PRIVATIZATION OF EDUCATION IN FLORIDA ?

 

 

Published by El Nuevo Herald on May 21st, 2014

 

 

 

 

 

Around the world there is the certainty that most basic public services should be undertaken by the State,  who is funding the development of the nation, promoting a number of factors whose purpose is to strengthen our system by facilitating the means for capital investment and consequent job creation.

 

 

 

 

Thus, we see that the construction of fire stations, police commissaries, medical clinics, roads, schools and public education, is usually performed by the State who also give most of the services altogether.

 

However, in Florida, since 1996, have proliferated some schools called charter schools, which are largely a kind of symbiosis between state capital and private equity.

 

By December 2011 there were about 5,600 charter schools with more than 2 million students nationwide and more than 400,000 of them on the waiting list.

 

In Florida, for 2012-2013, 200,000 students were enrolled in 574 charter schools in 44 districts.

 

Opening a charter school is relatively easy. A group of parents, teachers and community members gather. Formalize a request to the appropriate school district and create a board that negotiates a contract with the district. The board of that district then becomes sponsor of the charter school.

 

This group sometimes is nonprofit.  However, sometimes it is just the opposite. And this usually happens because members of the community by themselves, just look at charter schools another way of doing business through public funding allocated to these charter schools.

 

Charter schools are schools of choice, really not administered by the state. This means that neither students nor teachers are required to attend the school, that is, this is a major difference with the public schools, where, for example, a district students must attend schools in the district.

 

The main problem at the local level lies in the effort being made by the normally 85,000 teachers in Miami Dade County.  They are hired year by year renewing their contract without obligation prior to maturity.  Their incomes are modest and soon his professional assessment will be based on a complex mathematical equation that obviously limit its progress.

 

With the variety of educational modalities that exists today, the efforts of the teachers usually dissipates and is not balanced evenly.

 

There is a home schooling, where parents play the role of teachers and the children take examinations timely.

 

There are magnet schools, where students must have a special predisposition toward a particular subject.

 

There is distance learning or virtual school, which in Florida has experienced unprecedented growth, from $ 35 million spending in the previous year to $ 156 million today.  In addition to the increase in such spending, student achievement is questioned as it is not compulsory to attend classes.

 

Currently, with all the pressures to teachers in Miami Dade, charter schools have the option to accept or not to impose collective bargaining union for the benefit of teachers.

 

Evidently, and so indicates the annual trend of 13% growth, charter schools continue to rise, receiving tax dollars that public schools really urgently need.

 

Right now, through a program called Corporate Tax Credit Scholarship Program, aims to create a system of vouchers to charter schools, to divert about $ 300 million from public schools.

 

We are not against business, let alone free enterprise, but if most charter schools are aimed to profit and contract specific services or come to subcontract the overall management of the school, then we could we believe that their purpose could be to privatize education and enrich one sector at the expense of public education and prosperity of teachers in Miami Dade County.

 

And that, financially speaking, is not healthy for our community.

 

BENJAMIN F. DeYURRE

Economist and Journalist.

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$ 10.10, NEW MINIMUN WAGE ?

 

 

 

 

 

PUBLISHED BY EL NUEVO HERALD ON MARCH 21st, 2014

 

 

 

 

The last wage increase in Florida was 14 cents in January 2014, according to the automatic cost of living adjustment approved by voters in 2004; However, this increase is still far from the true current currency purchasing power; consumer goods purchased with $ 1.60 in 1968 would cost $ 10.20 today, according to the consumer price index.

 

Clearly, the current minimum wage of $ 7.93 an hour and $ 4.91 for those who earn most of their pay in the form of tips, is insufficient.

 

Many might think that an increase in the minimum wage would lead to a fiscal debacle underpinned by the inability of businesses to assume higher costs, which ultimately would lead to the bankruptcy of many and rising unemployment. Nothing is further from the truth.

 

According to research by UC Berkeley and University of Illinois, who are actually paying the consequences of inadequate wages are taxpayers; 73% of families in EE.UU., who receive up to $ 243 billion per year in benefits such as Medicaid, food stamps and "Earned Income Tax Credit", are currently working, but their income is so low that they qualify for these benefits .

 

Moreover, US companies who would be most impacted by a 27% increase in the minimum wage, would be those with high labor intensity, ie manufacturing. But what are the factories that remain in the United States?

 

The fast food industry, McDonalds type, is a major employer.  It is estimated that 12% of all businesses in America are franchise type with sales totaling 43% of total sales in the country.

 

In Florida an estimated 50,000 people work in this sector, of which 28,000 are under public assistance due to low income they receive.

 

How a major employer like this would support a wage increase?  There are two viable ways. Franchisees pay an average of 10% of their gross income to the owners of the brand.  Reducing that payment only 1% would be sufficient to offset this cost.

