Of Financial Capital and Human Capital: Why We're Bailing Out Wall Street While Allowing Our Schools to Get Clobbered
Our preoccupation with the immediate crisis of financial capital is causing us to overlook the bigger crisis in America's human capital. While we commit hundreds of billions of taxpayer dollars to Wall Street, we're slashing our outlays for public education.
Education is largely funded by state and local governments whose revenues are plummeting. As consumers cut back, state sales and income taxes are shrinking; three quarters of the states are already facing budget crises. State revenues account for about half of public school budgets and most funding of public colleges and universities. In addition, as home values drop, local property taxes take a hit. Local property taxes account for 40 percent of local school budgets, on average.
The result, across the nation: Teachers are being laid off and new hiring frozen, after-school programs cut, so called "noncritical" subjects like history eliminated, schools closed, and tuitions hiked at state colleges and universities.
It's absurd. We¹re bailing out every major bank to get financial capital flowing again. But we¹re squeezing the main sources of our nation's human capital. Yet America's future competitiveness and the standard of living of our people depend largely our peoples' skills, and our capacities to communicate and solve problems and innovate not on our ability to borrow money.
What¹s more, our human capital is rooted here while financial capital moves around the globe at the speed of an electronic blip. Right now global capital markets are frozen, but the big money -- mostly in Asia and the Middle East -- is coming here, bailout or no bailout. At this point it's coming here in the form of purchases of dollars and of T-bills that are financing the Wall Street bailout. Eventually American assets will become so cheap that the money will come here to buy up the bargains.
It¹s our human capital that¹s in short supply. And without adequate public funding, the supply will shrink further. Don't get me wrong: I¹m not saying funding is everything when it comes to education. Obviously, accountability is critical. But without adequate funding we can¹t attract talented people into teaching, or keep class sizes small enough to give kids a real chance to learn, or provide them with a well-rounded curriculum, and ensure that every qualified young person can go to college.
So why are we bailing out Wall Street and not our nation¹s public schools and colleges? Partly because the crisis in financial capital is immediate while our human capital crisis is unfolding gradually. Headlines scream what's happening to our money but not to our kids.
Maybe it's also because we don¹t have a central banker for America¹s human capital someone who warns us as loudly as Ben Bernanke did a few months ago when he was talking about Wall Street's meltdown, of the dire consequences that will follow if we don¹t come up with the dough.














Department of Humanity?
December 3, 2008 3:39 PM | Reply | Permalink
I love it.
December 3, 2008 6:58 PM | Reply | Permalink
Probably deserves a turn.
After all, we've had its twin brothers in Cabinet for years now - the Departments of Inhumanity and Disshumanity.
December 3, 2008 7:55 PM | Reply | Permalink
I could hug you.
December 3, 2008 4:22 PM | Reply | Permalink
Department of Humanity is right on. I still like to come to a site like this and read Secretary Reich.A C-SPAN forum was ranting and raving that there was a lack of discussing our education system (is it really a system or a hodge-podge?) during the campaign. I am sure there are fine schools around the country--it is not fair to slander everyone in education because the statistics look so bad. But I surmise that the individual state governments are not happy, the teachers are not happy and millions of students are not happy. If the UAW can agree on some principles with the Big 3 Management as reported this week, the NEA has to work to find common ground with the counties, states and Feds.
December 3, 2008 4:26 PM | Reply | Permalink
money calls the shoots in the usa today..education is viewed as socialistic (which it is), and which the wealthy would prefer to leave open to only the wealthy (hence the focus on 'private' educational places over 'public' educational ones... until people put more value in society and people then they do in money, the federal reserve will take precedence over issues like education and etc..
December 3, 2008 4:37 PM | Reply | Permalink
Exactly, open access to education is socialistic - especially when the vast majority of high paying jobs require a degree as an entrance ticket.
So if you can be sure that only children from the top 10% of wealth can afford the best tickets, then our knowledge economy only has access to 1 in 10 of the smartest children. Not the best plan ever.
But then I've been to college, and I know I'd still be at college if I didn't have to pay for it. So how to make it free without making it too easy to stay? National Service???
December 4, 2008 1:00 AM | Reply | Permalink
A limit to the number of years/terms that are funded should do the trick. Eventually the student will have to graduate and move on. Back when I was in school... I think you could apply for Pell funding for 11 semesters (5.5 years)... that seems like a reasonable time limit to get a degree.
