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Category Archives: politics

The American Teacher “is not” Waiting for Superman – Part 2/2

02 Apr

The documentary, “Waiting for Superman”, on the other hand, argued that non-unionized charter schools would do a better job, and the public schools were failing the nation due to teacher unions protecting incompetent teachers.

However, according to Dona Goldstein writing for Slate, “Only 17 percent of charters are consistently better than traditional public schools at raising students’ math and reading scores.”

In fact, it helps to know who funded “Waiting for Superman” and the small fortune that promoted the film.

To discover that answer, Alan Singer, writing for Huffington Post, says, “The real question for me is where the money came from to make the pseudo-documentary and who is paying to promote a movie that no one apparently wants to see. The answer, of course, is from “Big Bill” Gates and a gaggle of hedge fund investors who smell mega-profits if government financed private for profit McSchools are allowed to muscle in on public school dollars.

“The film is executive produced and financed by Participant Media, which was founded by former eBayist Jeffrey Skoll.

“Participant Media’s current CEO is Jim Berk. When Berk was Chairman and CEO of Gryphon Colleges Corporation, he was responsible for the formation of a private company operating for-profit schools…

“The Denver-based Charter School Growth Fund, a nonprofit venture capital fund, recently announced it had secured $80 million in initial commitments with big donations coming from among others the Walton Family Foundation. Wal-Mart is also a big supporter of the Waiting for “Superman” social action campaign and seems primed to provide us with Wal-Mart Academies modeled on big box stores that destroy communities and small businesses, drive down wages, and provide us with endless quantities of junk.”


– a Conversation on “Waiting for Superman” held at Stanford University –

In addition, Dana Goldstein, writing for The Nation, says, “Here’s what you don’t see in “Waiting for Superman”:

“You don’t see teen moms, households without an adult English speaker or headed by a drug addict, or any of the millions of children who never have a chance to enter a charter school lottery (or get help with their homework or a nice breakfast) because adults simply aren’t engaged in their education. These children, of course, are often the ones who are most difficult to educate, and the ones neighborhood public schools can’t turn away.”

“You also don’t learn that in the Finnish education system, much cited in the film as the best in the world, teachers are—gasp!—unionized and granted tenure, and families benefit from a cradle-to-grave social welfare system that includes universal daycare, preschool and healthcare, all of which are proven to help children achieve better results at school.”

Note from Blog host: America’s public school teachers are expected to create miracles as if they have super powers by overcoming many almost impossible obstacles and when they don’t, they are often crucified by public education’s enemies and critics.

I know what I am talking about because I worked as a public school teacher in Southern California for thirty years and my average work week was sixty to hundred hours a week and the challenges that I faced daily were daunting to say the least.

What is a teacher to do when parents do not supervise homework at home or provide reading time?  In fact, over the years, I heard parents tell their child that if the child didn’t want to do the work the teacher assigned, they didn’t have to.

Conspiracy theories abound but in the case of America’s schools, the war being waged on teachers and their unions and the accusations that the reason the average America’s school child is mediocre is the fault of incompetent teachers that cannot be fired has all the earmarks of a conspiracy of dunces based on lies and myths that have no foundation in truth/facts.

Where is the evidence that there are so many failing teachers that it is the reason America’s students are not measuring up?  There is none.  Although there are incompetent teachers in the public schools (I knew a few – less than 5 out of hundreds), there are not enough of them.

Return to The American Teacher “is not” Waiting for Superman – Part 1

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Lloyd Lofthouse is a former U.S. Marine and Vietnam Veteran, with a BA in journalism and an MFA in writing,
who taught in the public schools for thirty years (1975 – 2005).

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Posted by on April 2, 2012 in American Public Schools, Education, family values, Parenting, politics, Public School, Teaching

 

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The American Teacher “is not” Waiting for Superman – Part 1/2

01 Apr

The documentary “American Teacher” focused on the low pay of teachers when compared to their peers working in the private sector with similar educational backgrounds, and the back breaking demands on most teachers (working an average 60 hours or more a week – for example, I often worked a 100 hour week often starting at 6AM when the gates to the school were unlocked and staying as late as 11:00 PM when the alarms were turned on and the gates locked).

While the film was not perfect because it didn’t mention the role of parents and other pressures teachers face, it offered a more realistic view of education in America than “Waiting for Superman” did.