 

The other way would be to increase the selling price of hamburgers at 25 cents. The sales would be unaffected and spending will be covered.

 

Now, the benefits to the economy would be extraordinary. The Congressional Budget Office believes that raising the minimum wage will benefit 15%  of employees and 900,000 nationwide would no longer be poor.

 

According to the Comptroller of the State of New York, last year Wall Street firms offset their 165,200 employees with $ 26.7 billion bonds.  It is estimated that each extra dollar a low profile employee receives, benefits the economy by $ 1.21.  Instead, the same additional income for high-income person contributes only 39 cents to GDP.

 

According to the Department of Labor of the United States, by 2012 there were 214,000 people in Florida working with or below the minimum wage, not including overtimes, commission or tips.

 

If these people, along with a portion of the total 4.164 million hourly workers in Florida, you increase their salary to $ 10.10 per hour, the demand for goods and services would increase in the short term.

 

Supply needed to satisfy purchases will increase employment.  Some prefer saving to install their own businesses.  Retail sales will multiply.

 

For example, in New Jersey, they increased wage from $ 1.00 to $ 8.25 per hour.  In a short time more than 8,000 new jobs were created.

 

The state of Washington, for the past 15 years has been the leader among the highest minimum wage in the nation, having now $ 9.33 per hour. There the economic growth is 0.8%, the highest in the nation.

 

The State of Florida should not be left behind.  Raising the minimum wage is not only humanitarian but also is beneficial for all, the public and private sector. Go Ahead !!!

 

BENJAMIN F. DeYURRE

Economist and Journalist

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UNUSABLE CUBAN RECIPE IN VENEZUELA

 

 

Published by El Nuevo Herald on February 28, 2014

 

 

 

 

In the late twentieth century, when President Rafael Caldera committed the historical aberration of pardoning coup Lieutenant Colonel Hugo Chavez, no one could imagine it was sealing the fate of a whole generation of Venezuelans.

 

For all it is known the fiscal deficit increased several times, the real unemployment exceeded 40% of the economically active population, crime rise to the top in the criminological world ranking, the judiciary can not make independent decisions, the National Electoral Council is fraudulent, the most important national decisions are taken in Havana, and even the President Nicolas Maduro may not be Venezuelan.

 

A once thriving country with serious investments in oil, natural gas, iron, aluminum and hydropower, now has to import most of their inputs and future oil production is committed to China, where much of the exhaust in next eight years has been paid in advance and obviously wasted.

 

All the government supposedly made for the people, just found it was exactly the opposite: today is worse than living in the Fourth Republic and extreme poverty has been unleashed.

 

Many offenders with extensive criminal record have joined the government with the purpose of seeking amazing important positions.

 

More amazing still is knowing that many of them have succeeded, becoming the armed wing of the state to subdue civilians by creating the famous "Rapid Action Brigades", "militia" and "collective", who not are nothing but armed groups that have the motorized "noble" mission quelling any protest, beating up, kidnapping, torturing and shooting unarmed people.

 

Everything is done in true Cuban style, including media censorship. 

 

This recipe for repression receiving Venezuela may not have the same drug effect it had on Cuba. On the island, when he won the so-called Revolution, which soon became bloody, there was no current technology, it was only the press, radio and TV,  beginning with the famous magazine Bohemia and then CMQ television, the media in the short term were confiscated and the Cuban population, for three generations, just got used to the mediated news.

 

In Venezuela the situation is diametrically opposed. With the freedom of expression that Venezuelans have always had, a drastic cut in this proceeding only further fuels the flame of rebellion, as it was found the day when Government took the signal of Radio Caracas TV;  protests were chained to national level.

 

Just now, tyrannies like Venezuela may silence the media in the country, but can not prevent the entry and exit of violent video by Facebook, Twitter and digital telephony.

 

Recently, the network is reporting an interesting video where Hugo Chavez stands, then, President Rafael Caldera can not stop general complaining of people, led by students. This is exactly what is happening in Venezuela today, only this time it is not tolerated. 

 

And it is the way communists are: when they are opposition, they protest in every way possible. When in power, not only do not allow protests, but strongly suppress and kill the protesters. The same principle of Vladimir Ilyich Ulyanov, known as Lenin.

 

Economist and Journalist 

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THE DECEPTIVE LOBBYING

 

 

 

Published by El Nuevo Herald on January 31, 2014

 

 

 

 

Since 2010 there is a software called "Cell Cease" which, when incorporated into a cell phone, prevent doing or receive calls from a car, if this passes five miles per hour.

 

Given the huge number of deaths from traffic accidents in which cell phone use was decisive, the questions imposed are: Why have not been adopted some similar solutions to combat this scourge?  Do cell phones sales will be reduced or decrease its airtime paid if this system is adopted?  That cost is more important than safeguarding human lives?

