critical of their political leaders, they have become more cynical about the value of democracy as a political system, less hopeful that anything they do might influence public policy, and more willing to express support for authoritarian alternatives.

Yascha Mounk, a lecturer in government at Harvard, has spent the past few years challenging one of the bedrock assumptions of Western politics: That once a country becomes a liberal democracy, it will stay that way. That bedrock assumption is called “democratic consolidation” in political science, but Mounk’s research suggests that isn’t correct anymore.

In fact, he suggests that liberal democracies around the world may be at serious risk of decline. Data from Freedom House, an organization that measures democracy and freedom around the world, showed that the number of countries classified as “free” rose steadily from the mid-1970s to the early 2000s.

But since 2005, Freedom House’s index has shown a decline in global freedom each year. According to Mounk and his research partner Roberto Foa, who reviewed the data, early signs of democratic destabilization exist in the US and in other Western liberal democracies. They found that the percentage of people who say it is “essential” to live in a democracy has plummeted, and it is especially low among younger generations. The survey was based on 2014 data. Here is a graph from the Mounk-Foa study:

percent-who-say-democracy-is-essential-us

The graph shows responses by age cohort. Younger Americans have substantially less need to live in a democratic society than do older individuals. (The grey shaded part of graph is the 95% confidence limit for the responses to the survey). Remarkably, the trend toward acceptance of nondemocratic alternatives is especially strong among citizens who are both young and rich.

Mounk and Foa found that support for autocratic alternatives is also rising. Drawing on data from the European and World Values Surveys, they found that the share of Americans who say that authoritarianism would be a “good” or “very good” thing had risen from 18% in 1995 to 35% of rich Americans:

support-for-authoritianism-by-income-us

While citizen support for authoritarian rule remains in the minority, it can no longer be dismissed as a fringe group. They support “a strong leader who doesn’t have to bother with parliament and elections” and they want “experts” rather than the government to “take decisions” for the country. (In the study, “Upper income” is defined as the top 20% of income. “Lower Income” was defined as the bottom 50% of income.)

Overall, the rich are also now more likely than lower income citizens to express approval for “having the army rule.” While 43% of older Americans, including those born between the world wars and their baby-boomer children, do not believe that it is legitimate in a democracy for the military to take over when the government is incompetent or failing to do its job, the figure among millennials is much lower at 19%. In the US, only 5% of upper-income citizens thought that army rule was a “good” or “very good” idea in 1995. That figure has since risen to 16%, so the young rich are much more autocratic than their rich elders.

The clear message is that our democracy is now vulnerable. What was once unthinkable should no longer be considered outside the realm of possibility. This is partially the result of an educational system that does not teach even basic civics, much less the meaning of the Constitution.

Generations have grown up believing that they can casually read the document and understand what constitutional law is. Young Americans have never known the threat of an undemocratic system, so their fear of autocracy is far less than it is in the minds of their elders.

Trump is the prime example of this. And according to Mounk’s findings, he has a receptive audience in the young and the wealthy.

Would that be enough to undermine democracy in the US?

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Monday Wake Up Call – Anthony Weiner Edition

“God is a comedian playing to an audience too afraid to laugh” – Voltaire

Many funny memes have emerged after the FBI’s announcement that, in their investigation of Anthony Weiner’s possible sexting relationship with a 15 year-old girl, they turned up emails that may or may not be related to the Hillary Clinton private server investigation.

The internets are having fun associating Weiner and Clinton:

Dickileaks – NY Post

Weiner Probe – WaPo

The only thing that would make this more insane is if Trump’s tax returns were found in Anthony Weiner’s email – twitter

The Cocktober Surprise – twitter

Apparently, HRC’s 33,000 deleted emails were all just dick pics from Anthony Weiner – twitter

Seriously, the NYT reports that officials at the DOJ urged FBI head James Comey not to violate policies and procedural norms by intervening in the presidential election. The linked article contains this rather remarkable set of facts: (emphasis by the Wrongologist)

The FBI offered no comment, and Justice Department officials said they had no idea what Mr. Comey saw as his next move. Justice Department officials were particularly puzzled about why Mr. Comey had alerted Congress — and by extension, the public — before agents even began reading the newly discovered emails to determine whether they contained classified information or added new facts to the case.

Law enforcement officials have begun the process to get court authority to read the emails, officials said. How soon they will get that is unclear, but there is no chance that the review will be completed before Election Day, several law enforcement officials said.

So not only to they have no idea what’s in the emails, they don’t have a warrant to read them yet.

