Article: http://www.npr.org/templates/story/story.php?storyId=124905425
Throughout America teachers are at risk of losing their jobs. I find this particularly disturbing. When I think about it I think that a lot of the teachers that taught me how to multiply or how to read might be without jobs next year. If you think back to our elementary and middle school days who were those teachers that you valued the most. Children will not have as many teachers to value now. In California 22,000 teachers have received pink slips. Schools are having to compromise on ways to save money in order to keep teachers in work. In California schools increased class size in order to keep teachers but in Florida there is an amendment in the state's constitution that prohibits class sizes over 18 students. This amendment in Florida has cost the state $20 billion. There are also many mandates that schools have to follow that cost a lot of money. In California mandates have cost school more than $400 million a year. California's governor, Arnold Schwarzenegger, has suggested suspending some of the schools' mandates until next year.
This problem has long been coming and people have been anticipating pink slips. The root issue behind the school budget problem is the economy. Many states have been gaining large budget deficits. California has a deficit of $20 billion and growing. It is sad to say but the schools are where the funding decreases first. I think that the lack of school funding is going to be very detrimental to future generations. This issue makes me think that the government is looking in the present and is not taking into consideration the future effects on the economy. A lack of school funding could lead to a lower quality education for kids and eventual lead to lower college going rate and therefore could lower the standard. I think that the government should find other things to take funding from that is less detrimental.
Terms:
Budget Deficit: A budget deficit occurs when an entity spends more money than it takes in. (Google def)
Pink Slip: Slang term for an employees termination notice (investorwords.com)
Mandates: a document giving an official instruction or command (Google def)
Sunday, March 21, 2010
Tuesday, March 16, 2010
Rum War
Article: http://www.npr.org/templates/story/story.php?storyId=124694354
We all know the name Captain Morgan. This brand of rum is very popular in the United States and it is owned by Diageo which is located in the U.S. territory of Puerto Rico. The production of the rum is being relocated to the U.S. territory of the Virgin Islands. In return the Virgin Islands are paying Diageo $2.7 billion over the next 30 years. Some say this money should be spent on the people of the Virgin Islands. The money comes from a fund that the U.S. government gives to the Virgin Islands and Puerto Rico from an excise tax on the rum sold in the States. This switch in production location is upsetting many people in Puerto Rico and some are going to Congress to create restrictions on the way that the money from the rum fund can be used.
On December 10, 1898 Spain gave Puerto Rico to the United States in the Treaty of Paris which was ratified by Congress in 1899. In 1917 the United States bought the Virgin Islands from the Danish for $25 million in gold. These two countries are under watch of the U.S. government. The money that these countries receive from Congress for rum will continue to cause many problems. Puerto Rico's economy will suffer and could lose billions over the next 30 years from the change in location on Captain Morgan production. This situation could also lead to hostile attitudes between the two territories and even those Congress members who are on opposite sides of the issue.
Terms:
-territory: a territory is a non-sovereign geographic area which has come under the authority of another government; which has not been granted the powers of self-government normally devolved to secondary territorial divisions (Google definitions)
-Diageo: the world's leading premium drinks business with an outstanding collection of international brands across spirits, wine and beer. (Diageo.com)
-Excise taxes: A Federal or state tax imposed on the manufacturing and distribution of certain non-essential consumer goods. (investorwords.com)
We all know the name Captain Morgan. This brand of rum is very popular in the United States and it is owned by Diageo which is located in the U.S. territory of Puerto Rico. The production of the rum is being relocated to the U.S. territory of the Virgin Islands. In return the Virgin Islands are paying Diageo $2.7 billion over the next 30 years. Some say this money should be spent on the people of the Virgin Islands. The money comes from a fund that the U.S. government gives to the Virgin Islands and Puerto Rico from an excise tax on the rum sold in the States. This switch in production location is upsetting many people in Puerto Rico and some are going to Congress to create restrictions on the way that the money from the rum fund can be used.
