Women Do Better in America than Europe

Even though (or perhaps because) the United States is much less likely to use government intervention to dictate private-sector workplace decisions, the number of women in upper-level positions is significantly greater than in Europe according to the International Labour Organization. The EU Observer reports:

There are more women in top jobs in North America and in Latin America than in the European Union, a major new study by the International Labour Organization (ILO) shows. In the Global Report on Equality at Work 2007 – launched on Thursday (10 May) - North American women take up 41.2 percent of legislative or managing positions while the numbers are 35 percent for women in South America and the Caribbean and 30.6 percent for women in the EU.

Ironically, though not surprisingly, the bureaucrats at the ILO seem to think that more government is required to boost the role of women in the workforce. Too bad they did not grasp the implications of their own statistics:

A major theme of the ILO report is the persistent gender gaps in employment and pay and the need for integrated policies addressing sex discrimination in remuneration and occupational segregation by sex, while reconciling work and family responsibilities.

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John Edwards Wants America to be More Like Slow-Growth Europe

Presidential candidate John Edwards deserves some praise for honesty. He has openly admitted that he wants more taxes and more spending. His chief rivals, as noted by the Associated Press in a story, have been less forthcoming. But honesty does not count for much if a candidate’s proposals will mean less prosperity. Edwards seems to think that European-style levels of government spending can be imposed without European-style levels of stagnation and unemployment:

Edwards is quick to acknowledge his spending on health care, energy and poverty reduction comes at a cost, with more plans to come. All told, his proposals would equal more than $1 trillion if he could get them enacted into law and operational during two White House terms. … To pay for some of his priorities, Edwards would roll back Bush’s tax cuts on Americans making more than $200,000 a year. He also said he would consider raising capital gains taxes to help fund his plans and raise or eliminate the $90,000 cap on individual earnings subject to Social Security taxes to help cover the projected shortfall in the system. … Edwards’ ideas have already opened him to accusations of being just another tax-and-spend liberal, a label put on Walter Mondale, the 1984 Democratic presidential nominee who said he would raise taxes and then lost 49 states to President Reagan. … Edwards has been the most forthcoming Democratic candidate when it comes to describing the details of how he would like to run the country. His chief rivals — Sens. Hillary Rodham Clinton and Barack Obama — have offered few hints about their policy proposals.

Vermont Is a Tax Haven

The Providence Journal reports that Vermont is one of the world’s leading tax havens for “captive” insurance companies. This is both amusing, because it is contrary to Vermont’s image as a refuge for 1960s dropouts, and illuminating, since it shows that the pressure to attract jobs and capital causes even left-leaning politicians to adopt market-oriented policy:

In a development somewhat counter to its apple-cheeked image, Vermont has become a leading tax haven for U.S. companies. As described in a recent New York Times report, the state markets itself alongside Bermuda and the Cayman Islands as the answer to certain types of tax headaches. …Vermont law has permitted the creation of insurance captives for more than 20 years. But it only began aggressively marketing them about a decade ago, presenting captives as a sound alternative to the insurance business that thrives outside U.S. borders. Today, more than 560 American companies have set up camp in Vermont, which also hosts an annual captive-insurance industry conference.

All Walls Are Not Created Equal

On NPR, Daniel Schorr compares the proposed wall along the southern border of the United States to the Berlin Wall and tells us, in the words of Robert Frost, “something there is that doesn’t love a wall.”

I sympathize with him. I don’t like the idea of building a wall around the United States, either. Since the Boazes arrived in America in 1747, we have seen the country prosper as the Buchanans, the Tancredos, the Dobbses, the Maglalangs, the Brimelows, the Arpaios, and millions of others arrived on these shores and were welcomed into the country that my ancestors helped to create in 1776 and 1787.

But there’s a problem with Schorr’s analogy. The Berlin Wall was designed to keep citizens in. The wall (or fence) along our southern border is intended to keep non-citizens out. There’s a very real difference. The Berlin Wall declares that the people of East Germany are the property of the East German state and are not free to live anywhere in the world other than East Germany. The Border Fence merely says that non-U.S. citizens can’t enter the United States without permission; as far as the U.S. government is concerned, they’re free to travel or live anywhere in the world except the United States.

Daniel Schorr might ponder this: He lives in a house with four strong walls and secure locks on the door. He reserves the right to bar entry to his house to anyone, and that helps to protect his life, liberty, and property. But a building with walls and locks to keep people in is called a jail.