December 4, 2008 11:59 AM | Reply | Permalink
shoot - shot
December 3, 2008 4:37 PM | Reply | Permalink
ummm...Don't we already have a Department of Education? Perhaps we should be holding its feet to the fire instead of creating yet another department...
December 3, 2008 4:38 PM | Reply | Permalink
We do have a Department of Education, but I don't know that holding its feet to the fire is the right approach.
Somehow we've convinced ourselves that the only way to get "performance" out of our human institutions like Education is to oversee them--in a way that chokes the life out of the projects they are supposed to be promoting. This idea exists in contrast to our conviction that the only way to get performance out of our markets is to apply no moral oversight at all--and shrug helplessly when things don't work rather than challenge the idea that capitalism equals kindness and tough should always be paired up with love.
I was being a little facetious with the Department of Humanity suggestion, but it does seem that we need to spend some time as a nation figuring out where exactly we stand between "socialism" and "social."
And it's not just a theoretical question--realistically, we can't make our wealthy people much wealthier because other nations are now gaining wealth too. Our national discussion needs to be about whether we want to be more like Sweden, with lots of cooperative activities, or risk pushing our middle class onto the same standard-of-living platform as say, Chileans, who have a lot less.
Department of national priorities?
December 3, 2008 5:34 PM | Reply | Permalink
a social democracy *would* be nice, but I think we have a lot more pain to go through before we get there :-)
December 3, 2008 9:17 PM | Reply | Permalink
I'd like to put in a good word for the nation's nontraditional students. While we're not young, we're equally in need of consideration when discussing the educational situation. Forgive my long-windedness, but I think this is an important and frequently overlooked issue.
At the moment, I am working part-time while attending university for a second degree. This is because the industry that the first degree serviced - in my case journalist - is shedding jobs at a massive rate. Like many nontraditional students who have returned because of the roiling job market, I am faced with the choice of returning to school or consigning myself to a life in the service industry. As a formerly valued employee, I haven't yet consigned myself to the life of a Wal-Mart cashier.
My mother, another former valued employee, lost her job when the factory she worked at for 19 years went to Costa Rica. Luckily, the government consented to pay for her education, provided she went to a community college. A four-year degree, which would have been the only route to finding a position that paid equal to her factory job, was too rich for Washington's blood.
If we are committed to an economy based on outsourcing, layoffs and uncertainty, there should be serious thought given to realistic retraining to the victims of our layoff culture. This means providing for beneficial retraining - not just community college degrees, but four-year and advanced education - to a group that is often in the position where they have lost their main sources of income and have trouble paying their essential costs, much less the price of the type of education that would allow them to use their skills at the fullest level.
December 3, 2008 4:49 PM | Reply | Permalink
No, the Dept. of Education has been either gutted or infested with loyal Bushies. I say blow it up. And instead of the Department of Humanity, we shall call it the Department of Future Humanity thereby narrowing its mission to something more manageable.
Or not.
-AF
Andrew Sullivan Is A Fraud
December 3, 2008 4:49 PM | Reply | Permalink
Seems to me many colleges will also go under as fewer students can afford even to take out loans (if they are available at all!). Families may need college age students to help out financially instead of going to college.
There are so many aspects to this crisis. If colleges go under, more professors will be unemployed. We'll get into a situation where we're losing already established institutions and researchers.
I wonder how many ghost towns of various types will show up across the land. Closed stores. Closed factories. Closed schools. Vacant houses.
It's pretty scary to contemplate.
December 3, 2008 4:51 PM | Reply | Permalink
Don't know if Reich answers comments but would be interested on his take on one of the rumored names for Labor Secy: Mary Beth Maxwell
December 3, 2008 5:07 PM | Reply | Permalink
Nah
He's here to tell us what's wrong, though it's not like those of us with kids in public education don't know.
Pity he isn't here to look for ideas and solutions.
Darn few of them are.
=(
December 3, 2008 9:16 PM | Reply | Permalink
Dr. Reich, wouldn't you say this is only an acute instance of what has been happening in teh USA for about 40 years now with respect to servicing the needs of business at the expense of our people--particularly our children with respect to education? Seems to me that the entire approach of Washington to the current crisis is bassackwards in the extreme. They are falling all over themselves to help the crooks, thives and con-men who created the entire debacle and who got rich by doing so yet there's nary a peep out of anyone--Democrats included about assisting our ordinary people who have been neck deep in financial trouble for 30 years! Can you explain why the Democrats are not doing more for the ordinary American and what chance you think there is that they ever will do much to help the ordinary American after they have spent all the money in the treasury making sure the rich remain rich and never have to suffer a loss? I am all ears awaiting your response!
