Friday, September 30, 2011

Reporter Asks Buffett: You Support Higher Taxes So Why Not Just Write a Check to the Government ?


In the interview above with Warren Buffett, he first responds to questions about the economy and says that we are still in a recovery and not in a double-dip recession based on the fact that the 70+ companies he owns are doing quite well. The discussion next turns to his support of higher taxes on himself and some of those in his elite "super-rich" club.

Then at about 4:30 in the video, the reporter asks Buffett the ultimate question: If he wants the rich (including himself) to pay more in taxes, why doesn't he simply voluntarily write a check to the government for the extra millions that he thinks would be "fair" for him to pay? Buffett fumbles around without giving a clear answer, and the reporter presses him again and asks "Warren, since you're a large proponent of higher taxes, why not write a check to the government for several billion dollars just to underscore a point?"  Buffett then fumbles some more and claims that he doesn't want to act alone, but would join a group of other "ultra-rich" taxpayers who are supposedly "under-taxed" and they would all pay higher taxes as a group?? 

That begs the question: Why wait for anybody else, why shouldn't Buffett be the first to voluntarily pay higher taxes and set an example for others in his "ultra-rich" club.  Isn't Buffett's position kind of like saying: I think it's a good idea to donate blood, but I won't do it unless: a) I'm forced to by the government, or b) a bunch of my friends do it with me?  

More Fact-Checking of Warren Buffett

Warren Buffett famously claimed in the New York Times that he paid only 17.4% of his 2010 income in taxes, which was a lower rate than the other 20 people in his office, whose tax rates ranged from 33% to 41%, and averaged 36%.  It's been well-documented by now that Buffett's low rate was extremely atypical for the "super-rich" and his tax rate can only be that low because he received almost all of his taxable income as capital gains and dividends, which are taxed at only 15%.  

Nick Kasprak at The Tax Foundation now does some fact-checking and finds that:

"The effective rates Buffett claims for other workers in his office are extraordinary. To me, they seem too high to be realistic, and I can't figure out how he calculated them, even if you include all payroll (employee and employer side) taxes. Even if you assume the scenario that leads to the highest possible tax burden (single filer, no deductions), a taxpayer would have to make at least $285,388 (in 2010) before his or her effective rate reaches 33 percent. 41 percent is impossible."

Nick Kasprak provides the handy calculator below that shows the highest possible tax rate for any amount of income, assuming a single filer with no deductions or credits (enter any income amount in wages below and click somewhere outside of the calculator area): 



Bottom Line: An effective tax rate of 41% is impossible.

Las Vegas Home Sales in Aug. Highest in 5 Yrs, But Mostly All-Cash, FHA-Financed and Distressed Sales

DQ News -- "Las Vegas area home sales jumped to the highest level for an August in five years, the result of a relatively long month for escrows closings and robust buying by investors and first-time buyers in the sub-$150,000 market. Home prices seemed to trend sideways to downward last month, with the median sale price dropping to its lowest level in more than 16 years.  In August, 5,412 new and resale houses and condos closed escrow in the Las Vegas-Paradise metro area (Clark County), up 19.3% from July (4,536 homes) and up 26.4% from August 2010 (4,281 - see chart above)."

 Some of the details for August sales are pretty interesting:

1. In August, a popular form of low-down-payment financing for first-time home buyers – government-insured FHA loans – accounted for 39.9% of all home purchase loans. That was down from 42.1% in July and down from 46.6% a year earlier and a peak of 55.1% in September 2008. 

2. Cash buyers purchased 52.3% of the Las Vegas-area homes that sold last month. That was down from 53% in July and 48.8% a year earlier. The record was 56.7% this February. Cash purchases are where there is no corresponding purchase mortgage in the public record. 

MP: That means that 92.2% of Las Vegas-area home sales were either low-down-payment FHA financed purchases or cash sales, which must mean that only 7.8% of sales were conventional purchases with 20% down payment, etc. 

 3. Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 57.2% of the Las Vegas resale market in August. That was down from 59.5% in July but up from 52.5% a year earlier. Foreclosure resales peaked at 73.7% of the resale market in April 2009.

4. Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 12.8% of Las Vegas-area August resales. That compares to an estimated 11.1% in July, 16.5% a year ago, and 9.2% two years ago. 

5. In other words, distressed sales – the combination of sales of foreclosed homes and “short sales” – continued to dominate, representing 70% of the resale market last month.

MP: The good news is that Las Vegas home sales were the highest for the month of August since 2006, indicating an increased level of transactions and more property changing hands, but the real estate market there is certainly a long way from "normal" based on the high concentrations of FHA-financed properties, cash sales, and distressed sales. 

Cartoon of the Day: Bad Hotel Reviews

HT: Morganovich

Cuba Legalizes Used Car Sales

HAVANA (AP) — "Cuba legalized the sale and purchase of automobiles for all citizens on Wednesday, another major step in the communist run island's economic transformation and one that the public has been clamoring for during decades. Under the law, which takes effect Oct. 1, buyers and sellers must each pay a 4 percent tax, and buyers must make a sworn declaration that the money used for the purchase was obtained legally.

Unrestricted sales had previously been limited to cars built before the 1959 revolution, one of the reasons Cuba's streets are about the only place on the planet one routinely finds a multitude of finned American classics from the 1950s such as Chevrolets Bel Airs and Chrysler Imperials, all in various states of disrepair (see photo above)."

Cuban blogger Yoani Sanchez offers these comments:

"Even with this new legal reform, however, the great majority of citizens are only allowed to buy a used car, which in Cuba means vehicles more than 15 years old, and in particular Russian Ladas or Moskvitches, or Polish Fiats, which were previously marketed through a meritocracy. Some modern cars in State service will be sold to those who meet the strict requirements of belonging to an institution and demonstrating their fidelity to the Government. And those impeccably new ones, recent imports, are destined for a Revolutionary elite that has in their pockets money sanctified through official channels. To drive a shiny Citroen or a late model Peugeot will continue to be a sign of being a member of the powers-that-be."

HT: Matt Bixler

Poster of the Day: Facebook and You

Source: "How 'Free' Really Works Online" at The Consumerist

HT: Tim D.

Thursday, September 29, 2011

Obama's Intrade Re-election Odds Now Below 47%

Obama's re-election odds on Intrade.com now at 46.6%.

Legal Double Standard: Oil Companies Get Indicted for Bird Deaths While Wind Companies Get a Pass

Eagle killed by wind turbine, one of 1,200 daily wind-related bird fatalities:

The graphic video above shows a magnificent eagle getting killed by a wind turbine.  According to a 2009 estimate from the U.S. Fish and Wildlife Service (reported on the American Bird Conservancy website here), those bird fatalities happen more than 1,200 times every day (440,000 deaths annually and 50 deaths every single hour of the day on average).   For the millions of documented wind-related bird fatalities that have taken place in recent years, how many wind companies have been prosecuted? None - they get a pass.  

