LyrArc Article Gist
This is the higher education equivalent of the moonshot says one education expert. The community college initiative of President Obama would double the numbe of people graduating out of community colleges. About six million students a year enroll for credit at America's 1200 community colleges, but only about 555,000 earn a two year degree, and another 295,000 a year earn a vocational certificate. The administration is putting a big emphasis on community colleges. Martha Kanter, the former chancellor of the Foothill-De ANza Community college district in California, has been appointed to the No.2 position in the Education Department. Arne Duncan made his first official visit to Miami community college, and Joseph BIden's wife teaches at acommunity college. The way community colleges have functioned in the American system of higher education, is that they provide post-secondary schooling for low-income studetns who have few other options. This works through open admissions. And most students are employed adults attending parttime; and according to some studies more than half need remedial courses before tackling college level work. The Obama effort is to require community colleges to work harder to retain students until graduation, and to encourage partnerships between community colleges and employers to offer workforce training. Without the access to the additional funding community colleges would actually find themselves in a bind, with rising enrollment rates just as their funding access deteriorates with state spending budget cuts. Debra Bragg, co-director of the Forum on the Future of Public Education at the University of Illinois, says that most new graduates produced under the Obama proposal would complete certificate programs, usually lasting 6 months to ayear , offering specific credentials for middle skill jobs. These jobs could be in healthcare, information technology, or other growing areas. See the article in BW showing the problem that is growing of unfilled jobs in many growing fields during a period of high joblessness, because of amismathc between the qualifications of jobless people and the requirements in the new fields. An example id autoworkers in Michigan taking up new skills for jobs in other fields. In this sense this program can be immensely useful in closing the gap. Results will take time as these resources take effect and graduation rates increase over time. ...

LyrArc Article Gist
Analysis of 126 public pension plans by the National Association of State Retirement Administrators shows an average target rate of 7.68%. New York State Common Retirement Fund, third largest by assets, says it plans to drop the assumed rate of return to 7% from 7.5%. A drop of 1% boosts pension liabilities by about 12%, accoridng to the Centre for Retirement Research at Boston College. It means workers are required to contribute more to the pension funds for the same level of benefits, especially as lifespans grow and more Americans retire in an aging population. Other options are for states to cut payrolls and expenses. This is a positive step as it makes the assumptions realistic and improves the fiscal stability of the funds. The largest pension fund, California Public Employees Retirement System is considering dropping its assumption to below the current level of 7.5%. The lower assumed rates of return are not enough say critics, who cite the 3- 3.5% returns assumed in the 1960's for cash and bond based portfolios. The Laura and Arnold Foundation's Josh McGee says it is still not realistic. Retirement systems median actual return was 3.4% for 12 months ending June 30, 2015. Expert panel of actuaries and pension specialists says the right level for assumed returns is about 6.4%. Companies in the Fortune 1000 have already dropped the figure to 7.1%, from 9.2% in 2000, according to Towers Watson survey....

LyrArc Article Gist
U.S. president Trump pulls back from a threat to pull out of NAFTA trade agreement after calls from U.S. business, and calls from the leaders of Mexico and Canada. Mexico said the threat would hurt constructive negotiations, Mr. Trudeau told Trump it would hurt jobs on both sides of the border. Canada is facing headwinds for growth as business is reluctant to invest under the uncertainty for NAFTA. U.S. businesses lobbied heavily including the American Chamber of Commerce. Trump administration aides say they had used this as an effort to get Congress to act- delays resulting from a 90 day rule and from negotiations not to start till Congress approves of the new trade representative Mr. Lighthizer. Helping the situation was the effort by Commerce Secretary Wilbur Ross showing Trump the states that had voted for Trump that would lose jobs, and that nothing was to be gained from the action of pulling out when constructive negotiations were possible- and when Mexico and Canada were eager to start negotiations to reach a new agreement. Mexico is also eager to renegotiate NAFTA because president Nieto faces a strong competitor from the left parties in coming national elections. ...

