Archive for the 'Politics' category

The Case for Student Loan Reform, But Not How You Think…

Oct 26 2011 Published by under Government, Jobs, The President

So President Obama is in Denver today talking about how to ease student loan debt.  In yet another example of the politics of big government, he’s expected to reduce the amount students would have to pay per year (implementing a cap at 10% of salary) and push for forgiveness of debt at 20 years rather than the current 25.

The amount of student debt in the US is massive; over a trillion dollars currently.  Americans currently owe more in student loan debt than they do on credit cards.  The Stafford Loan, for instance, allows students to borrow up to $57,500 as an independent (with no parental support).  Students often compound commercial and federal loans into enormous sums of money – often under the assumption that they’ll be able to find work upon graduation.

Now before you suggest that’s the problem, look again.  The Labor Department for September of 2011 shows an unemployment rate of only 4.5% for those with a college degree.  So an inability to find jobs doesn’t seem to be the norm for graduates.

So we have people investing in their education, and rightly finding work after graduation.  Should be no problem, right?

No.  The problem is two-fold.  The average student debt for 2011 graduates is $22,900.  Since many graduates will have less or even no debt, the numbers among those who took loans is likely significantly higher.

The average salary of 2011 graduates entering the workforce is only $36,866.  Payscale.com provides a handy list of the average annual salary by degree.  It shows the salary for history, sociology, anthropology and others typically starting in the mid-30s and topping out ‘mid-career’ around $60,000.  Based on regional differences, in reality, you have students graduating who may have more debt that they can possibly make – even at Payscale’s “mid-career” salary level.

If we’re going to make changes to how that debt is repaid, we should also make changes to how it is accumulated.  The entire practice of student loans should be reformed in two significant ways.

Capping Student Loans

First, student loans should be subject to the same earnings litmus test that applies to other credit, but more strictly.

Credit cards, home loans, and other consumer debt limits are typically predicated on your ability to repay that debt.  Amex doesn’t hand out black cards to college kids with no income for good reason – they have little ability to repay.  Home loans, at least in theory if not in practice, require you to prove income before you can qualify for more home than you can afford.

Student loans have none of that. Student loans rarely take into account the potential future earnings of the student.  As mentioned, students frequently compound loans.  The problem is it becomes very easy to accumulate more debt than your future earnings will accommodate.

Student loans should be capped at no more than the average annual salary for a student with that degree.  If a student is likely to make no more than $32,000 with a degree in social work, they shouldn’t be allowed to accumulate loans of $57,500 or more.  By capping total student loans for that degree at $32,000 (combining both direct federal and commercial) and applying the administration’s 10% annual limit for repayment, most student loans should be paid off in significantly less than the twenty years proposed for forgiveness (low-interest rates being assumed).

It is inexcusable that students are allowed to graduate carrying debt nearly as high as, or higher than, their ‘mid-career’ earnings.

Restrictions on Student Loan Usage

Often students take out more loan than they need for tuition and books in order to cover living expenses and other incidentals.  Any credit expert will tell you that putting meals and perishables on a credit card is a terrible idea as the interest increases the cost of those items many times over by the time it is paid off.  Student loans have no such restrictions, and unless things have changed dramatically, there are no caveats against using loans this way.

Stafford Loans, as just one example, carry restrictions that the money is too be used for tuition, books, room, board, or “other education related expenses.”  So what qualifies, exactly?  It’s hard to say.  A search for “Stafford Loan Eligible Expenses” turns up absolutely nothing from the Department of Education on the subject, and the FAQs many schools host have that vague “other” language.  Apparently a used car is an education related expense, as are sneakers, iPods, or anything else.

Since the schools typically hand you a check or direct deposit the funds, there is really no telling what those expenses might be.

If we want to help students who are looking at debt based on future earnings, the least we should do is bring these restrictions in line with sound financial advice.  Allowing students to rack up debt on things Big Macs and tennis shoes is ridiculous.  The education system should limit the way these funds are expended so they cover actual school expenses.  The school should not be in the business of doling out excess funds to 18 year-olds for discretionary spending.

Just recalling my own college experience, I can tell you the day loan excess was disbursed was like a Roman orgy.  The only thing “school related” about the spending were the excuses for why you couldn’t make it to that 8 a.m. class the next morning.

By making these two simple changes, student loan debt might actually be used in accordance with the goal of getting an education.  It would, at the very least, ensure that degree in social work doesn’t come with a debt you’ll never be able to repay.

