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Julianne Malveaux

Online Colleges Flunk Common Sense

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(NNPA) The most common model of college attendance is that a young person who graduates from high school and heads directly to college, perhaps taking a year off in between to work, take a “13th class. While many students start off right after high school, some of them have breaks in their higher education, dropping out to save money to continue, or to deal with family matters.

The most common model is not the only model, however. Mature adults who did not attend or finish college through the most common model are referred to as “returning students” or “nontraditional students.” Some get their degrees through online programs. A few colleges (Bay Path College in Massachusetts, is one example) have developed Saturday programs where women can earn a four-year degree by attending college only on Saturdays.

Concerned by high unemployment rates and eager to enhance their employability, many mature college students turn to for-profit colleges (sometimes called “career colleges”) for their education. Some of these students, barraged by television ads, are convinced that for-profit colleges, where they can attend during the evening or online, allow them the flexibility they need to manage work, family and education. And since federal funds, such as Pell grants and subsidized loans, are available to take care of costs, some students who attend for-profit colleges are pressured to take out these loans. If they drop out, they are still required to repay their loans, just as they would have to in any other college.

But all colleges are not created equal. About once a week, I get a call from a mature student whose time at a career college was unrewarding. One woman failed a math test but could not get feedback from her instructor on what she did wrong. Appeals to others in the chain of command went unanswered.

In another case, a young woman desperately needed counseling. She ended up getting it from a community organization, not from her career college. To cite just a few cases to make a point is casual empiricism, but my direct knowledge of some students’ plight raises a few questions for me.

Many students get training, but not jobs. Many are saddled with loans they cannot ever afford to repay; and the costs of attending career colleges are high. The Department of Education estimates that it costs four times as much to attend a career college as to attend a community college.

Why are costs so high when services are so limited?

Partly because many career colleges are publicly traded and the pressure is on for them to make a profit to provide dividends for their shareholders. Another reason is that salaries for leaders are extremely high. At ITT Technical Institute, CEO Kevin Monday earned $8.76 million in 2012. DeVry University President Daniel Hamburger earned $6.4 million in 2012. The Apollo Group, which includes the University of Phoenix, paid Gregory Cappelli $4.54 million in 2013, and the Chairman Emeritus received nearly $7 million each year in 2012 and 2013. In contrast only four presidents at public universities earned more than a million dollars. Harvard’s president earns about $900,000, but some of her benefits boost her salary to about 1.2 million.

These so-called career colleges are actually profit centers. The disproportionate enrollment of Black and brown students means that folks who are already poor and underpaid are creating profits for these publicly traded companies and their overpaid leaders. At ITT Technical Institute, the overwhelming majority of students (92 percent) were self-identified members of a racial and ethnic group. Nearly four in five took out a Pell grant. At DeVry about 45 percent were minority students. Meanwhile, students who enroll in these colleges and do not graduate (the majority) have nothing to show for their education but more debt.

That’s why the Department of Education is limiting the amount of federal loans that students can take out, pegging loan amounts to ability to pay, based on students’ current salaries and income. “Attendance at career colleges should be a gateway to the middle class,” said Education Secretary Arne Duncan. Too often mobility is downward, not upward, when large student loans go unpaid. The new regulations are imperfect, but a step in the right direction. They might be more efficient, but the for-profit colleges have lobbied hard, and gone to court, to prevent cautionary regulations.

Students of color who consider these colleges need to make sure they know what they are getting. Otherwise, they are up for a big surprise when student loans bills come due. For-profit colleges are exactly that, for profit. Students are not necessarily being educated, instead being treated as a profit center.

Julianne Malveaux is an author and economist based in Washington, D.C

Countering Voter Suppression Moves

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(NNPA) The Supreme Court recently blocked an appeals court ruling that would have restored seven days of voting in Ohio.  In just three sentences, the court reduced voting access for tens of thousands of Ohioans, in yet another effort to suppress the vote.  In North Carolina, the appeals court granted an injunction to restore same day registration and out of precinct voting. It didn’t strike down early voting restrictions because of time constraints, but did acknowledge that reducing early voting is a way to suppress the vote.  If the North Carolina case goes before the Supreme Court, the Supreme Court is likely to lift the injunction against North Carolina, again making voting more difficult.