Points made that many of the critical reviews of this documentary ignored were:

1. 46 percent of public school teachers leave the profession within the first five years of being in the classroom.

2. Salaries and stress are among the top reasons teachers say they leave.

3. 62 percent of our nation’s teachers must have second jobs outside of the classroom-like tutoring, mowing lawns, selling stereos, or bartending—to be able to afford to teach.

From a few positive reviews of “American Teacher” —

Mark Phillips of the Washington Post said, “A film about education that gets it exactly right… Powerful and compelling. Every policymaker should be required to see American Teacher”

Joe Neumaier of the New York Daily News said, “This heartbreaking and essential look into the lives of those who put so much into educating other people’s children ought to be seen by everyone concerned about the fate of the public school system, and the nation as a whole.” – “Sobering and powerful.” – Ernest Hardy, Village Voice

Neil Genzlinger of The New York Times said, “A heartfelt, bittersweet portrait.”

Kenneth Turan of the Los Angeles Times said, “As we watch the individuals in American Teacher struggle with the burdens of the system places on them, it’s hard not to feel like crying, both for them…and our national culture.”

Note: I also spent thousands of dollars for educational materials over the years that I taught, and for a few years, I also worked a second job to pay the bills in addition to working summers in jobs such as construction, since I wasn’t paid as a teacher during the ten weeks of the summer break.

Continued on April 2, 2012 in The American Teacher “is not” Waiting for Superman – Part 2

____________________

Lloyd Lofthouse is a former U.S. Marine and Vietnam Veteran, with a BA in journalism and an MFA in writing,
who taught in the public schools for thirty years (1975 – 2005).

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Posted by on April 1, 2012 in American Public Schools, Education, family values, Parenting, politics, Public School, Standardized Testing, Teaching

 

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What the Numbers say about Creating Jobs in America – Part 4/4

02 Mar

The first thing to learn is that the “tax cuts under President G. W. Bush did not spur investment.

“Job growth during the Bush years was one-seventh that of the Clinton years. Nixon and Ford did better than Bush on jobs. Wages fell during the last administration (Bush’s last four years in office). Average incomes fell. The number of Americans in poverty, as officially measured, hit a 16-year high last year of 43.6 million, though a National Academy of Sciences study says that the real poverty figure is closer to 51 million. Food banks are swamped. Foreclosure signs are everywhere. Americans and their governments are drowning in debt.” Source: Tax.com

Meanwhile, the GOP and their supporters such as conservative talk radio hosts like Dennis Prager continue to repeat the myth and the lie that increasing taxes on the wealthiest American will cause job losses in the United States.

To discover the truth, one must learn where the wealthiest Americans put their money.

Professor G. William Domhoff of UC Santa Cruz says, “In the United States, wealth is highly concentrated in a relatively few hands. As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85%, leaving only 15% of the wealth for the bottom 80% (wage and salary workers)… However, for purposes of studying the wealth distribution, economists define wealth in terms of marketable assets, such as real estate, stocks, and bonds.” Source: Who Rules America?

Since when did investments in real estate, stocks and bonds create jobs? To create a job, a product must be produced and people  must buy that product be it dinner at a local restaurant, clothing at a retail store such as Target or Costco, gasoline to fill a car’s tank, buying groceries so families may eat, buying laptops, iPads, flat screen TVs, DVDs, taking vacations, etc.

In fact, capital investment for new and improved products and services that creates jobs mostly comes from the profits of established businesses and large corporations with money to reinvest. Development money represented about 30% of the economy while 70% of the driving force of economic growth comes from consumer spending, which means when retired teachers spend their monthly check from retirement funds such as CalSTRS, they are supporting and creating jobs.

At 6:02 PM on February 26, 2012, the U.S. Census Bureau’s U.S. & World Population Clocks reported that the U.S. population was 313,087,369 people.

The wealthiest one percent of Americans equals 3.1 million people that control 34.6% of the nation’s privately held wealth, which is mostly invested in real estate, stocks and bonds. The next 19% (59.5 million people) has 50.5% of the wealth.  That leaves 250 million people with 15% of the wealth supporting most of the jobs in the United States.