 

Of course, in such manifest situation like this, many will wonder if the  lobbyist figure will be present.

 

Lobbying is an activity that allows the exchange of information between legislators and citizens.

 

Of course, besides the citizens are also other strategic advisors and lobbyists, among which are employers, unions, environmentalists, armaments, and even firms located in other countries.

 

Already in 1830, were called lobbyist those who were in the lobby or foyer of the House of Commons, where they could discuss with members of Parliament.

 

In practice it happens that the government and lawmakers need this mutual approach to exercising democracy correctly and can not deny access to any group provided they are properly registered and meet all the requirements of the law.

 

So important is the performance of lobbyists, that President John F. Kennedy once said: "The lobbyists make me understand a problem in 10 minutes, while my assistants take three days."

 

The problem with lobbyists appears when there is not enough transparency in its activities and consequently doubts arise regarding their operations.

 

A sector very well known it is military.

In 2008 the U.S. spent about $ 108,000 million in education, while $ 36,000 million, or one third, were payments made by the defense to company Lockheed Martin.  By the way, this company along with Boeing and General Dynamics up the Iron Triangle integrated by the Pentagon, military contractors and lobbyists.

 

Perhaps the main problem of lobbying is called soft money, which is money poorly regulated, given to politicians through PAC (Political Action Committees) and that meant more than $ 525 million in 1998, according to the Center for Responsive Politics.

 

In other cases, companies make great contributions to political campaigns and are favored in their lobbying. According to the Federal Election Commission, in its list of contributions to political campaigns, Microsoft contributed $ 13,516,040 from 1999 until 2011. Penalties suggested by the Bush administration for the anticompetitive conduct of this enterprise, were considered mild and did not decline the hegemony of this firm in the computer industry.

 

In 2011 there were 3,100 members of lobbyists working for the healthcare industry and 2,100 for the industries of energy and natural resources.  It is estimated  are five lobbyists for every senator, when  added the finance, insurance and real state sectors  In total, in 2011, $ 3.200 million was spent on lobbying, which entailed a decrease of $ 3,500 million spent in 2009, according to the Center for Responsive Politics.

 

In short, lobbying is essential for democracy and is part of their nature. The downside exists when the necessary measures that benefit the population are not adopted to benefit a particular sector.

 

It is not enough  a punishment applied to a lobbyist when makes gifts to legislators. Should also be investigated when a latent community need, remains unresolved.

 

BENJAMIN F. DeYURRE

Economist and Journalist 

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HOW TO FIGHT POVERTY

 

 

Published by El Nuevo Herald on January 09, 2014

 

 

 

In today's world, where the mortality rate continues to decline, personal competition is increasingly fierce.  Being higher the life expectancy, employee uptime has increased, limiting the opportunity for new graduates entering the labor market.

 

This fact, together with a decline in the birth rate, which makes them stand out in the U.S. and other developed nations, an aging population holds the reins.

 

The key question that follows is: if you do not continue creating employment at an acceptable pace, who will absorb the new workforce that regularly graduates of universities?  Would this be an important factor in establishing a poverty index?

 

When a person is unable to meet their basic needs, is said to be in a situation of poverty. In 2010 15.1% of the U.S. population is considered poor and the proportion of Americans dependent on the government for their food was one in seven.

 

However, the measurement of poverty is very controversial because until 2011 was based on income and did not include most of the government programs, such as unemployment insurance and food stamp.

 

In practice it happens that the Social Security and Medicare have significantly reduced poverty in old age.  For example, according to the U.S. Census Bureau in 2010, the poorest people with 65 or older, would increase by 14 million individuals if they eliminate their income from Social Security, that is, the number of elderly living in poverty will be quintuple.

 

According to the prestigious Brookings Institute in Washington, it is not enough to devote more resources to fight poverty.  According to them, you must create jobs because unemployment leads to poverty, like lack of education and a home with a single parent, where it is more likely that the child fails in his adult life.

 

It is said to combat poverty by creating wealth.  And supposedly, reduce taxes on the upper class would encourage greater productivity, with consequent generation of capital and jobs.  However, we saw in the reality that the tax cuts proposed by Bush and supported by Alan Greenspan in 2001 rather increased unemployment up to the 2008 recession.

 

 

There are mechanisms that can be treated in order to effectively combat poverty.  The granting of credits to small businesses is one of them. The Small Business Administration (SBA) as a function would endorse such loans.  However, the requirements of collateral assets virtually denied access to those without capital.

 

The creation of a "Land Bank" would be interesting.  Lending on state land for cultivation and harvesting, and secured government oversight, would be a project to consider.