This from the Jane Mayer article at the New Yorker: (brackets and emphasis by the Wrongologist)

According to the Administration official, [Attorney General] Lynch asked Comey to follow Justice Department policies, but he said that he was obliged to break with them because he had promised to inform members of Congress if there were further developments in the case. He also felt that the impending election created a compelling need to inform the public, despite the tradition of acting with added discretion around elections…

In essence, Comey is saying: “Well, I know the rule is designed to make sure that our investigations don’t influence elections, but I think in this case, we should break that rule, because there’s an election, and we should influence it.”

There are as yet no further developments in the case. After the FBI obtains a warrant and reads the emails, there might be, but right now, nada.

What we have so far isn’t a “further development” at all. If a police detective walked into a DA’s office and told the DA the equivalent of what Comey said to Congress, say: “we found a box of Clinton files”. He would get a puzzled look and a question: “Yes? Go on? What did you find?” and if the cop responded with: “We haven’t looked in the box yet” the DA would say: “Why are you HERE, then?”

But that’s not how Congress works.

No one knows what the impact will be on the presidential election; we will see next Tuesday. Comey’s act of partisan bad faith is staggering, and there is no denying that his letter to Congress was a bombshell. This undermines democracy at least as much as anything the Pant Load says on the trail about “rigged elections.” Undermining democracy apparently comes with zero consequences these days.

So, it’s time to wake up America! You could lose your democracy without even knowing it is gone.

To help you wake up, here is Serj Tankian, the lead vocalist of the rock band System of a Down, with “Uneducated Democracy”, released in 2012. Serj lives in California and supported Bernie Sanders this year:

The video for “Uneducated Democracy” is made by Tumo, a technology school in Armenia. All of the crew were teenagers.

Sample Lyrics:

In dire need of reason
In a truly deaf nation
In dire need of reason
In a truly deaf nation
Without an education there is no real democracy
Without an education there is only autocracy

Open your eyes
Open your mouths
Close your hands
And make a fist
Down with the system
As we lay helpless against the machine

As sex scandals dictate
The winding road of realpolitik
The bully runs from his corner
Images rule through the media
Hungry hunger further
The hungry hunger further

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Can a Main Stream Party Win Millennial Voters?

Millennials seem to be on the fringe of the political action in 2016. A new survey “The Millennial Economy” by Ernst & Young (E&Y) shows that they are also on the fringe economically, and that they distrust many American institutions.

That may explain why they are disaffected with the current Presidential race. A mid-June survey of 1,200 18-34 year olds was conducted online and via cell phone buy E&Y. It has a margin of error of ± 2.83%. E&Y found that coming of age during an historic economic downturn has severely impacted Millennials:

  • 30% of respondents live with their parents, and it’s 40% if they are still single.
  • Nearly one­-third believe their local community is still in a recession.

Millennial stress levels are high:

  • 78% of Millennials are worried about having good-­paying job opportunities.
  • 74% are worried they won’t be able to pay their healthcare bills if they get sick.
  • 79% are worried they will not have enough money to live on when they retire.

Millennials are the most educated generation in US history, but they are not convinced of the cost/benefit of higher education. Instead of education opening doors, many Millennials feel that student debt has boxed them in. The WSJ reported that among college-educated Millennials, 81% had at least one source of long-term debt, while The Atlantic reports that real wages have fallen for Millennials (and only Millennials) in the past five years, even as education costs have skyrocketed.

E&Y surveyed Millennials’ views of the establishment. They find that Millennials have very little confidence in many of our established institutions, but they are patriotic and supportive of a leading role for the US in the world. This chart is from the study:

millennial-view-of-institutions-png

Millennial men have greater confidence in US institutions than women, with 34% of men expressing confidence in the institutions polled compared to only 25% of women. Overall, Millennials:

  • Had the least confidence in the News Media (73%) closely followed by the Federal Government, Governors, and Corporate America (72%).
  • Had the most confidence in the Military (55%), followed by Colleges and Universities (51%) and Professional Sports (32%).

Millennial men remain more optimistic than Millennial women, although the clear majority of both genders think the country is headed in the wrong direction:

  • Men are nearly twice as likely to believe that the country is headed in the right direction (33%) as women (17%).
  • Hispanic men and black women are the most optimistic group within each gender, with 41% of the former and 27% of the latter believing the country is headed in the right direction.

So the $64 question is: How to win the vote of Millennials? E&Y says that economic uncertainty greatly influences Millennials’ political priorities. They found that Millennials are looking to politicians to alleviate their financial insecurity:

  • 64% of Millennials believe public education should be a top priority for federal tax dollars, a consensus that crosses party lines.
  • Social Security and Medicare were their second priority (46%), while National Security was third at 45%.
  • 47% of Millennials identify as independents.

