Tag Archives: Debt

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Despite record youth unemployment, young people support Obama 52-27

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Labor Force Participation 2012 (click for larger image)
Labor Force Participation 2012 (click for larger image)

From Breitbart.

Excerpt:

Even as unemployment among college graduates remains stuck above the national average at 9.3 percent, a Reuters/Ipsos poll of four-year college graduates finds that President Barack Obama leads his Republican challenger Mitt Romney 52 percent to 27 percent.

The poll’s findings are especially surprising given reports last month that, for the first time in American history, unemployment for college graduates eclipsed that of high school graduates.   As Jed Graham of Investor’s Business Daily reported, “Out of 9 million unemployed in April, 4.7 million had gone to college or graduated and 4.3 million had not, seasonally adjusted Labor Department data show.”

Still, some unemployed college graduates say they are sticking with Mr. Obama in 2012: “I was really excited when Obama won,” said Joe Zmudczynski, a 2011 graduate of Michigan’s Ferris State University who now lives at home with his parents. “He’s still my favorite. It’s not like you can snap your fingers and everything gets better.”

Leftist PBS explains:

Returning to the nest with mom and dad after college and even into the thirties is becoming increasingly more common, but also less stigmatized. Young adults who live with their folks are cheerful, upbeat even, about their choice.

That’s the finding of a new Pew report, released Thursday morning. Three in 10 young adults (aged 25 to 34) say they’ve lived at home recently during the down economy, and 78 percent said they were satisfied doing so. Another 77 percent said they were optimistic about their future finances.

The number of young adults living in a multi-generational household — which can be any combination of grandparents, parents and adult children — saw a steep uptick during the recent recession, after being on the rise since 1980, said Kim Parker, the study’s lead author and a senior researcher with Pew’s Social & Demographic Trends Project. Historically, such high rates of moving back home haven’t been seen since the late 1940s.

Here’s an Associated Press piece on Yahoo News:

The college class of 2012 is in for a rude welcome to the world of work.

A weak labor market already has left half of young college graduates either jobless or underemployed in positions that don’t fully use their skills and knowledge.

Young adults with bachelor’s degrees are increasingly scraping by in lower-wage jobs — waiter or waitress, bartender, retail clerk or receptionist, for example — and that’s confounding their hopes a degree would pay off despite higher tuition and mounting student loans.

[…]Taking underemployment into consideration, the job prospects for bachelor’s degree holders fell last year to the lowest level in more than a decade.

[…]The figures are based on an analysis of 2011 Current Population Survey data by Northeastern University researchers and supplemented with material from Paul Harrington, an economist at Drexel University, and the Economic Policy Institute, a Washington think tank. They rely on Labor Department assessments of the level of education required to do the job in 900-plus U.S. occupations, which were used to calculate the shares of young adults with bachelor’s degrees who were “underemployed.”

About 1.5 million, or 53.6 percent, of bachelor’s degree-holders under the age of 25 last year were jobless or underemployed, the highest share in at least 11 years. In 2000, the share was at a low of 41 percent, before the dot-com bust erased job gains for college graduates in the telecommunications and IT fields.

Out of the 1.5 million who languished in the job market, about half were underemployed, an increase from the previous year.

The EPI is a left-wing think tank.

As if this were not bad enough, remember that the secular socialists have run the national debt up from 8 trillion to 16 trillion since taking over the House and Senate in January 2007. Labor union bailouts, green energy payoffs to Democrat fundraises, health care takeovers, and massive welfare spending, have to be paid back. Who is going to pay all of this back? Students with degrees in feminist studies and peace studies? And yet, incredibly, the government-run public school system and the universities have brainwashed these young fools into voting for their own dependence and enslavement. That’s what secularism and leftism offers young people: the road to serfdom.

News

Obama: 25% fewer male graduates than female graduates is a great accomplishment

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From CNS News.

Excerpt:

In an op-ed published Saturday in Newsweek, President Barack Obama marked the 40th anniversary of the enactment of Title IX–which bars gender discrimination in education—and noted that more women in the United States are now graduating from college than men, which he characterized as “a great accomplishment” for the nation.

“In fact, more women as a whole now graduate from college than men,”Obama wrote. “This is a great accomplishment—not just for one sport or one college or even just for women but for America. And this is what Title IX is all about.”

According to the Census Bureau, 685,000 men and 916,000 women graduated from college in 2009 (the latest year for which statistics have been published). That means 25 percent fewer men received college degrees than women.

And:

In the nationwide collegiate class of 1975, which started college before Title IX was implemented, the males graduating from college outnumbered females, 505,000 to 418,000–meaning 17 percent fewer women graduated than men.

By 1985, according to Census Bureau data, the number of women graduating from college each year was outstripping the number of men. In that year, about 497,000 women graduated from college and 483,000 men. That gave women a margin over men of almost 3 percent.

In every year since 1985, according to the Census Bureau, women have outnumbered men in graduating from college, with women dramatically expanding their advantage over men in receiving college diplomas to the 25 percent advantage they achieved in 2009.

In his Newsweek op-ed, President Obama said Title IX helped America ensure what he called “equal education.”

