New York's Tuition-Free College Madness

During their runs for the White House, both Hillary Clinton and Bernie Sanders promised tuition-free college.  Now, with Trump's victory, that seemed to become a distant dream.  That is, until Democratic Governor Cuomo of New York tepped up and proposed that the state legislature make it a reality for up to one million eligible families who have children in the State, who want to attend state colleges.  He promises that the program will only cost $163 million a year; when fully phased in over 3 years.

Now, one thing I've learned about Democrats like Cuomo, is that they are terrible at math.  They almost always underestimate the true cost of any new entitlement program.  Once more, this appears to be the case for this tuition-free entitlement program.  Here's why.  The in-state annual cost of tuition for a New York public college student is $6,470.  Divide that into Cuomo's proposed $163 million a year and you end up with 25,193 students who could benefit from the program.  Yet, a million families would be eligible?  That's just 2-1/2% of all eligible families.  Also, when you talk about eligible families, you are not taking into account that some families could have more than one eligible child.

However, here's the biggest problem with any talk about free tuition.  As a country, we waste billions of dollars on college education.   Most students enrolled in a 4 year colleges don't graduate in 4 years.  In addition, the 6-year graduation rate for state colleges is still only 57%.  In other words, those that don't graduate in either 4 or 6 years, will be -- a waste of money.  Of course, under Cuomo's plan, that will be a waste of taxpayer's money.  But, its not just about money.  ACT (American College Testing) found that 60% of high school students that took their test were not qualified or prepared for college.  Yet, somehow, 66% of high school graduates go on to college.

There is also a bigger problem with college education in this country.  All too many workers have degrees that are worthless.  Career Builder, in 2014, found that 51% of those college students who graduated that year and found emplooyment, were working in jobs that didn't require a degree, which that brings me to another point.  Too much emphasis is placed on a college education.  What we should be doing is getting people into trade schools for professions that are desperately in need of trained job seekers.  This is where tuition-free education would carry more bang for the buck. Further, if you want to provide 4 years of college tuition, make sure it is targeted to students that are enrolled in programs that will provide the type of expertise that is so often lacking in the country.

References:

New York Governor Andrew Cuomo Announces Free College Plan With Bernie Sanders: http://time.com/4621407/free-college-andrew-cuomo-bernie-sanders-new-york/

Bernie Sanders is wrong: College is not a right: http://theweek.com/articles/553857/bernie-sanders-wrong-college-not-right

National Center for educational Statistics: College Graduation Rates: https://nces.ed.gov/fastfacts/display.asp?id=40

ACT Shows 60% of High School Seniors Not College-ready: http://www.governing.com/news/state/mct-seniors-not-college-ready.html

Most High School Seniors Aren't College Or Career Ready, Says 'Nation's Report Card': http://www.npr.org/sections/ed/2016/04/27/475628214/most-high-school-seniors-arent-college-or-career-ready-says-nations-report-card

Fewer U.S. Graduates Opt for College After High School: Last October, just 65.9 percent of people who had graduated from high school the previous spring had enrolled in college, the Bureau of Labor Statistics said this week. https://www.nytimes.com/2014/04/26/business/fewer-us-high-school-graduates-opt-for-college.html

51 Percent of Employed 2014 College Grads Are in Jobs That Don’t Require a Degree, Finds CareerBuilder Survey: http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?sd=10%2F9%2F2014&id=pr846&ed=10%2F9%2F2099

America's Skilled Trades Dilemma: Shortages Loom As Most-In-Demand Group Of Workers Ages:  http://www.forbes.com/sites/emsi/2013/03/07/americas-skilled-trades-dilemma-shortages-loom-as-most-in-demand-group-of-workers-ages/#3939ec4c4545

Really? Move Your Business to New York State?

In 2013, the Democratic Governor of New York, Andrew Cuomo, proudly announced a new program called "Start-Up NY" that was supposed to bring thousands of new jobs to the State.  Since then, they spent millions for a nationwide advertising campaign with ads like this:

The program, which was supposed to attract new businesses with 10-years of a tax-free start-up operation, was to provide a "report card" on April Fools Day of this year.  That date came and went, and many feared that the tardiness meant bad news. They were right.  In fact, the report wasn't released until late in the day on the very Friday before the Fourth of July weekend. Other than releasing bad data on Christmas Eve, they couldn't have found a better time when so few people were paying attention.