As I said, I too don’t want a wall around the United States. But we need better arguments against it than flawed analogies.

Google on Anonymizing Server Logs

Here’s Google’s Global Privacy Counsel Peter Fleischer discussing in more detail Google’s recent laudable decision to anonymize its server logs after 18-24 months. The discussion helps illustrate the diverse interests that must be balanced in choosing how long to maintain information.

It’s often easy to disregard the value that deep wells of raw information have for information-based business. Fleischer explains some of how Google makes use of data to improve its services and protect users. These consumer-beneficial activities must be balanced against the background demand for privacy protection.

Of particular note, of course, is his discussion of the emerging government demands for data retention (some of which conflict with government demands for data destruction). Data retention mandates are outsourced government surveillance, neatly shifting the cost of surveillance to the private sector while avoiding limits on government action like the Fourth Amendment and Privacy Act (in the case of the U.S.). Too put a fine point on it, data retention is bad.

This explication of Google’s thinking is a welcome contribution to public understanding. I did get a little chirping on my B.S. detector where Fleischer says he had talked to privacy activists in developing their plans. I’d like to know which ones. It’s a small enough community that I figure I would have known about it (I say at the risk of sounding self-important).

I’ve been aware in the past of government agencies deluding themselves about taking privacy into consideration because they’ve heard from government contractors selling “privacy enhancing technologies” like immutable audit logs and such. As often as not, this stuff is lipstick on a pig - seeking to make bad surveillance programs acceptable by tacking on complex, fallible privacy protections.

I’m sure Google has done better than that in its consultations with privacy experts. At least, I hope I’m sure.

Budget Bravado

In a letter to lawmakers, the president’s budget director, Rob Portman, …accused Democrats of doing little to rein in “the unsustainable growth in entitlement spending” on Social Security, Medicaid and Medicare [reports the Washington Post].

Well, they did almost all oppose the trillion-dollar expansion of Medicare in 2003 that then-Rep. Portman voted for and that President Bush bludgeoned reluctant Republicans into supporting.

Comfortably Affordable

On Wednesday, Ed Muir over at the AFT’s NCLBlog took issue with some calculations I made about the ability of a notional first-year teacher in Indianapolis to pay back his student loans and still take care of his other needs. Muir made some decent points, so I thought I’d respond to them, as well as some raised by an astute Cato@Liberty reader.

For starters, Mr. Muir said that placing my recent graduate in Indianapolis “colors” my “interpretation a little bit.” His reason:

[Indianapolis] has a somewhat below average ratio of beginning teacher salary to rent.  And, yes you can get an apartment for $600, but the median rent in 2005 was a bit higher.

As I wrote in my original post, Indianapolis probably isn’t representative of every place in America, so there’s nothing wrong with pointing out in what ways this might be the case. In addition, I acknowledged that Indianapolis has somewhat low rent levels compared to other cities. I didn’t, though, calculate rent at $600 a month, but $650, which is exactly “a bit higher” than the $600 Muir suggests I used.

Muir’s better point was that I didn’t include taxes in my notional teacher’s expenses, something I acknowledged in my original post. I noted too, though, that I’d left out some important likely sources of income for my teacher, like money from a temporary job he might get during the summer. (I also didn’t mention how much my teacher would make if I calculated his salary on an hourly basis because I know what kind of tizzy that can send teachers and AFT reps into!)

Anyway, taking Mr. Muir’s taxation point as a good one, let’s see what will happen to young Mr. Chips’ wallet after taxes.

Recall that our boy was making $34,638 as a first-year teacher. We’ll assume that he pays full federal and state taxes on that, though he probably wouldn’t. (For instance, he would likely be eligible for
Indiana’s renter’s tax deduction and the federal tax deduction for student loan interest payments.) What would the damage be?

Indiana has an individual tax rate on adjusted gross income of 3.4 percent. Assuming our teacher pays that tax on his entire salary, he would owe $1,178 to the State of Indiana. And what if he paid federal taxes based on his entire salary? Those would come out to $5,217. Add the state and federal taxes together and his total tax burden would be $6,395, or $533 per month.

With that monthly burden, what will Chips, Jr.’s new monthly expenses be? We add $1,480 — his other expenses — to his monthly tax burden, and get a total monthly outlay of $2,013.