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Wasteful, Inefficient Government Ideas That Refuse To Die

Feb 08 2011 Published by under Craziness, Government, Travel, Waste

A new piece in Fast Company today highlights the Administration’s renewed push for high speed rail.

For those keeping score of wasteful, inefficient government ideas that refuse to die, back in April of 2009, Team Obama announced an $8 billion push for high speed rail.  I noted at the time the almost complete inability to go north by train.  I also noted the old adage that trains offer all the discomfort and cost of air travel, but in six times the time.

All of that still holds true.  The new plan still foresees a US population only concerned with lateral movement, and one that wants to pay top dollar for low value.

The one thing that changed is the price tag.  Now the government wants to spend $53 billion taxpayer dollars (a 6.5 fold increase in the cost) to subsidize a mode of travel that has never been profitable in the US.

That’s change we can believe in, and what counts as a commitment to responsible spending by the administration these days.

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In Search Of Humor: The Top 5 Funniest Republicans/Conservatives

Aug 04 2010 Published by under Conservatism, Humor, Libertarians, Politics, Society

A friend pointed me to recent comments by Keith Olbermann that there are no funny conservatives.  As a big fan of both conservatism (at least the fiscal kind) and comedy/stand up, I have to take issue with that.  There are a lot of funny conservatives/libertarians.  (Please note, I really couldn’t find any funny social conservatives, but I didn’t look that hard either.)

#5 Drew Carey – One of America’s jolly fat men, Drew Carey had a huge smash with The Drew Carey Show, but like most got his start doing stand up.  While he sold out to take Bob Barker’s place hosting The Price is Right, he’s still funny.  If you don’t believe me, visit Showtime on Demand and watch the episode of The Green Room with Carey.

#4 Adam Sandler – America’s favorite egg-shaped head also leans right.  Like many Republicans in Hollywood, he’s not overt about the lean, but he’s still funny (Little Nicki aside).

#3 Owen Wilson – Wilson, like our number two funny man Vince Vaughn, is unquestionably funny.  If you don’t buy that, rent Wedding Crashers or Zoolander again.  Wilson and Vaughn reportedly crashed a Texas Young Republicans event while in DC filming Wedding Crashers.

#2 Vince Vaughn – Arguably, Vaughn should be number one on this list.  Most people would probably put him there.  While I have been a big Vaughn fan since Swingers came out, if we’re talking political humor, I have to give the top spot to someone who covers it a lot.

#1 Doug Stanhope -  Stanhope probably isn’t everybody’s first choice, but he’s definitely mine.  This riff on the pledge of allegiance is a classic example.  As he says, good products sell themselves… So here’s my argument for Doug.

Honorable Mentions:

  • Robert Downey Jr. has said his personal challenges forced a change of political views and he’s now a Republican.
  • Bill Engvall, Jeff Foxworthy and Larry the Cable Guy – I’m not a fan of redneck humor, but they make a lot of people laugh.
  • The Rock – Tooth Fairy was unintentionally one of the funniest movies ever. (It still counts)

I could go on… John Ratzenberger, Larry Miller, Penn & Teller etc.

Olbermann hasn’t been funny since he left Sports Center, so I’m guessing he didn’t take his writers with him.  For him to make ridiculous blanket assertions is really kind of weak, as this list demonstrates.

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My Experience With the “House Call”

Nov 06 2009 Published by under Candidates, Government, Politics

I was at a meeting over near the Hill yesterday and had a chance to wander past the throngs of people storming the halls of Congress. I had an opportunity to chat with some of them, and to listen to many others. There were several things I picked up on, and I thought I’d share them.

First, let me say that in the 10 years I have been in DC I have never seen a crowd like that trying to get access to their elected representatives. The lines to get into the House office buildings literally wrapped around the buildings like a nightclub rope line. Several of the buildings stopped letting people in, so people familiar with the HOB system were telling those turned away to go to another building, then enter the basement tunnel system to get to their representatives.

On some level it appalled me that the US Capitol was telling people they were not allowed to go inside and see their members, but the sheer volume made me understand it simply from a security perspective. I would say, however, that I did not get the sense from anyone that they would have turned violent. In fact, everyone I saw or talked to had a very sunny disposition. Given their agitation that was remarkable to me. There was no “mob rule” that escalated the anger at all.

I would not, however, say that there was no anger. There was, in fact, plenty. What really struck me about the anger, however, was its direction.

This was not a Republican crowd. This was an American crowd. The people I talked to were just as angry with the right as they were at the left. They were just as happy to disrupt the normal cycle of business in Congress for both sides. When men and women in well tailored suits walked past the crowd of people in jeans, dockers, polo shirts, and jackets, they were subject to mocking and derision without regard to what party they may belong to.

