MA beats four states in recent poll

According to a recent poll of 600 CEO’s by Chief Executive magazine, Massachusetts ranks 47th of the 50 states.
Of course the four we beat are all bankrupt, too, but MA trails even that bastion of malfeasance and graft, Illinois, which I personally find perhaps even more embarassing.
[Sigh.] I guess it’s not that surprising considering the gaggle of never-had-a-real-job buffoons we have runnin’ the joint, and the utterly-clueless voters who keep them there.

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unpaid internships are a bad idea

The recent New York Times article on unpaid internships highlights all the potential problems with companies “hiring” unpaid interns, including the problem all the politards in Washington and elsewhere have with the practice. While I agree that unpaid internships are a bad idea, my reasons have nothing to do with all the hibberty-jibberty nonsense (pdf) a bunch of folks who’ve never had real jobs spew out:

1) If your company offers unpaid internships, you are severely restricting your potential candidate pool. Not many, particularly now, can AFFORD to work with no pay, no matter how “valuable” the “experience” might be. I know I certainly couldn’t when I was a student. Do you really want to limit your company to only candidates that don’t actually need the job?

2) The candidate pool is unnecessarily limited in a second way: I value my time and my life too highly to work for nothing, on the basis of some stranger’s “promise” that my “experience” will be “valuable” and that therefore I should enter into some arrangement whereby my time and effort is valued at zero. I fervently hope today’s youth have at least some marginal level of self-respect and believe similarly. Do you really want to exclude candidates with a healthy level of self-respect?

Let’s be honest here. If your company has a legitimate need for junior-level employees, you can afford to pay them something, even if it’s only minimum wage or a flat stipend for the summer. If your company is doing it out of some sense of “public good” and “lending a helping hand” or “giving a leg up” to people who want to make a career in your industry, you can afford to pay them something. And if you pay them something, you will have your pick of the ENTIRE potential candidate pool, not just the ones who can afford to do it for nothing and/or the ones willing to suffer through a summer because they are not self-aware enough to value their time and effort. If your company CANNOT afford to pay them something, then I would suggest that either you have no real need for them, or your company has real issues far larger than deciding which person to hire to do filing this summer.

If you respond to this with “well, that’s how I did it,” or “we’ve never done it that way in the past,” that’s not an actual reason to continue with the practice, and if you think it is, well, I don’t want to work for a person like you or a company like yours.

I would suggest all the would-be interns out there think about why, really, they want to work in an industry or for a company that values them at zero. What does that say about you and your career choice? Life’s too short to work for nothing. Find a company willing to do the right thing, like, say, the publisher of The Atlantic. I’d work for them (now). An organization that can change its mind and do the right thing (and retroactively, too) is the kind of company I would consider worthy of my time and effort.

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the unintended consequences of having dumb people write healthcare legislation

A lovely article in the Boston Globe yesterday points out that, given a choice, people here in Massachusetts are not as intellectually-challenged as the politicians who write healthcare legislation. Color me encouraged.

It seems that some not-very-public-spirited people would rather pay the (lower) monthly penalty, instead of a (much higher) monthly insurance premium, and then, get this: when they actually need it, they sign up for insurance to pay for their expensive healthcare malady. After which, get this: they drop the (expensive) coverage and go back to paying the (lower) monthly penalty. The very NERVE of these people, being LOGICAL and EFFICIENT with their money. Houston, we have a (very expensive and obvious) loophole.

It certainly is a good thing the shiny new national system isn’t based on the Massachusetts system.

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Massachusetts “leaders” need to get jobs

So, I see a headline in today’s Herald: Murray: Senate will consider tax changes to improve business climate. I’ll admit it, I actually thought for a moment that someone in Massachusetts had noticed dozens of other states and foreign countries are waking up and removing smothering tax burdens and gelatinous red tape.

My moment of hope lasted until the fourth paragraph, when we learn what this tidal wave of positive change might entail. You can read the brief, but devilishly-complicated list in the Herald. Suffice it to say, these changes are microscopic. I doubt most small business owners even know the line items exist. This is the best they can come up with here? Really? This and some nefarious and ill-conceived tax credit for hiring new employees (which you will read about years from now in the Herald when they report on the shocking amount of fraud the system generated) ?

I looked into starting a small business in Massachusetts. The fee for setting up a Limited Liability Corporation (LLC) here is $500. FIVE HUNDRED DOLLARS. But wait, there’s more. Said LLC must then file an annual report with the Commonwealth. Guess what the filing fee is for the annual report? That’s right. FIVE HUNDRED DOLLARS. Ok, so start a Delaware LLC for $90. Nope. Don’t try that. Then you get to file a “foreign” corporation annual report. Guess what the fee for that is.

Now, I’m not saying for a venture-backed tech company that thousand bucks (not including legal fees) is gonna break the bank. But it will suck capital out of companies BEFORE they get to the venture-backable stage. That friends-and-family-and-Visa funding stage.

All this just goes to prove that very few in politics could get real jobs, or have even ever had a real job. They simply have no idea what business is about, and unless you understand what business is about, you cannot understand incentives.