LyrArc Article Gist
Greg Ip of the WSJ looks at the experience of states such as Illinois and California with lower economic growth than Florida and Texas during the pandemic because of increased restrictions and lockdowns or partial lockdowns. The Biden administration's approach in winter 2021 is to vaccinate as many people as possible, including use of vaccine mandates so that there is less need for the lockdowns that restrict economic activity and growth. In states such as Michigan which are evenly divided between the two parties Republican and Democrat, there is a sense of fatigue with lockdowns. Even with the recent surge in cases putting Michigan in November 2021 at the top of states with the highest number of cases, the state government and local governments sought help from the Biden administration with health teams dispatched from Washington, yet avoided restrictions to economic activity. Greg Ip says of the 10 states with worst job performance 8 had Democratic governors and voted for Biden. The new approach of president Biden is to keep economic activity and push vaccination and booster shots as quickly as can be done. Investments in infrastructure and other action is planned for rapid infusion of needed roads, bridges, with attention to local needs, and broadband to help generate economic growth.  ...

LyrArc Article Gist
Democrats working to challenge the big cuts planned by Republicans in federal, state and local spending on everything from education to essential services.

LyrArc Article Gist
Whirlpool shifts 80-100 jobs from its Monterrey plant to an Ohio factory producing machines for laundromats. The Monterrey plant will not lose jobs because it is making more washing machines for the expanding Mexican market. Electricity is cheaper in the U.S. than in Mexico which provides some of the savings. Transportation from Mexico also offsets the higher wage costs in the U.S. of $18-19 at Whirlpool plants. According to Reshoring Initiative- which supports shift back of offshored jobs, the loss of jobs to offshore locations continues but is now being offset by job inflows to the U.S. Some of these inflows that receive less attention are manufacuring facilities being setup by foreign corporations in the U.S. as costs of energy decline and labor become more competitive.

LyrArc Article Gist
The U.S. trade agreement with Mexico is for 16 years, to provide business with a stable rules environment to operate in. It includes a clause for review after 6 years. The content made in the U.S. is increased to 70% from 62.5%. This has to be made by workers earning at least $16  an hour. Aluminium and steel going into the cars has to come from the U.S. helping push U.S. steel plant capacity utilization to 80%. Labor collective bargaining is strengthened in Mexico through new provisions, a provision supported by new Mexican socialist president Obrador. Free trade in agricultural products is maintained. $4.7 billion was added in help to U.S. farmers as aid for the effects of China's tariff retaliation. New rules are set for textiles, chemicals, and steel intensive products that set requirements to qualify for tariff free import into the U.S. This is intended to help bring more jobs and investment in these industries in the U.S.     ...

LyrArc Article Gist
After heated debate Governor Christie and leaders of the democratic party in the legislature agree on changes to New Jersey's public employee retirement and health benefits and pension system. New Jersey's pension system has unfunded liabilities of $54 billon and some estimates forecast that it will run out of money to pay pensions by 2018. The retirement age for new workers is now set at 65 not 62, pension contributions go up to 7.5% from 5.5% for state workers and to 10% from 8.5% for public safety officers. A major change is to delay annual cost of living adjustments till the pension fund returns to a stable financial footing. The absence of this change would have meant reducing retirees pension value by 30% in the next ten years. After the plan is 80% funded a new employee-employer pension governing board will modify the contribution rates and pension rules based on advice from actuaries. On health benefits the changes are for workers earning more to pay a larger share of premiums- so that a worker earning $60,000 would pay 27%, and a worker earning $95,000 would pay 35%. This particular change is phased in over 4 years and saves $300 million....

