Posts Tagged ‘academy’

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Mainstream economists and politicians have answers for everything.

Lose your job? Well, that’s just globalization and technology at work. Not much that can be done about that.

And if you still want a job? Then just move to where the jobs are—and make sure your children go to college in order to prepare themselves for the jobs that will be available in the future.

The fact is, they’re not particularly good answers. And people know it. That’s why working-class voters are questioning business as usual and registering their protest by supporting—in the case of Brexit, the 2016 U.S. presidential election, the 2017 snap election in Britain, and so on—alternative positions and politicians.

On the first point, it’s not simply globalization and technology. Large corporations, which employ most people, are the ones that decide—in the context of a global economy and by developing and adopting new technologies—when and where some jobs will be destroyed and new ones created. They use the surplus they appropriate from their existing workers and utilize it to determine the pattern of job destruction and creation, in order to get even more surplus.

Thus, in April 2017 (according to the data in the chart at the top of the post), employers eliminated 1.6 million jobs in the United States. In January 2009, things were even worse: corporations destroyed 2.6 million jobs across the U.S. economy. Of course, they also create new jobs—often in different companies, industries, regions, and countries. That leaves individual workers with the sole decision of whether or not to chase those jobs, since as a group they have absolutely no say in when or where old jobs are destroyed and new ones created.

What about their children and the advice to go to college? We already know the idea that higher education successfully levels the playing field across students with different backgrounds is a myth (and sending more kids to college doesn’t do much, if anything, to lower inequality).

Now we’re learning that, when states suffer a widespread loss of jobs, the damage extends to the next generation, where college attendance drops among the poorest students.

That’s the conclusion of new research Elizabeth O. Ananat and her coauthors, just published in Science (unfortunately behind a paywall). What they found is that

local job losses can both worsen adolescent mental health and lower academic performance and, thus, can increase income inequality in college attendance, particularly among African-American students and those from the poorest families.

Their argument is that macro-level job losses are best understood as “community-level traumas” that negatively affect the learning ability and the mental health not only of young people who experience job loss within their own families, but also of the other children in states where the destruction of jobs is widespread.

So, the problem can’t be solved by forcing individual workers to have the freedom to chase after jobs and send their children to college. Nor is the predicament confined to the white working-class. In fact, the effects of job losses are similar, but even worse, among African-American youth.

That’s why Ananat argues that

white working class people and African-American working class people are in the same boat due to job destruction. Imagine the policies we could have if folks found common ground over that.

And, I would add, those policies need to go beyond the “active labor market policies”—such as “rigorous job training and active matching of worker skills to employer needs”—the authors, along with mainstream economists and politicians, put forward.*

We also need to reconsider the fact that, within existing economic institutions, employers are the only ones who get to decide when and where jobs are destroyed and created. Giving workers the ability to participate as a group in the decisions about jobs—within existing enterprises and by assisting them to form their own enterprises, would improve their own mental health and that of the members of the wider community.

Such a change would also transform young people’s decisions about whether or not to go to college. It’s not just about jobs in the new economy. It would allow them to demand, as women in Lawrence, Massachusetts did over a century ago, both “bread and roses.”

 

*Policies to help “disadvantaged workers, especially African Americans, Hispanics and rural residents,” also need to go beyond encouraging the Fed to keep interest-rates low. That still leaves job decisions in the hands of employers.

wealth

One of the most pernicious myths in the United States is that higher education successfully levels the playing field across students with different backgrounds and therefore reduces wealth inequality.

The reality is quite different—for the population as a whole and, especially, for racial and ethnic minorities.

As is clear from the chart above, the share of wealth owned by the top 1 percent has risen dramatically since the mid-1970s, rising from 22.9 percent in 1976 to 38.6 percent in 2014. Meanwhile, the share owned by the bottom 90 percent has declined, falling from 34.2 percent to 27 percent. And that of the bottom 50 percent? It has remained virtually unchanged at a negligible amount, falling from 0.9 percent to zero.

During that same period, according to the U.S. Census Bureau (pdf), the proportion of Americans aged 25 to 29 with a bachelor’s degree or higher rose from 24 percent to 36 percent. (For the entire population 25 and older, the percentage with that level of education rose from 15 to 33.)

So, no, higher education has not leveled the playing field or reduced wealth inequality. In fact, it seems, quite the opposite appears to be the case.

And that’s true, too, for racial and ethnic disparities in wealth. As William R. Emmons and Lowell R. Ricketts (pdf) of the Federal Reserve Bank of St. Louis have concluded,

Despite generations of generally rising college-graduation rates, higher education’s promise of significantly reducing income and wealth disparities across all races and ethnicities remains largely unfulfilled. . .rather than promoting economic equality across all races and ethnicities, higher education unintentionally has become an engine for growing disparities.

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Thus, for example, median Hispanic and black wealth levels decline relative to similarly educated whites as education increases until the very top. Moreover, only about 7 percent of black families and 5 percent of Hispanic families have postgraduate degrees, and wealth disparities remain large even there.

Darrick Hamilton and William A. Darity, Jr. (pdf), who participated in the same symposium, go even further. According to them, the United States has a fundamental problem in discussing wealth disparities according to race and ethnicity:

Much of the framing around wealth disparity, including the use of alternative financial service products, focuses on the poor financial choices and decisionmaking on the part of largely Black, Latino, and poor borrowers, which is often tied to a culture of poverty thesis regarding an undervaluing and low acquisition of education.

Thus, while they agree that a college degree is positively associated with wealth within racial and ethnic groups, it is still the case that it does little to address the massive wealth gap across such groups.

And yet the myth persists. American elites and policymakers still to choose to emphasize the economic returns to education as the panacea to address socially established wealth disparities and structural barriers of racial and ethnic economic inclusion.

