Tag: Universal Pre-K

It Takes a Village to Waste Money

For a time, it looked like Hillary Clinton might actually end up being the more conservative candidate in the race. Trump has been talking about restricting trade, blowing holes in the debt, opposing entitlement reform and expanding executive power.

Well, no longer. Apparently afraid that Bernie Sanders will bolt the Democratic Party for the Green (this tends to happen when you let people run who aren’t technically members of your party), she has now basically adopted Bernie Sander’s agenda in full.

  • She’s supporting the push for universal Pre-K, proposing a new bunch of subsidies and tax credits, doubling the size of the failed Head Start program and pushing for 12 weeks of mandatory paid leave. I’ve argued before the universal pre-K is a solution stumbling around in search of a problem and documented the complete failure of universal pre-K efforts. Clinton doesn’t care; there’s votes to be bought!
  • Clinton has now abandoned education reform in favor of more spending and more spending. There’s no evidence that this approach does anything but employ more union members. Clinton doesn’t care; there’s votes to be bought!
  • She’s now supporting a $15 minimum wage, a plank taken straight from Bernie Sanders. I’ve pointed out before that the push for $15 is a kind of mass insanity that has gripped the Left, only slightly more scientific than if the Republicans had responded to the Ebola epidemic with prayer. The cruelty of this is that it if the Democrats are wrong, it will not destroy their jobs, but the jobs for the people they purport to care for: the poor, the workings class, minorities, dropouts and convicted criminals trying to straighten out their lives. Clint doesn’t care; there’s votes to be bought!
  • She’s now embraced Bernie’s plan to massively inflate college tuition … uh … “make college more affordable“. As has been pointed out innumerable times, shoveling money at colleges will simply raises costs, increase debt and persuade more people to waste their time in college when they could be working or training. Clinton doesn’t care; there’s votes to be bought!
  • She’s now supporting creating a public option for Obamacare. Obama is now calling for this too, claiming the markets are not competitive enough. You have to admire the gall. First, the crush the insurance market with Obamacare. Then, they refuse to let insurance be sold across state lines. Then they propose a “public option” to bankrupt the insurance companies that remain. Every day, Obamacare looks more and more like a deliberate plan to destroy the private insurance market to create the “need” for socialized medicine. In this case, Clinton does care; there’s vote to bought!
  • She’s now turned not just against TPP but against free trade in general. Never mind that trade has made our country wealthy while almost eliminating poverty in other countries. Clinton doesn’t care; there’s votes to be bought!
  • All of this will be paid for with big tax hikes on “the rich”, who are close to maxed out. Clinton doesn’t care; there’s votes to be bought!

The $15 minimum wage is the issue for me with Democrats. It is so mindless, so stupid, so at variance with economics and so destructive to the future of the people it supposedly helps. If you wanted to create unemployment, make poverty more intractable and condemn a generation of people to lifelong unemployment and poverty, you’d be hard pressed to come up with a better plan than the $15 minimum wage.

I realize that a lot of liberal organizations don’t pay their interns or, in the case of groups like Ralph Nader’s, pay them sub-minimum wage through legal loopholes. But the University of California already fired 500 people to account for the minimum wage. Even the dumbest Democrat can do math. And Hillary Clinton is many things, but she’s not dumb. They must know, on some level, that this is going to be bad. They just Don’t. Fucking. Care.

But it’s worse. As McArdle points out in the link above, Clinton is proposing to pay for all this stuff with the usual litany of Democratic tax hikes: raising rates, eliminating the Social Security cap, closing the “carried interest” loophole, etc., etc. She’a also proposing to eliminate almost all tax deductions for the rich (which will produce 100+% marginal rate in some income brackets). But:

For while it is true that these programs are paid for, that doesn’t mean that the budget math is sound. The government’s spending capacity is, in the end, limited, and every dollar that you spend on one thing is a dollar that cannot be spent on something else. Virtually all of Clinton’s “pay fors” are concentrated on a relatively small number of affluent-to-rich people, and because of that, they represent a large cut of those incomes; if she managed to enact all of her plans, her top bracket would be inching close to a marginal tax rate of 50 percent before you factor in state and local taxes that can easily add another 10 percentage points to that figure.

Even if you think that it would be politically possible to extract taxes at those levels, and that you could do so without causing any unwanted economic side effects, the question remains: What do you do for an encore? After enacting Clinton’s agenda, America will still need to fix Medicare, Social Security, state and local pensions, the disability insurance program, and so forth. And given that Democrats have proven as unwilling as Republicans to raise taxes on the middle class, where are we going to get the money?

I’ve said this many times and I will keep repeating it until it sinks in: you can’t fund a welfare state by taxing the rich. There simply isn’t enough money. European welfare states aren’t funded by the rich. They’re funded with massive taxes on the middle class.

The United States has one of the most progressive tax systems in the world, being very reliant on the wealthy for revenue. The European welfare states, by contrast, are more regressive, having flatter taxes and relying on VATs and sales taxes that are regressive. They have to be that way because you simply can’t finance a welfare state by taxing the 1%.