So, here's the bad news they didn't want New Yorker's to know.

Only 403 jobs were created by the program since its inception.  By comparison, Wal-Mart could have easily beat that number by opening just one Sam's Club and one SuperCenter; and it probably did so in that same time span and without any tax break.

But, why isn't the program attracting new businesses?

Well, the answer is simple.  New York, according to CNBC, is the 3rd most expensive state to live in.  It ranks 50th as the worst state for income tax with 12.6%% in combined state and local taxes.   Add to that, it just approved a $15 minimum wage and 12 weeks of paid family leave.  If I'm a CEO considering a move to New York, I see my own pay and the pay of most of my workers subject to the highest taxes in the United States.  And, the $15 minimum wage and paid family leave, simply makes operational costs too high and a company less profitable when compared to wherever that CEO's business is currently located.

In typical fashion, Democrats just don' get it.  Taxes, all taxes, hurt business.  In the larger scheme of things, a short-term tax benefit is not going to offset all the other costs a  company has to pay if they move to New York.

References:

Governor Cuomo Launches Start-Up NY Program at International Conference in New York City: https://www.governor.ny.gov/news/governor-cuomo-launches-start-ny-program-international-conference-new-york-city

Start-Up NY: Why was report released late Friday?: http://www.democratandchronicle.com/story/news/politics/blogs/vote-up/2016/07/05/start-up-ny-report-released-late-friday/86716876/

Best and Worst States for Taxes: http://www.forbes.com/pictures/emeg45efhjf/no-50-new-york/#56ae877c4d37

America’s most expensive states to live in 2015: http://www.cnbc.com/2015/06/24/americas-most-expensive-states-to-live-in-2015.html?slide=9

Governor Cuomo Signs $15 Minimum Wage Plan and 12 Week Paid Leave: https://www.governor.ny.gov/news/governor-cuomo-signs-15-minimum-wage-plan-and-12-week-paid-family-leave-policy-law

Suing Exxon Mobil? How About Al Gore and Other Alarmists?

Apparently, in a meeting held in late March, 14 attorney's general have joined New York state's Attorney General Eric Schneiderman in investigating whether or not Exxon Mobil mislead the investment community on the minimal effects of climate change when their own internal research said otherwise.  If so, Schneiderman expects to extract a pound, or two, or more of flesh from the energy giant which will lead the way for hundreds of similar extortions throughout the energy industry.  Al Gore, who also attended that meeting, likened it to the cigarette industry's downplaying of the effects of cigarette smoking when its own research clearly proved it harmful and, in some cases, lethal.  Last I heard, we breathe in CO2; and even though there's more of it, we are actually living longer. Of course, the real intent by all of these Democrats such as Schneiderman and Gore is to shutdown freedom of speech; and to ultimately put an end to all climate change deniers.  In typical fashion, the Democrats are using the law and lawsuits to achieve that very end.

But, aren't climate alarmists just as guilty of telling lies?

Al Gore, especially.  In his movie, The Inconvenient Truth, he claimed that the seas would rise 20 feet unless we took steps to abate climate change.  But, the real inconvenient truth is that, based on an average rise of about one-tenth of an inch per year or 10 inches a century, we won't see a 20 foot rise for more than 2,000 years.  Then, there was his claim that the Arctic would be ice free by 2012.  It's now 2016 and the latest report from NASA is that polar ice is not receding due to climate change.  Then, there was the claim (not by Gore) that 4.5 billion people (half the world's population) would die by 2012 due to climate change....and the alarmist lies just keep flowing!

The fact is, that climate change alarmists appear to be free to scare the bejesus out of the world with false claims and without impunity. But, it is literally alright to crucify Exxon Mobil for possibly doing the same thing. I emphasize "possibly" since some of their research may actually disprove climate change being caused by man-made CO2.

Isn't it great to live in a supposedly fair and free society with free speech for some and not all?