Ouch! Darn taxes. They’ll get you every time. Someone really ought to downsize government! But I digress….

So what does our teacher have left after the tax man has cometh? To find out, we subtract Mr. Chips’ total monthly expenses from his monthly earnings — $2,887 — and find that the young man will still have $874 left each month.

Unfortunately, the omitted expenses on my original post didn’t end with taxes. An astute reader informed me yesterday that I’d also failed to include utilities and some modern necessities in the young man’s expense. I’d better put those in.

We’ll assume that the teacher pays for both a landline and cell phone (though increasingly people just have the latter). Let’s also assume that he has an Internet hookup, cable television, and pays for electricity but not water. What’s the damage?

Landline: $25 (I found Vonage offering unlimited local and long distance for this price.)

Cell: $40 (This is for Verizon Wireless’s America’s Choice Basic 450 plan. It’s pretty bare-bones but, hey, our guy does also have a landline.)

Internet: $20 (AT&T Express DSL.)

Cable: $48 (This is standard full cable. He could have gotten basic cable for just $13, but he needs his Turner Classic Movies.)

Electricity: $50 (This is a bit of a guess, but I found a listing for a house in Indiana that said the average electric bill was about $100, so I estimated that an apartment might be about half of that.)

Finally, the reader thought it impossible for someone to actually eat meat and vegetables on only $200 a month. But it is possible. Using local D.C. prices, I found that a person could eat three normal meals a day on that amount, and those meals would include daily intake of such things as raisin bran, broccoli, cookies, milk, orange juice, cheese, ice cream, and even steak (though not exactly filet mignon). Moreover, after eating all those things, one would still have money left over for snacks. In order to appease concerned readers, though — and give our boy a few restaurant meals — we’ll add $100 to his monthly food budget.

Now what’s he got left? All the new expenses plus the boost in his food budget combine for $283. Adding that to his old expense total of $2,013 yields a final total of $2,296. And what does that leave our boy once we subtract the expenses from his monthly salary? $591, or slightly more than 20 percent of his monthly salary, about double the proportion of his salary that it is recommended he save! And don’t forget, with the budget we gave him, young Chips isn’t scrimping on much: He’s paying average — not low — rent for an apartment he has all to himself, paying for gas and auto insurance when he could be taking public transportation, maintaining both a landline and a cell phone, spending more on food than he has to, and enjoying a pretty wide selection of television channels — all right out of college.

So what have I gotten from all my budgeting pains? Very strong evidence that one can have average — actually, I calculated above average — student loan burdens and still live very well on a first-year teacher’s salary, contrary to popular mythology. Heck, you could actually more than double my guy’s monthly debt payment and he’d still be living comfortably.

This is not, by the way, to say whether or not my teacher should get a higher salary, or whether debt burdens should be higher or lower. Those things should be decided by a free market. However, in the absence of such a market, it is important to point out the inaccuracies in many of the myths propagated to put more taxpayer money into teacher salaries and student aid, and expand the scope of government.

Unfortunately, I can point out the difference between scary rhetoric and happy reality until I’m blue in the face but still never get people from the AFT, or student advocates at the state PIRGs, to stop crying poverty for teachers and college students. Why? Because once I do that, they change the issue, saying what’s important is not really whether or not a new teacher actually makes more than enough money to live a decent life, but whether or not they’ll be “comfortable.” Writes Muir:

Can one afford it? Strictly speaking, teachers take these jobs and they pay their debts. So yes. But … that doesn’t make it comfortable for them or good policy for us. Our goal should be to make people want to come into teaching, not to make new teachers feel bitter and even more stressed. 

You just can’t beat this with concrete evidence, because now it’s all about feelings, and you can never demonstrate conclusively how one person — much less millions of people — will feel about anything. I mean, who knows what amount of money will make different people feel comfortable, bitter or stressed? We can show pretty conclusively why they should feel comfortable, but we can’t prove it. But then, that’s why Muir and others resort to these arguments: in the face of reality, they have nothing left to stand on but things that cannot be proven.

And so, in that spirit, let me end this very long post by asserting something that can never actually be proven, but unlike student debt and teacher salary myths is almost certainly true: No matter what teachers are getting paid, we will never hear someone from the AFT say “Woah, that’s enough money and benefits! We teachers are feeling really comfortable, unstressed, and appreciated. Please, don’t pay us any more!”

Knowing that should be reason enough to stick with the facts.