Education and Student Debt

Republicans and Democrats attempt to differentiate themselves via their views of the government’s role in the economy.  With close examination, it is hard to find real differences between them.

Those on the Right promote the benefits of “true” capitalism that allows markets to set prices via supply and demand.  Those on the Left share the view that capitalism is too harsh and that the government needs to step in and smooth out inequities created by markets.  At the extreme Left, socialism is promoted, irrespective of its history of failure.

At the macro-economic level there is little difference between Republicans and Democrats.  Crony capitalism is rampant within both parties.  Republicans typically support large industries and those in the military industrial complex.  Democrats promote social programs that benefit industries including education, social services, medical services, and trial lawyers.  The result of crony capitalism has been a significant increase in governmental spending and a surging United States’ debt over the past 50 years.  This debt is in part responsible for the economic malaise that has been inflicted on the country over the past decade.

An example of crony capitalism and the damage it has done is the educational industry.  Through the US Department of Education, as well as at the state and municipal levels, the funds spent on primary education have been skyrocketing as indicated by the charts below.

Total Educational Spending

However, the increased spending has not resulted in improved education.  The chart below shows how poorly our students are doing in basic reading comprehension.

The problem is more significant at the college level.  The educational industry, with support of the US government and its loan programs, has created the false narrative that all Americans require and deserve a college education, irrespective of whether or not it improves their economic well-being.  As a result, the amount of student debt now exceeds $1 trillion and a significant portion of college graduates cannot make an income level that would allow them to pay off the debt in a reasonable period of time.  Many have been forced to move back into their parents’ houses.Student Debt

While a market-based economy can be a cruel arbitrator of scarce resources, crony capitalism has proven to be catastrophic to those who have been cajoled into inappropriate economic decisions based on government programs.  It is a major cause of the growing wealth disparity between the ultra-rich and average Americans.

Yes, both Hillary Clinton and Donald Trump have prospered under crony capitalism.  The same cannot be said for most Americans.

share the knowledge...Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Share on RedditEmail this to someonePrint this page

Government is the Problem

The Left and Right both believe they have the answers to America’s economic downward spiral.  Those on the Left are sure the problems relate to income inequality, racism and/or too much spending on the military.  My friends on the Right are just as strong in their convictions that the problems are caused by an efficient tax system, excess entitlement programs, illegal immigrants, and of course the Left itself.

To this Blogger the cause America’s economic issues, as well as those of the greater world, is government itself, the world’s largest special-interest group.  The video below share some facts proffering the danger of the growing government elites and their minions that includes:

  • During the past 10 years the number of private sector jobs in America has grown by only 1% while during the same period the number of federal government employees has grown by 15%.
  • Prior to the economic meltdown approximately eight years ago, the US Department of Transportation had only one employee earning over $170,000 annually.  That number is now about 1,700.
  • At the beginning of the economic meltdown the US Department of Defense had approximately 1,700 employees making $150,000 or more annually.  That number is now over 10,000.
  • During the first two years after the beginning of the economic meltdown the number of federal employees earning in excess of $100,000 annually doubled.
  • In 2009 the average compensation package including salary and benefits in the private sector was approximately $61,000 per employee.  During that year the average total compensation package for federal employees was over double that or $123,000.

There are currently about 21 million government employees in the United States, approximately 16% of potential voters.  This is a huge voting-block, especially considering how few votes often separate winners and losers in important elections. However, add to this number families of government workers and the potential influence this voting-block rose enormously.

There is a growing anger and disillusionment among American voters that has not been seen in many decades.  On the Left this is expressed by the surprising strength of Socialist Bernie Sanders in the Democratic primaries.  On the Right this is seen through the strength that Donald Trump has within the Republican primaries, even though his views have historically been in conflict with basic Republican ideology.

The electorate’s growing disillusionment has occurred during a time of historic growth in government power and spending.  Those who believe that giving more power to government or allowing them to spend more money change this direction ignore historical precedent.

Many Democrats are on enthused by their likely candidate, Hillary Clinton.  Similarly, many Republicans are aghast at the thought of Donald Trump being their party’s standard-bearer.  Here’s a consolation for both: Not to worry, the special interests groups, including those who make a living on the public payroll, will ensure that the Country continues in the same direction that it has been taking for the last 50 years no matter who is president.  Yikes!

share the knowledge...Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Share on RedditEmail this to someonePrint this page