Want to create jobs here in Massachusetts, home to several of the finest universities in the entire world? It’s not complicated:

1) Simplify. Stop trying to regulate Every. Single. Thing. I. Do.
2) Cut taxes to the point where MA is at least competitive; better yet, cut so that MA is a leader and people stop calling it Taxachusetts.

People and businesses respond to incentives. If the incentive says “Massachusetts will suck every last dime out of my business in taxes and fees,” and “there are so many regulators and regulations that my legal team will need to be half my staff,” then businesses and people will leave. And they have, and will continue to do so until the only people left here are the politicians and the people receiving benefits. How sad is it when one of the premier employers here moves to RHODE ISLAND? When Rhode Island becomes more attractive, time to look in the mirror and schedule that liposuction.

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Common sense & taxes

“Nancy and I always believed that if you didn’t want the kids to overspend their allowances, you didn’t give them the money in the first place.”

Ronald Reagan

As quoted by James Srodes in his excellent article, “The Great Recession of 2011-2012″ in the February issue of American Spectator.

No econometrics necessary. Just a smidge of parental common sense. Hopefully we are on the verge of the voters cutting the allowance to the irresponsible kids in Washington.

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Four important books a year

Imagine my surprise when a post I did a few weeks ago referencing Dierdre McCloskey was not only spotted by her (or, I’m guessing, a google search feed, considering how unlikely it would be for her to be ambling down this particularly new and untrod path), but referenced on her site and commented upon by her! Terrifically kind; thank you for that, Professor.

Thinking about that Western Civ class all those years ago reminded me of an important thing Professor McCloskey said about education: if you read four important books a year, real books, by the time you’re 40 or 50 you will have educated yourself to a significant degree. I have been following this advice for twenty years, and I have to say it’s some of the best advice I’ve gotten.

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Yeah, THIS is what we need

So Massachusetts is going to have its own public state law school . I can hear your cheers from here. YAY!

I’m not going to start this off by noting that Shakespeare was entirely correct (Henry VI, Part 2, Act IV), because that would be somewhat cliche. Oh, wait.

Let’s think about this for a moment. America is not exactly suffering from a paucity of lawyers, and recent graduates, even from the best schools, had difficulty finding jobs last year.

So the jesters “in charge” of the Commonwealth of Massachusetts, facing a record $3 billion budget deficit (and that’s their number, so you know it will be higher, much higher), thought that NOW would be a good time to fund a state law school. I guess I was unaware THAT was the reason for the recent lawyer shortages I was reading about.

If we assume existing law schools don’t purposefully accept anyone other than the best potential students who apply, and in fact do want to accept the best potential students out of their pool of applicants, there ISN’T a shortage of seats for the BEST students. And therein lies one of the main problems.

I’m not saying it isn’t competitive, I’m sure when you put 500 baby sharks together in a tank with one bloody steak, something bad will happen to some of them, but isn’t that the idea? Isn’t it (at least on the face of it, before they tweak it to be all PC and “diverse”) a meritocratic method? I disagree with the notion that we should help every student “afford” whatever crazed delusion strikes his or her fancy. Didn’t get into any of the ten law schools to which you applied? Hmmm. Nobody will lend you the money to attend East BridgeBumble College of Law? Maybe you shouldn’t be a lawyer, didja think of that? And maybe taxpayers shouldn’t help you pay for it.

So, yes, I think what Massachusetts should do is squander more of our limited (and borrowed) resources to fund an unnecessary school to turn out sub-par graduates into an overpopulated profession. Seems eminently logical. We’re “helping” people. By definition this school will be third-tier out of the gates.

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The Real Great Communicator

Ronald Reagan knew what America was supposed to be about, and knew whose fault it was if we failed to reach our potential. How sad that the goals of our current crop of “leaders” have strayed so very far from what they should be.

President Reagan – Government is the Problem

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Sins of Economics and Economists

I had the distinct pleasure of taking a class from Professor McCloskey at the University of Iowa (Western Civilization, I believe), one of those 200+ student undergrad lecture affairs. He (she was a he, then) had certain rules, though, I will never forget: if you came to lecture (and he stated he didn’t really care if you did or not, we were “adults”) you were to be politely silent (unless, I suppose, asking a question, which rarely occurred), and, most importantly, you were not to sit and read the newspaper, which, at Iowa, was the Daily Iowan, a full-sized fold-out newspaper on the order of a Chicago Tribune (you couldn’t read that one, or any other one either). Students forgetting this rule were ejected from the lecture by Professor McCloskey; I remember it happening only once. But I digress.

The reason for this post is Professor McCloskey nails it: economics as practiced today is a sham and a waste of time with all the math and alleged “science.” To wit:

The progress of economic science has been seriously damaged. You can’t believe anything that comes out of [it]. Not a word. It is all nonsense, which future generations of economists are going to have to do all over again. Most of what appears in the best journals of economics is unscientific rubbish. I find this unspeakably sad. All my friends, my dear, dear friends in economics, have been wasting their time….They are vigorous, difficult, demanding activities, like hard chess problems. But they are worthless as science.