On December 10, 1898 Spain gave Puerto Rico to the United States in the Treaty of Paris which was ratified by Congress in 1899. In 1917 the United States bought the Virgin Islands from the Danish for $25 million in gold. These two countries are under watch of the U.S. government. The money that these countries receive from Congress for rum will continue to cause many problems. Puerto Rico's economy will suffer and could lose billions over the next 30 years from the change in location on Captain Morgan production. This situation could also lead to hostile attitudes between the two territories and even those Congress members who are on opposite sides of the issue.
Terms:
-territory: a territory is a non-sovereign geographic area which has come under the authority of another government; which has not been granted the powers of self-government normally devolved to secondary territorial divisions (Google definitions)
-Diageo: the world's leading premium drinks business with an outstanding collection of international brands across spirits, wine and beer. (Diageo.com)
-Excise taxes: A Federal or state tax imposed on the manufacturing and distribution of certain non-essential consumer goods. (investorwords.com)
Saturday, March 6, 2010
THE FED
Article: http://www.economist.com/research/articlesBySubject/displaystory.cfm?subjectid=348876&story_id=15606321
We all now know that the Fed is and this week I found a great article talking about the Fed today. The Federal Reserve is facing a lot of troubles right now. The House of Representatives has passed bills to audit the Fed's decisions and strip the Fed of some of its powers. Chris Dodd, chairman of the Senate Banking Committee, is preparing a financial-reform bill that would have originally taken the over-sight of banks away from the Fed. Dodd wanted to give that power to a new agency, the Consumer Financial Protection Agency. In order to have a chance at passing the bill Dodd had to collaborate with a Republican to gain Republican support. He spoke with Bob Corker and they have come to a possible compromise of making the Consumer Financial Protection Agency a part of the Fed. President Obama also has the chance to nominate three new members to the board of governors. He wants to nominate strong candidates in macroeconomics, markets, regulation.
The Fed has had the power to regulate since it was created in 1913. With three spots on the board of governors open President Obama and the Senate have the power to change the way the Fed operates. It is most likely that President Obama will choose "candidates who are tough on banks and soft on inflation." I think that with these new bills and new candidates for the board of governors the Fed could change forever. Bank regulation will become more restricted and harsh and we could see some struggles with circulation during the changes.
Terms:
Senate Banking Committee- one of twenty Senate committees tasked with conducting Senate business related to specialized areas of legislative interest
macroeconomics- The big picture: analysing economy-wide phenomena such as growth, inflation, and unemployment.
audit- examine carefully for accuracy with the intent of verification
We all now know that the Fed is and this week I found a great article talking about the Fed today. The Federal Reserve is facing a lot of troubles right now. The House of Representatives has passed bills to audit the Fed's decisions and strip the Fed of some of its powers. Chris Dodd, chairman of the Senate Banking Committee, is preparing a financial-reform bill that would have originally taken the over-sight of banks away from the Fed. Dodd wanted to give that power to a new agency, the Consumer Financial Protection Agency. In order to have a chance at passing the bill Dodd had to collaborate with a Republican to gain Republican support. He spoke with Bob Corker and they have come to a possible compromise of making the Consumer Financial Protection Agency a part of the Fed. President Obama also has the chance to nominate three new members to the board of governors. He wants to nominate strong candidates in macroeconomics, markets, regulation.
The Fed has had the power to regulate since it was created in 1913. With three spots on the board of governors open President Obama and the Senate have the power to change the way the Fed operates. It is most likely that President Obama will choose "candidates who are tough on banks and soft on inflation." I think that with these new bills and new candidates for the board of governors the Fed could change forever. Bank regulation will become more restricted and harsh and we could see some struggles with circulation during the changes.
Terms:
Senate Banking Committee- one of twenty Senate committees tasked with conducting Senate business related to specialized areas of legislative interest
macroeconomics- The big picture: analysing economy-wide phenomena such as growth, inflation, and unemployment.
audit- examine carefully for accuracy with the intent of verification
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