A welfare state financed by the rich doesn’t even work politically. When everyone is paying taxes, there is more support for a welfare state because everyone is pitching in. The perception is that you’re getting out something related to what you paid in, which is why Social Security and Medicare are popular in this country (both financed by a regressive tax that is denounced by Democrats for not soaking the rich enough). But a system that is dependent on taxing the rich isn’t a welfare state, it’s a plunder state. And as I’ve pointed out before, most people don’t want that. They don’t want to feel like they’re living on someone else’s dime or on stolen property. The Communists discovered this 70 years ago when they tried to “redistribute” estates to the commoners only to discover that the commoners didn’t want that wealth if it was stolen.

But proposing to fund this garbage through a middle-class tax hikes would be political suicide. So — in a situation where we are already half a trillion in deficit, have $19 trillion in existing debt and have trillions of dollars in future unfunded liabilities — the Democrats are proposing to burn our last few sources of revenue on a series of brand new will-o’-the-wisp social spending programs.

(Yes, yes, we once had marginal tax rates of 70%. And we also had a huge number of exemptions. No one ever paid that rate. We are very close the practical limit on marginal rates.)

I understand why Clinton is selling out wholesale like this. She’s afraid Bernie on the Green Party ticket will wreck her chances. But I think this tells you how principled Hillary Clinton is. She has either completely changed her views on several major issues or she is going to betray her campaign promises the second she gets into office. I don’t think she actually cares either way. She just wants to be President. And if she has to wreck the economy to get there, well, she’ll wreck the economy to get there. This is way more of a sell-out to the party fringe than any Republican has ever made. But you won’t see it described as such because 98% of our media are going to vote for Clinton anyway.

This is worst election ever. Two rich leftists are battling to see who gets to the screw the country over and how badly they can screw us. And people wonder why I’ve voting for Johnson:

I will not vote for Trump. And I will not for Clinton. To hell with them both. The only election I really care about is Congress. It is absolutely critical that the Republicans hold onto Congress, preferably retaining a majority in both houses. Look at the agenda. Imagine the damage Clinton could do with a Democratic Congress. And then, whatever you may think of Trump, put that Republicans roadblock in her way.

The Daycare Dilemma

Once again, folks, we see the Law of Unintended Consequences in effect:

Programs for young children — whether you call them day care or preschool or even third grade — serve two purposes. On the one hand, they are educational settings that are supposed to help foster the kids’ long-term development. On the other hand, they are safe places where parents can put their children so they can go do other things during the day — things like work for a living. In an ideal world, of course, they do both. The best preschool programs have been shown to have significant lifelong benefits for their students, and they’re doubtless a huge help to parents too. But a sobering new analysis by Michael Baker, Jonathan Gruber (yes, that Jonathan Gruber), and Kevin Milligan of Quebec’s effort to expand access to child care on the cheap is a painful reminder that the two issues can come apart.

The program was designed to increase mothers’ labor force participation rate, and it worked. Lots of people used the system, lots of moms went to work, incomes and GDP rose, and the program was quite affordable to the taxpayer. Kids’ test scores stayed flat.

But contrasting trends in Quebec kids with kids from other Canadian provinces, the authors find “a significant worsening in self-reported health and in life satisfaction among teens” who grew up exposed to the program* along with a “sharp and contemporaneous increase in criminal behavior among the cohorts exposed to the Quebec program, relative to their peers in other provinces.”

What happened was that the government of Quebec decided that everyone deserved cheap daycare — as a little as $5 a day. And a lot cheap daycare is what they got. With such a huge influx of children, poor quality daycare providers proliferated. And many of these providers were much worse than, you know, parents. Worse, many of them were focused on academics, at the government’s urgency. But most research (and almost all parents) will tell you that learning social skills is way more important to preschoolers than learning their ABC’s.

I’ve written about the idiocy of the push for universal pre-K numerous times. You can also check out Megan McArdle, who goes into detail about why the push for universal pre-K is ill-advised. Note, importantly, that the federal push is for more academics and “accelerated learning” — precisely the emphasis that has produced such a disaster in Quebec.

But this about more than the expected Democratic push for universal pre-K. This about the expected Democratic push for federally mandated everything. There is nothing more dangerous than good intentions. The Democrats have given us a series of financial reforms to “protect Americans” that have created a series of financial crises (with Dodd-Frank likely to precipitate the next one. They’ve poured money into making sure everyone can get a college education … which has made college obscenely expensive. They’ve given us “universal healthcare” that has caused insurance rates to skyrocket. And they’ve created a free public education system which is one of the worst-performing in the developed world.

The push for universal pre-K is on. Let’s use Quebec as an example of what not to do. Because it would really be a tragedy if one of the more functional parts of our education system — the dynamic and mostly private pre-K system — was wrecked the slime engine of big government.