After all, who buys more gasoline, drives more cars, eats more food, takes more medication, wears more clothes, uses more electricity and natural gas for heating and cooling homes, watches more TVs, uses more computers, logs onto the Internet in larger numbers, etc?

SELECT ONE ANSWER

A. The wealthy 1% equaling 3.1 million people

B. The next wealthiest 19% equaling 59.5 million people

C. The 250 million people earning and spending 15% of the total wealth in America

Remember, individuals and families do not become wealthy spending money on consumer items. Wealth is invested and saved and sits somewhere growing more wealth. Most jobs are created by people that spend money on consumer items.

The fact is that retired public and private sector workers do more to support and create jobs than the one percent of America’s wealthiest that gained the most tax breaks under President G. W. Bush and are still benefiting from those tax cuts.

Did you you know that there are more than 27 million small businesses in the US and that between 60 and 80% of all new jobs created in America can be attributed to small businesses. Source: Get Busy Media.com

However, where did the money come from to start those small businesses? It wasn’t from the wealthy with their money invested in real estate, stocks and bonds.

In fact, in an average ten-year period, 71% of small businesses fail (more than 50% fail in the first five years). Knowing that fact, do you believe the wealthy 1% will invest money in such risky ventures, which explains why the wealthy invests their money in real estate, stocks and bonds—not small businesses with a high risk of failure. Source: Small Biz Trends.com

In fact, Peter Delevett writing for Silicon Valley.com reported, “The trends suggest venture firms are increasingly shying away from companies in the “seed” stage of life. During the second quarter of 2010, for instance, the U.S. venture industry’s average seed investment was $6.8 million, according to the National Venture Capital Association. The following quarter, that number had fallen to $3.5 million.”

The Bureau of Labor Statistics says, “Job openings result from the relationship between the population, labor force, and demand for goods and services… In addition, changes in the demand for goods and services influence which industries expand or contract. Industries respond by hiring the workers necessary to produce goods and provide services.”

It is also worth noting “that President Obama and Democrats created more jobs in 2012 than George W. Bush did in his eight year reign of economic malfeasance.” Source: Politicus USA.com

Therefore, it is a myth, a lie, that keeping taxes low for the richest Americans creates jobs. Instead, those that have regular jobs and retired Americans are the ones that support and create jobs by spending most or all of what they earn.

In addition, according to seven recent experiments, “The ‘upper class,’ as defined by the study, were more likely to break the law while driving, take candy from children, lie in negotiation, cheat to increase their odds of winning a prize and endorse unethical behavior at work, researchers reported today in the Proceedings of the National Academy of Sciences. Source: Elizabeth Lopatto writing for Bloomberg

If these seven studies are true, why do we reward the wealthiest one to twenty percent with lower taxes when, at most, they only support 100,000 jobs, which is due to consumer spending—not job creation. In fact, the wealthy tend to hoard money while the rest of us spend it on food, clothing, gasoline, etc.

Return to What the Numbers say about Creating Jobs in America – Part 3 or return to Part 1

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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Posted by on March 2, 2012 in American Public Schools, Education, government, media, politics, Public School

 

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What the Numbers say about Creating Jobs in America – Part 3/4

01 Mar

My goal in Part Two was to show what caused the national debt, why it keeps growing larger and who bears the most responsibility of that debt.

Now I will return to the CalSTRS “Retired Educator Winter 2012” newsletter, which said, “Statewide, CalSTRS benefit recipients (I’m one of them, and there are more than 200,000) received $6.03 billion in payments in 2006.  The economic ripple effect in the form of job creation as those benefits were spent totaled $9.22 billion, according to a 2007 study by the Applied Research Center at California State University, Sacramento.”

None of this was borrowed money. Educators paid a percentage of their gross earnings into CalSTRS during their working years as I did. This money was invested and earned interest, which was more than $30 billion for 2011. This money does not contribute to the national debt.

In fact, California’s economy gained $6.71 for every single dollar committed to pensions by employees, employers and taxpayers and each dollar also generated 44 cents in government revenues.

Furthermore, according to the Pensionomics: Measuring the Economic Impact of State and Local Pension Plans, these pensions support 2.5 million jobs and $358.6 billion in economic activity.


Does this sound as if the wealthy are funding the start up of small businesses?