The physicist Richard Feynman called such activities Cargo Cult Science….By “cargo cult” he meant that they looked like science, had all that hard math and statistics, plenty of long words; but actual science, actual inquiry into the world, was not going on. I am afraid that my science of economics has come to the same point.
— (Deirdre McCloskey, The Secret Sins of Economics (2002), 41,

The irony, of course, is that a vastly superior form of economics preceded the dastardly Keynes, but is largely unheard of today and certainly untaught in all our finer (and not-so-fine) institutions of “higher learning”: The Austrian School. Learn all about its logical goodness here.

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How to actually fix public education

littleorangejumpsuits

The idea of free public education is a fine one, a laudable goal, IF it’s carried out intelligently and well. It’s not.

Let’s begin with the seasonal nature of public education. The “summer break” began a hundred years ago with the necessity of childrens’ assistance with the crop harvest. I haven’t checked recently, but I grew up in a state that actually has farms, and no one I knew was needed on a farm during the summertime. In fact, many of the farmers were no longer needed on the farm at any time, efficiencies and mechanization making farming a larger-scale enterprise. It is time to give up the idea that kids “deserve a break” of three months every year and keep them going year-round, with perhaps three or four longer vacation periods (say, two or three weeks, max). The benefits of a three-month holiday do not come close to offsetting the negatives.

Oh, I can hear you saying “but the classrooms aren’t air-conditioned.” Well, I guess the little darlings will just have to deal. Yes, even in the South. Who was the braintrust who built schools without air-conditioning in the South, anyway?

I can also hear you saying “the teachers need a break to plan, and organize, and rest up” and other various and sundry excuses. To which I respond: why are teachers the only group that requires 25% of their year as vacation to plan things? I don’t get 25% of my year to “plan” and “rest,” and neither do any other groups outside of teaching that I can think of. Everyone else seems to be chugging along just fine. Plus, even with all this “planning” and “resting” and so forth the vast majority of public schools seem to still be failing, even by their own knee-high goals.

Which, of course, leads us to one of the two root problems within the larger problem: the teachers unions. Judging simply by the vitriol the unions spew about charter schools and vouchers (both of which work, of course, and save money at the same time) the teacher unions are well aware their model is broken, vast numbers of their teachers unable or unwilling to teach, not to mention overpaid and overstaffed. Did I cover everything there? Methinks thou dost protest too much. Ideas such as seniority-based pay or LIFO staffing and a layer-cake of overstuffed “administrators” are over. Please step out of the way and let the market tell you what the model should be.

Which brings us of course to the largest problem with public education: it’s run by the government. Nothing the government does, by definition, is done efficiently or well. This includes educating our youths. Turning out uneducated drones with no curiosity, no ability to think for themselves, no creativity, no personality, least-common-denominator voters is what the present system does well. I’m not saying there are no exceptions; miraculously, some manage to run this gauntlet of mediocrity and apathy and, on their own, not only actually learn things, but somehow figure out a way to prosper intellectually despite the smothering lackadaisical government figureheads in the front of their classrooms. I have no idea how it happens. Law of large numbers, I guess.

Let me add that I went to public school through high school, and it was painful and it was an immense waste of my time. Time that I will never get back, experiences I would never relive for all the gold at the NY Fed. What I could have achieved with an actual education I will never know. I do know that because of the schools I attended, I was never challenged and thus never had to develop any sort of study habits, habits which might have come in handy when I faced private school-educated peers in college who didn’t seem to be drowning in the deluge of material at the private college I attended.

Enough ranting, time for the solution:

1) Take the limits off charter schools. Let the market decide if a charter school is a good idea or not.

2) Give taxpayers with children a voucher, good at ANY school of their choosing, or even as a direct tax credit if they choose to homeschool, for precisely HALF what the district spent the prior year per pupil.

3) When the bad public school’s student population drops to less than half the original population, shut it down. Consolidate the remaining students at the remaining schools. Sell or lease the empty facilities to the charter schools, if they’ll take them. Fire or re-assign the teachers, but the teacher population has to shrink overall by the number at the failed school (ie, if they are re-assigned, another teacher will have to be fired in order to keep them – see, I anticipated the unions there).

4) Don’t negotiate with the teacher’s union. This is not a negotiation. This is a broken, failed system, and the teachers unions are culpable. If their members want to keep teaching, they’re welcome to interview at the charter schools for a new position. With their experience in education and seniority, that should be a piece of cake, right? Particularly with all the “planning” they’ve been doing with their summers since college?

5) Educate year-round, 225 school days up from the standard 170 or whatever it is now. That gives our youths five weeks of holiday a year, two or three weeks more than any working adult on the planet except the French. Last I checked, we weren’t France, so I think we can handle it. Break it up however you want through the year.

With a plan like this, I predict that within ten years over 50% of public school students will be in a charter school. Scratch that. FIVE years. The other half of students will be in a vastly different reality in public school. Municipalities will save billions. Taxpayers (aka “voters”) will save billions, and their children will actually get an education. And the bad teachers will have all the time they want to “rest” and “plan.” [I think I've identified the only losers in this little plan of mine.]

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