Perdido 03

Perdido 03

Wednesday, December 15, 2010

NY Times: "Educational Differences" Are Not The Reason For Rampant Joblessness And Income Inequality

Usually public schools, unions and teachers get blamed on theop-ed pages of the Times for the unemployment problem and income inequality in the country.

But a surprisingly sane editorial in today's Times says not so:

A college education is better than no college education and correlates with higher pay. But as a cure for unemployment or as a way to narrow the chasm between the rich and everyone else, “more college” is a too-easy answer. Over the past year, for example, the unemployment rate for college grads under age 25 has averaged 9.2 percent, up from 8.8 percent a year earlier and 5.8 percent in the first year of the recession that began in December 2007. That means recent grads have about the same level of unemployment as the general population. It also suggests that many employed recent grads may be doing work that doesn’t require a college degree.

Even more disturbing, there is no guarantee that unemployed or underemployed college grads will move into much better jobs as conditions improve. Early bouts of joblessness, or starting in a lower-level job with lower pay, can mean lower levels of career attainment and earnings over a lifetime.Graduates who have been out of work or underemployed in the downturn may also find themselves at a competitive disadvantage with freshly minted college graduates as the economy improves.

When it comes to income inequality, college-educated workers make more than noncollege-educated ones. But higher pay for college grads cannot explain the profound inequality in the United States. The latest installment of the groundbreaking work on income inequality by the economists Thomas Piketty and Emmanuel Saez shows that the richest 1 percent of American households — those making more than $370,000 a year — received 21 percent of total income in 2008. That was slightly below the highs of the bubble years but still among the highest percentages since the Roaring Twenties.

The top 10 percent — those making more than $110,000 — received 48 percent of total income, leaving 52 percent for the bottom 90 percent. Where are college-educated workers? Their median pay has basically stagnated for the past 10 years, at roughly $72,000 a year for men and $52,000 a year for women.

A big reason for the huge gains at the top is the outsize pay of executives, bankers and traders. Lower on the income ladder, workers have not fared well, in part because health care has consumed an ever-larger share of compensation and bargaining power has diminished with the decline in labor unions.

College is still the path to higher-paying professions. But without a concerted effort to develop new industries, the weakened economy will be hard pressed to create enough better-paid positions to absorb all graduates.

And to combat inequality, the drive for more college and more jobs must coincide with efforts to preserve and improve the policies, programs and institutions that have fostered shared prosperity and broad opportunity — Social Security, Medicare, public schools, progressive taxation, unions, affirmative action, regulation of financial markets and enforcement of labor laws.

It's so interesting how the Times editorial writers think unions and the enforcement of labor laws will help combat income inequality in the country as a whole.

Whenever they write about teachers unions, they always say the unions ARE the problem and there needs to be fewer job protections and labor laws to protect teachers.

I guess unions are only good for workers outside of schools and the NY Times?

Regardless, it is good to see somebody dispense with this "Education Attainment Will Lift All Boats" jive.

Education attainment will certainly make these two guys even richer than they already are.

After all, one owns 38% of a for-profit college company and the other makes shitty computer software that tracks data, test scores and other numbers that excite ed deform types.

But it will NOT solve the income inequality problem

Forcibly taking money from the banksters and hedge fund criminals, throwing the crooked ones in jail, fairly taxing the rest, and ending corporate sponsorship of elections by making ALL campaign spending public would go a long way toward that.

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