For example, in 2006 in California, 976,233 state residents received a total of $23.52 billion in pension benefits from state and local pension plans… The average pension benefit received was $2,008 per month or $24,097 per year… Retiree expenditures stemming from state and local pension plan benefits supported 205,221 jobs in the state. The total income to state residents supported by pension expenditures was $15.1 billion.”  Source: Pensionomics – National Institute on Retirement Security (and this was just public sector pensions)

Then, according to Retirement USA, one in five private-sector workers is covered by a traditional pension while 55% of people 65 or older rely on Social Security for half or more of their income—the median income for older households with Social Security and pension and annuity income was $32,105 in 2008, not including earnings from work.

In addition, CalSTRS ended 2011 with net assets of $155.34 billion and that money isn’t sitting around gathering dust. Those billions are invested and earning money. To earn money off those investments, means someone else made money too and this generated jobs.

The CalSTRS newsletter says 53% of those billions were invested in Global Equities, which is a category of mutual funds in which investments may be made in stocks of corporations throughout the world. A portion of the fund’s assets are usually committed to American markets, although the major portions are held in equities of developing countries

In addition, 17.6% of CalSTRS funds were in Fixed Income accounts, 14.8% in Private Equities, 12.1% in Real Estate, etc.  When CalSTRS earns money from those investments, that means those investments also earned money for businesses and created jobs for Americans and for the citizens of other countries depending on where the money was invested.

However, where do the wealthy that benefited from the Bush tax cut keep most of their money?

Continued on March 2, 2012 in What the Numbers say about Creating Jobs in America – Part 4 or return to Part 2

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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Posted by on March 1, 2012 in American Public Schools, government, media, politics, Public School

 

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What the Numbers say about Creating Jobs in America – Part 2/4

29 Feb

It is a tragedy how fast most Americans forget the root causes of the current financial challenges in America.

Three lawmakers, all Republicans, introduced the Gramm-Leach-Bliley Act to the U.S. Senate.  During the debate in the House or Representatives, a democrat from Michigan argued that the bill would result in banks becoming “too big to fail” (sound familiar). At first, most democrats were against the bill but eventually, due to compromises, the effort of corporate lobbyists and deal making, many democrats were won over to vote for it.

Keep in mind that the Republicans won a majority position in both houses of Congress in the elections of 1994, and controlled both houses until 2006—except the Senate for most of 2001 and 2002, when the Democrats held the majority in that one House of Congress.

Therefore, in 1999, Republicans were the majority in both houses of congress. When the final Gramm-Leach-Bliley Act passed in the Senate, the vote was 90 to 8 (92%) and in the House 362 to 57 (86.3%)

Even if President Clinton had wanted to veto it, which he didn’t, he wouldn’t have succeeded since a two-thirds majority vote (66%) in both Houses of Congress is required to override a presidential veto. Since the Gramm-Leach-Bliley Act arrived at the White House for President Clinton to sign with more than a two-thirds majority vote in favor, there wasn’t much he could have done if he had wanted to.

Then, during the Bush years (2001 – 2009), the United States launched three expensive wars: The Iraq War—based on false claims of Weapons of Mass Destruction—the war in Afghanistan, which was mostly neglected under Bush, and the global war on terrorism.

Due to these wars and the Bush tax cuts for the wealthiest Americans, the national debt exploded.

I’m sort of going off topic with this paragraph, but I saw “Act of Valor,” which is about the Navy Seals and the CIA fighting the global war on terror. I recommend “Act of Valor”. The acting may be a bit stiff but that is not the point. The realism makes this movie worth watching. This is no Rambo or Mission Impossible. “Act of Valor” is closer to the reality and what America’s Navy Seals face as they fight to protect America. Politicians and corporate lobbyists might be corrupt and greedy for power and money, but America’s men and women mostly from the working class serve in the military out of patriotism.

Back on topic—President G. W. Bush, with help from the GOP majority in both Houses of Congress, lowered taxes for the wealthiest Americans (the lowest rate in almost 80 years—the last time the rate was this low was before the Great Depression and experts say this contributed to that economic collapse).

On February 9, 2012, the official debt of the US government had reached $15.4 trillion—an increase of $5.9 trillion since President Obama moved into the White House. While the GOP blames Obama for that debt during an election year, we must not lose focus on how much Obama inherited when he was elected president.

