Tag Archives: Work

Polemics

Economist Walter Williams explains how to not be poor

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Economist Walter Williams
Economist Walter Williams

Here is his article on wealth and poverty on Creators.

First, there is no real poverty in the United States:

There is no material poverty in the U.S. Here are a few facts about people whom the Census Bureau labels as poor. Dr. Robert Rector and Rachel Sheffield, in their study “Understanding Poverty in the United States: Surprising Facts About America’s Poor”, report that 80 percent of poor households have air conditioning; nearly three-quarters have a car or truck, and 31 percent have two or more. Two-thirds have cable or satellite TV. Half have one or more computers. Forty-two percent own their homes. Poor Americans have more living space than the typical non-poor person in Sweden, France or the U.K. What we have in our nation are dependency and poverty of the spirit, with people making unwise choices and leading pathological lives aided and abetted by the welfare state.

Second, the “poverty” is not caused by racism, but by poor choices:

The Census Bureau pegs the poverty rate among blacks at 35 percent and among whites at 13 percent. The illegitimacy rate among blacks is 72 percent, and among whites it’s 30 percent. A statistic that one doesn’t hear much about is that the poverty rate among black married families has been in the single digits for more than two decades, currently at 8 percent. For married white families, it’s 5 percent. Now the politically incorrect questions: Whose fault is it to have children without the benefit of marriage and risk a life of dependency? Do people have free will, or are they governed by instincts?

There may be some pinhead sociologists who blame the weak black family structure on racial discrimination. But why was the black illegitimacy rate only 14 percent in 1940, and why, as Dr. Thomas Sowell reports, do we find that census data “going back a hundred years, when blacks were just one generation out of slavery … showed that a slightly higher percentage of black adults had married than white adults. This fact remained true in every census from 1890 to 1940”? Is anyone willing to advance the argument that the reason the illegitimacy rate among blacks was lower and marriage rates higher in earlier periods was there was less racial discrimination and greater opportunity?

Third, avoiding poverty is the result of good choices:

No one can blame a person if he starts out in life poor, because how one starts out is not his fault.

If he stays poor, he is to blame because it is his fault. Avoiding long-term poverty is not rocket science. First, graduate from high school. Second, get married before you have children, and stay married. Third, work at any kind of job, even one that starts out paying the minimum wage. And finally, avoid engaging in criminal behavior. It turns out that a married couple, each earning the minimum wage, would earn an annual combined income of $30,000. The Census Bureau poverty line for a family of two is $15,500, and for a family of four, it’s $23,000. By the way, no adult who starts out earning the minimum wage does so for very long.

Fourth, what stops people from making good choices is big government:

Since President Lyndon Johnson declared war on poverty, the nation has spent about $18 trillion at the federal, state and local levels of government on programs justified by the “need” to deal with some aspect of poverty. In a column of mine in 1995, I pointed out that at that time, the nation had spent $5.4 trillion on the War on Poverty, and with that princely sum, “you could purchase every U.S. factory, all manufacturing equipment, and every office building. With what’s left over, one could buy every airline, trucking company and our commercial maritime fleet. If you’re still in the shopping mood, you could also buy every television, radio and power company, plus every retail and wholesale store in the entire nation”. Today’s total of $18 trillion spent on poverty means you could purchase everything produced in our country each year and then some.

Walter Williams is one of my two favorite economists, the other being Thomas Sowell. By sheer coincidence, they both happen to have grown up poor, and they both happen to be black. They understand what causes poverty very well. I recommend their books to you if you want to understand poverty, too.

Commentary

Why is it so hard for young people to find a job?

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Young people have a sense of entitlement
Young people have a sense of entitlement

Bloomberg News discusses the “Professionalism in the Workplace” survey of human resources specialists from York College of Pennsylvania.

Forty-nine percent of [those surveyed] stated that less than half of new employees “exhibit professionalism in their first year.” More than half (53 percent) have noticed “a sense of entitlement” rising among younger workers; almost 45 percent have seen a “worsening of the work ethic,” including “too casual of an attitude toward work” and “not understanding what hard work is.”

Younger workers believe they can multitask and remain productive, the human-resources people told the York researchers. Thirty-eight percent of respondents blamed multitasking for the lack of “focus” among younger workers. The authors of the study explained that the younger generation “believes that it is possible to multi-task effectively” and that using social media, for example, is an efficient way to communicate. In interviews, the applicants check their phones for texts and calls, dress inappropriately and overrate their talents.

“The sad fact is some of these persons probably do not understand what is wrong with this,” the authors note.

Older workers have always complained about younger workers, of course, but there’s a difference: This time they attribute the youthful flaws not to ignorance or waywardness, but to a “sense of entitlement.”

We might forgive 18-year-olds fresh out of high school for lacking employability skills (the manufacturing sector hires many workers lacking undergraduate degrees). But when he or she reaches 23 and has four years of college, employers expect a white-collar worker to recognize basic norms of dress and deportment.

What happened in college, then? The survey by York College’s Center for Professional Excellence assigns colleges part of the blame, observing that letting students miss deadlines without penalty and assigning good grades for middling work only make them form the wrong expectations.

Meanwhile, the UK Daily Mail had the results from a 2013 survey:

Young people’s unprecedented level of self-infatuation was revealed in a new analysis of the American Freshman Survey, which has been asking students to rate themselves compared to their peers since 1966.

Roughly 9 million young people have taken the survey over the last 47 years.