The question is, why?

According to Hamilton and Darity, such a view

follows from a neoliberal perspective, where the free market, as long as individual agents are properly incentivized, is supposed to be the solution to all our problems, economic or otherwise. The transcendence of Barack Obama becomes the ideal symbolism and spokesperson of this political perspective. His ascendency becomes an allegory of hard work, merit, efficiency, social mobility, freedom and fairness, individual agency, and personal responsibility. The neoliberal ideology is not limited to race. It more generally places the onus on individual actions, and more broadly leads to deficiency narratives for low achievement, but this is especially the case when considering race and other stigmatized workers. Perhaps the greatest rhetorical victory of this paradigm is convincing the masses that implicit in unfettered markets is the “American Dream”—the hope that, even if your lot in life is subpar, with patience and individual hard work, you can turn your proverbial “rags into riches.”

And so the myth of college and the American Dream is perpetuated, while the unequal distribution of wealth—across the entire population, and especially with respect to ethnic and racial minorities—which has been growing for decades, continues unabated.

Ivies

Back in graduate school, I was a member of SUPE, Students United for Public Education. We conducted a study in which we showed that the very rich and seemingly private Harvard University received more public monies than our own poorly funded and very public University of Massachusetts-Amherst.

A new study, by Open Books (pdf), broadens that study by investigating the amount of public monies that are funneled to the eight Ivy League schools: Harvard, Princeton, Yale, Cornell, Columbia, Dartmouth, Penn, and Brown.

The amount of taxpayer-funded payments and benefits—$41.59 billion over a six-year period (FY2010-FY2015)—is by itself extraordinary, more money ($4.31 billion) annually from the federal government than sixteen states.

But we’re also talking about universities whose endowment funds (in 2015) exceeded $119 billion, which is equivalent to nearly $2 million per undergraduate student. In FY2014, the balance sheet for all Ivy League colleges showed just under $195 billion in accumulated gross assets—equivalent to $3.35 million per undergraduate student. The Ivy League also employs 47 administrators who each earn more than $1 million per year (two executives each earned $20 million between 2010 and 2014). And, in a five-year period (2010-2014), the Ivy League spent $17.8 million on lobbying, which included issues mostly related to their endowment, federal contracting, immigration and student aid.

The bottom line is clear: Ivy League are nominally private universities that receive vast amounts of public financing, much more than the public colleges and universities that educate most students in the United States.

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academic L

As we know, the share of part-time faculty in U.S. higher education has increased dramatically over the past four decades.

According to the latest report from the American Association of University Professors (pdf),

Part-time faculty today comprise approximately 40 percent of the academic labor force, a slightly larger share than tenured and tenure-track faculty combined.

While the category of part-time faculty includes professors temporarily teaching on a percentage basis—professors on phased retirement who teach one or two courses at a reduced rate, new assistant professors who are teaching part-time while finishing a dissertation, and others—the vast majority (91 percent) teach on a per-section basis.

The AAUP estimates that, in 2016–17, part-time faculty members teaching on a per-section basis earned a total of $7,066, on average, from a single institution. Moreover,

Most institutions avoid providing benefits to part-time faculty by prohibiting them from teaching more than two or three courses in a semester. The average pay from a single institution for part-time faculty teaching on a per-section basis is well below the federal poverty line of $16,240 for a family of two. Even if we assume that a part-time faculty member teaches three courses at one institution and three at another, the earnings from those courses would still likely place him or her near the poverty line.

Part-time faculty are the working poor who today walk the supposedly hallowed halls of the academy.

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Young Americans are caught between two contradictory messages. On one hand, they’re told to go to college, to maintain pace with new technologies and job requirements. On the other hand, they’re told to “get out”—because, for most, a college education is simply unaffordable.

The American Dream, for them, looks more and more like “the sunken place.”

The Institute for Higher Education Policy [ht: mfa] is the latest group to document the unaffordability of a college education. While students from the highest income quintile (from families earning around $160 thousand or more) can afford most of the more than 2,000 colleges studied, low- and moderate-income students (bringing in around $69 thousand or less) can only afford to attend a tiny percentage of those colleges.

The Institute bases its conclusion on an “affordability benchmark” (the so-called Rule of 10, the idea that 10-year savings plus part-time earnings should cover the entire cost of a four-year degree) compared to the net price of a college education (equal to the cost of attendance minus grant aid). They then illustrate their findings with ten student profiles: five dependent students representing a different income quintile, and possessing attributes based on national averages for students in their quintile (Sonja, Hakim, Ava, Sergio, and Maria), and five independent students characterizing the diverse array of personal and family circumstances among independent students (Anthony, Traval, Aneesa, Jon Sook, and Mohammed).

As readers can see from the figure at the top of the post, while the student from the highest income bracket could afford to attend 90 percent of colleges in the sample, the low- and moderate-income students with fewer financial resources could only afford 1 to 5 percent of colleges.

Colleges were most dramatically unaffordable for students near the bottom of the income distribution, including all five of the independent students. Out of more than 2,000 colleges, nearly half (48 percent) were affordable for only the wealthiest student (with a family income over $160,000) and more than one-third (35 percent) were affordable only for that student and the next wealthiest (with a family income over $100,000).

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Not only do working-class students face financial barriers in attempting to enroll in most colleges, which they can only afford by burying themselves and their families under mountains of debt. They’re also far less likely to complete their students, often because working long hours to finance their education gets in the way of their studies (not to mention all the other activities traditionally associated with being in college).

As the authors of the report conclude,

This inability for low-earners to afford an education or improve their station erodes belief in a nation founded on the rejection of entrenched social stratification.

The only question for the nation is, will this educational horror film have a happy ending?