In contrast, 28 migratory birds (including ducks) allegedly died after landing by mistake in oil waste pits  in western North Dakota between May 20 and June 11, and seven oil companies are being charged by the U.S. attorney for North Dakota for violating the 1918 Migratory Bird Treaty Act. 

As Jack Dini wrote in the Canada Free Press: "When it comes to protecting America’s wildlife, environmental organizations and federal law enforcement officials have a double standard: one that’s enforced against oil, gas and electric utility sectors, and another that exempts wind and solar power from prosecution despite evidence of a multitude of violations."

And from today's WSJ: "It's hard to believe anyone deserves prosecution for incidental bird deaths, but it is a blatant injustice to indict companies whose oil operations may kill a few birds while giving a pass to wind operators that kill them by the thousands. The Administration can loathe carbon fuels all it wants, but that loathing doesn't justify selective and foolish prosecution."

New Drilling Technologies Reshape Oil World

1. REUTERS -- "Oil output from shale prospects in unconventional sources from North Dakota to Texas could reach 1.5 million to 2 million barrels-per-day (bpd) in the coming five to seven years, twice as much as the 700,000 bpd currently produced in these places."

2. NATIONAL GEOGRAPHIC -- "Oil exploration is moving to new corners of the country as drillers use a combination of technologies to tap crude that was always known to be there, but only now can be produced economically.

Colorado’s El Paso County, which had plenty of cattle but never a producing well, sits on the Niobrara shale. The geologic formation stretches from Colorado into Wyoming, while also touching parts of Nebraska and Kansas. The Niobrara is one of about a score of new and renewed oil plays made possible  through a combination of horizontal drilling and hydraulic fracturing.  Gas producers early last decade combined fracking and horizontal drilling with outstanding results, significantly altering the U.S. energy picture and touching off major gas drilling booms in Texas, Louisiana, Colorado, Pennsylvania, and elsewhere."

3. NATIONAL PUBLIC RADIO - The article "New Boom Reshapes Oil World, Rocks North Dakota" reports that in Williston, N.D. parking spaces for RVs are going for $1,000 per month and small one-bedroom apartments for $2,000 - sounds like Manhattan or DC prices.  Here's more:

"The boom in Williston is happening in spots across America. New drilling technology is also fueling boom towns in Texas, Louisiana, and Colorado. New drilling technologies mean companies can extract oil and natural gas from shale rock that was previously thought unreachable. 

The U.S. could have 2 trillion barrels of oil waiting to be drilled. South America could hold another 2 trillion. And Canada? 2.4 trillion. That's compared to just 1.2 trillion in the Middle East and north Africa."

The 20 Countries with the Most Debt

CANADA.COM -- "With the recent spotlight on the debt crisis in Greece and other European nations, we take a look at the countries that are most in debt, calculated by the World Bank's data on gross external debt as a percentage of the GDP. The top ranking nations may surprise you."

 HT: Che is Dead

Interesting Facts of the Day: Text Messages

1. Some 83% of American adults own cell phones and three-quarters of them (73%) send and receive text messages. 

2. Text messaging users send or receive an average of 41.5 messages on a typical day, with the median user sending or receiving 10 texts daily. 

3. Cell phone owners make or receive an average of 12 calls on their cells per day. 

4. Young adults are the most avid texters by a wide margin. Cell owners between the ages of 18 and 24 exchange an average of 109.5 messages on a normal day.  (MP: Wow, that works out to almost 7 messages per hour over a 16-hour day, or about one every 9 minutes!) 

Markets in Everything: Digital Fake Girlfriend

Are you tired of being embarrassed by the fact that you don't have a girlfriend? Do you wish that you could get interrupted by a loving phone-call during man time? Let me introduce you to FakeGirlfriend.

Weekly N. America Intermodal Volume Sets Record

WASHINGTON, D.C. – "The Association of American Railroads today reported gains for weekly rail traffic, with U.S. railroads originating 305,133 carloads for the week ending September 24, 2011 (Week 38), up 1.1 percent compared with the same week last year (see chart; MP: Except for the first week of April this was the highest weekly carload count since 2008). Intermodal volume for the week totaled 248,402 trailers and containers, up 3 percent compared with the same week last year. This weekly intermodal volume is the highest since Week 39 of 2007.

Combined North American rail volume for the first 38 weeks of 2011 on 13 reporting U.S., Canadian and Mexican railroads totaled 14,399,292 carloads, up 2 percent compared with the same point last year, and 10,764,400 trailers and containers, up 5.3 percent compared with last year. The combined weekly intermodal volume of 311,125 trailers and containers, up 3.5 percent over last year, is a record." 

MP: Carload groups that showed strong gains in shipments over last year include metallic ores (+21%), lumber (+10.6%), petroleum products (+16.1%), metals (+16%), and motor vehicles and equipment (+7.4%).  Based on the ongoing weekly improvements in weekly rail traffic, the three-year high for U.S. intermodal shipments, and the new record-setting intermodal volume for North America, it seems like it would be really, really hard to make the case for a pending double-dip recession. 

The Sometimes Crazy Pricing Practices of Airlines

The Detroit Free Press ran a front page article last Sunday titled "Hub Premiums Cost Delta Fliers Plenty at [Detroit] Metro Airport" about some of the huge differences in airfares for international travel between Delta Airlines' hub airport in Detroit and its regional spoke airports in nearby Flint, Lansing and Saginaw. 

For example, I just checked Delta's website for round-trip travel to Tokyo at the end of October.  For first-class travel, the round-trip airfare from Detroit (DTW) on a 3:25 p.m. nonstop flight is $11,606, compared to only $6,324 from Flint, only about 50 miles away.  If you fly from Flint you could take a short 20-minute flight to DTW at 1:30 p.m. and join the Detroit passengers on the 3:25 non-stop flight and save $5,282.  For travel by coach, you could still save more than $600 by starting in Flint and pay $1,553 round-trip instead of $2,156 from Detroit.  

For first-class travel to Amsterdam on Delta, the cost savings starting in Flint would be less, but still almost $1,500 compared to starting in Detroit ($6,304 Flint vs. $7,777 Detroit).  

One reason given for more competitive Delta fares at the spokes (Flint, Lansing, Saginaw) than the Detroit hub: Delta accounts for 80% of the passengers at DTW and 91% of international travelers.  In contrast, Delta accounts for only 40% of daily flights at the Flint airport, where they compete with AirTran (20% of daily flights), Continental (16%), Frontier (12%) and American (12%).  Less (more) competition at the hub (spokes) translates into higher (lower) fares on average. 

And the article points out that airlines don't generally price their tickets based on cost (e.g. travel distance), but more on competition (or lack thereof) and "what the market will bear."  

