Re: Cautious optimism
chapAnjou
3/31/2012 12:45:11 PM
"I have loaded my bear gun-- just in case."
@tokyogai- hahaha. Seriously, man! I share your cautious optimism too. Thing always have a way of working out and the economy will eventually get fully on its feet. Whether this happens sooner rather than later is the main focal point of concern, but the fact remains that it's going to happen eventually. It's not like economic ebbs and flows are new occurrences.
Something to think about
chapAnjou
3/31/2012 12:41:19 PM
Thank you, Lenore for this article. It's frightening to think about the economy falling apart the way it did not too long ago, but it's also good to think about these things now. I found the part about the 2003 tax cuts particularly troubling and something that hadn't even crossed my mind.
Do you see anything that can be done to offset the removal of these tax cuts?
Re: Everyone has a right to an Education but this is getting ridiculous!!!
chapAnjou
3/31/2012 12:30:57 PM
"Americans are starting to Take Education loans so that their kids attend Kindergarten in Private Schools(in huge numbers)!!! And they are hoping that the risk pays off with Scholarships at University Level.WoW!!!"
@back2basicz, defining this as a risk is the perfect way to describe it, but as you said yourself, the majority of families doing this are high-income families. So in that sense, I'm sure it doesn't quite feel like risk.
Having said all that, it doesn't change the fact the kindergarten does almost nothing for the growth of a child (in my opinion). The key is that your kid learns to be social with his/her peers and the only way to do this in the best environment is to have the kid go to a normal school with normal (i.e. diverse) classmates.
Re: Economic and social implications
back2basicz
3/31/2012 4:48:40 AM
Impactnow,
There is a way.
Just shut-down the Department of Education and remove Federal Loan Guarantees for College Loans.
Then watch the Fun as Universities have to genuinely compete for Students by offering the best and most cost-competitive services.
This is the Ron Paul way of doing things.
Its simple and brutally effective in bringing down the Student Loan Debt burden that Americans have to face today.
Too bad,Ron Paul is badly trailing in the Republican Nomination polls....
But then,I can dream,Can't I?
Ashish.
Economic and social implications
impactnow
3/31/2012 12:19:46 AM
Ashish-I think all Americans agree the high cost of education is stifling our economy on many levels but there needs to be some level of intervention regarding the tuition increases at colleges and universities in order to fix the problem. Today people take on these ridiculous loans because a college education is like a high school education was years ago, so getting a degree from a prestigious institution tends to garner better job opportunities and the opportunity of associating –knowing others that will become leaders and provide the linked in opportunity. It's a complex social issue with significant financial implications and you are right its starting in Kindergarten. My area has elementary schools with 18,000 per year price tags.
Scott,
I could'nt have said it any better!
If Red Tape could be slashed sharply(like the one State in India which everyone within and outside India admires-Gujarat);then India will boom beyond all expectations.
After all,Entrepreneuers are a well respected class in India throughout History(unlike in China).You just get out of their way and Natural trends(like positive demographics & Healthy Private sector Savings) will ensure a healthy 8-9% growth rates for atleast the next decade(if not more).
Only problem is-If you slash buearacrats and Government officials-What will they do???
A clear majority of them are parasites on the Indian economy(just like elsewhere) and do not do anything productive for the Economy or for value creation.
And its impossible to fire them(even for proven Corruption or incompetence issues).
I have seen a revolutionary model in operation in the Gulf State of Dubai-Anyone who wants to open/operate a business is granted a License to operate one automatically on application.
Only after 120 days of operation,do you have to prove that you are meeting all the Govt regulations and requirements.[Its a well-known fact that the first six months to one year are the most difficult part of starting any Business;can you Imagine what will happen if the Govt totally ignores you during that time???]
Revolutionary Thought is'nt it?
Can you imagine what that will do for New Business???
Businesses will boom like there's no Tommorow and the Job Gains that will create will be enormous.