References:

Exxon Mobil Climate Change Inquiry in New York Gains Allies: http://www.nytimes.com/2016/03/30/science/new-york-climate-change-inquiry-into-exxon-adds-prosecutors.html

Al Gore Global Warming Movie Responses: 10 Facts 'An Inconvenient Truth' Got Wrong: http://www.newsmax.com/FastFeatures/al-gore-global-warming-movie/2014/12/15/id/612566/

Updated NASA Data: Global Warming Not Causing Any Polar Ice Retreat: http://www.forbes.com/sites/jamestaylor/2015/05/19/updated-nasa-data-polar-ice-not-receding-after-all/#339645f932da

7 Enviro Predictions From Earth Day 1970 That Were Just Dead Wrong: http://dailycaller.com/2016/04/22/7-enviro-predictions-from-earth-day-1970-that-were-just-dead-wrong/

Global Warming Could Kill 4.5 Billion by 2012—Does That Have Your Attention?: http://reason.com/blog/2007/01/09/global-warming-could-kill-45-b

Failed Climate Change Predictions: https://anotherslownewsday.wordpress.com/global-warming-failed-predictions/

New York & California Just Killed Entrepreneurship

In just 16 years, the minimum wage in the State of California will see a rise of 222% from $6.75 in 2006 to $15 in 2022.  That is an average annual increase of nearly 14%.  In New York, the increase to $15 from, again, $6.75 in 2006 is more complicated as follows:

• For workers in New York City employed by large businesses (those with at least 11 employees), the minimum wage would rise to $11 at the end of 2016, then another $2 each year, reaching $15 on 12/31/2018.
• For workers in New York City employed by small businesses (those with 10 employees or fewer), the minimum wage would rise to $10.50 by the end of 2016, then another $1.50 each year, reaching $15 on 12/31/2019.
• For workers in Nassau, Suffolk and Westchester Counties, the minimum wage would increase to $10 at the end of 2016, then $1 each year, reaching $15 on 12/31/2021.
• For workers in the rest of the state, the minimum wage would increase to $9.70 at the end of 2016, then another .70 each year, until reaching $12.50 on 12/31/2020 – then  continue to increase to $15 on an indexed schedule to be set by the Director of the Division of Budget in consultation with the Department of Labor.

The reality is that no other class of workers has seen that kind of increase.  In fact, assuming a 2% raise a year, it would take the middle class worker an average of 111 years to have a 222% rise in their salaries.

The point is that many people will find themselves less able to afford products and services that are heavily dependent on low wage workers; such as fast food businesses, retail, hospitality, and leisure.  The same goes for this nation's 55 million seniors, who, at best have seen increases of just 1% a year in their Social Security checks.  Additionally, millions more, such as waiters and waitresses, won't be eligible for minimum wage because they earn tips.  And, so too, for the three quarters of 47 million Americans in poverty who aren't even working.

More importantly, the $15 wage will accelerate the death of entrepreneurship and its ability to create jobs.  It will be much more expensive to start new businesses that generally depend heavily on entry level employees.  Entrepreneurship has already been in decline for decades, but now it will become a much higher risk proposition.  Even before instituting this excessive wage, 1-in-4 startup businesses failed in the first year.  50% will be kicked to the curb in just 4 years, and operational costs are one of the 4 main reasons for failure.

I hope I'm wrong, but I think the $15 minimum wage will be a real job creation killer.  And, in fact, a job killer for businesses who must raise prices, and in turn, lose customers who can't afford those price hikes. Also, the $15 minimum wage will bring in automation to replace the humans making that wage.  Already, you can rent a robo-security guard that can hear, smell, and has 360 degree night vision for just $6.25 an hour.  So, if you can already automate a security guard, it only seems logical that other lesser tasks, such as flipping burgers, will follow suit.

References:

Governor Cuomo Signs $15 Minimum Wage Plan and 12 Week Paid Family Leave Policy into Law: https://www.governor.ny.gov/news/governor-cuomo-signs-15-minimum-wage-plan-and-12-week-paid-family-leave-policy-law

California, New York enact $15 minimum wages: http://www.foxnews.com/politics/2016/04/05/california-new-york-enact-15-minimum-wages.html

California Minimum Wage 2006: https://www.google.com/search?q=california+minimum+wage+in+2007&ie=utf-8&oe=utf-8

New York Minimum Wage 2006: https://www.google.com/search?q=minimum+wage+in+new+york+in+2006&ie=utf-8&oe=utf-8