Update: Although airline pricing is generally based on "what the market will bear," it seems highly unlikely that the $5,282 difference in airfare to Tokyo between Detroit and Flint (basically a remote suburb of Detroit) can be based on true market pricing, or "what the market will bear."  That is, there can't be true market fundamentals that support a $5,000 price difference between two airports that are 73 miles apart.  And many people living in the northern suburbs of Detroit like Troy, Rochester Hills and Pontiac would be equidistant from the two airports, and might actually prefer the convenience of the smaller Flint airport than mega-DTW.  I predict that some of these significant price differences are unsustainable outliers that cannot persist over time, especially because the crazy, non-market prices have been exposed on the front page of the Detroit Free Press.    

Chart of the Day: Effective Tax Rates on $100k

From The Economist.

Mortgage Rates Fall Again to New Record Lows

According to data released today by Freddie Mac, 30-year fixed mortgage rates fell this week to another new historic low of 4.01% (see chart above), and 15-year rates fell to a new record low of 3.28%.  Based on the most recent one-year increase in the CPI of 3.8% through August, 15-year mortgage rates are below the current annual inflation rate and 30-year rates are just barely above current inflation.   

Quarterly Grammar/Punctuation/Spelling Rant

From the "comment's"..............

1. Brilliant because of it’s simplicity.

2. The US CAN SELL marketable securities to cover it's debt........

3. more than likely, the manufacturer is offering what it can offer and still produce a competitive price on it's products..

4. World War 2 didn't end The Depression - and only ended it's lingering effects......

5. Back in 1984 or so.. the Federal Govt told it's employees 

6. At the same time, the city is engaging in a major shakedown of it's legal citizens. 

See previous related CD post here

Update: See tattoo below "Live life to its fullest" on the arm of ASU's quarterback:

Tattoo HT: Morganovich

Quote of the Day on Guy Who Built Gates' Garage

"Focusing on infrastructure as the crucial support of entrepreneurial activity is like crediting the guy who built young Bill Gates’s garage with the start of Microsoft. Yes, Gates needed a roof over his head, and garages are useful. But it was Gates who had the ambition to do more in his garage than store his car and lawn-care products. Incalculably more important than his physical surroundings were his imagination and business sense."

~Rich Lowry at NRO responding to Elizabeth Warren's claims that private entrepreneurs and business owners owe much of their success to the government:

"There is nobody in this country who got rich on his own. Nobody. You built a factory out there? Good for you. But I want to be clear: you moved your goods to market on the roads the rest of us paid for; you hired workers the rest of us paid to educate; you were safe in your factory because of police forces and fire forces that the rest of us paid for. You didn’t have to worry that marauding bands would come and seize everything at your factory, and hire someone to protect against this, because of the work the rest of us did."

Russ Roberts responded yesterday in the Wall Street Journal.   

HT: Don Boudreaux

Rare Earth Mineral Prices Fall By 41% As Mining Companies and Buyers Switch to Alternatives

BLOOMBERG -- "Rare-earth prices are set to extend their decline from records this year as buyers including Toyota Motor Corp. and General Electric Co. scale back using the materials in their cars and windmills.

Prices for cerium and lanthanum, the most abundant rare- earth elements, will drop by 50 percent in 12 months, Christopher Ecclestone, an analyst at Hallgarten & Co. in New York, has forecast. Neodymium and praseodymium, metals used in permanent rare-earth magnets, may fall as much as 15 percent, he said.

Makers of electric cars, wind turbines and oil-refining catalysts have sought to reduce use of the metals after China, which supplies more than 90 percent of the market, said in July 2010 that it would cut exports and clamp down on the industry. That boosted prices, encouraging mining companies to develop new prospects and buyers to find alternatives.

“If you think you can keep raising the prices for those materials and still keep your customers, you’re crazy,” Jack Lifton, co-founder of Technology Metals Research, said in a telephone interview. “The principal customer for rare-earth metals is a global automotive industry using rare-earth permanent magnets. That industry will engineer this stuff out.”

The Bloomberg Rare Earth Mineral Resources Index dropped 41 percent in the last three months (see chart above)." 


MP: This is a good example of how the price system transmits valuable information about the relative scarcity of natural resources, how market participants respond immediately and effectively to price changes that signal increased resource scarcity, and how those natural, automatic responses effectively solve the problem of the increased scarcity.  In the case of rare-earth elements, the higher prices encouraged producers to: a) find more of the existing materials and b) find alternative materials, and encouraged consumers to: a) find alternatives and b) "engineer the stuff out" of production.    

HT: Pete Friedlander

Markets in Everything: Giant Rick Perry Chia Head

For sale on Ebay for $4,500.

Changes to the BBC Sports stream frequencies - loss of BBC News and Sports streams in Spain

As part of the BBCs process to close down one of their satellite transponder frequencies in a bid to save money, the BBC Sports streams have changed frequencies.

As mentioned on http://costablancasatellite.blogspot.com/2011/09/have-you-lost-bbc-news-bbc-alba-and-bbc.html , BBC News, BBC Alba and BBC Parliament have moved to another frequency.

The BBC Sports streams have now moved onto this

Wednesday, September 28, 2011

The Kleptocracy of San Francisco

In San Francisco, Parking Tickets Are the New Taxation

With some the highest fines in the country for parking ($68) and traffic violations ($436 for running a red light),  "Many San Francisco residents now feel that the city government has become a kind of Kleptocracy, a government run by thieves. That is, those in power tax residents through the form of heavy fines for much-needed cash, even as basic services are under threat." 

HT: Pete Friedlander 

When Services in Line with Car Transport are Available

There are a lot of Car Transport companies that can help you out when you need to have a vehicle shipped. Auto transportation pertains to a shipping company that is engaged in providing auto transport-related activities across the nation and even across the globe. In this case, businesses involved in this line of service provision are earning enough income since the demand is constant.

When it comes to auto transport groups, you will find some that are dedicated to local transactions and others that cater to international demands. Clients are plenty but the competition remains fierce and so each company works by constantly improving the services that they can offer. In a fiercely competitive industry, customer satisfaction is what matters most.

All these car transport companies try to quote the cheapest rates in hopes of attracting a great deal of customers. Besides the cost of each offering, service quality not to mention service terms also vary from company to company. Here is where competitiveness is extreme but companies do not sacrifice the vehicle just to be able to say that they can deliver it to an excited client without much of a delay.

Services in line with auto shipping are becoming more and more in demand as we speak. Usually, the rates are lower than usual but the quality of services remain adequate and this is because of the income earning capability of the industry. Inadequate service providers continue to exist even if the industry is improving as we speak and so you might encounter poor service from several companies.

Knowing that there are great risks at stake with the hundreds of auto transporting services out there, it is but vital to take advice from someone who has done it before. What you have here is a service avenue that comes with a lot of risks and so it is adamant that you find the perfect provider. Take a look at the client feedback when you are intent on working with a particular company.

You’ll also want to know if the car shipping company of your choice is licensed and ensured. Many customers of car shipping companies neglect the importance of insurance when it comes to transporting their vehicles. Here is where you need to check the insurance options that the company has and also check if additional coverage is necessary.

