Under guise of ‘affordable housing,’ abusive agencies might be making a comeback

Support our troops? Support education choice for their kids

MOVE OUT: U.S. Marines at Camp Pendleton, California, preparing for deployment, Oct. 24, 2017. (U.S. Marine Corps photo by LCpl Anabel Abreu Rodriguez)

Among the many burdens we place on military families, there’s frequent re-location from one military duty station to another – one year you’re in North Carolina, the next in Southern California or Norfolk, Virginia or even Germany or Japan. These are not combat zones but some of the places the military send both the military member and his or her spouse and family. Part of that is requiring children of a military family to pack up and move their lives, including their ongoing education, to another state or even nation.

In California, there are 32 military bases of all four branches plus the Coast Guard with thousands of military families at each base. At Camp Pendleton alone there are 42,000 active duty military personnel serving on base – many, many of them with families that include school-age children.

Those children (and their parents) find themselves at the mercy of the local public school districts. Sometimes these schools are perform poorly – or are even rated “failing” year after year with no change in sight. Sometimes, the child has special education or other needs that the local school simply cannot take care of.

Like most states, California does not have school-choice options available for such military families. Here, the children of military families are stuck in the school that is simply nearest their parents’ military duty station.

Private school is rarely an option for low-paid military families – the tuition is simply beyond reach. Studies reveal that many times military families, faced with the prospect of placing their children in a school that does not meet their child’s needs, exit the military.

The resulting troop loss is no small matter. Taxpayers pay hundreds of millions of dollars to train military members in many different occupations. Mechanics (jets, trucks, tanks, etc.), doctors, nurses, pilots, special forces, supply or logistics specialists, etc., etc., etc. – all are vital to the national defense. When military members leave the service, our armed forces lose those members’ years of experience, leadership and the hundreds of millions of taxpayer dollars spent in training them. This places a significant burden on the military budget to replace those service members. In short our national security suffers greatly and this is costly to taxpayers.

There’s a proposal that will largely solve this problem. H.R. 5199 (introduced by Rep. Jim Banks, R–IN) and Senate version S.2517 (Senator Ben Sasse, R–NE) will amend the Elementary and Secondary Education Act of 1964. It is also known as the Education Savings Accounts for Military Families Act of 2018.

Under these bills, military families would be allowed to establish education savings accounts. It would transition Impact Aid funds the Federal Government already pays to local school districts for the education of military dependents into these accounts. Then the parents could choose the school of their choice – the best place for their child’s education needs. Private schools, parochial schools, private tutoring and even homeschooling expenses would be approved expenses under H.R. 5199. And if there is money left over at the end of the school year, it can be rolled over for the next year – or even for college. Funds not used by the time the child leaves the education system are paid back to the government and the educational savings account for that child is closed.

Just as in the current public school system, the money would follow the child; unlike the current California system, those funds would be allowed to follow the child outside of the public school system. Parents, not a Zip code, would determine educational choice for a child.

Educational Savings Accounts are already a proven success in providing a better education for children. H.R. 5199 will allow military families, including thousands of families stationed in California, the freedom to make the best choices possible for their children. This will likely be a major factor in whether many servicemen and women elect to stay in the military.

Congress members should co-sponsor and vote yes on H.R. 5199 or make this proposal part of the National Defense Authorization Act which is passed every year by Congress to fund our military.

Craig P. Alexander is an attorney and former U.S. Marine who serves as general counsel to the California Policy Center. His office is located in Dana Point, California and his practice includes insurance, commercial leasing, business contracts, the California Public Records Act and HOA law and litigation. He can be reached at Craig@CraigAlexanderLaw.com.

 

Don’t believe the hype: Janus ruling will help public employee union members – and unions

cHArTERS

How to Reduce the California State Budget by $40 Billion

As of a few days ago, high-wage earners have a new reason to leave California: their state income taxes are no longer deductible on their federal income tax returns. Can California’s union-controlled state legislature adapt? Can they lower the top marginal tax rates to keep wealthy people from leaving California? The short answer is, no, they cannot. They cannot conceive of the possibility that California’s current economic success is not because of their confiscatory policies, but in spite of them.

It’s Janus in February

Public employee freedom case is set to be heard by SCOTUS on Feb. 26. Two months from today, the U.S. Supreme Court will hear arguments in the Janus v AFSCME case, with a decision scheduled to be announced in June. If successful, it would free public employees in 22 states from having to pay any money to a union as a condition of employment.

City services slashed to fund pensions, and now your taxes are going up, too!