Finally, as a crib sheet for debate prep, E&Y have this checklist for Millennial hot-button issues:

millennial-vote-checklist

Politicians always play to a checklist. Trump mentioned every battle ground state in the last debate, but fell in the polls. And playing generational politics can result in the candidate seeming completely inauthentic. That has been Hillary Clinton’s problem with Millennials. Al Gore tried it with Social Security in 2000 vs. GW Bush, and it did not work.

Polls show Clinton running far behind where she would hope to be with Millennials. She is winning just under half of Millennial votes, while Obama got over 60% in both of his campaigns.

As we have said, Hillary is not Bernie, and doesn’t stand for what Bernie stood for. So while millennials loved him for it, Hillary will not do as well with them.

Wrongo is concerned about how many young people are considering voting for Gary Johnson. Johnson’s libertarian views are far worse for their interests than anything Hillary stands for.

Johnson certainly would never support the government doing anything with student debt. Yet apparently, many young people will be voting for him, with no apparent concern about how it might help elect Donald Trump.

Perhaps Millennials and the rest of us need to have a busload of faith to get by between here and Election Day in order to survive. Here is Lou Reed live on Letterman in 1989 with “Busload of Faith”:

https://www.youtube.com/watch?v=qNZm89wLaBw

True to Lou, he sang about a busload of faith, minus the bus, and minus the faith.

Those who view the Wrongologist in email can see the video here.

Sample Lyrics:

You can’t depend on your family
you can’t depend on your friends
You can’t depend on a beginning
you can’t depend on an end

You can’t depend on intelligence
ooohhh, you can’t depend on God
You can only depend on one thing
you need a busload of faith to get by

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Who Moved My Cheese?

Some may remember the book by this name by Spencer Johnson, published in 1998. The underlying message of the book is “Don’t waste time fighting against change: accept that bad stuff will happen to you for no good reason and just keep moving”.

This outdated and simplistic message remains the message of the Democratic Party to the White Working Class (WWC). Donald Trump’s message is different. He offers them nothing but a dream, to limit immigrants working in the US and to cut off the US market from China. And since the WWC knows that more of the same isn’t going to work, they’re voting for Trump.

It is useful to remember that since our “Most Favored Nation” trade deal with China in 1979, we have lost 35% of all manufacturing jobs in this country.

The WWC thinks that the Democrats have not been able to do anything to help them keep their jobs. The reasons for failure can be at least equally shared by the Parties, but since Dems have said for years that they are the party of the working class, they are getting the greater share of the blame for 35 years of no results.

There are two issues that dominate the discussion: Illegal immigration and transition assistance when jobs are lost. Regarding Immigration:

  • The WWC knows that Dems need the political support of the Hispanic community, and that requires Dems to show sympathy with illegal immigration.
  • The WWC believes that illegal immigration has put downward pressure on job opportunities and wages in the trades, in restaurant and hotel work, and in service sectors where immigrants may be overly represented.
  • That’s why Trump’s stance on immigration is so popular with the WWC. They probably know in their hearts that kicking all the Mexican workers out, or building a wall is ridiculous. But the Democrat’s position on immigration is diffuse, and is viewed as “soft” on illegals by the WWC.

Despite anything the Dems say about retraining or “transition assistance”, the WWC knows that someone on job transition assistance can’t earn enough to support a family. Other problems:

  • Identifying the fields/industries that workers can train in that will produce stable, living wage employment is an inexact science. So, demand for retrained workers is often less than the supply for any given job type.
  • Businesses have been very successful at shifting the burden (and cost) of training displaced workers from themselves to society. This is helped along by a corporate critique that public and not-for-profit private schools are failing to maintain standards, and they can’t churn out sufficient grads with qualifications that meet the corporations’ highly specific requirements.
  • Hence the continuing financial opportunities for for-profit technical schools and for-profit universities, (can you say Trump University?)

And Ford Motor Co. just gave Trump a big wet kiss:

Ford Motor Co. says it’s moving all of its US small car production to Mexico…The company is building a new $1.6 billion assembly plant in San Luis Potosi, Mexico. It will make small cars there starting in 2018.

What can the Pant Suit say about this that would go beyond what the Pant Load will certainly say? And if she did, would WWC people believe her?

On the macro level, our current capitalism has turned to technology to produce much of what is needed with far less human labor input than ever before. That leaves job growth (and job opportunity) in only the low-skilled, low-paid “service” jobs; or in highly advanced, specialized jobs requiring very advanced training/skills/talent.