Here is where exotic car shipping, motorcycle transport, and international transport are some of the services apart from hot shot shipments that can be availed of. There are also open and enclosed types of transport that will depend on the car carrier that will be shipping your vehicle. Aside from that, customers may also choose whether to have their cars delivered right to their supposed location or have it picked up in the nearest auto shipping terminal.

Arrangements like these are dealt with by brokers that most car transport groups hire. Here is where the broker should be able to show a certificate of insurance when asked. Brokers will be the ones who will transact your shipping needs to the auto shipper so you’ll want to have your details as precise as possible.

It is important for any auto shipping company to have the ability to ship a vehicle as safely as possible in the amount of time that has been agreed upon. Various methods of transportation can be resorted to here but it is the security of the vehicle that should always be considered. It is important that the company you are working with knows how important your vehicle is to you.

People have varying needs when it comes to vehicles but one thing remains true and this is that auto shippers are needed. You are dealing with seasoned pros when it comes to this. Do yourself a favor and spend a little extra money on a company that will value your car as you do.

If you need some more ideas and info, make sure that you visit a trusted and reliable site.

Chart of the Day: Canadian Home Prices vs. U.S.A.

"Canadian home prices in July were up 1.3% from the previous month, according to the Teranet-NationalBank National Composite House Price Index. This rise took the index to a new high of 215 (January 2000 = 100, see chart above0).  It was the fourth consecutive monthly increase exceeding 1%, and the eighth consecutive monthly increase after three straight monthly declines."

MP: On an annual basis, Canadian home prices increased by 5.26% compared to July last year, the highest annual gain in nine months, since October 2010.  Over the last ten years, annual home price appreciation in Canada has averaged slightly more than 7%, which is lower than the 12.4% annual home price appreciation in the  U.S. during the six-year period between January 2000 and December 2005 that led to the unsustainable real estate bubble and subsequent price correction.

Q: Is Canada headed for a real estate bubble, or are those record-high price levels sustainable?

Tuesday, September 27, 2011

More on Social Security

GMU economist Walter E. Williams discusses Social Security:
 
"During the recent GOP presidential debate, Texas Gov. Rick Perry said that Social Security is a "monstrous lie" and a "Ponzi scheme." More and more people are coming to see that Social Security is a Ponzi scheme, but is it a lie, as well? Let's look at it.

Here's what the 1936 government pamphlet on Social Security said: "After the first 3 years — that is to say, beginning in 1940 — you will pay, and your employer will pay, 1.5 cents for each dollar you earn, up to $3,000 a year. … Beginning in 1943, you will pay 2 cents, and so will your employer, for every dollar you earn for the next 3 years. … And finally, beginning in 1949, twelve years from now, you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year." Here's Congress' lying promise: "That is the most you will ever pay."

Another lie in the Social Security pamphlet is: "Beginning November 24, 1936, the United States government will set up a Social Security account for you. … The checks will come to you as a right." Therefore, Americans were sold on the belief that Social Security is like a retirement account and money placed in it is our property. The fact of the matter is you have no property right whatsoever to your Social Security 'contributions.'"


Key Temp Employment Index Reaches YTD High

The American Staffing Association Index, a weekly barometer of temporary and contract employment, a key coincident economic indicator, and a leading indicator of U.S. payroll employment, reached a year-to-date high of 90 for the week ending September 18 (see chart above).  For comparable weeks in the last three years, the staffing index was 91 in 2008, 72 in 2009, and 90 in 2010.  During most years like 2007, 2009 and 2010, the temporary staffing activity increases towards year-end, so if that pattern prevails this year, we can expect ongoing improvements in temporary and contract employment this fall.  

Cartel-Buster Institute for Justice Goes Up Against the Milwaukee Taxi Cartel with A Legal Challenge



From the Institute for Justice (IJ):

"Milwaukee allows only 321 taxicabs on its streets—almost half of which are owned by Milwaukee County Supervisor Joe Sanfelippo. That is about one cab for every 1,850 residents, one of the highest ratios in the country. This cap on taxi permits has sent permit costs skyrocketing, from $85 to $150,000—putting the dream of owning a taxi business out of most people's reach.

Ghaleb Ibrahim is a Milwaukee entrepreneur who simply wants to own and drive his own taxicab. He has the means to operate safe and insured taxis, but the cap on the number of cabs means his dream cannot become a reality. For now if he wants to drive a cab he must do it for someone else at a hefty rental price.

It does not have to be that way. Milwaukee's taxicab cap violates Ghaleb's right to earn a living, protected by Wisconsin's Constitution. That's why on September 27, 2011, Ghaleb and two fellow drivers teamed up with the Institute for Justice to file a major civil rights lawsuit in the Milwaukee County Courthouse against the city."

Read more here at the IJ website, and read a Milwaukee Journal Sentinel article about the case here

MP: Kudos to the Institute for Justice for its ongoing "cartel busting" efforts.  There is probably no other organization anywhere in the entire world that is doing greater work defending small businesses and entrepreneurs against economic protectionism, empowering individuals to earn an honest living, and promoting economic and social justice.   

Chicago Fed Manufacturing Index Improves in Aug.

"The Chicago Fed Midwest Manufacturing Index (CFMMI) increased 0.6% in August, to a seasonally adjusted level of 85.0 (see chart). Revised data show the index increased 0.3% in July. Regional manufacturing output in August rose 7.6% from a year earlier, and national output increased 4.2%.

The Midwest’s automotive output was up 10.3% in August relative to its year-ago level, and national automotive output was up 7.2%. Regional steel output was up 17.1% from its August 2010 level, and national steel output was up 10.3%."

MP: The CFMMI increased for the fourth straight month in August, and except for April has increased in each of the last 12 months.  The August level of 85.0 was the highest monthly index in almost three years, since October 2008. 

Monday, September 26, 2011

Obama's Intrade Odds Fall to Record Low of 47.5%

Odds for Obama to be re-elected on Intrade fell to 47.5% today, the lowest odds in the history of the contract (see chart).  

Drill, Drill, Drill = Jobs, Jobs, Jobs in Michigan

From my editorial in yesterday's Detroit Free Press

Amid all of the bad economic news nationally, there is an economic bright spot: One U.S. state is booming like never before. In North Dakota, the unemployment rate was an astoundingly low 3.3% in July; it hasn’t been that low at the national level since 1953. At a time when other states are facing declining revenues and budget deficits, North Dakota’s tax revenues are soaring, and it has a $1-billion surplus. In May, the state legislature passed a bill to reduce income tax rates for individuals.

Michigan could experience a similar economic boom by producing more of its own oil and natural gas. The Michigan Basin is believed to hold more than 282 million barrels of oil, 2 trillion cubic feet of natural gas, and 83 million barrels of natural gas liquids. These vast energy resources in Michigan are now recoverable using advanced hydraulic fracturing technology. The economic benefits of a time-tested drilling technology can put thousands of Michiganders back to work, generate millions of dollars in government revenues, and improve U.S. energy security.