When the Voting Rights Act was attacked, too many tuned out and turned off from the details, though leaders such as Barbara Arnwine of the Lawyers’ Committee for Civil Rights Under Law warned that we would begin to feel the effects of this legal setback with various forms of voter suppression. The Lawyers’ Committee developed a “map of shame” to show the many states that had curtailed ballot access.  Either more ID has been required, the days and times of voting have been changed, the number of polling places has been reduced, or other barriers have been introduced to curtail voter access. Those who would suppress the vote in 2014 have put those who advocate ballot fairness on notice.  This year marks the first step toward a suppressed or stolen 2016 presidential election.

The stakes are high, both now and in 2016.  Presently, Democrats hold the Senate, and provide at least some help to President Obama on issues of political and economic fairness. It is very possible that Republicans will take the Senate; it is a foregone conclusion if people don’t vote this year. Republicans now hold the House of Representatives; their presence is the House is likely to increase without a strong vote on November 4 (and in the weeks before, with early voting).

President Obama’s effectiveness has been weakened by the John Boehner Congress that has thwarted the him at every turn. Although these last two years of the Obama presidency are lame duck years where little is likely to get done, the duck will be not lame, but paralyzed, if the Republicans hold both the House and the Senate. President Obama’s only powers, then, will be the executive order and the veto.  It is unlikely that the minimum wage will be adjusted upward, or that other economic fairness matters will be addressed if Congress is a Republican stronghold.

Lots of pro-democracy organizations are working to get out the vote for the 2014 elections, with local and state office as important as federal office.  Secretaries of state, for example, are the chief elections officers for their state.  As such, they have significant power around the mechanics of voting.  They can decide to open more polling places, to have more (or fewer) voting machines available, and to manage the details of voter registration.  In Ohio, where a week of early voting has now been eliminated, Nina Turner, a charismatic African American state legislator with her efforts clearly focused on justice, is a candidate for Secretary of State.  Her election would be an antidote to voter suppression efforts in Ohio, and an inspiration for those who cherish election fairness.  Imagine how different voting conditions would be if in states like North Carolina, Florida, and other “stars” on the Map of Shame had progressive Secretaries of State.

Voter suppression is not new.  We’ve seen grandfather clauses, poll taxes, and literacy tests as historical barriers to the vote.  Now, we see a reduction in voter flexibility, with more ID requirements, fewer early voting days, and stricter rules about voter registration.  Still, those who would suppress the vote can do so only if we allow it by failing to vote.  There are too many important elections to be decided, like Nina Turner’s in Ohio, for voters to stay home.

Julianne Malveaux is a Washington, D.C.-based economist and writer.  She is President Emerita of Bennett College for Women in Greensboro, N.C..

The Boomerang Generation

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(NNPA) One of the most interesting findings of the data recently released by the Census Bureau is that so many recent college graduates live with their parents. Described as “boomerang” graduates, a third of them occupy a basement, a spare room, their old room, a floor or couch. Blessedly, they have parents with whom to live. And if they are 26 or younger, they have health insurance, thanks to the Affordable Care Act.

On the other hand, these boomerang graduates will postpone many adult decisions that affect economic markets. They won’t rent apartments or buy furniture or homes. If they don’t have credit cards from college (and they shouldn’t), they are unlikely to get them as residents of their parents’ homes. They will delay marriage and other decisions that also have an impact on consumer spending.  They are missing out on the low interest that would make the purchase of a car or a home much cheaper. Their inability to fully participate in the economy hurts them, and it hurts the economy, too.

African American graduates experience less of a boom because they have much less to boom back to. Their parents and grandparents will make room for them, but instead of staying in a basement room, they are staying on the same floor.  Not only is there pressure to find a job, but their failure to do so affects younger siblings and neighbors who think: Why should I go to college?  Big brother went and can’t find a job.  Or, big brother is working at a fast food restaurant. I could do that without a degree.

The Census data showed  the first decrease in poverty since 2007, from 12.7 percent to 12.4 percent. Black poverty went up slightly, from 25.6 to 25.7. Hispanic poverty dropped from 24.6 percent to 22.3 percent, the largest decrease for any group

Given the high Black unemployment rate and the weaker networks that African Americans have, few relatives can’t refer them to jobs – many are still looking for jobs for themselves. Boomeranging  hits African American young people harder, and the consequences are greater.  Already the recipients of lower wages, they so find that it takes longer to locate employment than their White counterparts.

