Relevant and even prescient commentary on news, politics and the economy.

Same Scams, Different Countries

Via Diane Ravitch’s blog is a link to this paper Great Britain school priveatization run amok.

In the course of the last quarter century, governmental entities in both the United States and England have sought to encourage educational innovation by creating publicly funded schools that are independent from many rules that apply to locally controlled schools. These schools are called charter schools in the United States and academy schools (academies) in England.

1 Private companies run a high percentage of these charter schools and academies. In the United States, these companies are commonly referred to as educational management organizations (EMOs).

2 In England, these organizations are called academy trusts (ATs).

3 EMOs and ATs frequently engage in related-party transactions for a number of services including educational technology, real estate, and consulting.

4 Related-party transactions are business deals between companies with special, pre-existing relationships.

5 These arrangements can occur, for example, between affiliated companies or a parent company and its subsidiaries.

6 Although related-party transactions are legal, they can create harmful conflicts of interest.

7 As a result, in both the charter and academy sectors, governmental entities have created monitoring systems to protect against wasteful and fraudulent related-party transactions.

8  However, despite the existence of these monitoring systems, numerous instances of problematic related-party transactions have occurred in charter schools and academies. Using comparative legal research methodologies, this article attempts to explain why the monitoring systems of each domain are having such a difficult time regulating related-party transactions.

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The Parting of Ways: The U.S. and China

by Joseph Joyce

The Parting of Ways: The U.S. and China

The agreement of U.S. President Donald Trump and Chinese President Xi Jingping to restart trade talks put offs planned increases of tariffs on Chinese exports. But there is little doubt that the U.S. intends to move ahead with its intention to undo the economic integration that has been underway since the 1990s. Even when it proves impossible to reverse history, the consequences of such a move will have long-lasting consequences for the global economy.

To understand what is at stake, think of the following simple guide to the status of the world’s nations in the aftermath of World War II. Countries separated into three groups, each anchored on its own tectonic plate. The “first world” consisted of the advanced economies of the U.S., Canada, the West European nations, Japan, Australia and New Zealand. These economies enjoyed rapid growth in the 1950s and 1960s, due in part to the expansion of trade amongst them. The formation of the European Community (now Union) eventually led to a single market in goods and services, capital and labor for its members. The largest of the advanced economies exerted their control through the “Group of Seven,” i.e., France, Germany, Italy, Japan, the United Kingdom and the U.S. Their leaders met periodically to discuss economic and other types of policies and issued communiques that listed their agreements. Their predominance extended to their control of the International Monetary Fund and the World Bank.

The “second world” included the Communist nations: the Soviet Union and the countries it controlled in Eastern Europe, as well as China and North Korea. These were command economies, run by government ministers. There was some commerce between the Soviet Union and its East European satellites, but all trade was managed. There were virtually no commercial or financial interactions with the first world.

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Kevin Drum Talking ’bout my generation

(Dan here…lifted from Robert’s Stochastic Thoughts)

Kevin Drum Talking ’bout my generation

Kevin Drum has a funny but also genuinely interesting post on how boomers are not really to blame for messing up America (he half tongue in cheek blames the silent generation). I don’t think the defensiveness is entirely an act. He does concede

Now, if you want to blame boomers for welfare reform, sure. Bill Clinton was (barely) a boomer. If you want to blame boomers for the Iraq War, I guess so. George Bush was (barely) a boomer—though the real force behind it was Dick Cheney (b. 1941). If you want to blame us for screwing up Obamacare, that seems sort of churlish, but whatever. Barack Obama was (barely) a boomer—though the real roadblock to a public option was Joe Lieberman (b. 1942) and his centrist pals.

I comment

One interesting thing, you list welfare reform with invading Iraq (and also the ACA but call that churlish) and admit that it was a boomer misdeed (blaming Cheney for Iraq and Lieberman for weaknesses of the ACA which was still a great step forward). This interests me, because our one point of regular disagreement was over how horrible welfare reform is (it is current policy so the present tense is necessary).

Oddly, I learned of the association with a sharp increase in deep poverty here (I think your second post of the series in which you briefly conceded that welfare reform was severely damaging). I never understood your motivation . Now I see how important 2 years can be (also this post makes me feel young — thanks). I was born in 1960 so late boom (or between boomer and gen X). I definitely do not consider Bill Clinton to be from my generation. Welfare reform is something old guys did to my country.

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Two articles to think about, one on opioids, the other billing for hospital care

Via Naked Capitalism:

Place based economic conditions and the geography of the opioid overdose crisis

By Shannon Monnat, Associate Professor, Syracuse University. Originally published at the Institute for New Economic Thinking website

Over 400,000 people in the U.S. have died from opioid overdoses since 2000. However, there is widespread geographic variation in fatal opioid overdose rates, and the contributions of prescription opioids, heroin, and synthetic opioids (e.g., fentanyl) to the crisis vary substantially across different parts of the U.S. In a studypublished today in the American Journal of Public Health, we classified U.S. counties into six different opioid classes, based on their overall rates and rates of growth in fatal overdoses from specific types of opioids between 2002-04 and 2014-16 (see Figure 1). We then examined how various economic, labor market, and demographic characteristics vary across these different opioid classes. We show that various economic factors, including concentrations of specific occupations and industries, are important to explaining the geography of the U.S. opioid overdose crisis.

 

1 in 6 hospital patients get a surprise bill for out of network care

By Rachel Bluth, Kaiser Health News reporter. Originally published at Kaiser Health News.

About 1 in 6 Americans were surprised by a medical bill after treatment in a hospital in 2017 despite having insurance, according to a study published Thursday.

On average, 16% of inpatient stays and 18% of emergency visits left a patient with at least one out-of-network charge. Most of those came from doctors offering treatment at the hospital, even when the patients chose an in-network hospital, according to researchers from the Kaiser Family Foundation. Its study was based on large employer insurance claims. (Kaiser Health News is an editorially independent program of the foundation.)

The research also found that when a patient is admitted to the hospital from the emergency room, there’s a higher likelihood of an out-of-network charge. As many as 26% of admissions from the emergency room resulted in a surprise medical bill.

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