Open thread Dec. 15, 2017 Dan Crawford | December 15, 2017 7:18 am Comments (5) | Digg Facebook Twitter |
Guess Which Schools and Degrees Produce the Most Student Loan Defaults? Hint: It’s Not the Humanities
“Twenty-four of the top thirty with the highest default rates are cosmetology schools.” … “The “campus,” in Niagara Falls, NY, is a two-story building abutted by a Burger King, “Military Liquors,” and a place called the “People’s Casino Gold Mine.” ”
“In 2014 there were apparently 71 students enrolled plus 84 students in repayment and 19 in default, a default rate of 22.6 percent. This puts them at number 389 on the list, sandwiched right between Lil Lou’s Beauty and Barber College LLC and the Olympian Academy of Cosmetology (no, I’m not making this up). ”
“Classes include, among other things, “Keyboarding” I, II, III, and IV. ” … “These “Academic Programs” lie at the heart of the student loan program. Basic typing and computer literacy skills are likely necessary for these jobs but, judging by the ages of the people hanging outside the school, they’re likely to know how to operate web-based software. They can probably type just fine but if they can’t then Google returns 11.3 million entries for “free online typing class.”
“Let’s briefly dive into one of these businesses (err, schools). I chose to lookup Cheryl Fell’s School of Business … “
Yep. Sure looks like labor availability is continuing that ever present “tightening” we hear keep hearing about… skills in short supply and all. Gee, I wonder where that propaganda comes from?.
And EOP’s at 60%.. where we last were in February 1985. Nineteen EIGHTY-FIVE! Like wasn’t that over a generation ago?
So why does anybody think there’s not a huge pool of reserve labor available to keep employers happy as clams hiring them without increasing wage, salaries, and benefits?..
EPOP not EOP.
I looked at FRED real compensation per hour from June 2009 to Nov 2017.
The CUMULATIVE change has been an average of 0.33%/year .. like it’s basically flallined adjusting for inflation.
So tell me about that labor “tightening” problem we keep hearing all the propaganda about. .. while employers rack up ever increasing profits.
Oracle just reported a 23% profit on sales this last quarter (for one current example).
Doesn’t look like employers are having any problems hiring labor without increasing wages and salaries does it?
Here’s another realism to deal with. Labor Share of Income
Since 1961 there have been 6 recessions. In every case but one the post recession share of labor income never reaches the pre-recession highs .. the exception was the dot-com boom from Q1 2000 to Q1 2001 which promptly fell to new lows immediately afterwards.
Clearly employers (capital owners) benefit from recessions by reducing labor’s share of income every after each one.
While productivity is good and even great, it’s only good or great if the proceeds of productivity are shared equally with labor .. otherwise labor loses both employment and income.
This is the reality — sans propaganda by the laissez-faire, Randian crowd more commonly known as the GOP. If you don’t think U.S. gov’t is controlled by the wealthy — regardless of which party is in power, then you’re in la-la land. .