Minimum Wage - United States Department of Labor: Questions and Answers About the Minimum Wage: http://www.dol.gov/whd/minwage/q-a.htm

The Mysterious Death of Entrepreneurship in America: http://www.theatlantic.com/business/archive/2014/05/entrepreneurship-in-america-is-dying-wait-what-does-that-actually-mean/362097/

The Slow Death of American Entrepreneurship: http://fivethirtyeight.com/features/the-slow-death-of-american-entrepreneurship/

Startup Business Failure Rate By Industry: http://www.statisticbrain.com/startup-failure-by-industry/

The Four Major Reasons for New Business Failure: http://smallbusiness.chron.com/four-major-reasons-new-business-failure-51924.html

Rent A Robot Security Guard for $6.25 an Hour: http://www.psfk.com/2014/12/rent-a-silicon-valley-security-bot-for-6-25-per-hour.html

Is New York Trying To Kill Fast Food Businesses?

It's no secret that many in the U.S. -- especially those in the liberal political class -- blame fast food restaurants for America's obesity problem.

It's no wonder then, that New York State's proposed minimum wage increase to $15 will only be applied to fast food operations throughout the State. The primary argument for doing so won't be about obesity (wink...wink!), but instead, because McDonald's and Burger King underpay their employees. New York must pay out millions of dollars each year in various forms of welfare for these workers.  Of course, the State doesn't mind that other minimum wage workers like busboys, dishwashers, hotel workers, etc. will continue to be supported with welfare payouts. 

So what's the impact on, let's say, McDonald's food prices once the wage hits $15:

• A $15 minimum wage is a 71% increase from New York's current  $8.75.

• That $15 wage is higher than every current McDonald's worker's pay except for Shift Manager and Store Manager; both salaried.  Thus, every worker, including the salaried, will also have to see a proportionally-based 71% increase. Therefore, we can assume that whatever a McDonald's store's total cost of labor is today, it will be 71% higher once the $15 kicks in.

• According to the website MinimumWage.com, the average cost of labor for every dollar you spend at McDonald's is 32%.  So, if you spend $10 today at a New York McD's, $3.20 will go to cover the cost of labor.  When the 71% increase is finally applied, the cost of labor will be $2.27 higher.  Or, in other words, that formerly $10 meal will then cost you $12.27 or 22.7% more.  That's before any other inflation that may also affect pricing.

So, the question is:  How many people are going to be able to afford a Big Mac, fries, and a Coke when the price goes from the current $7.85 to $9.63?  Probably, well over $10 with inflation. Especially since real wages (those adjusted for inflation) have only been going up three-tenths of a percent per year.

Simply, going to McDonald's or any other fast food store may still be fast but no longer cheap.  For some people, the cost to eat there may just be too steep; especially since traditional sit-down restaurants won't be hit by the minimum wage increase. Thus, expect business declines and business closures as people relegate eating fast food to being a luxury.  Make no mistake, this imposed wage is like any tax on liquor and cigarettes that is used as a means to deter the buying of those products.  To me, that looks like the real intent here.

Lastly, as far as the obesity issue goes, it's not true.  Seven years ago the City of Los Angeles banned any new fast food restaurants in South Los Angeles as a way of curbing the growing obesity problem in that part of the city.  Obesity wasn't abated.  Instead, it got worse; going from 63% to 75%. Also, regarding fast food, poverty, and welfare;  this country has 45.3 million people in poverty and on welfare.  The fact that there are only 3.7 million fast food workers hardly proves that the industry is placing some massive burden on the country and the State of New York; especially, since 61% of all fast food workers are part-timers working before and after school or as a means to earn some extra money.

References:

New York Plans $15-an-Hour Minimum Wage for Fast Food Workers: http://www.nytimes.com/2015/07/23/nyregion/new-york-minimum-wage-fast-food-workers.html

McDonald's Menu Pricing for New York: http://www.fastfoodmenuprices.com/mcdonalds-prices/

McDonalds Salaries in New York, City: https://www.google.com/search?q=McDonald%27s+Salaries+in+New+York+City%2C+NY+|+Glassdoor&ie=utf-8&oe=utf-8 

Real Earnings: http://www.bls.gov/news.release/pdf/realer.pdf

Cost of McDonald's Labor: https://www.minimumwage.com/2013/07/about-that-68-cent-big-mac-price-increase/