December 3, 2008 5:10 PM | Reply | Permalink
Don't you just love it when a plan comes together? This is what conservatives or shall we say elites always wanted. They got it and most americans just lay down and take it. I guess this explains why slavery exists because no one fights back. Emerson comes to mind.
December 3, 2008 5:27 PM | Reply | Permalink
"...America's future competitiveness and the standard of living of our people depend largely our peoples' skills, and our capacities to communicate and solve problems and innovate not on our ability to borrow money."
That's the heart of the problem, in my opinion.
December 3, 2008 5:32 PM | Reply | Permalink
By the way, did anyone see who was on the cover of time this week? The lady who can fix everything with an axe of course. She says, we'll pay you more now if you give up any job safety, never mind what happens to your wages later. She bounces around claiming merit is the key but we been here before. There will soon be no public education, no bail out for the poor, just a meager "fuck you" to the poor.
December 3, 2008 5:34 PM | Reply | Permalink
Oh please, schools are awash in money. Through good times and bad times, students are coming out dumber and more ignorant.
As someone that came up through parochial schools with unpaid teachers and 60 student classrooms, I can safely say that school systems have plenty of money. What they don't have, is enforced discipline to provide a learning environment, and too many unfunded mandates unrelated to education. Factor in political correctness with trendy theories of learning and it's no wonder high school graduates pre-WW2 were better educated than quite a few college graduates today.
New Jersey ran out of money to build and refurbish buildings after half the projects budgeted were completed. Amount? $6 billion. Washington DC is paying students for attendance, good behavior, and grades. That is admitting failure in spite of spending more per pupil, than most if not all the other states.
December 3, 2008 5:53 PM | Reply | Permalink
Guess you proved your own point.
December 3, 2008 5:58 PM | Reply | Permalink
By the way, some of the best performing public schools in the nation have $16,000 per student per year. While 30 miles away are schools with less than $3,000 per student with some of worst drop out rates and test scores in the country. I know because l live in one of the most sought after districts in the nation with two earning presidential awards for excellence. Local affluent parents were livid at the poor kids being bused in for a better education. Local housing values have increased over 600% since pro 13 in 1978. Its been a disaster for California education. The recent real estate bubble has been profound double whammy. First sending construction cost through the roof, and undermining the tax base for public school by it subsequent implosion.
December 3, 2008 6:15 PM | Reply | Permalink
The problem is also tied to people's efforts to avoid paying taxes. If people don't like how tax money is spent, they should put their energy towards changing how the money is spent not doing away with taxes all together. I understand the arguments against bloated bureaucracies, and systems that become dependent on higher and higher taxes. It's a kind of folly for sure. I still maintain that the final solution of conservatives is to do away with publicly funded eduction. I also think they are near to completing this goal.
December 3, 2008 6:48 PM | Reply | Permalink
I went through a private system, too, and you know as well as I do that private systems are choosey. They do not take in the difficult to teach, or doesn't possess above average intelligence. Public schools take in everyone. EVERYONE.
That's a rather large omission that is never mentioned.
Funny, ain't it.
December 3, 2008 9:22 PM | Reply | Permalink
Bwakfat--
"...you know as well as I do that private systems are choosey. They do not take in the difficult to teach, or doesn't possess above average intelligence. Public schools take in everyone. EVERYONE."
What you say about private schools used to be true -- but not anymore.
Now, because tuition has hit astronomical levels, fewer and fewer American families are able to make that financial stretch; the result is that many of our brightest, motivated children are now also going to public schools as part of the Everyone mix.
The result is that most American private schools, particularly boarding schools, are foundering financially -- other than those few in the top tier who are endowed as fully as an Ivy college. Those exceptions may still pick and choose while; otherwise, most private schools are cravenly taking anyone who breathes whose parents are willing to pay absurd tuition for increasingly limited return.
In terms of American students, that means accepting many more kids with severe learning disabilities or, more often, significant behavioral issues.
Otherwise, our private schools are now catering to a foreign market, competing for students who are primarily Chinese, Japanese and Korean whose families still believe the hype that going to one of these places is a direct feed into a good American college. The better schools get their better students. Everyone else gets students who are well-behaved and certainly more motivated than their American peers, but who can barely understand, much less speak English, and teaching must be slowed to a crawl to accommodate their comprehension. (Music and art teachers are luckier than most in this regard, as our languages are universal.)