It’s important to understand that the widespread unwillingness of men to get married, and their inability to provide for a family if they are married, have been caused by specific policies and laws, and not by a deficiency of “manhood”. From no-fault divorce to normalizing premarital sex to biased domestic violence laws to higher tax rates to false  accusations to discrimination in education to discrimination in hiring, and beyond – men are being actively discouraged and prevented from taking on the traditional role of being sole provider for their families. Pastors who expect to reverse this trend have to do more than resort to bellowing two-word slogans (“Man Up!”) at the dwindling numbers of men in their churches. This marriage strike problem is caused by policies and laws, and it requires a political and legal response.

Christians should be especially concerned about the presence of fathers in the home, given the evidence I blogged about before showing how the presence of quality fathers is essential for passing Christian beliefs on to children. Churches need to ask themselves tough questions: Are we teaching women how to choose men based on practical concerns and proven abilities in our churches? And are we doing a good job of attracting men to churches by promoting the masculine, practical aspects of Christianity that men like – like science, apologetics debates, economics and foreign policy?

Why is this weakening of men’s ability to graduate and get jobs a priority of the left? The left is dominated by feminist thought, and they do not want men having different roles than women in the home. It’s sad that many men who are ignorant of these threats to male leadership go along with it and then find out too late what the effects of their feminist sympathies are.

News

Rising student debt will impact future housing demand

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Bad news for homeowners from the California Association of REALTORS. (H/T Captain Capitalism)

Excerpt:

At May’s midyear legislative meetings held by the National Association of Realtors in Washington, DC, a panel of experts in a session titled “Shifting Demographics and Housing Choice: A Whole New World?” discussed future housing market demand and trends to keep in mind as we think about the future of housing in the U.S.

The biggest takeaway was that baby boomers will increasingly contribute to housing supply as they age, yet echo boomers are in a difficult position to absorb the inventory. The echo boomers, also called Millennials, are those currently ages 17 to 31, and account for 62 million people. And although future housing demand highly dependents on different rates of household formation among Echo Boomers, this generation is in a precarious position.

In addition to having seen the worst housing downturn, these younger buyers have been hit hard by the recession. Faced with an uncertain job market, no real income growth, tighter mortgage lending rules, and mounting student and credit card debt, it is no surprise that some of them do not put priority on homeownership.

The concern over student debt is particularly alarming. According to a number of recent research studies, college seniors who graduated with student loans each owed an average of $25,250, up significantly from an average of $12,750 in 1996. Parents have accumulated student debt as well, $34,000 on average. The aggregate amount of student loan debt in the U.S. is over $1 trillion currently. The pace at which debt is mounting adds to the concern. Between March 31, of this year and 2011, student loan debt rose by $64 billion. However, over the same period, all other forms of household debt fell by $383 billion. Put another way, since the peak in household debt in the third quarter of 2008, student loan debt has increased by $293 billion, while other forms of debt fell by $1.53 trillion.

The rise in student debt is attributable to rising cost of education. Since 1978, the cost of tuition in the U.S. has increased more than 900 percent, 650 points above inflation. Between1990 and 2010 alone, tuition rose by 116 percent while the median household incomes inched a mere 2.1 percent.

The libertarian Cato Institute knows what the problem is (see my bold below) and they know how to fix it too.

Excerpt:

The real answer is for the federal government to get out of the higher education subsidy business altogether, as a Cato essay argues.

The following are some key points from the essay:

  • The effect of subsidy programs, in part, is to impose taxes on blue collar workers—who have not attended college—to pay for the tuition of future white-collar professionals. Why should the government subsidize future high earners at the expense of average working people?
  • Federal student aid programs transfer wealth from taxpayers to academic institutions. That’s because the rise in student subsidies over the decades appears to have fueled inflation in education costs. Tuition and other college costs have soared as subsidies have risen. College cost inflation induced by federal aid probably hurts low-income families—the people that federal aid was supposed to target—more than others.
  • Federal aid has probably helped increase student enrollment, but many of those additional students may not have been ready, or suited, for college. This is evidenced by the rising shares of college students who require remedial work, and the fact that institutions have lowered their standards to adapt to the rise in second-rate students.
  • Increasing top-down control and subsidization of higher education from Washington is creating a threat to the strength of the American system. As we have seen in K-12 education, the growth in federal subsidies is usually accompanied by calls for more oversight, micromanagement, and rising levels of red tape imposed by Washington.
  • Federal student loan and grant programs have been subject to waste and fraud for decades. The Pell grant program (which SAFRA would enlarge) costs taxpayers hundreds of millions of dollars per year in fraud. Another ongoing problem is the high default rate on student loan programs.

Will the student debt problem be fixed through privatization? Not while Obama is in office. The universities are dominated by secular leftists – they are the ones who benefit from these rising tuition costs. Obama isn’t going to do a thing to stop them from getting your money through subsidies, otherwise he would lose lots of campaign donations!

In the meantime, the best policy is to make sure that you do your degree in a STEM field (science, technology, engineering or math). Non-STEM degrees, according to Captain Capitalism, are not recommended.