Psychologist Jean Twenge and her colleagues compiled the data and found that over the last four decades there’s been a dramatic rise in the number of students who describe themselves as being ‘above average’ in the areas of academic ability, drive to achieve, mathematical ability, and self-confidence.

But in appraising the traits that are considered less invidualistic – co-operativeness, understanding others, and spirituality – the numbers either stayed at slightly decreased over the same period.

Researchers also found a disconnect between the student’s opinions of themselves and actual ability.

While students are much more likely to call themselves gifted in writing abilities, objective test scores actually show that their writing abilities are far less than those of their 1960s counterparts.

Also on the decline is the amount of time spent studying, with little more than a third of students saying they study for six or more hours a week compared to almost half of all students claiming the same in the late 1980s.

Though they may work less, the number that said they had a drive to succeed rose sharply.

[…]Twenge is the author of a separate study showing a 30 per cent increase towards narcissism in students since 1979.

‘Our culture used to encourage modesty and humility and not bragging about yourself,’ Twenge told BBC News. ‘It was considered a bad thing to be seen as conceited or full of yourself.’

Just because someone has high self-esteem doesn’t mean they’re a narcissist. Positive self-assessments can not only be harmless but completely true.

However, one in four recent students responded to a questionnaire called the Narcissistic Personality Inventory with results pointing towards narcissistic self-assessments.

Narcissism is defined as excessive self-love or vanity; self-admiration, or being self-centered.

Twenge said that’s a trait that is often negative and destructive, and blames its boom on several trends – including parenting styles, celebrity culture, social media, and easy credit – for allowing people to seem more successful than they really are.

I think what I am seeing is that not only do they work less, but they work at things they “like”, rather than at things that will allow them to provide value to others. So, you’re not going to find a lot of computer programmers or petroleum engineers among young Americans, but you will find a lot of people gravitating to jobs that are easy that make them feel good about themselves, and look good to other people, too.

Obviously, there are policy reasons for youth unemployment being so high, but I think this attitude that young people have is definitely part of it.

News

Why is college so expensive? Why does university tuition cost so much?

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The correct answer appeared in the radically leftist New York Times, of all places.

This is by Paul F. Campos, law professor at the radically leftist UC Boulder.

He writes:

[P]ublic investment in higher education in America is vastly larger today, in inflation-adjusted dollars, than it was during the supposed golden age of public funding in the 1960s. Such spending has increased at a much faster rate than government spending in general. For example, the military’s budget is about 1.8 times higher today than it was in 1960, while legislative appropriations to higher education are more than 10 times higher.

In other words, far from being caused by funding cuts, the astonishing rise in college tuition correlates closely with a huge increase in public subsidies for higher education. If over the past three decades car prices had gone up as fast as tuition, the average new car would cost more than $80,000.

Some of this increased spending in education has been driven by a sharp rise in the percentage of Americans who go to college. While the college-age population has not increased since the tail end of the baby boom, the percentage of the population enrolled in college has risen significantly, especially in the last 20 years. Enrollment in undergraduate, graduate and professional programs has increased by almost 50 percent since 1995. As a consequence, while state legislative appropriations for higher education have risen much faster than inflation, total state appropriations per student are somewhat lower than they were at their peak in 1990. (Appropriations per student are much higher now than they were in the 1960s and 1970s, when tuition was a small fraction of what it is today.)

As the baby boomers reached college age, state appropriations to higher education skyrocketed, increasing more than fourfold in today’s dollars, from $11.1 billion in 1960 to $48.2 billion in 1975. By 1980, state funding for higher education had increased a mind-boggling 390 percent in real terms over the previous 20 years. This tsunami of public money did not reduce tuition: quite the contrary.

[…]State appropriations reached a record inflation-adjusted high of $86.6 billion in 2009. They declined as a consequence of the Great Recession, but have since risen to $81 billion. And these totals do not include the enormous expansion of the federal Pell Grant program, which has grown, in today’s dollars, to $34.3 billion per year from $10.3 billion in 2000.

The more money that is attached to students, the more money universities charge – simple.

But where is the money going? Is it mostly going to research? To the classroom? To hire more and better professors?

No:

Interestingly, increased spending has not been going into the pockets of the typical professor. Salaries of full-time faculty members are, on average, barely higher than they were in 1970. Moreover, while 45 years ago 78 percent of college and university professors were full time, today half of postsecondary faculty members are lower-paid part-time employees, meaning that the average salaries of the people who do the teaching in American higher education are actually quite a bit lower than they were in 1970.

By contrast, a major factor driving increasing costs is the constant expansion of university administration. According to the Department of Education data, administrative positions at colleges and universities grew by 60 percent between 1993 and 2009, which Bloomberg reported was 10 times the rate of growth of tenured faculty positions.

Even more strikingly, an analysis by a professor at California Polytechnic University, Pomona, found that, while the total number of full-time faculty members in the C.S.U. system grew from 11,614 to 12,019 between 1975 and 2008, the total number of administrators grew from 3,800 to 12,183 — a 221 percent increase.

If you’re going to college or trade school, go to a low-cost school. Do a STEM degree or do a trade that pays well. Try to get tuition assistance even if it means going to a less prestigious school. And work at every opportunity you get in the most serious job you can find. Don’t spend your money – save it. Especially don’t spend your money on fun, vacations and alcohol. As soon as you grow up, you’re going to wish you could have it all back.