Ken Burns Documentary Series on Prohibition

Yesterday's Prohibition
Today's Drug War
"Prohibition is a three-part, five-and-a-half-hour documentary film series directed by Ken Burns and Lynn Novick (premieres October 2nd, 3rd & 4th, 2011 at 8 PM on PBS) that tells the story of the rise, rule, and fall of the Eighteenth Amendment to the U.S. Constitution and the entire era it encompassed."

Here's more information, with a little extra editing to maybe suggest a sequel for Ken Burns:

"Prohibition The Drug War was intended to improve, even to ennoble, the lives of all Americans, to protect individuals, families, and society at large from the devastating effects of alcohol drug abuse.  But the enshrining of a faith-driven moral code in the Constitution paradoxically caused millions of Americans to rethink their definition of morality. Thugs became celebrities, responsible authority was rendered impotent. Social mores in place for a century were obliterated. Especially among the young, liquor drug consumption rocketed.

Prohibition The Drug War turned law-abiding citizens into criminals, made a mockery of the justice system, caused illicit drinking drug use to seem glamorous and fun, encouraged neighborhood gangs to become national crime syndicates, permitted government officials to bend and sometimes even break the law, and fostered cynicism and hypocrisy that corroded the social contract all across the country. With Prohibition The Drug War in place, but ineffectively enforced, one observer noted, America had hardly freed itself from the scourge of alcohol drug abuse – instead, the "drys" drug prohibitionists had their law, while the "wets" millions of Americans had their liquor drugs

The story of Prohibition the Drug War is a compelling saga that goes far beyond the oft-told tales of drug gangsters in the U.S., Mexico and Colombia, rum marijuana runners, and cocaine smugglers, flappers, and speakeasies, to reveal a complicated and divided nation in the throes of momentous transformation. The film raises vital questions that are as relevant today as they were 100 years ago – about means and ends, individual rights and responsibilities, the proper role of government and finally, who is — and who is not — a real American."

Here's a preview:


Watch the full episode. See more Ken Burns.
HT: Mike LaFaive

Some UC-Berkeley Students Defend (Oppose) Race-Based Preferences for Admissions But Oppose (Defend) Race-Based Preferences for Bake Sale

BERKELEY -- "University of California-Berkeley student senators voted Sunday to condemn discriminatory behavior on campus - even if done in satire - in response to a Republican student group's plans for an "Increase Diversity Bake Sale," with pastries labeled according to race and gender. The 19-0 vote, with one absence, came during a special meeting of the Associated Students of the University of California, as the debate over affirmative action reignited in Berkeley.

Read more here.  

HT: Morganovich

Gas Falls Below $3 per Gallon in Michigan

Source: Michigan gas prices

Highest Prices for Domain Names

This summary is not available. Please click here to view the post.

the memory from 10 years ago.... and now

Sunday, September 25, 2011

Amazing Drop in Deaths from Extreme Weather

The Reason Foundation has released a new study titled, "Wealth and Safety: The Amazing Decline in Deaths from Extreme Weather in an Era of Global Warming, 1900–2010," here's the executive summary (emphasis mine):

"Proponents of drastic curbs on greenhouse gas emissions claim that such emissions cause global warming and that this exacerbates the frequency and intensity of extreme weather events, including extreme heat, droughts, floods and storms such as hurricanes and cyclones. But what matters is not the incidence of extreme weather events per se but the impact of such events—especially the human impact. To that end, it is instructive to examine trends in global mortality (i.e. the number of people killed) and mortality rates (i.e. the proportion of people killed) associated with extreme weather events for the 111-year period from 1900 to 2010.

Aggregate mortality attributed to all extreme weather events globally has declined by more than 90% since the 1920s, in spite of a four-fold rise in population and much more complete reporting of such events. The aggregate mortality rate (per million population) declined by 98% (see chart above), largely due to decreased mortality in three main areas:
  • ·Deaths and death rates from droughts, which were responsible for approximately 60% of cumulative deaths due to extreme weather events from 1900–2010, are more than 99.9% lower than in the 1920s.
  • Deaths and death rates for floods, responsible for over 30% of cumulative extreme weather deaths, have declined by over 98% since the 1930s.
  • ·Deaths and death rates for storms (i.e. hurricanes, cyclones, tornados, typhoons), responsible for around 7% of extreme weather deaths from 1900–2008, declined by more than 55% since the 1970s.
To put the public health impact of extreme weather events into context, cumulatively they now contribute only 0.07% to global mortality. Mortality from extreme weather events has declined even as all-cause mortality has increased, indicating that humanity is coping better with extreme weather events than it is with far more important health and safety problems.

The decreases in the numbers of deaths and death rates reflect a remarkable improvement in society’s adaptive capacity, likely due to greater wealth and better technology, enabled in part by use of hydrocarbon fuels. Imposing additional restrictions on the use of hydrocarbon fuels may slow the rate of improvement of this adaptive capacity and thereby worsen any negative impact of climate change. At the very least, the potential for such an adverse outcome should be weighed against any putative benefit arising from such restrictions."

Update: Julian Morris writes on Reason.com about the study. 

Florida Housing Recovery Gains Strength in August



"Sales activity and median prices for Florida’s existing home and existing condo markets rose in August, according to the Florida Realtors. Existing home sales increased 15 percent last month with a total of 16,206 homes sold statewide compared to 15,517 in July, and 14,131 homes sold in August 2010 (see chart). The statewide median sales price for existing homes last month was $137,500, up 2 percent from the year-ago figure of $134,900. August’s statewide existing home median price was also slightly higher than July's median price of $136,500 (see chart).

“Over the past few months, it appears that home prices have been stabilizing in many local markets across the state,” said 2011 Florida Realtors President Patricia Fitzgerald. “This is another positive sign that the housing recovery is gaining strength.”

Fifteen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in August; 15 MSAs also had higher existing condo sales.

In Florida’s year-to-year comparison for condos, 7,098 units sold statewide last month compared to 6,041 units in August 2010 for an increase of 17 percent. The statewide existing condo median sales price last month was $91,100; in August 2010 it was $81,500 for a 12 percent increase."

MP: With a 15% overall annual gain in housing sales and a 17% gain in condo sales, along with a modest increase in median home prices of about 2%, Florida's real estate market is showing some positive signs of an ongoing housing recovery.  

DISH - New Blockbuster Video Service


dish network-blockbuster video
DISH Announces it's new Blockbuster Video Service:
DISH Network has unveiled its plans to offer Blockbuster Movie Pass, a new online streaming video, DVDs by mail and satellite TV subscription service. The program is considered an attack on rival Internet video giant Netflix.
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Markets in Everything: Gold Vending Machines

BEIJING, September 25, 2011 - "China, already the world's second largest bullion consumer, has installed the country's first gold vending machine in a busy shopping district in Beijing. Shoppers in the popular Wangfujing Street can insert cash or use a bank card to withdraw gold bars or coins of various weights based on market prices. Each withdrawal is capped at 2.5 kilograms (5.5 pounds) or one million yuan (about $156,500) worth of gold."