December 4, 2008 12:59 AM | Reply | Permalink
This was an excellent article.
I spent 25 years as a professor at a major university. Across this time, republican initiatives (e.g., anti-property taxes) and republican legislative schemes (e.g., corporate welfare) led to a huge drop in state funding for higher education and K-12. Our university, for example, lost 50% of its state funding. My department went from 13 faculty to 6 faculty across these 25 years. These cuts tended to be across the board, targeting virtually all departments except engineering and of course the athletic department.
This was a disaster for the students. Their tuition had to be increased, class sizes increased enormously, and there were fewer professors available for teaching and advising. It's nothing new, and it is extremely sad.
I'm not sure conservatives want to eradicate public education. Rather the goal is to corporatize it (like the media). In other words, the public would still be paying much of the bill, but the corporations would be reaping the benefits (e.g., the knowledge and trainees produced by the university)
December 3, 2008 8:39 PM | Reply | Permalink
...coming from a family of school teachers, things are not the same anymore (to say the least). The teaching profession is succumbing to the same economic pressures of wanting more and thereby squeezing out the middle class with access to an adequate education and health care.
Obama needs to call for SHARED SACRIFIC from ALL, INCLUDING doctors who are turning to specialties as a way of making more money and thinking about the patient and society's needs secondarily (if at all).
And may I just add this, having just read the NYT’s blog regarding what an Obama Inauguration should consist of……..... if you're homeless, got laid off, lost your job, more than just humbled by a minimum wage job, you'd probably want to keep the Inauguration low-key. On the other hand, If you're one of Obama's bundlers, max'd out on your political donations to his campaign during the general and primary, probably a tasteful (but not too extravagant) party at the Mall in Washington--I mean, why have an unintentional 'in your the face' to the taxpayers who have been losing their homes to foreclosures and lost jobs through out-sourcing (by Congress).
Really cannot understand why there isn't more outrage towards BOTH parties of Congress.
December 3, 2008 9:06 PM | Reply | Permalink
Methinks Robert Reich would make a pretty good Secretary of Humanity himself.
What Say You All?
December 3, 2008 9:14 PM | Reply | Permalink
America's future competitiveness and the standard of living of our people depend largely our peoples' skills, and our capacities to communicate and solve problems and innovate . . . . Robert Reich
As I recall, Reich divided the workforce into three types: "routine production services," "in-person services," and "symbolic analysts" (sic -- properly, symbol analysts). The Work of Nations
Reich argued that the class of "symbolic analysts" would be responsible for ensuring "America's future competitiveness" and would make up around 20% of the labor force.
So ---
How much college or $16,000 per year high school educations do these "production" and "in-person service" workers really need. For most, isn't college a waste of time, an economic drag upon them, their families, and the nation, and a snare and a delusion?
December 3, 2008 9:16 PM | Reply | Permalink
I like your thinking here. If everyone were educated to be an Einstein who would dig the ditches? That's the root isn't it. Who's allowed to do what. Just like Clint Eastwood's character in "The Unforgiven" said, "Deserving has got nothing to do with it..."
December 3, 2008 9:39 PM | Reply | Permalink
Little Bill Daggett: I don't deserve this... to die like this. I was building a house.
Will Munny: Deserve's got nothin' to do with it.
See -- if only Little Bill'd been attending the local cow college instead of playin' at bein' Bill Levitt, then, maybe Will would have reconsidered seein' as how the future of the nation depends on education.
December 3, 2008 10:45 PM | Reply | Permalink
Credit and the credit system is about the turnover of capital, the ability to produce commodities and to run businesses without those engaged in those having to front their own cash. That's basic to the operation of capitalism, which is why Wall Street is being bailed out. The production of future labor ("human capital") is overhead in the system, since payment for it comes directly and indirectly out of capitalist profits (via taxes and workers' wages). In times of crisis, capitalism tends to retrench toward the basic, if not the primitive, since demand for labor is immediately reduced and capitalists, especially the American version, have a hard time planning or spending very far ahead when demand is unknown. That's why Wall Street 'naturally' comes first.
December 3, 2008 10:09 PM | Reply | Permalink
The sad thing is that many would probably object to the idea of a Department of Humanity just because of the title...
-- Cris
My site: Obama Wallpaper Archive
December 4, 2008 12:14 AM | Reply | Permalink
Right. Humanists are right up there with liberals on the list of groups to despise, even by people who actually meet the definition.