LyrArc Article Gist
About 38% of Gen Y (18-34 years) prefer to locate in mid or large sized cities such as San Francisco, Chicago and Boston. Companies are following this trend especially in the tech and internet field to attract young employees. Many professionals marry later with both partners working and prefer living in a close environment with many opportunities for interaction and activities. Commercial vacancy rates in central business districts are down faster than in the suburbs- 13.9% of urban space is empty in the 3rd quarter of 2013 compared to 18.5% in the suburbs, according to Reis Inc. The recession had reduced downtown rents and cities offered additional incentives. After the merger of Continental with United, the corporate offices were moved to the Sears Tower in downtown Chicago. Google's Motorola Mobility is moving into the Merchandise Mart in downtown Chicago from the suburbs. Twitter moved to a location in downtown San Francisco attracted by the space and lower rents.

LyrArc Article Gist
In a sign of the low returns in the past year for pension funds, the 896,000 California teacher retirement pension fund CALSTRS, shows returns for year ending June 30, 2016, at 1.3%. Half of the holdings of CALSTRS are in U.S. and global stocks with returns of negative 2.3%. Real estate provided return of 11% but overall the returns were low. Over 10 years the returns of CALSTRS are now at 5.6%. The California Public Employees Retirement System (CALPERS), says its returns on its investments were 0.6% for the past year. With large retirement obligations pension funds in the U.S. face real challenges in this low return environment. Private equity investments of CALSTRS had returns of 2.9%, also lagging behind.

LyrArc Article Gist
Karl Rove says he was in his 20's working in the Reagan election campaign in Texas which was declared a close contest by the New York Times polls. Gallup in October showed Carter ahead Oct 13 by 4 points, and by Oct 27 by 8 points. He expresses skepticism about current polls because of 91 national polls in the last 30 days (including Gallup and Rasmussen) Obama was at or above what he calls the critical or magic number of 50% in only 20 polls.

LyrArc Article Gist
Paul Volcker was Fed Chairman from 1979-1987 and is now 81 years old. He is best known for taming the runaway inflation of that period. He is now the senior economic advisor closest to Obama and they have a developed a sense of rapport and trust through frequent discussions and meetings in which Obama has sought Volcker's advice, especially at critical junctures of the present crisis. So close is the association that Volcker now keeps a cellphone with him at all times and he has gotten used to Obama's messages at all times. And this week he is due to appear on the campaign trail with Obama for the first time. At a round table discussion with voters in Lake Worth, Florida, he will give his view on the state of the economy and the credit markets. This puts the 81 year old Volcker on the campaign stump for the first time. In his debate with McCain at Hofstra University Obama said "let me tell you who I associate with. On economic policy I associate with Warren Buffett and former Fed chairman Paul Volcker, who have shaped my ideas and who will be surrounding me in the White House." Obama is increasingly relying on Volcker. His staff now routinely reviews policy proposals and speeches wit Mr. Volcker. And conference calls and face to face meetings of economic adviers are increasingly organized to accomodate Mr Volcker's schedule. When there is a discussion of the financial crisis Jason Furman the campaign's economic policy director says the most important question for Obama is "what does Paul Volcker think?" It all started when Obama sought advice from Volcker through his economic adviser Austan Goolsbee, a 39 year old University of Chicago Professor. The bond between the two started with a dinner invitation in June 2007, when Obama was still a long shot candidate, setup by Mark Gallogly, cofounder of Centerbridge partners, a New York private investment firm. He invited a number of financial executives like Gary Cohn of Goldman and Fleming of Merrill and Mr. Volcker. At a private dining room in a Capitol Hill restaurant Volcker was seated directly opposite Obama. That night on a return flight to New York Volcker told the group that he "was genuinely impressed" by the Senator from Illinois. When this was passed on to Goolsbee his reaction was- "Volcker is a legend.. we want to pick his brain." Since late summer 2007 Goolsbee had regular discussions with Mr. Volcker. Some of them were about including Volcker's ideas that the housing downturn would snowball into a larger financial crisis into Senator Obama's policy positions. A September 2007 speech by Obama to Nasdaq stated that the oversight lapses and abusive practices would cause the markets to "be ravaged by a crisis in confidence." Since then at almost every turn of the crisis after Bear Stearns collapse, Obama and Volcker have consulted together....