Inflationary Pressures Are Wilting: Exhibits A-E

Exhibit A: MIT's Billion Price Project is showing declining monthly rates of inflation since March (red line above), and mild price deflation for the month ending August 30, see chart above and Paul Krugman's post here.

Exhibit B: Paul Krugman also points to deflationary pressures for commodity prices - the chart above for the CRB Commodity Index shows that the commodity prices are almost 20% below the early May peak.


Exhibit C: The 10-year breakeven rate (one measure of the market's expectation of inflation based on the difference in yields between regular 10-year T-notes and inflation-indexed 10-year T-notes) has been below 2% for most of the month of September and is now at the lowest level since last October (about 1.7%), see chart above.


Exhibit D: Greg Mankiw points to the chart above showing the annual percentage change in hourly earnings, and comments:  "The slack labor market has kept growth in nominal wages low, and labor represents a large fraction of a typical firm's costs.  A persistent inflation problem is unlikely to develop until labor costs start rising significantly.  Notice in the graph above that the period of stagflation during the 1970s is well apparent in the nominal wage data.  The same thing is not happening now." 

Exhibit E: Gas prices have fallen by 12% since the early May peak, and are now at $3.52 per gallon, the lowest price since last March (see chart above). 

Saturday, September 24, 2011

Films on Schooling and Education

Schooling has become more or less universal in the contemporary world, with schools found in virtually every corner of the globe. The pervasiveness of modern schooling is remarkable in that it was for the most part introduced globally within the past century. Visitors to schools the world over would be struck by their similarities, the focus on rigid schedules marked off by bells, their age segregation, the arrangement of desks facing the teacher at the front of the room, behind whom is a blackboard and above which is a clock and the national flag. While everyone attends school, few analyze its origins and impacts, with most concerned with getting ahead in the system. One way to wedge open a discussion on schooling is compare and contrast it with education. Although used interchangeably, schooling can be thought of as the institutionalized side of education, which then points to questions of the impact of this institution on cultures and communities and the alternative views on education.

Indigenous and aboriginal peoples were not often served well by schooling, in particular during the late 19th and early 20 century when various racist government policies informed the schools they often forcibly attended. A famous example is depicted in an episode of 'The American Experience' TV series that focuses on the schools set up by Richard Henry Pratt, famous for his statement 'kill the Indian to save the man.' The title of the 1992 episode, In the White Man's Image, sums up the story well. Pratt's plan to civilize the Indians involved making them more like white folks by shearing their hair, changing their clothes and forbidding their language. This was done after kidnapping children from their tribal families and shipping them hundreds of kilometers away to boarding schools, such as the Carlisle Indian Industrial School, where in addition to be stripped of their Indian identity they were also trained in various menial tasks, perhaps testimony to the attitude of the schools toward their potential. The irony of these policies, and other similar policies the world over, was that even if one accepts the premise to use schooling to make native peoples more white, they would still not be accepted into white society until racist attitudes and cultural beliefs were corrected, suggesting perhaps that for such policies to be truly effective white people would have to also be 'civilized' into accepting racial, cultural and other forms of diversity on an equal footing.

In addition to this documentary feature, Indian and Aboriginal schools have been the topic of a couple of films. The 1997 Canadian film The Education of Little Tree includes a telling scene in one such school. The title character, Little Tree, an aboriginal boy being raised by his grandparents, is taken by court order to an Indian School. Upon arrival, he is told that once he enters the gates of the school he shall not 'speak Indian' again. When Little Tree meets the school headmaster, he is told that 'Americans don't name children after objects,' and is given a new name randomly selected from a book: Joshua. When asked if he understands this, a bewildered 'Joshua' replies, 'no sir.' He fares no better once classes begin. During a biology lesson, when the teacher asks the students to describe a picture of two deer, students mechanically drone 'running' and other half-hearted barely conscious responses. But Little Tree enthusiastically calls out that the deer are 'mating,' which he no doubt recognized from living in the forest with his grandparents. But for offering this answer in the class (which is actually correct), he is beaten by the teacher and brought to the headmaster. While walking the boy to an attic room for solitary confinement, the headmaster asks, 'do you know what you have done?' Little Tree again replies, 'no sir.' He has no idea that he has done anything wrong, because he is not yet acclimated to the ways of schooling, although he is eventually bludgeoned into submission like the other students. These scenes suggest that the knowledge Little Tree brought to school is a liability in the white man's world and that the goal of the school is to do as Pratt recommended, 'kill the Indian to save the man.'


A similar story is told in the 2002 Australian film, Rabbit Proof Fence. In this case, three aboriginal girls are forcibly removed from their families by court order and sent hundreds of kilometers away to a boarding school, where they will be taught to serve white folks as maids and seamstresses, again in the name of the white man's civilizing mission. In one telling scene, the director of Indian affairs visits the school and examines one of the girls to see if she qualifies to be taken to a special advanced school. The examination consisted of lifting her shirt to examine her skin color, which being a rich brown meant she failed the 'exam.' Based on a true story, the film points out that schools such as this were part of government policy in Australia for until the mid 20th century but which were eventually closed, with their tragic result of having created a 'lost generation.' This idea of being lost as an aboriginal person in the dominant white society is a factor of colonialism in general, and one could find similar instances of both internal colonialism (as in the US and Australia) and external colonialism (as is in Africa, India and Latin America) wreaking havoc on the communities and cultures of indigenous peoples.

While these films focus on the outcomes of racist policies, often highlighting the tenacity of individual Native Peoples to survive in such a system, these films were more or less produced to inform, and especially entertain, White audiences, making the rounds on the festival circuit and garnering several awards. However, there are also a number of less well known instances of communities redressing the imbalances and healing the damages of colonized institutionalized schooling. For example, a series of films produced by Proyecto Andino de Tecnologias Campesinas (PRATEC) in Peru focuses on the regeneration of indigenous knowledge and communities. The 2005 film 'Iskay Yachay: Two Kinds of Knowledge' focuses on the attempt by peasant farmers in the Andes to reclaim their rich ecological and agricultural wisdom from the halls of government run schools that undermine local knowledge in favor of Spanish language and the usual slate of school subjects. But what is unique about these communities, as suggested by the title of the film, is that they are not simply rejecting the 'modern knowledge' of the schools part and parcel. Rather, they want the schools to teach 'two kinds of knowledge,' that their children should have the option to remain in the Andes and live a traditional agro-centric life, which has its own requisite knowledge that is ignored in modern schooling with its focus on urban life and language. At the same time, they should also not be impaired if they feel the need to migrate to urban areas, which requires Spanish language and facility with reading, writing and arithmetic. It's a good antidote to the usual sad story of schooling creating an alienated class of people neither here nor there, and the work of PRATEC is exemplary for the close collaboration between schools and communities.