Overturning the Teacher Turnover Fables

The “nationwide teacher shortage” claim is a myth that has been perpetuated on and off for about a hundred years now. Of late, its inaccurate cousin the “teachers are leaving the profession in droves” fable has been giving it some serious competition however. And California, never a place to avoid a good fad, has hatched a plan to address the mythical problem. In an attempt to lure and keep teachers, there is talk of a “The Teachers Fair Pay” referendum which would align teachers’ pay to the wages of state lawmakers, about $104,000 a year.

After Janus, Will Union Grassroots Members Assert their Political Voice?

The looming Janus vs. AFSCME decision, expected by Spring 2018, is probably going to validate the contention that ALL public sector union activity is inherently political. Once this landmark case is decided, members will not only have the right, already existing, to opt-out of paying political dues. After Janus, they may also have the right to opt-out of paying ALL dues, including “agency fees.”

The scope of this ruling is uncertain, but it’s reasonable to assume that public sector unions are going to become more accountable to their membership than ever before. How will members respond? Will they put California first, or continue to condone the destructive policies their unions promote as long as they benefit?

There are already resources available for unionized government workers and contractors who want to opt-out of paying dues that are used for politics, even though they still have to pay “agency fees.” Resources for most of California’s public employees, including teachers, can be found here. Resources for home health care workers can be found here. After the Janus ruling, those resources will be strengthened and expanded in scope.

But what sort of platforms will emerge for government workers who wish to remain union members, but want to challenge the political agenda of their unions? Will these dissidents, who often constitute a majority of the membership, have a way to influence the political agenda of their biased leadership? In the wake of Janus, innovative ways to facilitate this internal revolution within government unions should be a priority for anyone trying to bring real reform to California politics.

For decades, public sector unions have been the quiet, gargantuan impetus behind the growth of government at all levels, especially at the state and local level where 60% of all taxes are collected and spent. There are obvious consequences of a political agenda that wants to expand government without any regard to the cost or benefits, such as relentlessly increasing taxes at the same time as services are diminished. But there are two even more profound consequences that elude casual scrutiny. Both are extremely expensive for ordinary Californians.

The first is California’s status as a magnet state for welfare recipients and destitute, unskilled immigrants. Many of these immigrants come from cultures that devalue education, accept corruption as normal, and are hostile to American values and traditions. Apart from the staggering cost to taxpayers to provide these newcomers direct benefits, this policy necessarily requires more police, more prisons, more translators, more multi-lingual educators, more public housing and subsidized housing, more subsidized health care, more welfare and government aid of all types. Other indirect costs must include more public university majors in identity politics so less qualified students can get a “degree,” more quotas in hiring and college admissions so less qualified applicants can avoid being victims of “discrimination,” and more bureaucrats, social workers and college “administrators.” A gold mine for government unions.

The second is California’s embrace of an extreme environmentalist agenda. These policies create artificial scarcity not only for public services, but more significantly, for housing, water and energy. While ordinary private citizens suffer, and unionized public employees get cost-of-living recompense, demand driven asset bubbles inflate investment portfolios, most particularly the $1.0+ trillion in California’s state and local public employee pension fund assets. Artificial scarcity also requires expensive, expanded enforcement apparatus – more code inspectors, mass transit workers, higher fees for any sort of construction. And of course, artificial scarcity creates a housing price bubble that translates directly into massive increases in property tax revenue. Again, for government unions, extreme environmentalism is the gift that keeps on giving.

California’s government unions control the state legislature and nearly every city and county. Their policy is to invite in millions of dependent people, costing taxpayers hundreds of billions, while at the same time making it unaffordable for middle class taxpayers to live here through policy-driven artificial scarcity. This is more than just self-serving madness, it is oppression.

Public servants have hard choices to make. They may consider the following:

(1) As public servants your loyalty is to California’s citizens first.

(2) If you are public safety employees, your sworn duty is to keep California’s citizens safe.

(3) As union members, your priority should be the welfare of all of California’s workers, not just government workers.

What should public servants do? When the Janus ruling forces government unions to be more accountable, how will their members raise their collective voice? Will they understand that their unions should be fighting for policies that (1) welcome skilled workers who are encouraged to assimilate, and (2) support enactment of sensible environmentalist laws?

The hard fact is this: The more cultural upheaval there is, and the higher the cost-of-living gets, the more government expands and the more government unions benefit. And the more government expands to address these self-inflicted problems, the less government resources are left to complete infrastructure projects and provide other basic services to taxpayers. This is why there is an inherent conflict between the interests of public sector unions and the public interest. This is why public sector unions should be outlawed.

But so long as public sector unions exist, to condone their destructive political agenda in exchange for personal gain, even via sins of omission, is unforgivable.

