The federal government will expand its sanction of Milwaukee schools this year, according to a report published in today's Milwaukee Journal Sentinel. 38 schools currently receiving federal government aid for low income students will be hit with cuts to that aid. The Department of Education calls these schools "identified for improvement" and refers to the slashing of budgets as the result of "escalating academic standards". Worded in this fashion, it is possible to think that the cuts are suitable measures to take in the face of poor performance. After all, the government set standards and the schools failed to comply, isn't some punishment in order?
In a word, no. These schools faced an arbitrary increase in standards, a reduction in funding and a failing plan for urban centers across this country. The failing grade goes to the Bush Administration, so why are Wisconsin citizens coming home with the bad report card?
Read More »Senator McCain told the Wall Street Journal in March that he supported the privatization of social security. When the Journal pointed out that this contradicted McCain's campaign website, he promised that the website would change to accord to his view on the subject. Months later, not only has McCain failed to clarify his position, he has reversed it again. In an interview on Live with Regis and Kelly, McCain insisted that his plan was not privatization, but "partnership". Now, Republicans seem to have settled on a Goldilocks solution: transition to private accounts without using the social security trust fund to help fund them (Scroll to Retirement Nest Egg).
A little bit of explanation and history is in order. Social Security currently pays out benefits to retirees from a trust fund whose coffers are filled by payroll taxes. To ensure the security of the trust fund itself the only investment option is U.S. government securities. Since there are far more people in the work force than there are in retirement, the social security trust fund has expanded in the past decade. This fund pays for both present and future expenses. Also, while social security payments are pegged to earnings over a person's lifetime, the funds provided are not directly linked--your earnings impact what you will receive in retirement but don't directly pay for it. Republicans have proposed a system of private accounts (similar to Chile's National Pension system) where individuals would invest for their own retirement and be given the option to invest in instruments other than government securities. Republicans argue that this will allow for a higher average return (compared to the roughly 2% annual return on treasury bonds). Read More »
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