It is this dual attitude toward knowledge in a cooperative relationship that makes PRATEC interesting and worth following, and their work has been the subject of the 1998 book The Spirit of Regeneration: Andean Culture Confronting Western Notions of Development. Other films made by PRATEC, including 'Loving Teacher' and 'Culturally Sensitive Education,' focus on the role of teachers among the indigenous communities. In Perus as elsewhere, with a Ministry of Education system in control of schools, urban college graduates are sent to rural areas for two years before they can qualify for jobs in the cities, a common policy where state subsidized education is in a sense 'paid back' through service in places where there are shortages. The problem is that these teachers have no connection to the communities in which they are placed, and are often at best indifferent to the local culture, and at worst hostile toward it. PRATEC sought to intervene in this bad ecology of knowledge by helping local communities have a say in the way their own schools are run and recruiting teachers who are either from the communities or who at least would be sympathetic to the concerns of the community.


Beyond this question of the impact of schooling on indigenous peoples, the topic of modern schooling as a global phenomenon in general has received a great deal of attention in the mainstream media, in particular through the efforts of the BBC in conjunction with the Open University, through a four part documentary series: African School, Chinese School, Indian School and, most recently, Syrian School. Each series consists of five one hour episodes or ten half hour episodes profiling a selection of schools in each of the four regions. While fairly wide ranging and covering many issues related to the politics and economics of schooling and the ongoing social changes in each region, the four series share an emphasis on competition as a defining feature of schooling. Several episodes of each series focus on the high stakes examinations that still define formal schooling in many places, although the emphasis is on those who succeed in the competitive marketplace at the expense of those who do not. The series would be more useful, and representative, if it also had something to say about the losers within this system of high stakes schooling, which in many cases would likely outnumber the winners. Perhaps it is to be expected to applaud the few who succeed, given the source of these programs in the former colonial powers and hosted by over educated white folks, but it's also tragic to ignore the consequences of these successes for the many who are failed by the system. This aspect of schooling as a lopsided and biased social sorting mechanism, which was identified long ago by Martin Carnoy in Education as Cultural Imperialism, needs as much attention as the success stories of the few.

The sorting function of schooling works internally, as in the above examples, but it also operates internationally, where nations compete for prestige, wealth and power, the road to which often passes through the halls of modern schooling. A common theme in recent American documentaries about schooling is how the USA is losing its political and economic edge in the world, with the blame being laid at the doorstep of schooling. As an example, the documentary Two Million Minutes, which spawned several sequels, compares schooling the US, India and China, and using math and science as a criteria for success shows how American students are falling behind their Third World rivals.


Two Million Minutes can be seen as a form of scare mongering, in some sense along the lines of the 1980s discourse that emerged with A Nation at Risk and several similar reports that also decried Americans losing ground to their rivals, which at the time was focused on Japan. In fact, this discourse could be traced back to the infamous Sputnik launch in the 1950s, which also caused a great deal of hand wringing on the part of American politicians and educational technocrats, who saw the early Soviet success in the 'space race' as an indication that the USA was falling behind. Some interesting quasi-agitprop pieces emerged from that era, such as the ABC television report Meet Comrade Student, which took post-Sputnik American viewers into Soviet Schools. But all this emphasis on competition, economics and politics, emphasizing ideological battlegrounds and focusing mainly on the question of winners and losers, almost as if schooling is a competitive sport, neglects other bigger questions, such as those posed by Ivan Illich in his influential and classic work on Deschooling Society. Rather than just winners and losers, crucial questions revolve around what kind of person is created by schooling. While this question may have no definitive answer, it needs constant asking.

Sometimes the focus in the winner/loser dyad is on the losers, and there are a number of documentaries that focus on the disenfranchised and downtrodden, mainly women and children, who are unable to attend school and who are instead locked into lives of poverty and despair. A recent BBC series entitled Hunger to Learn focuses on the difficult lives of children in conflict zones, and how school is ironically a respite from the lives made difficult by the mis-educated adults around them. Similarly, the TVE program Educating Lucia focuses on the limited options for girls in a male dominated society that prefers to educate its sons over daughters. In addition to its function in reproducing social ills, the oppressive structure of schooling has been the focus of several films. Most notable perhaps is Abbas Kiarostami's documentary Homework, which consists of interviews with schoolboys on the role of homework in their lives. When asked what happens if they did not do their homework, they all said they were punished by an older sibling or parent. Kiarostami then asks the children if they know the meaning of the word 'encouragement' and none do. Punishment without encouragement, not by teachers and principals, but in the home in what amounts to an extension of the authority of schools beyond their walls. One wonders again what type of person is created by such a system, irrespective of grades and successes. In contrast, the award winning Japanese documentary Children Full of Life profiles a 4th grade teacher who took the radical step of encouraging his students to get in touch with their emotions.


Why this is seen as radical, of course, speaks reams about the oppressive nature of modern Japanese schooling, which forces conformity and high stakes testing upon students to such a degree that suicide is common a way out for increasing numbers of youths. While emphasizing in various ways the dark side of society and schooling, these programs subtly offer up the possibility of hope through entering mainstream schooling. In Homework, a parent intervenes in one of the interviews with a short speech about the need for reforming Iranian education. While no sane person would be against helping the unfortunate and making the lives of children better, by relying on schooling (either more of the same or by tweaking the system) as the primary answer to poverty and alienation, many of these programs reinforce the hegemonic grip of schooling over minds and bodies that cannot conceive of other ways to live and learn. In fact, to the privileged white viewers of the European and American networks who watch such programs, they also serve the additional function of having viewers feel thankful for their schooling. What is missing from all this talk of the haves and have-nots is the question of alternatives.

While the mainstream news media are constantly emphasizing the successes and failures of modern schooling, meaningful alternatives are almost completely absent from their programming. However, this neglect, or ignorance, of alternatives should not be confused with an absence of alternatives. If they are unable or unwilling to locate alternatives and instead obsess on the closed dyad of the haves and have-nots of schooling, the onus is on viewers to seek out the meaningful alternatives that don't rely on the 'more of the same' treatment that Ivan Illich decried in Deschooling Society. Before getting to those, it might be worth reviewing some of Illich's main points. In fact, the title is in some way misleading, if it is taken to mean closing down schools. Illich had a far deeper plan in mind, which could be better described as the de-institutionalization of society, but since schools play a major role in the 'schooled society,' it's worth dwelling for a moment on the possibility of life without schooling.

Rid society of school? The mere proposition that Illich suggests in Deschooling Society may seem preposterous, even treasonous, to many people. How can we live without school? Where will our children go? What will they do about jobs? When will they learn the heritage of their civilization? Civic values? Literacy and numeracy? But such questions only prove Illich’s rule: we are addicted to schooling. And this addiction is to such an extent that it seems unthinkable to question the very existence of schooling. But is it really so hard to imagine society without school? After all, modern schooling is less than a century old in most parts of the world, and a little over a century old in its birthplaces in Europe and America. Prior to schooling, communities often found various ways to answer all the above questions, ways that were meaningful in their own cultural, historical and social contexts. Young people learned language, religion, cultural values, and social responsibility by living life. Apprentices learned trades by practicing them with those who had more experience. Education was often casual and informal, and such an education was part of life, which was a life of learning.