The suits, for their part, looked none to pleased. They were scowling at the crowds as they walked by, and seemed disdainful of the effort by the crowd to make their voice heard. That seemed true universally among what were clearly the DC class.

It became very clear to me that this crowd wasn’t anti-Democrat, anti-Obama, or in any way pro-Republican. It was simply anti-Washington. It was a crowd incensed at what it perceived to be the arrogance of DC. I heard time and again as people passed by, or chattered in line, the refrain that these were people happy to come remind Washington that the rest of the country is watching and demanding respect.

When I returned to my office, I saw a reference to Ramseh Ponnuru’s column in Time magazine titled “The Rebirth of the Republican Middle“. In it, Ponnuru argues that the results on Tuesday were less about party than they were about people clamoring for ideas and results. Deeds in VA clearly had no ideas. Corzine in NJ clearly had not delivered results. Hoffman in NY seemed ill-prepared for the local issues. Ponnuru argues that the lesson for Republicans is to run campaigns based on a message of specific achievable fixes for what ails us.

I assume that the upper case “R” in the title is due to a style requirement at Time magazine. I assume that because Ponnuru’s column specifically goes on to state the question of whether the GOP is too conservative or not conservative enough is really secondary. Ponnuru’s focus on ideas and solutions has no partisan stripe.

However, based on what I saw yesterday, I do believe that there is a republican wave in the sense that people feel government has gotten too big, and ignores them freely. Democrats didn’t get elected because people felt Washington was too small. They got elected because people felt that Washington, under the GOP, was unresponsive to “we the people”. The Democrats have proven that they’re no better. Now is the time for candidates to run on making government work, not simply adjusting its size.

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Bashing Bush, Matt Latimer, and Peggy Noonan

Sep 17 2009 Published by under Books, Operatives, Politics, Self-Promotion

So another “Bush bashing” book is out (at least in excerpt) and the Bushie loyalists are again charging the airwaves and the Internet to defend GWB. Just as we saw with Scott McClellan, they’ll define Latimer as a doofus, out of the loop, in over his head, not as important as he thinks. (Which, of course, begs the question why the Administration excelled at hiring the incompetent and the self-important. Didn’t they have a screening process?)

I have read the excerpts of Latimer’s book and frankly don’t find all that much wrong with it. I’ll likely buy the book and consume it all simply because I liked the way the excerpts were written. His publisher is right. He has an engaging style. Was he in the room or across the street at the EEOB? Who cares. He was clearly closer to the President than 99.9% of Americans will ever get in their life, so let him have his say. We might find it interesting.

The treatment Latimer has received in the last 36 hours, however, has left me perplexed. It reminded me a lot of McClellan’s welcoming reception and that reminded me of something Peggy Noonan wrote.

William Safire, himself a memoirist of the Nixon years, said to me, a future memoirist of the Reagan years: “The one thing history needs more of is first-person testimony.” History needs data, detail, portraits, information; it needs eyewitness. “I was there, this is what I saw.” History will sift through, consider and try in its own way to produce something approximating truth.In that sense one should always say of memoirs of those who hold or have held power: More, please.

Noonan, and by extension Safire, were spot on. I think that every White House staffer should not be discouraged, but rather should be required to write a book, and tell the story of their time there. Our history demands that those making it (whether the President or his secretary) should provide us with as much detail as possible. When these books are written we should not denounce the writer, we should simply ask for the next installment from the guy who sat next to Latimer so we could see how he remembered the events.

One of the most interesting conversations I have ever had was with the woman who sat next to Monica Lewinsky in the White House. She once gave me her take on the woman behind the blue dress and it meant more to me than any ABC News special report.

Do I buy the caricature of Latimer as an opportunist trying to parlay his brush with fame into a financial windfall? Absolutely. Do I also believe that much of what he says is probably exactly as he remembers it? Absolutely.

That’s why we need more of these books, not less. We need to be able to compare notes and make our own determination about what happened, who these people were, where they made mistakes and where they proved they were only human.

Now, the latest to weigh in against Latimer in protecting the Bush years is James Carville.

This little dweeb needs to be glove slapped… People that have the honor of working in the White House ought not be going out and publishing this…

I couldn’t disagree with Carville more.

The people that need to be glove slapped are Carville and his ilk for attempting to silence future tomes. If Dana Perino, Tony Fratto, or Ed Gillespie recall events differently, let them write a book and give us their take. By the time all the ink dries, we might have a semi-complete picture of life inside the GWB administration.

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