The cost of higher education

Several months ago Mike Konczal had a piece, The [University of North Carolina] Coup and the Second Limit of Economic Liberalism.  An excerpt:

The UNC System Board of Governors voted unanimously to cap the amount of tuition that may be used for financial aid for need-based students at no more than 15 percent. With tuition going up rapidly at public universities as the result of public disinvestment, administrators have recently begun using general tuition to supplement their ability to provide aid. This cross-subsidization has been heralded as a solution to the problem of high college costs. Sticker price is high, but the net price for poorer students will be low.

This system works as long as there is sufficient middle-class buy-in, but it’s now capped at UNC. As a board member told the local press, the burden of providing need-based aid “has become unfairly apportioned to working North Carolinians,” and this new policy helps prevent that.  Iowa implemented a similar approach back in 2013. And as Kevin Kiley has reported for IHE, similar proposals have been floated in Arizona and Virginia. This trend is likely to gain strength as states continue to disinvest.

The problem for liberals isn’t just that there’s no way for them to win this argument with middle-class wages stagnating, though that is a problem. The far bigger issue for liberals is that this is a false choice, a real class antagonism that has been created entirely by the process of state disinvestment, privatization, cost-shifting of tuitions away from general revenues to individuals, and the subsequent explosion in student debt. As long as liberals continue to play this game, they’ll be undermining their chances.

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The Trans-Pacific Partnership (TPP) – “Kill it with fire.”

Updated 10/17/2015.

Current status of the TPP:  The agreement has been negotiated. Now it goes to Congress for an up or down vote.  It cannot be amended.  In theory, it could get voted down.  In practice, I’m not holding my breath.

News and posts:

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Thought for the Day: 23 January 2015

Joe Stiglitz, The Politics of Economic Stupidity:

[L]ow interest rates will not motivate firms to invest if there is no demand for their products. Nor will low rates inspire individuals to borrow to consume if they are anxious about their future (which they should be)…. Demand is what the world needs most. The private sector – even with the generous support of monetary authorities – will not supply it. But fiscal policy can. We have an ample choice of public investments that would yield high returns – far higher than the real cost of capital – and that would strengthen the balance sheets of the countries undertaking them.

The big problem facing the world in 2015 is not economic. We know how to escape our current malaise. The problem is our stupid politics.

The Trans-Pacific Partnership is a bad deal – Part 3

(Read Parts 1 and 2 here and here.)

Letter from Senator Bernie Sanders to U.S. Trade Representative Michael Froman dated Jan. 5, 2015 (any transcription errors are my fault):

Dear Ambassador Froman:

Very early this year, the Senate may vote on legislation that would grant the President fast track trade negotiating authority.  If this legislation is signed into law, it could pave the way for passage of the Trans-Pacific Partnership Free Trade Agreement (TPP) with limited debate and no opportunities for amendments.

As you know, the TPP is poised to be the largest free trade agreement in history encompassing 12 nations that account for nearly 40 percent of the global economy.  I have been very concerned that up to this date the text of this agreement has not been made public.  The only text I am aware of that has been made public so far has been through leaked documents, and I find what I read to be very troubling.

It is incomprehensible to me that the leaders of major corporate interests who stand to gain enormous financial benefits from this agreement are actively involved in the writing of the TPP while, at the same time, the elected officials of this country, representing the American people, have little or no knowledge as to what is in it.

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The Trans-Pacific Partnership is a bad deal – Part 2

(Read Part 1 here.)

Robert Reich, Why the Trans-Pacific Partnership Agreement is a Pending Disaster:

If you haven’t heard much about the TPP, that’s part of the problem right there. It would be the largest trade deal in history — involving countries stretching from Chile to Japan, representing 792 million people and accounting for 40 percent of the world economy – yet it’s been devised in secret.

Lobbyists from America’s biggest corporations and Wall Street’s biggest banks have been involved but not the American public. That’s a recipe for fatter profits and bigger paychecks at the top, but not a good deal for most of us, or even for most of the rest of the world.

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Brad DeLong, Try Everything

Brad DeLong, Try Everything:

When it became clear in late 2008 that the global economy was headed toward a crash at least as dangerous as the one that had initiated the Great Depression, I was alarmed, but also hopeful. We had, after all, seen this before. And we also had a model for how to mitigate the damage; unfortunately, policymakers left it on the shelf.

For three and a half years following the start of the Great Depression, US President Herbert Hoover’s top priority was to balance the budget, trying – but ultimately failing – to restore business confidence. In 1933, newly elected President Franklin D. Roosevelt changed course, adopting a simple yet radical strategy: try everything that might boost demand, increase production, or reduce unemployment – and then keep doing the things that work.

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The proposed Trans-Pacific Partnership (TPP) is a bad deal

Sign Sen. Sanders’ petition in opposition to the TPP here.

His summary of the TPP:

The Trans-Pacific Partnership is a disastrous trade agreement designed to protect the interests of the largest multi-national corporations at the expense of workers, consumers, the environment and the foundations of American democracy. It will also negatively impact some of the poorest people in the world.

The TPP is a treaty that has been written behind closed doors by the corporate world. Incredibly, while Wall Street, the pharmaceutical industry and major media companies have full knowledge as to what is in this treaty, the American people and members of Congress do not. They have been locked out of the process.

Further, all Americans, regardless of political ideology, should be opposed to the “fast track” process which would deny Congress the right to amend the treaty and represent their constituents’ interests.

The TPP follows in the footsteps of other unfettered free trade agreements like NAFTA, CAFTA and the Permanent Normalized Trade Agreement with China (PNTR). These treaties have forced American workers to compete against desperate and low-wage labor around the world. The result has been massive job losses in the United States and the shutting down of tens of thousands of factories. These corporately backed trade agreements have significantly contributed to the race to the bottom, the collapse of the American middle class and increased wealth and income inequality. The TPP is more of the same, but even worse.

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Trans-Pacific Trade Talks Resume

From Dave Johnson, Trans-Pacific Trade Talks Resume With Almost No Media Coverage:

Shouldn’t it be a trade violation to threaten to move someone’s job to another country? Shouldn’t we negotiate trade agreements that increase people’s wages on both sides of a trade border? These are the kinds of agreements we would make if We the People were negotiating trade agreements with representatives of the working people in other countries. Unfortunately that is not the kind of trade agreements that our current trade negotiation process produces.

The secret Trans-Pacific Partnership (TPP) negotiations resumed this week, this time in Washington. TPP is a massive agreement that sets up new rules for over 40 percent of the global economy. It will have profound effects on our jobs, our standard of living now and in the future and our ability to make a living as a country. Oddly, though, as of Monday morning you have to read about it in Japan Times because few-to-no U.S. media outlets are covering it….

Here’s what the Japan Times reported, in “TPP talks get back underway in Washington“:

Chief negotiators from 12 countries involved in the Trans-Pacific Partnership initiative resumed negotiations in Washington after their leaders reaffirmed last month they will conclude an agreement as soon as possible.

Here are a few stories about the media blackout of this important treaty – all in the non-corporate media:

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