Regards
Ashish.
@Ashish,
Frankly I am no expert in India (I leave that to you). I know they are benefitting from many of the trends of developing markets -- and bringing technology and innovation to 1 Billion people.
My basic understanding of the Indian economy is that it has always been hobbled by the somewhat messy and complex Indian government, which introduces corruption and many barriers to business. Correct me if I'm wrong. If they could remove some of those issues I bet India has the potential to rival China.
Everyone has a right to an Education but this is getting ridiculous!!!
back2basicz
3/30/2012 10:54:26 AM
Guys,
I believe everyone should have the chance to move ahead in life by educating themselves but this is starting to get ridiculous.
Americans are starting to Take Education loans so that their kids attend Kindergarten in Private Schools(in huge numbers)!!! And they are hoping that the risk pays off with Scholarships at University Level.WoW!!!
http://www.smartmoney.com/borrow/student-loans/student-loans-on-rise--for-kindergarten-1332957614617/
Funny thing is a Significant number of these are people with High Incomes(over
$150,000/Year).
More Wow!
And on the other side we see State Universities threaten to Cut enrollment,Raise Fees unless Income Taxes are raised substainally,while continuing to build Billion Dollar buildings they don't need!!!
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2012/03/20/MNPL1NN1KR.DTL
http://californiawatch.org/higher-ed/public-universities-plow-ahead-construction-despite-tight-budgets-15273
This comment was most enlightening...
"The universities seem to treat this like a birthday gift or something," said Richard Vedder, director of the Center for College Affordability, an independent national research organization. "But there is a pain associated with the maintenance of these new buildings."
This was really funny-The University builds a new Medical School and then realizes it has no funds to operate it.
And what about the Students themselves ??? Most of them are saddled with Thousands of Dollars in Student Debt;which they then struggle to pay off in this tough economy.According to the Federal Reserve ,Student Debt has now crossed USD 1 Trillion in America.Yes,ONE TRILLION DOLLARS. That's more than Credit Card Debt.
As a result of this massive Debt(from massively over-priced education) they are forced to delay the other neccesary purchases in their lives(like Getting a Home,Buying a Car) or even getting married and raising a family.
Oh what does this have to do with the Economy???
Everything.
Remember that Education(alongwith Healthcare and Shale Gas exploration) are amongst the few Growth sectors left in this economy.
Regards
Ashish.
I edited this @Scott and @Ashish, and linked to the original.
Scott,
Whats your Viewpoint on the other Big Growing Economy India?
I hope I have given you a reasonably accurate account through my posts here on IU about the headwinds Growth in India(especially Consumption Driven Growth) faces.
I was listening to the Govt estimates and assumptions they made when calculating their budget for the next Fiscal Year(1st April 2012-31st March 2013);and they are expecting Crude Oil Prices(Brent) to Average $115/Barrel throughout that time.
However,if we do get QE3 on schedule(April 2012) as you estimate;then Brent Crude could very easily go much-much higher(I am looking at Average Prices of $135-$150/Barrel).
In that case all Fiscal calculations that the Govt has made in India will go awry.
What they are hoping for is that Crude Oil corrects to around $90/Barrel[I don't expect that to happen in the next fiscal Year].
But its interesting when you look at the Number of nations/Blocs who are visibly slowing down today.
The US,Eurozone,The UK,China,India,Australia & Japan.
With the other Resource exporters(South Africa,Brazil,Canada,Russia,New Zealand,,Smaller nations in Africa) ,OPEC exporters & Korea, Tawain, Phillipines(component exporters ) heavily dependent on exports to China we are looking at an epic slowdown of Global Proportions.
Not looking Good so far and I doubt QE3 is going to make any difference over the course of the year(except kicking the can further down the Road).
Ashish.
P.S Resource Markets are already signalling their sceptism about the possibility of QE3(and whether it will help the Long-term chances of the Economy).
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