Modern schooling arose with other institutions of modern society, first in the West and then around the globe with colonialism. As Foucault suggested in Discipline and Punish, prisons, schools, hospitals, asylums, armies and other institutions of modern society are all of the same mind set. They are places of social control and conformity to order, they are places where others decide what to do, when to do it, and for how long, and they are places that created, in Illich’s words, a ‘schooled society,’ which is a society that expects not a life of learning but lifelong subservience to a system that is beyond their reach and control. At the core of Illich’s analysis of the schooled society lies consumerism, not the narrow form of consumerism that one finds proliferating in shopping malls today, but the broader idea of consumerism, that people can no longer think or do things for themselves, that they are addicted to consuming ideas, habits, practices, as well as products, from professional producers. Such a society is one that has ceased to think for itself, and it has ceased to be creative. Illich would perhaps say that it has even ceased to be human. The schooled society can only do one thing: seek more schooling. While this may benefit the bureaucrats, businessmen and politicians that control modern societies, its benefits for the multitude are dubious, and, in Illich’s view, downright alienating and even destructive.

Of course, there are perceived benefits of schooling. The commonest defense of schooling is that it prepares one for citizenship and the world of work. Yet the irony of this defense is that schooling in most modern societies has become a holding zone for those unable to find employment or who are unemployable, which in the end is only a way of deferring the inevitable condition of joblessness. Even those who succeed do so only at the expense of the majority of their peers in the system. So, if jobs are scarce at graduation – while remaining the main reason for schooling – then why submit children to twelve or more years of schooling? Similarly, what passes as citizenship education is in many ways nationalist indoctrination. In the film Ancient Futures: Learning From Ladakh, a community elder notes how the imposition of schooling divided along religious and ethnic lines, and which emphasizes competition and fighting as the way to solve problems, has created schism in the city of Leh and may be even implicated in sectarian violence. These are no doubt serious complex social problems, but the inability to conceive or effectively deal with such questions and observations beyond recommending further institutionalization may only prove Illich's point about schooling.


Fortunately, there are a number of places in which alternatives to conventional schooling are taking shape. A good place to begin a survey of alternatives to schooling is India. Several independent films have highlighted a variety of efforts at coming to terms with the detrimental and destructive aspects of schooling and finding ways to participate in alternatives rooted in communities that are pursuing different strategies. Leaving school altogether is the subject of several independent documentaries produced by Shikshantar and Abhivekti. For example, the 2004 film 'Walkout,' accompanied by an occasional newsletter entitled Swapathgami, tells the stories of young people who have been failed by modern schooling and have taken it upon themselves to walk out and find other ways of living and learning. The 2002 Unfolding Learning Societies meeting in Udaipur is profiled in the film 'If the Shoe Doesn't Fit,' which includes interviews with young people who are exploring alternatives to modern schooling and the institutionalized lifestyle. Similar conversations about imagining life without schools, which took place at the 2004 World Social Forum in Mumbai, are documented in the film 'Other Worlds of Power.' These works raise a second question, that besides the reasons for people walking out of schooling, there need to be viable alternatives to walk into. The work of Arvin Gupta and others has promoted the creation of children's toys made from natural or found objects, even at times trash, as an antidote to the dependency on products built by others. Some of these are highlighted in the short collection 'Homemade Toys and Natural Playthings' and 'Toys from Everyday Stuff.'

Inspired by Krishnamurti, whose books and lectures suggested new ways to think about life and learning, the film 'School Without Walls' highlights a community of self directed learners in Andhra Pradesh. Influenced by the 1976 publication Danger! School, the animated short film 'Do Flowers Fly' focuses on what is lost by the overly restricted regimentation of modern schooling, which seems more geared toward creating domesticated automatons than enabling whole persons. This works suggest that one way to humanize schools is to integrated them more deeply with community life and development and create settings where students can learn by doing. This approach is profiled in the documentary 'Development Through Education,' which focuses on the Vigyam Ashram learning community near Pune. Similar community based experiences can be found in Kerala, such as those depicted in the 2001 film 'Kanavu Malayilekku: To the Dream Mountain.' This sampling suggests that there are viable and diverse alternatives to conventional schooling, even if they are ignored by mainstream officialdom.


One could find many kindred efforts in the Americas as well, such as the work of PRATEC in Peru to integrate local culture and communities with education, as noted above. In Mexico, the Universidad de la Tierra was established by Gustavo Esteva in Oaxaca as a place where young people can explore learning with one another and from artisans and experts in various fields in a free-flowing, supportive and self-directed environment. Students articulate their experiences at UniTierre in the film 'Nuestros Caminos,' which also includes interviews with Esteva, who is also the author of Escaping Education.


In North America, an important example of a truly humanistic educational experience is Black Mountain College, which operated from 1933 until 1957. An outgrowth of the progressive education movement, it centralized the arts in its curriculum and featured luminaries such as John Cage, Merce Cunningham and Buckminster Fuller on its faculty, and counted among its alumni the painter Harrison Begay and the poet Jane Mayhall. The college has been lovingly portrayed in the 2008 documentary film 'Fully Awake,' which features interviews with former students and teacher interspersed with archival materials. Black Mountain College has also been the subject of a number of books, including Black Mountain College: Experiment in Art, which features an extensive collection of photographs, and the definitive account by Mary Emma Harris, The Arts at Black Mountain College.


Universities have also been the subject of a number of films and videos, in particular on questions of reform. At a 2005 international workshop held in Malaysia, a number of academics and activists met to discuss reform of social science curricula in Third World universities. Excerpts from the workshop assembled into a video as part of the Multiversity project feature a variety of perspectives on this question, including the late Malaysian thinker Syed Hussein Alatas revisiting his work on the 'captive mind' and discussing its implications for ethics within social science curricula. Vinay Lal from India spoke on the 'disciplines in ruins,' focusing on the 'mathmetization' of political science at the expense of other possibilities such as exploring grass roots movements, which are virtually ignored in contemporary political science departments. There was considerable discussion on the prospect of 'walking out' or 'dwelling in the ruins,' as posed by Yusef Progler from Dubai, with participants weighing in on both sides. Claude Alvares of India and Wasif Rizvi of Pakistan advocated walking out of universities and into alternative learning spaces. Fred Chiu of Hong Kong disagreed with the notion of walking out, as it smacked of 'escapism,' and suggested instead that academics remain in the system but learn to 'create viruses' of different ideas and perspectives from within, while Clemen Aquino and Farid Alatas outlined efforts at localizing the social sciences in their respective universities in the Philippines and Singapore.

[This article is extracted from a longer work in progress by J. Progler. It was first published on TV Multiversity in June 2010 and has been bumped to correspond with 'back to school month' 2011.]