December 4, 2008 2:13 AM | Reply | Permalink
"In times of crisis, capitalism tends to retrench toward the basic, if not the primitive, since demand for labor is immediately reduced and capitalists, especially the American version, have a hard time planning or spending very far ahead when demand is unknown. That's why Wall Street 'naturally' comes first."
Actually during the Great Depression, Roosevelt's programs vastly expanded Educational Opportunities. The National Youth Administration provided funds for High School and College Work-Study programs, and between 1930 and 1940 the country as a whole moved from 40% of High School ages students seeking to graduate, to, in 1940, we passed the 50% mark.
Many of the CCC camp facilities offered GED programs for participants, others offered vocational programs. There was a very high rate of participation and GED completion, depending, of course on whether particular CCC camps organized the programs. Where it was organized it was 35 hours work per week, and 12 hours of classes. Since Army Officers ran the individual CCC camps, many a recent West Point Cadet got seconded for teaching duty.
At least one "cause" of the great depression was the poverty of education resulting in too many unskilled and semi skilled workers chasing too few jobs of that nature. FDR had two considerations in mind -- first to reduce that unskilled laborforce looking vainly for jobs, and in the process bidding down the wages, when the solution to at least one aspect of the depression was to inflate wages along with other factors. Thus keeping impoverished students in school by paying them was one method of reducing the job seeking laborforce. Wages and Hours laws eventually pushed this objective forward. The second issue FDR confronted, particularly after 1937-38, was his understanding that the healthy economy he visualized required at least 30% of young Americans to study beyond High School, particularly in the science and technology field, and that in the late 30's only 5% of Americans were going to College or post high school trade programs. The war prevented him from acting on that understanding -- but the primary reason he signed the GI Bill in 1944 was because of the College Tuition program. And yes, by the mid 50's the US was educating slightly more than 30% of its post High School youth in college level programs.
The problem today is the huge inflation in the cost of education, and the Loan programs beginning in the late 1960's, that put costs on credit. It is just not a sustainable model for how you properly supply an advanced technical society with the educated workforce it requires. It is going to take some brave work by Congress to sort this one out.
December 4, 2008 2:19 AM | Reply | Permalink
We desperately need money here in CA. It takes 2/3 of the legislature to raise taxes, and that means that a few Republicans are able to starve to to death the public sector. We're teetering on the edge here.
December 4, 2008 2:38 AM | Reply | Permalink
I have to agree with most of what you wrote. The education problems in this country did not pop up over night. These problems have been years in the making. The biggest problem I see overall is accountability. We're bailing out the big three because management was arrogant and reckless for over 30 years. We're bailing out the big three because MOST of the factory workers were lazy, greedy and never wanted to learn job skills that are actually marketable (part of that may involve getting a four year degree at night). Why knock yourself out going to school at night (been there and done that myself) when you can act like a big dumb cow screwing bolts for 10 hours a day making a 100k a year with overtime?
I don't think I need to elaborate about the lack of accountability in the financial sector...
Throwing money at the banking and automobile problems in this country is a quick fix that does not fix the problems and will change NOTHING.
I would predict that investing in education would be less popular in the long term because by its very nature there would be some sort of accountability. If you don't produce or reach some level of competency, you don't go on. No old boy network or amount of money can get you out of that. Also, to be effective, YOU MUST HAVE ACTIVE PARENT INVOLVEMENT through high school. Most parents are unwilling to make sure ther children are actually learning or doing their work. Once again, the accountability issue props up again.
Without active parent involvement, no amount of government funding to education will make any sort of significant difference. Without a decent education, retraining displaced workers (such as the factory workers from the big 3) is probably a total waste of time...
December 4, 2008 2:43 AM | Reply | Permalink
Hi All,
I'm Dave and brand new here I just had to join. I think I'll be around a while because I really like what I have read (didn't agree with it all, but liked it anyway). Although I do have strong opinions I'll try to keep it down for a while until I have seen a little more.
I will however comment slightly on this topic (just because I only said "try", never promised I could do it anyway).
The education topic is big to you as it should be. I have noticed a few past and present educators in here commenting too, along with a former journalist. That also is great.
My great Uncle was William Marsh Rice and my Grandmother was a grade school teacher her whole adult life. Between the two of them I have seen the value of an education, but I never got one. Instead I studied on my own. I used libraries, books, people like my Grandmother and people like you to educate myself.