 

There are politicians like the governor of Florida, Rick Scott, who spent $ 76 million of its own capital for successful political campaign.  You can try to pass a law providing 50% of these costs for the purchase of computers in schools, library books and medicines to hospitals.  It is also a way to fight poverty.

 

Finally, we know that funds are free.  But if a fortune made in the U.S. is not invested in U.S. is not creating jobs.  As was the cofounder of Facebook Eduardo Saverin when he renounced U.S. citizenship and moved to Singapore, where there are no taxes. This behavior should be heavily penalized and allocate those funds to fight poverty.

 

Since President Lyndon B. Johnson declared war on poverty on January 8, 1964, the U.S. poverty rate fell from 26% in 1964 to 16% today, thanks to a series of food aid programs as well as other types of assistance, according to the Center on Budget and Policy Priorities (CBPP).

 

However, in 2012 poverty affected about 47 million Americans, that if they had not had some kind of social safeguards, the rate would have doubled, according to the Center for Poverty Research at the University of Kentucky.

 

 Still, we must recognize that the standard of living in the U.S. is extremely high compared to other countries. The income of an office clerk here is equivalent to an executive officer in a third world country.  No wonder many want to come.

 

BENJAMIN F. DeYURRE

Economist and Journalist

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ECONOMICS AS POPE FRANCISCO

 

 

Published by El Nuevo Herald on December 19, 2013

 

 

 

 

 

On last November 26, Pope Francisco presented its first apostolic exhortation called Gaudium Evangelii (The Joy of the Gospel).  On this document of 50,000 words, the Supreme Pontiff, in addition to calling for a reform of the Church, also commented on the flaws in his judgment suffers the market economic system.

 

 Jorge Mario Bergoglio, Argentine cardinal and now Bishop of Rome,  criticized theories that assuming all growth framed in the free enterprise leads to greater equality and social inclusion in the world. According to him, "We can no longer rely on the blind forces and the invisible hand of the market".

 

The Holy Father called for greater state control over the economy, saying, "While the income of a minority is growing exponentially, the majority is collapsing."

 

Normally in classical economics of markets, supply and demand tend to balance themselves in a situation of free competition, where prices fluctuate according to the incidence of these factors.

 

However, sometimes government intervention is needed to complement the smooth course of the economy.

 

For example, in Washington state average daycare for two children is $ 1400 monthly.  Even if both parents work, without public aid is difficult to secure the services of a nursery.

 

This is just one specific example, but overall state intervention has been critical to the economy, as we see with the abolition of slavery, the creation of Social Security, the minimum wage, unemployment insurance and Medicare.

 

The papal request for greater state intervention only reaffirms what has been and will remain our economic model. 

 

Pope Francis said that we should say "no to an economy of exclusion and inequality ... more news is a drop of two points in the Stock Exchange, an old man dies of cold in the street, that's exclusion ... "

 

"Do not throw food when people are starving, that is inequality. "

 

Of course, many would say, if you go down two points in the Stock Exchange, it will reduce stock dividends and thus capital investment to create jobs.

 

There are many homeless on the street, which, although picked up daily, insist on staying in it.

 

Regarding the food that is thrown away, it is unlikely that it can produce, in time, a logistics work for distribution among the needy of each community.

 

Obviously, the Pope speaks figuratively when referring to the examples of exclusion and inequality.

 

For the Pope's statements Francisco, many could talk about the political tendency of the Holy Father.

 

In fact, the conservative radio host Rush Limbaugh refers to papal document as "pure Marxism."  Limbaugh's program is estimated to reach 15 million listeners daily. This radio interviewer, who is not Catholic, said that the pope's comments had been "sad and incredible."

 

Stuart Varney of Fox News, who belongs to the Episcopal Church, said: "I go to church to save my soul, this has nothing to do with my vote, I think the Pope wants to influence my political views."

 

The truth is that the Pope said: "The Pope loves everyone, rich and poor alike." Nor is against private property, which would eliminate Marxist characterization. 

 

What can happen is that since his cardinal experience at his native Argentina, has witnessed profound social inequalities and too much state interference, typical of South American countries.

 

In the evolution of life, we see some people are successful and some not.  Some start from nothing and achieve amass a fortune on own merit.  No matter the ruling regime, capitalism, dictatorship, communism or state capitalism, some stand belonging to the privileged elite of the regime.  Can be poets, writers, artists, athletes or businessmen.  But in the end, always pursued, mostly, an economic objective.

 

The reality is that in the U.S., 1% of the population manages private resources of the nation, and that undoubtedly is the major cause of the economic crisis.

 

Right there is the opinion of the Holy Father.  This is not Marxism.  It's about investing in the country to create local jobs and fight poverty, not only internationalize capital for individual benefits, regardless of the fate of the world.

 

BENJAMIN F. DeYURRE

Economist and Journalist 

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