Ban on fast-food eateries in South L.A. hasn't cut obesity: http://www.latimes.com/local/california/la-me-food-study-20150319-story.html

In 2013, the official poverty rate was 14.5 percent, down from 15.0 percent in 2012. This was the first decrease in the poverty rate since 2006. In 2013, there were 45.3 million people in poverty: http://www.census.gov/hhes/www/poverty/about/overview/

http://www.statista.com/statistics/196630/number-of-employees-in-us-fast-food-restaurants-since-2002/Employees in the U.S. fast food restaurant industry:

Characteristics of Minimum Wage Workers, 2014:http://www.bls.gov/opub/reports/cps/characteristics-of-minimum-wage-workers-2014.pdf

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With 2 Cops Killed, America Just Got Less Safe

Right now, the police know that they are operating under higher risk since two New York City officers have been assassinated over the deaths of Michael Brown and Eric Garner.  Police across the country are on alert and encouraged to utilize higher vigilance.  They are being told to always wear their bullet-proof vests; even when off duty but still uniformed,  to avoid individuals that may be looking for confrontation, always respond to a radio call with a minimum of two squad cars, never patrol alone, and to always be aware of their surroundings. 

All of these things mean we will see less policing and, certainly, not better policing.  Never patrolling alone and multiple cars acting on radio calls mean less broad-based police coverage on the streets. As a result, crime is sure to rise. President Obama seems to think we need a task force on policing in order to appease those who believe all cops are racists. His words -- and the words of the likes of New York Mayor Bill De Blasio, and race activist Al Sharpton -- have created a situation that can't be erased by any recommendations that his task force would potentially make.  His creation of a task force, in itself, is an acknowledgement that he believes that police are acting with racial bias, thus feeding into the beliefs of the protesters and those who want to hurt or kill cops.

It will take decades to undo what has been done in just two months in this country with the protests and especially its support from major leaders.  People like Obama and Sharpton don't seem to understand that even peaceful protests can incite violence by some people who think they must act on their own to exact revenge.  You don't whip up mobs of protesters, condone what they are doing, and expect that the worst can't or won't happen.  

The President was a community organizer and as Wikipedia notes: "...community organizers generally assume that social change necessarily involves conflict and social struggle in order to generate collective power for the powerless."  It is time Obama stops acting like a community organizer and racial activist, and becomes the President of all the people (including cops). From his handling of the protests to his constant use of executive orders to circumvent Congress, it is always about conflict with this President.

References:

Gunman executes 2 NYPD cops in Garner 'revenge': http://nypost.com/2014/12/20/2-nypd-cops-shot-execution-style-in-brooklyn/

NY police told not to make arrests unless absolutely necessary and 'avoid people looking for confrontation': Cops across U.S. are put on high alert after NYPD murders: http://www.dailymail.co.uk/news/article-2883245/Police-departments-alert-cop-killings.html

President Obama Creates the Task Force on 21st Century: http://www.whitehouse.gov/blog/2014/12/18/president-obama-creates-task-force-21st-century-policing

Community Organizing: http://en.wikipedia.org/wiki/Community_organizing

In Chicago, Obama worked at various times as a community organizer: http://en.wikipedia.org/wiki/Early_life_and_career_of_Barack_Obama

 For Mayor de Blasio and New York Police, a Rift Is Ripped Open: http://www.nytimes.com/2014/12/22/nyregion/a-widening-rift-between-de-blasio-and-the-police-is-savagely-ripped-open.html

Obama, de Blasio blasted over NYPD cop slayings - Yahoo: http://news.yahoo.com/ray-kelly-blasts-de-blasio-brooklyn-cop-killings-175602893.html

Al Sharpton Leads March in DC as NYC Protesters Chant: ‘What Do We Want? Dead Cops!’: http://www.breitbart.com/big-government/2014/12/13/al-sharpton-leads-thousands-in-saturday-march-on-washington-dc/

Blue State Blues

Some of the biggest states in our union -- all politically left -- are the ones that are in the most serious financial trouble. These include California, Illinois, New Jersey, New York, and Michigan. Each and every one of these states are heavily influenced by labor unions; and, each is being burdened by social programs that they can't pay for. Each of them has unemployment rates that are higher than the national average; with Michigan leading the pack at an astounding 14.3 percent. California, our most populous state, isn't too far behind that with a 12.5% rate. Every one of these states has some of the highest taxes in the country; and, each has lost population and businesses over the years due to those taxes and heavy handed government regulations.