According to the Huffington Post, lowering taxes for the wealthy costs the U.S. Treasure $11.6 million every hour.

Total, the cost of the Bush tax cut for the top 5% of income earners since 2001 is more than one trillion dollars, which is about $100 billion annually. Source: Cost of Tax Cuts.com

Interest from the national debt, which President Obama inherited from Presidents Reagan, H. W. Bush and G. W. Bush is about $400 billion annually. Source: US Debt Clock.org

On top of that $500 billion annually, the wars G. W. Bush started has cost more than $1.3 trillion since 2001—that’s another $130 billion. Source: Cost of War.com

However, the cost was more than just money. According to the Congressional Budget Office, since combat is being financed with borrowed money, the price tag for these wars is not over, and if Bush had not gone to war over false claims of weapons of mass destruction  in Iraq, 4,482 Americans would not have been killed; more than 32,000 would not have been wounded (medical care for these wounded combat veterans will costs hundreds of millions in the decades to come); about 114,000 Iraqi civilians would still be alive and Iraq has cost more than $800 billion so far.

In addition, CalSTRS probably would still be funded close to 100%, as it was in 2001, for future obligations to its 856,360 members, while the 429,600 active members paid about $3 billion dollars into the retirement fund in 2011—money taken from monthly paychecks of working educators.

Continued on March 1, 2012 in What the Numbers say about Creating Jobs in America – Part 3 or return to Part 1

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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Posted by on February 29, 2012 in American Public Schools, government, media, politics, Public School

 

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The Private-Sector, Jealousy-Misery Media Factor – Part 5/5

19 Dec

I’m impressed when a reporter does his or her job properly and balances the news instead of feeding the mob that bellies up to the slop-trough of Yellow Journalism, which is based on sensationalism and crude exaggeration.

Don Thompson’s misleading AP piece, Public retirement ages come under greater scrutiny did not impress me.

However, Kevin G. Hall did.  Hall writes for the The McClatchy Company, the third-largest newspaper publisher in the United States with 31 daily newspapers in 15 states. Hall provided a more realistic, honest balance of Why employee pensions aren’t bankrupting states.

In his piece, Hall wrote, “From state legislatures to Congress to tea party rallies, a vocal backlash is rising against what are perceived as too-generous retirement benefits for state and local government workers. However, that widespread perception doesn’t match reality.”

According the Hall, “Pension contributions from state and local employers aren’t blowing up budgets.” They amount to just 2.9 – 3.8 percent of state spending, on average.

In addition, Hall says, “Nor are state and local government pension funds broke. They’re underfunded…”

With those facts, we should ask what is the real reason to turn on public-worker sector pension plans.

The answer may be Wall Street and US bank private-sector greed, the same greed that caused the 2008 global economic crises.

According The Council on State Governments, in 2006 before the crash, the total amount of money held by these federal, state and local public-pension plans was almost $6 trillion dollars, and greed, it seems, has no limits.

If you do not believe me, ask people such as Bernard Madoff [$50 billion], Scott Rothstein [$1.2 billion], Tom Petters [$3.7 billion], Allen Stanford [$8 billion], March Dreier [$400 million], Lou Pearlman [$500 million], Michael Kelly [$428 million], the Greater Ministries International church [$500 million], Scientology minister Reed Slatkin [more than $600 million], and Nicholas Cosmo [$370 million].

Return to The Private-Sector, Jealousy-Misery Media Factor – Part 4 or start with Part 1

______________

Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “Crazy Normal”, look for the “E-mail Subscription” link in the top-right column.

 
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Posted by on December 19, 2011 in American Public Schools, Education, government, Journalism, media, politics, Public School, Teaching

 

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The Private-Sector, Jealousy-Misery Media Factor – Part 4/5

18 Dec

It is a fact that misery loves company and when the accountants, carpenters, clerks, plumbers, reporters, salesmen, and secretaries and many other professions in the private sector read the Yellow Journalism in Don Thompson’s Associated Press [AP] piece, Public retirement ages come under greater scrutiny, many of these people in the private sector will say, “It isn’t fair. If we have to work longer and suffer, so do they.”

In fact, that is already happening. Due to pressure from the private sector, this has led to: “Earlier in New Jersey, part of a legislative deal struck between Democrats and Republicans raised the normal retirement age from 62 to 65,” AP’s Thompson wrote.