In 1982 I took the G.E.D. test and through my own studies I was told that I passed with test scores above 97% High school graduates that year. I did receive grants and scholarship offers from quite a few Universities. One being M.I.T., another N.E.S.O.P., and other full tuition grant offers, still I had to refuse. I was now a young father of one with my second son on the way and I didn't have time to invest in it that way. I did however accept a grant to North East Community College and attended just one semester to improve on my construction trade skills.
My Point? Am I bragging?
I'm not bragging. I'm just pointing out that as long as there is an urge to learn we can all find a teacher. As long as we respect that teacher we will always find a way to learn. Closing up a brick building never closed down a mind. I still believe that and practice it's method in my life even nearing the age of 50. That is what prompted me to sign up and join this site as a member.
Thank you all for your very deep insights and honest opinions.
Dave
December 4, 2008 4:09 AM | Reply | Permalink
Welcome to TPM. We're all learners here!
December 4, 2008 10:06 AM | Reply | Permalink
Reich is a true genius who thinks differently from those in power, on the left or the right. I hope the President-elect sees this and brings him in to an important advisory position.
December 4, 2008 9:29 AM | Reply | Permalink
"Reich argued that the class of "symbolic analysts" would be responsible for ensuring "America's future competitiveness" and would make up around 20% of the labor force."
Yeah, and it's a fine mess they've gotten us into! It seems to me that it's exactly this kind of thinking that permits disinvestment in the public and widespread labor exploitation amongst the canaille.
On the other hand, if we're prepared to propose that the top 20% is itself dumb as a box of rocks, then maybe we can get somewhere.
Thus far, I don't see it.
December 4, 2008 10:31 AM | Reply | Permalink
Because education isn't valued in America. We have always seemingly given more credence to atheletes and the popular crowd than we do to academians. Until we can financially see the benefits of a good education (and get people to stop looking down on those Ivy League elitists)... we will continue to have crappy public schools.
December 4, 2008 12:03 PM | Reply | Permalink
I once asked a prominent local conservative why, if he was so gung-ho for democracy, he was opposed to adequately funding the two most democratic institutions in the country: public schools and public libraries. He never really answered me, just went on and on about taxes being too high and welfare queens, and the virture of vouchers (I work at the private school where he sent his kids, so I told him I thought there was more than a little self interest there - to his credit he acknowledged that.)
December 4, 2008 12:31 PM | Reply | Permalink
I have to say, as one who has a pretty good seat near the front of the orchestra on the meltdown, that the TARP funding is not so much about bailing out banks, as it was about preventing a Chernobyl-style meltdown that was about to happen to the core of the financial markets, because if any of the "derivative partners" who are parties to the $40 Trillion in derivative instruments, interest rate swaps, hedges and other similar post-Y2K financial "products" had defaulted on their obligations under the derivative instruments, a chain reaction of "derivative partner" defaults would have caused huge technical defaults in the underlying loans -- many in the commerical, as opposed to the subprime, sector -- that might have forced radical reactions from lenders under bank regulatory rules (because many otherwise OK loans on commercial projects would suddenly have been deemed non-performing, requiring write-downs, enforcement, etc., where the collateral is already declining in value by 20-30% or more, that would have accelerated the loss of market value, bank failures, investment bank failures, etc., which would have tanked retirement plans and 401K accounts, university endowments, etc. etc. etc. This would have never happened prior to the election but for the fact that they were millimeters from the Chernobyl-style nuclear catastrophe, and need the money to protect against a vert toxic chain reaction. Horrioble,m inexcusable, corrupt, stupid, and classically "free market, GOP style" financial irresponsibility built on greed, but the alternative was even worse. I don't think "choice" had much to do with it by October 2008. Choice and greed had everything to do with it, in the 8-10 years preceding these events. But that's another story that will only matter after the dust settles.
All of that said, I completely that we need governmental investment in education on a scale never before undertaken, for the good of the nation. The again, I am very empathetic to the Swedish model of social democracy, which is looking better and better all the time. Milton Friedman left of us a legacy of intense economic calamity built on privatization of public functions and the evisceration of governmental oversight and investment, all of which made millionaires into billionaires, and the rest of us working longer and harder for less. Fark them, fark all of them. But we need to save the patient from dying from the acute effect of multiple bleeders before we treat the chronic mess that caused those bleeders to exist in the first place.
December 4, 2008 2:26 PM | Reply | Permalink