These states are warnings for us all. They are telling us that big governments with big social programs and with heavy union influence don't make for a better life. Yet, we have a Democratic Congress and a Democratic President who are hell-bent on taking us down the very path that has put these States on the brink of ruination.

For Obama, KSM Is Simply Collateral To Going After Bush And His Administration

This decision to try Khalid Sheikh Mohammed (KSM) and four other 9/11 suspects in a Federal criminal court in New York is just ridiculous.

These people aren't like bank robbers or typical criminals that would be convicted by a jury trial in America. The manner of evidence collection against these people is completely different than that in a typical CSI-type investigation. Much of what was done was through highly sensitive and secret means and should not be exposed to the light of day in a Federal court. Also, because of the manner of arrest, the chain of custody of evidence, and interrogation techniques, its highly possible that much of the evidence against them could be thrown out of court. KSM's Miranda rights and the violation of them is one glaring example. The issue of when he was allowed to have access to an attorney could play a big part in whether or not any confessions on his part are even admissible. For that reason, there is an extreme risk that a mistrial could be declared, and that all or some of these 9/11 perpetrators could be set free. And, with enough evidence found not to inadmissible, these people could easily be found to be not guilty.

Even our own domestic court system understands that certain cases require specialized treatment. That's why we have criminal cases tried in a criminal court system. The disposition of children is handled in a Family Court environment. We also have Civil, Traffice and Divorce court settings for those specialized types of trials. This is why a specialized environment like a Military Tribunal is more appropriate for the kind of trial involving the 9/11 suspects. These courts have the means to handle the sensitive top secret evidence collection and are not all bound up with issues of civil and criminal issues like Miranda rights.

Like everything else, Obama is playing to his lefty base. He knows that by trying these cases in an open Federal court, the Bush Administration will be under trial. That, to him, is more important than if KSM and his collaborators go free. Obama is the consummate politician who is hell bent on using the power of his office to discredit the opposing political party. He doesn't care if the United States gets marginalized in that process. That is what complete ideologues do!

$2.7 Million Slice of Life

So narrow, this little house at 75 1/2 Bedford St. in Greenwich Village, New York, carries only half a street number. At it's widest point, it is just under 9 feet inside; with the narrowest point down to 2 feet. This 3-story brick job is only 30 feet deep (contrary to the 42 feet as reported by AP in the story - below).

But -- surprise! -- this 1873-built gem just went on the market for $2.7 million. It last sold in 2000 for $1.6 million (Click to See Full Story).

Who said there was a collapse in the housing market!

Just like all those super-thin supermodels, this thing just proves that skinny can make you money. As "skinny", Paris Hilton, always says: "It's Hot!"

Here's a great 2004 Village Voice story that really talks at length about this "skinny" house with the not-so-skinny price (Click to See Full Story).

As you can see, the price is based on the uniqueness and the historical "rareness" of this place and not just the "space" it provides.

I'm now trying to see if I can "squeeze" my one-story ranch into a three story jewel like this one. Maybe, then, I can recover from all the losses that I've taken in the last year and a half with the housing crash. In Las Vegas, a 3-story, 3o x 9 foot house, like that one, would certainly be unique. In terms of historical value, my current house would probably qualify. In Vegas, almost anything that is older than a few years gets "imploded" and rebuilt as something bigger and better.

Please Impeach Me or Something!

It's been almost a week since David Patterson, the new Governor of New York, has publicly confessed another indiscretion. Since taking office, he has confessed, first, to having an affair. Then, it was multiple affairs; followed by an affair with a staffer. In another confession, his wife cheated on him, too. Campaign funds were acknowledged to have been used in one or more of his little soirées. As of last week, he actually admitted to cocaine and marijuana use.

What's next. He's gay? That he's not really legally blind? Or, worse yet, he's really a closet Republican?

Doesn't it seem like this guy is crying out for death (figuratively) by impeachment or recall? I just can't wait for the next installment of his "Moments of Truth"!