In addition, “An initiative circulating for California’s 2012 state ballot seeks to increase the minimum retirement age to 65 for public employees and teachers and to 58 for sworn public safety officers.” [California’s teachers may retire at 55 now but those that retire early also will earn about 30% of gross pay and most will have to go without medical coverage.].

I know where the money comes from that funds CalSTRS. Part of it was from the monthly contribution from my paycheck for thirty years and when I retired, the taxpayer money that was used to pay me as a teacher stopped.

Moreover, I was a public school teacher in California for thirty years but I do not qualify for Social Security.  I also retired without medical benefits because I was unwilling to pay $1,400 a month for COBRA insurance until I qualified for Medicare.


“The Teacher Pension Blues” tells the story AP’s Don Thompson did not!

On the other hand, when given a choice, many private sector employees do not save toward retirement other than Social Security. Many do not put money into 401k plans or pay into tax deductable IRAs.  Many that own homes take out equity loans to finance vacations, purchase new cars, pay off credit card debts, or to have money to go on spending sprees.

The result is that the average family in America cannot afford to retire as early as many public employees that paid into employer-based defined benefit pensions.

For example, total U.S. consumer debt was $2.43 trillion as of May 2011. Average credit card debt per household with credit card debt: $15,799. Average total debt in 2009 (including credit cards, mortgage, home equity, student loans and more) for U.S. households with credit card debt: $54,000. Source: Credit Card.com

As for me, instead of paying into Social Security while I taught, I paid 8% of my gross monthly pay for thirty years into CalSTRS, and the school district where I taught contributed a matching amount of about 8%.

To force public educators in California to work more years may cost more than it will save.

When I retired, the school district stopped paying me and saved the tax payers money since most teachers that retire after teaching 30 years or more are replaced by younger teachers that are paid much less.

Keeping older, higher paid teachers longer will only cost the taxpayer more in the long run since those same teachers that are working longer will end up with a larger monthly pension check since the longer a teacher spends in the classroom, the larger the pension.  [Note: Part 1 explains how this works.]

In fact, I know three teachers that worked more than 42 years in the classroom and all three retired with a raise, while my annual retirement is about half of what it was the last year I taught.

Continued on December 19, 2011 in Part 5 or return to The Private-Sector, Jealousy-Misery Media Factor – Part 3.

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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Posted by on December 18, 2011 in American Public Schools, Education, government, Journalism, media, politics, Public School, Teaching

 

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The Private-Sector, Jealousy-Misery Media Factor – Part 3/5

17 Dec

Another example of how misleading Don Thompson’s AP piece, Public retirement ages come under greater scrutiny, was: “With Americans increasingly likely to live well into their 80s, critics question whether paying lifetime pensions to retirees from age 55 or 60 is financially sustainable. An Associated Press survey earlier this year found the 50 states have a combined $690 billion in unfunded pension liabilities and $418 billion in retiree health care obligations.”

What Thompson doesn’t mention is that some states managed their pension funds better than others did.

A March 2011 report on the Best and Worst State Funded Pensions by Adam Corey Ross of The Fiscal Times offers a more balanced picture.

Ross writes, “State pension programs across the country have undergone a major transformation, as more and more of them are cutting back the amount of money they set aside for retired workers, gambling that they can meet their obligations through investments instead of savings…”

In fact, Ross lists the best fully-funded state pensions, which are: New York, Wisconsin, Delaware, North Carolina, Washington, South Dakota, Tennessee, Wyoming, Florida and Georgia. He also lists the worst state pensions where the gamble did not pay off.

California falls between the two lists and is struggling to fill the funding gap. The following video explains why.

In addition, nowhere does Ross or Thompson mention that California has two state pension plans.  There is CalPERS and then there is CalSTRS.

The California State Teachers’ Retirement System [CalSTRS], with a portfolio valued at $148.2 billion as of October 31, 2011, is the largest teacher pension fund and second largest public pension fund in the United States. CalSTRS administers a hybrid retirement system, consisting of a traditional defined benefit, cash balance and defined contribution plan, as well as disability and survivor benefits. CalSTRS serves California’s 852,000 public school educators and their families from the state’s 1,600 school districts, county offices of education and community college districts.

How well funded is CalSTRS to meet its future obligations?

