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It's Education ... Stupid By Charles Payne

Question of the Day

Without more college grads, the US will sink behind the rest of the world. On that note, should taxpayers pay for college education and all existing loans be forgiven?

1. Yes
2. No

As always, any additional comments are appreciated.

Click here to post your answer and let Charles know what you think.

Not only can countries not take themselves to prosperity, but they also can't tax themselves to a better education. You can steal money in the name of the so-called middle class and distribute it to unions and social welfare programs, but it won't make matters any better. On the contrary, redistribution would make matters worse because once higher taxes rob bank accounts it proceeds to rob incentive. The chain of events would eventually mean fewer rich people to slaughter but more people in line to share the spoils. This pirate economics is reckless, demoralizing, and dishonest.

Beyond outright theft, the dishonest part is not dealing with the issues. One end of the spectrum sees a lot of people made lavish promises of money and health benefits for life based on little actual financial sacrifice or investment. The other end of the spectrum is keeping the economy moving along with a workforce that doesn't have proper skills. While the administration is demanding higher pay for jobs with low skill thresholds, but high union membership, the nation is missing the boat on big money jobs that fuel massive economic prosperity.

I've been pointing out for years that the decline of educational standards is the critical problem as the best jobs require less brawn and more gray matter. With these jobs comes power because smart jobs, not smart energy, are the future. Oh ... and the future is now! Brookings Institute published a report on job openings and educational requirements. The results are a stark call to arms, not to steal from the local plumber and his family, but to send your kids to school to learn about science and math instead of victimization and self-loathing. This whole thing is getting old and real fast, too.

You can't make things right by overpaying assembly line workers; it ruined Detroit, and is holding back the rest of the nation at this very moment. Instead of calling your boss greedy, grab a book, learn fresh skills, and make your own fortune. In recent job openings, a bachelor degree was needed for 43%, but only 32% of Americans have attained that educational level. Push come to shove, a college grad can do a job designated for someone with only a high school diploma. However, it rarely works the other way around.

Just like debt, which is racing to unsustainable levels, there are many that say it would take too long to get workers up to speed. So, Plan B, punish families making more than $250,000 a year. That would actually drain the college pool further, but it would be in line with the "fairness doctrine." The Brookings report is fascinating and should be read or reviewed by all that want to understand how that, coupled with monster debt, is the true threat to the nation.

The Market

The market is seesawing back and forth, and it's clear a major move is brewing. In many ways, it's like my commute to New York, which is building back up (I saw two school buses today), and next week it will be full blast. When everyone is back at school and Wall Street, the former will knock the cobwebs off, and the latter will have to decide if they want to party or risk missing a giant money making moment.

According to the Labor Department, initial claims during the week ended August 25 totaled 374K, flat from the 374K revised figure reported for the prior week and landing above the Street's estimate of 370K.

Personal incomes were up 0.3% in July and that was in line with consensus, while a 0.4% increase in spending was in line as well. The savings rate was down for the first time in several months.