When young people are out of work, economists refer to the impact as “scarring.”  This means that boomerangers will have lower wages for the rest of their lives, unless they go to graduate or professional school, a costly proposition.  And those who stay out of the labor market for a year or two are less preferred than graduates who find jobs right after college.  The Great Recession had a permanent impact on the graduating classes from 2007 through 2012.

The inability of recent college graduates to find jobs are structural, and they are also racial.  Efforts to close the unemployment  gap could generate post-graduation outcomes that are similar for young African Americans as they are for Whites. But Black unemployment has been twice that of Whites as long as these data has been collected. The unemployment rate gap is seen as so normal that nothing has been done to reduce it.

President Obama has, by executive order, indicated that veterans should have hiring priority for federal jobs. Such ruling has caused resentment among federal workers, with the allegation that some veterans are not qualified for the jobs they hold. Qualifications notwithstanding, human resource specialists at federal departments are required to offer veterans a hiring privilege. Doesn’t this sound like affirmative action to you?  Yet affirmative action has been all but forgotten. Veteran preferences are the “new” hiring preference.

The rationale for these preferences is that those who served our country should not be homeless. Yet, the overwhelming majority of veterans have homes and, indeed, lower unemployment rates than the general population.  While no one begrudges veterans special opportunities, there are other groups that deserve preferences, too.

When a college graduate is flipping burgers or assembling sandwiches, we are squandering knowledge and ensuring that graduates without jobs have a permanent disadvantage in the labor market.  When African American graduates are sidelined, their very absence from the labor market sends a disturbing signal to others who would apply to college but for their perception that college completion offers them no advantages over the friend or colleague who did not go.

Why not invest in our nation’s future by giving something extra recent graduates?  And why not pay special attention to those groups that much higher unemployment rates than others?

Julianne Malveaux is a Washington, D.C.-based economist and writer.  She is President Emerita of Bennett College for Women in Greensboro, N.C.

Policing the Police

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(NNPA) Except for the Good Lord, everybody has someone or something to “check” him or her. Unfortunately, President Obama has an unresponsive Congress to check him, and Supreme Court to do the same. Elected officials are checked by voters (when they vote), and the Securities and Exchange Commission usually checks corporate crooks. Reputable media sources correct their errors and plagiarists lose their jobs. Everybody has to answer to somebody. There are consequences for everyone – except the police.

At least that’s part of the story Sunil Dutta tells in an article he wrote for the Washington Post:

“If you don’t want to get shot, tased, pepper-sprayed, struck with a baton or thrown to the ground, just do what I tell you. Don’t argue with me, don’t call me names, don’t tell me that I can’t stop you, don’t say I’m a racist pig. Don’t threaten that you’ll sue me and take away my badge. Don’t scream at me that you pay my salary, and don’t even think of walking aggressively walking towards me. Most field stops are complete in minutes. How difficult is it cooperate for that long?”’

This is the police mentality — I have the power and you don’t so just shut the hell up and submit to any outrage. I have a badge and you don’t, so I have the right stop you while driving because you are too black and too young to have this new car. I have a right to stop you while you are running for the bus because you might, just might, have been running from a robbery. I have the right to harass you while you are standing still, just because. I have a right to talk to you rudely and belligerently. My badge gives me the ability to violate your rights.

Dutta, who served on the LAPD for 17 years and is now a professor of homeland security, acknowledges that cops can be wrong, and suggests that those who have “a beef” – “ask for a supervisor, lodge a complaint, or contact civil rights organizations. Feel free to sue the police!” he writes.

Did he spend his LAPD years assigned to the Disneyland precinct? Given his demand that people should just shut up and put up, Bugs Bunny would be sitting in the back of a blue and white.

People of color have been gagged by the put up or shut up form of police brutality for far too long, being forced by fear to close eyes and ears to the beatings and killings of our people for any reason. Law enforcement officers moonlighted as Klan members (or is it the other way around) from the post-Reconstruction era until the end of the civil rights era. People, don’t forget that.

When African American southerners came west during World War II because work was plentiful, Oakland was among the cities that looked south for their new White police officers, people so adept at harassing Black people without reason that they didn’t need to be trained.

