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Global Economy Bursting?

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Note that while the cost of living in Huston is 40% less than Los Angeles, the wages paid are only 8.9% less. Why in the world are so many people still living in California? :shrug:

And the answer is:

California has one-third of the nation’s welfare recipients.

But the size of California’s welfare rolls is disproportionate when you consider the state has only 12 percent of the nation’s population.

So California on a ratio basis 33 / 12 = 2.75 times as many people on welfare versus 67 / 88 = 0.76 as the rest of the population. It must be the weather and the politics. woohoo
 
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GM Financial auto loans to customers with FICO scores below 660 rose from 87% of total loans in Q4 2010 to 93% in Q1 2012.

The worse the FICO score, the bigger the increase. From Q4 2010 to Q1 2012, GM Financial loans to customers with the worst FICO scores — below 540 — shot up 79% to more than $2.3 billion. The second worst category, 540-599, rose 28% from about $3.4 billion to $4.3 billion.

Prime loans, those above 660, dropped 42% to $676 million.

By spring 2010 GM's new management, led by North American executive Mark Reuss, wanted to move back into subprime, fearing that GM couldn't compete.
 
The practice of paying off the last vehicle AND financing the new one (the Friends and Family package I think it was called once) means many people are making car payments on cars that they owe far more than the car is worth from day 1.
 
The dumbing down of American: Is Algebra Necessary?

http://www.nytimes.com/2012/07/29/o...?_r=1&nl=todaysheadlines&emc=edit_th_20120729

A typical American school day finds some six million high school students and two million college freshmen struggling with algebra. In both high school and college, all too many students are expected to fail. Why do we subject American students to this ordeal? I’ve found myself moving toward the strong view that we shouldn’t.

My question extends beyond algebra and applies more broadly to the usual mathematics sequence, from geometry through calculus. State regents and legislators — and much of the public — take it as self-evident that every young person should be made to master polynomial functions and parametric equations.

There are many defenses of algebra and the virtue of learning it. Most of them sound reasonable on first hearing; many of them I once accepted. But the more I examine them, the clearer it seems that they are largely or wholly wrong — unsupported by research or evidence, or based on wishful logic.

This debate matters. Making mathematics mandatory prevents us from discovering and developing young talent. In the interest of maintaining rigor, we’re actually depleting our pool of brainpower. I say this as a writer and social scientist whose work relies heavily on the use of numbers. My aim is not to spare students from a difficult subject, but to call attention to the real problems we are causing by misdirecting precious resources.

Shirley Bagwell, a longtime Tennessee teacher, warns that “to expect all students to master algebra will cause more students to drop out.” For those who stay in school, there are often “exit exams,” almost all of which contain an algebra component. In Oklahoma, 33 percent failed to pass last year, as did 35 percent in West Virginia.

Algebra is an onerous stumbling block for all kinds of students: disadvantaged and affluent, black and white. In New Mexico, 43 percent of white students fell below “proficient,” along with 39 percent in Tennessee. Even well-endowed schools have otherwise talented students who are impeded by algebra, to say nothing of calculus and trigonometry.

“There are students taking these courses three, four, five times,” says Barbara Bonham of Appalachian State University. While some ultimately pass, she adds, “many drop out.”

Another dropout statistic should cause equal chagrin. Of all who embark on higher education, only 58 percent end up with bachelor’s degrees. The main impediment to graduation: freshman math. The City University of New York, where I have taught since 1971, found that 57 percent of its students didn’t pass its mandated algebra course. The depressing conclusion of a faculty report: “failing math at all levels affects retention more than any other academic factor.” A national sample of transcripts found mathematics had twice as many F’s and D’s compared as other subjects.

But it’s not easy to see why potential poets and philosophers face a lofty mathematics bar. Demanding algebra across the board actually skews a student body, not necessarily for the better.

____________________

This article goes on. The crux of this opinion is that we must dumb down the requirements if we want to increase retention (decrease drop outs) and increase graduation.
 
Ph.D. in food stamps

http://www.mybudget360.com/phd-food-stamps-rise-advanced-degrees-government-aid-benefits/

There is some troubling signs showing that the higher ed bubble is inching closer to a pop. For example, the rise of those with advanced degrees now receiving food stamps has increased substantially since the recession hit. In the latest data, we also find that the number of households on food stamp is at a record level. In the latest data of May, we added 222,000 Americans to the food stamp figure while adding 77,000 jobs.

During that three-year period, the number of people with master’s degrees who received food stamps and other aid climbed from 101,682 to 293,029, and the number of people with Ph.D.’s who received assistance rose from 9,776 to 33,655, according to tabulations of microdata done by Austin Nichols, a senior researcher with the Urban Institute. He drew on figures from the 2008 and 2011 Current Population Surveys done by the U.S. Census Bureau and the U.S. Bureau of Labor.

“I am not a welfare queen,” says Melissa Bruninga-Matteau. That’s how she feels compelled to start a conversation about how she, a white woman with a Ph.D. in medieval history and an adjunct professor, came to rely on food stamps and Medicaid.

A college degree is no guarantee of a job yet the costs of going to college keep going up and up.
 
Why business and people leave California

Businesses and residents can cut their energy cost from $0.20 per kilowatt-hour to $0.09 by moving to Dallas. Twenty cents per kwh is a job killer.

But thanks to AB 32, Global Warming Solutions Act, and a governor who said he was going to make alternative energy competitive with fossil fuel. How? By raising the cost of fossil fuel to match solar.
 
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It'is interesting why those costs keep rising, and, at a pace much faster than inflation.
Today reasons are said to be (a) "competition for best students" and (b) "tenure" costs, plus (c) sabbatical leave.
I have to wonder.
(a) So "best students get merit scholarships"?
My cousins kidz were Straight-A students with IQs in the 130+ range, and excellent SAT scores
(which merely reflect their IQ scores, BTW).
Mom & Dad paid full boat to the Ivy schools the kidz went to.
Where were the merit scholarships?
(b) & (c) -- Perhaps all these scholars went off to France for a year or two of August
- (August is when Paris essentially closes down, everyone is on vacation)

Long story short, though virtually every University & College out there is "Non-Profit"
one has to wonder, in what other form, are large profits being extracted from parents/students?

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