Middle Class Dismissed

The Bennett Hypothesis: Why College Tuitions Are Out of Control

"Some researchers argue that government subsidies have had the perverse effect of encouraging colleges to increase tuition so as to capture more federal dollars, an effect known in the literature as the 'Bennett hypothesis'. To see how this could work, imagine a school that charged $0 in tuition and fees. Suppose that the federal government then offered $5,000 vouchers to pay for college tuition, but only at schools that charge tuition. Obviously, our hypothetical free school is going to increase tuition to $5,000 a year to take advantage of that money. That’s just money on the table." Continue reading →

Continue ReadingThe Bennett Hypothesis: Why College Tuitions Are Out of Control

New York City considers allowing non-citizens to vote in local elections

"New York City could be the first city in the U.S. to grant non-citizens the right to vote in municipal elections. According to Talking Points Memo, a measure currently before the New York City Council would allow qualifying non-citizens to vote in certain local elections. 'This bill violates the State constitution and the administration does not support it,' said spokesperson Evelyn Erskine. The New York Daily News said that the constitution only grants the New York State Legislature the authority to confer voting rights to state residents." Continue reading →

Continue ReadingNew York City considers allowing non-citizens to vote in local elections

Fast-food worker wage protests spread to Detroit and St. Louis

"On Friday in Detroit organisers were expecting at least 400 workers from at least 60 stores to come out and protest. The action comes a day after two days of similar protest in St Louis, Missouri, which saw 100 workers walk off their jobs at chains like Wendy’s, Domino’s and Jimmy John’s. It also follows similar actions in Chicago and New York earlier this year in what labour experts call the largest such disputes to ever hit the industry. The demonstrations are aimed at highlighting a demand for a $15-an-hour wage and the right to form a union without fear of employer intimidation." Continue reading →

Continue ReadingFast-food worker wage protests spread to Detroit and St. Louis

Peter Schiff: Symptoms Don’t Lie

"According to the Bureau of Economic Analysis data, in 2002 Americans spent about 17.8% of income on food and energy. In the first quarter of 2013 the share had risen by a factor of 20% to 21.3% of income. Increased share of spending on necessities like food and energy is consistent with falling living standards. In the poorest countries almost all of income is devoted to such things. If consumer inflation data were reported more accurately, it would be revealed that much of the apparent growth is an illusion. The patient is getting sicker, but the doctors are too distracted to notice." Continue reading →

Continue ReadingPeter Schiff: Symptoms Don’t Lie

Bulgarian Spring: Self-Immolations Highlight a Desperate Electorate

"Hundreds of thousands have taken to the streets nationwide, with up to 30,000 demonstrating in Varna, a large city and seaside resort on the Black Sea coast. Old boys' networks left over from the communist era have divided the country among themselves. They dominate the parliament and government agencies, they secure the best contracts for themselves, they threaten the press and they are in league with organized crime. Bulgaria is the poorest country in the European Union, with a stagnating economy. Up to half a million Bulgarians have already emigrated." Continue reading →

Continue ReadingBulgarian Spring: Self-Immolations Highlight a Desperate Electorate

America’s Roads Have Been Turned Into A Revenue Generating Surveillance Grid

"Back in the old days, the highways of America were great examples to the rest of the world of the tremendous liberties and freedoms that we enjoyed. Americans loved to hop into their vehicles and take a drive. But now government is sucking all of the fun out of driving. The control freak bureaucrats that dominate our political system have figured out that giant piles of money can be raised by turning our roads into revenue raising tools. At this point things have gotten so bad that even some police officers are admitting what is going on. Just check out what a few of them told Car and Driver." Continue reading →

Continue ReadingAmerica’s Roads Have Been Turned Into A Revenue Generating Surveillance Grid

TSA Charges ‘Unnecessary’ $130M ID Card Program Directly To Truckers

"The TSA in its mind-boggling stupidity came up with a scheme it called 'TWIC' ('Transportation Worker Indentification Credential'). TSA forced drivers to undergo background checks and fingerprinting and Lord-knows-what-all. And get this: 'TWIC enrollment centers' were often hundreds of miles from drivers’ homes and depots, forcing these professionals to work thousands of hours of unpaid overtime. TWIC also costs those hard-working serfs around $130. Remember that many drivers work as independent contractors, in business for themselves, so no company picks up such expenses for them." Continue reading →

Continue ReadingTSA Charges ‘Unnecessary’ $130M ID Card Program Directly To Truckers

Newly Printed Bernanke Money Floods Manhattan

"The average rent in Manhattan rose by $139 to $3,367 a month in April, compared with March, a one-month increase of 4.3%, according to a report by Citi Habitats, a brokerage firm that represents many renters, reports WSJ. And Anthony Trevisan reports in that his NYC laundry just raised prices by 13%." Continue reading →

Continue ReadingNewly Printed Bernanke Money Floods Manhattan

Argentina offers tax amnesty to head off devaluation

"Argentina's latest effort to tease out billions of U.S. dollars said to be held by citizens through sweeping tax breaks and interest earnings received lukewarm response, though this may change. Argentine citizens are said to be holding the greenback in illegal stashes as a hedge against the Argentine peso's unstable performance, a runaway inflation and general distrust of the government's fiscal and monetary policies. Official estimates say at least $160 billion is held in cash at home and abroad by Argentines who have yet to declare their holdings." Continue reading →

Continue ReadingArgentina offers tax amnesty to head off devaluation

Detlev Schlichter: Is present monetary policy rational?

"Deflation is not such a bad thing if you have to live on your savings or a modest, nominally fixed payment stream. Additionally, reshuffling the economy’s deck of cards could also offer opportunities. Tearing down the old structures and allowing the market to price things honestly again, according to real risks and truly available savings, may at first cause some shock but ultimately bring new possibilities. The present monetary policy is inherently conservative. It bails out those who got it wrong in the recent crisis at the expense of those who didn’t even participate in the last boom." Continue reading →

Continue ReadingDetlev Schlichter: Is present monetary policy rational?