This means that the dogma of Endless Economic Growth, which we have accepted since the Industrial Revolution, is dead. Along with killing that, we need to kill off the current organizing principle of our economic system, where humans exist solely to fulfill the needs of businesses.

Work helps us find our place in society. It is something that we see as having an inherent value, something that fills a basic human need, similar to food and shelter. But our current economic system no longer recognizes that, and our economy provides little opportunity for fulfilling that basic need for a large portion of American citizens, including many in the WWC.

The idea of government deploying under-utilized labor to build and repair our infrastructure, or to re-tool our country to reduce carbon emissions would be a step that might return the WWC to jobs and a place in society. It would cost a ton.

But the idea that the government would create demand is too socialist for most politicians to accept, despite the fact that the rest of the tools just haven’t worked in 35+ years.

Tell me again why Bernie Sanders was a terrible choice.

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Is Ignorance Bliss?

If so, we all must be blissed out. Yesterday, we talked about how the media love to air candidates’ ’’dirty laundry”, rather than concentrate on examining their policies. Today, we ask the question, “Where and how do people get their news?”

The current US population is around 320 million. Of that number, there are 219 million people eligible to vote, of which 145.3 million (66%) are registered to vote in the US. So, how many people are watching the news on ABC, CBS or NBC?  In August 2016, the number was 22.5 million. That’s down from 48 million in 1985, and from 24.5 million in 2013.

And how many watch the cable giants Fox News, MSNBC and CNN? Overall, Fox News averaged 2 million total viewers while MSNBC averaged 1.13 million, and CNN trailed with 844,000. That’s four million viewers total, folks.

Taken together, major network and cable TV account for 26.5 million viewers, or 18.2% of registered voters. And we have no data on the overlap between viewers and voters.

How else do the campaigns reach voters? Social media. From the Wall Street Journal:

Of the two candidates, Mr. Trump has the largest following on social media — with 10.3 million Twitter followers and 9.9 million Facebook likes, compared to Mrs. Clinton’s 7.78 million followers and 4.8 likes.

This means that the two campaigns have more direct reach than any individual TV or cable outlet. Clinton has nearly as many Twitter followers as CBS has viewers, while Trump has even more, and also has FIVE times as many Twitter followers as his friends at Fox have viewers. And we can assume that all of those followers are likely voters, not passive viewers.

The campaigns use different strategies. A new Pew study of the campaign websites of Clinton and Trump found that Clinton’s website focused on original news content, while Trump mostly re-posted stories from outside news media. Clinton’s campaign has almost entirely bypassed the news media; instead, they post news stories produced in-house. Trump’s site offers mostly content from articles produced by outside sources like Fox News or CNN.

Pew also surveyed where people get their news:

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  • As of early 2016, just 20% of US adults get their news from print newspapers. This has fallen from 27% in 2013.
  • This decrease occurred across all age groups, though the age differences are stark: Only 5% of 18- to 29-year-olds often get news from a print newspaper, whereas about half (48%) of those 65 and older do.
  • Compared with print, nearly twice as many adults (38%) often get news online, either from news websites/apps (28%), on social media (18%), or both.
  • TV continues to be the most widely used news platform; 57% of U.S. adults often get TV-based news, either from local TV (46%), cable (31%), network (30%) or some combination of the three.

If you are watching a traditional TV newscast, you are a dinosaur: Fully 70% of those ages 18-29 either prefer, or only use mobile for getting their digital news, compared with 53% of those 30-49, 29% of those 50-64 and just 16% of those 65+.

According to Pew, radio is a more frequently used news source than newspapers. In fact, 13.25 million people listen to Rush Limbaugh, while 12.6 million listen to NPR’s Morning Edition, making both more followed than any of Fox, MSNBC, CNN, CBS, NBC, or ABC.

While there has been an explosion on the digital front, readership (viewership?) is now totally fragmented. This fragmentation is a key to understanding today’s political landscape. Twenty-five years ago, we had a core of news outlets that helped the political parties build a public consensus. That’s no longer the case. Traditional media are at best, just one stream in a whole chaotic flow. Picking and choosing whom to follow (and trust) in this river of chaos isn’t easy. The fundamental questions are:

  • Does watching a specific news feed inform you, leave you asking questions, or create confusion?
  • Does the power of images displayed on an individual news feed interfere with understanding the context of a complex situation?
  • Are news outlets providing users with both education about events, AND a sense of civic responsibility?
  • How do you know you can “trust” a given news feed?

With so many options for learning about our world and government policy, we could either be on the cusp of a reboot of the Age of Enlightenment, or, the news feed chaos could help bring on another Dark Ages.

Choose wisely.

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