Thursday, April 17, 2008

Econ

The problem with the poor in US stems from: 1) failure is permanently rewarded, while any attempt to escape poverty produces a marginal tax of over 70% (in some cases, in Canada is over 100%). Also the will disappears when the existence is permanently assured.
2) Education is also a problem facing the poor. This is a combination of poor motivation of unionized teachers and lack of interest from the poor students. However, more money spent on education produces no positive results. For example the worst state in terms of educational achievement is DC. The price per pupil is at $15000, the highest in the country. I want also to mention here that this figure is greater than the GDP per capita of many countries in Eastern Europe, which incidentally have a higher quality education. However take grade 12 students in both countries and ask them about the 100 years war, Plato or ask them to solve a geometry problem and you will realize that US students are not well served by their government schools.
A 20/20 special called Stupid in America showed a minority private school (tuition = $3000) in Philadelphia where the teacher claimed that their worst student can teach lessons to best students at the public school across the street. On top of that, the expenditure per pupil in America is now 3 times greater in real terms than it was in 1970 (while the quality decreased).