CalSTRS makes it clear that “It’s important to understand that the risk of facing depleted assets exists approximately 30 years from now versus actually facing insolvency today.”

Note: Due to losses from investments during the 2008 global financial crises, the CalSTRS retirement “fund took an enormous hit to its stock portfolio when the market plunged during the heart of the recession, losing nearly $43 billion — roughly 25 percent of its value — from June 2008 to June 2009.”

Continued on December 18, 2011 in The Private-Sector, Jealousy-Misery Media Factor – Part 4 or return to Part 2

______________

Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

To subscribe to “Crazy Normal”, look for the “E-mail Subscription” link in the top-right column.

 
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Posted by on December 17, 2011 in American Public Schools, Education, government, Journalism, media, politics, Public School, Teaching

 

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The Private-Sector, Jealousy-Misery Media Factor – Part 1/5

15 Dec

During my full-time university days on the GI Bill [1968 – 1973] before I graduated with a BA in journalism, I learned how easy it was for the media to make mistakes while practicing what is known as Yellow Journalism to boost profits.

And Yellow journalism [based upon sensationalism and crude exaggeration] is what Associated Press [AP] did when it ran Public retirement ages come under greater scrutiny by Don Thompson on December 14, 2011.

For example, how would you feel if you read, “Patrick Godwin spends his retirement days running a horse farm east of Sacramento, Calif., with his daughter? His departure from the workaday world [he worked thirty-six years in public education and was the superintendent of one of California’s 1,600 school districts] is likely to be long and relatively free of financial concerns, after he retired last July at age 59 with a pension paying $174,308 a year for the rest of his life.”

That previous quote was in the second paragraph of Thompson’s AP news piece and it is extremely misleading because of what it doesn’t say.

How many in public education do you think will earn that kind of money in retirement?

What AP doesn’t tell us is that in 2010 the average member-only benefit for retired public school educators in California was $4,256 a month before taxes [less than a third of what Godwin earns in retirement] and that only 16% of educators that retired in 2010 worked as long as Patrick Godwin did.  The median years of service was 26.6.

For example, if you were one of the educators that retired after 26.6 years of public service [the median] and was only 55 years old [the earliest you may retire and collect], using the CalSTRS retirement calculator, that person would earn about $2,130 a month before taxes—much less than the $14,525.66 that Godwin earns each month.

I calculated once that if a public school teacher in California taught for 42 years or more, his annual retirement income would equal what he earned the last year he worked.  In public education, less than 4% retire in the 100% category.

In fact, 9% retired in 2010 with 10-15 years of service in public education, 11% with 14-20 years, 15% with 20-25 years, 12% with 25-30 years, 23% with 30-35 years, and 16% with 35-40 years. Source: CalSTRS

The reason that AP’s Don Thompson ran with Patrick Godwin’s retirement income as his example is called sensationalism designed to cause an emotional response so people will talk about it. Word of mouth attracts readers and an audience.

In addition, Godwin was a school district superintendent at the top of the public education pay scale, which represents about 0.2% of the total.  That means 99.8% of public educators in California do not earn as much as Godwin did while working as a school district superintendent.

The result is that many readers may believe that most public educators in California will retire with Patrick Godwin’s annual retirement income.  However, this is far from the truth since most will not come close, but Thompson’s piece doesn’t say that.

The reason AP’s Thompson distorted the facts so much is because of audience share, which determines how much a media source [TV, newspaper, talk show, magazine, Blog, etc] may charge to advertisers, and balancing the news and telling the truth often does not achieve this goal because profits are the foundation of the private sector media.

It’s a simple formula: if you don’t make a profit you go out of business and everyone working for you loses his or her job so almost everyone plays the same Yellow Journalism game, and then there is the politics of money.

To understand why Thompson wrote such a misleading news piece, it helps to understand the trend away from private-sector pensions that were once similar to current public sector-pensions and the answers are in the numbers.

Continued on December 16, 2011 in The Private-Sector, Jealousy-Misery Media Factor – Part 2

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Lloyd Lofthouse is the award-winning author of The Concubine Saga. When you love a Chinese woman, you marry her family and culture too. This is the love story Sir Robert Hart did not want the world to discover.

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Posted by on December 15, 2011 in American Public Schools, Education, Journalism, media, politics, Public School, Teaching

 

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