One of the reasons the Black Panther Party was started was in resistance to police brutality. At one point, Panthers and others legally armed citizens with books of law, chose to help them evaluate police officers by following them as they so-called patrolled the streets.

This did not stop police harassment, but it put a spotlight on it. It didn’t put enough of a spotlight for a group of rogue officers to beat and frame more than 100 people, and to cost the city millions to settle lawsuits that resulted from their actions. In 2003, the Oakland Police Department agreed to reforms, but they have come so slowly that a federal judge is now supervising them. Ten years after a reform agreement, a judge has to step in? Oakland is not the only police department that is deficient, but what ties Oakland, Calif. to Ferguson, Mo. is police mentality, not just brutality.

How to stop the mentality that leads to brutality?

Require every police officer to have a body camera, and invalidate the arrests of those who do not wear one. Require every police vehicle to have a video camera. I can already hear people objecting to regulations and requirements. I can hear others saying we need to talk. Dr. Martin Luther King, Jr. said, “the law will not make you love me but it will keep you from lynching me.” Talk later. Stop this madness by requiring electronic police supervision now. The police should be policed, they should have a system that checks them and protects us.

Julianne Malveaux is a D.C.- based economist and author.

Taxpayers Fund Corporate Tax Avoiders

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(NNPA) Last quarter’s rate of economic growth is good news, especially after the economy stalled, losing momentum in the first quarter of 2014. Many said it was an aberration, caused by bad weather, especially since economic growth in the last half of 2013 was more than 3 percent.  On the surface, the economy is, indeed, recovering, not only because of growth rates, but because other indicators (excepting unemployment) are positive signs.

Of course, consumer spending explains two-thirds of economic growth. If people don’t put their money into the economy, buying durable goods such as cars and refrigerators and non-durable goods, including, clothing and food, the economy stalls. Yet, while the economy is growing overall, the 99 percent have captured most of the growth. U.S. grew by 209,000 jobs in July, according to a report Friday from the U.S. Labor Department reported Friday. Unemployment rate, inched up by a tenth of a point to 6.2 percent.

The official unemployment rate in 2009 dropped by a third, indicating that those at the top have gained more in recovery than those at the bottom.  How can the stock market expand so rapidly while the bottom 99 percent are stuck?  Low wages mean high profits. Some of the stock market gains that have been realized are a function of wages that have not increased.  Indeed, some corporations have chosen to move their headquarters away from the United States.

Fortune magazine’s Alan Sloan reports that Ireland, Bermuda and Switzerland are the tax havens for the top ten corporate tax- tax avoiders.  While these companies hit the road to avoid taxes, they have no hesitation in enjoying the benefits that come from tax protection, and regulation.

When these corporations underpay their workers, we supplement their inadequate wages with government-funded income subsidies (food, housing assistance, etc.).  When these companies need securities protection, they don’t hesitate to use the Securities and Exchange Commission), also paid for with our taxes. While these corporations operate like foreign corporations for tax purposes, they expect the services of the United States government for their protection.

Meanwhile, the leaders of these companies are some of those who argue for lower estate taxes, and lower taxes for the wealthy.  Give me a break!  These corporations are ripping off United States taxpayers in two ways.  First, they don’t pay taxes on the benefits they receive. Secondly, their advocacy to cut personal taxes is yet another attack on the tax base.

Those in the bottom 80 percent gain little from the Securities Exchange Commission and other financial regulatory agencies. They gain little from the regulatory agencies that force corporations to play nice.  They’ll pay for these regulatory agencies because they are part of the budget, part of the tax bill.

Can we do something about this?  Either those corporate deserters should be heavily taxed before they go (or their products should be taxed), giving their competitors an advantage because of lower prices. Similarly, the companies who choose to stay in the United States ought to gain a tax benefit for their loyalty. The tax system can be used to level the playing field.  Some legislators get it, but too many use the free market excuse to say their hands are tied.

Legislation that prevents corporate rip-offs makes sense, but it is likely to be swallowed by the legislative gridlock that is a permanent feature of this Congress.  As long as runaway corporations push their tax burden on the rest of us, economic recovery is rushing up instead of trickling down.

Julianne Malveaux is a Washington, DC.- based economist and author.

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