Teacher Union Pinocchios

A new poll shows that teachers are politically divided, but union political spending is anything but. The results of a poll released last week by the Education Week Research Center reveal that teachers are evenly distributed across the political map. 29 percent said they are liberal, 27 percent conservative and the remainder describe themselves as moderate. The results are not really surprising, as an internal National Education Association poll dating back to 2005 shows pretty much the same thing. In fact, the 2005 NEA survey, consistent with previous results, found that members “are slightly more conservative (50%) than liberal (43%) in political philosophy.”

Shoddy Studies

Flawed reports aside, charters – schools of choice – are flourishing. As I wrote last week, too many government-run schools are failing and the future for them, collectively, is not rosy. But the monopolists running our traditional public schools (TPS), in addition to blaming lack of funding, have been busy lashing out at charter schools, which are decentralized and give parents a right to choose where to educate their kids.

If You Think the Bull Market Rescued Pensions, Think Again

One year ago the Dow Jones stock index was 19,756. Today it closed at 24,211, an increase of 23%. Pretty good for one year! When the stock market does well, pension funds do well, since that’s where these funds place most of their portfolio investments. But CalPERS, the largest public employee pension system in the United States, is not doing well. Why not?

The table below shows how well CalPERS, the California Public Employees Retirement System, has performed with its investments over the past twenty years through their most recent fiscal year ended 6/30/2017.

As can be seen, CalPERS, like the stock market, and like all pension systems that rely primarily on the stock market to drive the performance of their investments, has had good years and bad years. Back in the late 1990’s, when the stock market was roaring, CalPERS put together a string of great years, including a whopping 20.1% return in 1997 and a 19.5% return in 1998. Then in 2001, after the internet bubble burst, CalPERS lost 7.2%, followed by a 6.1% loss in 2002.

A similar up/down story can be told during the stock market recovery in the mid-2000’s, where CalPERS logged a 16.6% return in 2004, 12.3% in 2005, 11.8% in 2006, and a spectacular 19.1% in 2007. Then when the housing bubble burst, CalPERS lost 5.1% in 2008, followed by a 24.0% loss in 2009. Now the stock market has turned in eight years of positive returns. What could go wrong?

CalPERS Investment Returns, 1997-2017

One could argue that stocks rise and fall unpredictably but over the long run their positive performance is reliable. This is validated by looking at the average returns for CalPERS over the past 20 years, as shown in the next chart. As can be seen, over the past 20 years, CalPERS has generated an average return of 6.58%, very close to the average they claim they can earn, currently set at 7.0%.

CalPERS Average Return Over Various Time Spans Ending 6/30/2017

Ok, so CalPERS said they could hit 7.0% and over the last twenty years, they hit 6.58%. What’s wrong?

Actually, a lot is wrong. Here goes:

(1)  It doesn’t seem like very much, but the difference between a 7.0% rate of return and a 6.58% rate of return is actually quite significant. The impact of compound interest over the multi-generational time span of pension fund investments magnifies the impact of even a small reduction in how much pension systems expect to earn. For example, the difference between 7.0% and 6.58% is 0.42%, a little less than one-half of one percent. But that 0.42% reduction increases the required annual contribution as a percent of payroll from 23.0% to 25.8% – and as a fully funded plan becomes unfunded, as will be seen, the “catch up” contributions start to pile up.

(2)  While CalPERS currently assumes a long-term annual rate of return of 7.0%, back in 2001 they assumed an 8.25% rate of return (ref. CalPERS 2001 CAFR, “Economic Assumptions,” page 73). The gap between 8.25% and 6.58% is huge. If pension system actuaries predict an 8.25% annual investment return, a fully funded plan only has to receive annual contributions of 16.4% of payroll, compared to 25.8% based on a prediction of 6.58% returns. Based on this analysis, back in 2001, when CalPERS should have been collecting 25.8% of payroll, they were only collecting 16.4% of payroll.

Before all these numbers start to swim about incoherently, the next chart shows the bottom line result. Back in 1999, CalPERS had invested assets totaling $149 billion. The present value of their pension obligations to current and future retirees was estimated at $116 billion, which is to say they had a surplus of $33 billion. Put another way, their assets exceeded their liabilities by 128%. No wonder they worked with public sector unions to increase pension benefit formulas. But by 6/30/2016 – the most recent data available – CalPERS had assets of $298 billion, but they had liabilities of $436 billion. That is, they were now only 68% funded, and they had a deficit of $138 billion. The chart below dramatically illustrates this nearly twenty year decline in the financial health of CalPERS.

CalPERS Unfunded Liability by Year, 1999-2016

The financial challenges facing CalPERS are even worse than this chart indicates, because when a pension system is fully funded, it can much more easily absorb a few years of market losses. But despite earning 6.58% over the past 18 years, CalPERS has gone from 128% funded to only 68% funded. They have gone from having a $33 billion surplus to having a $138 billion deficit. When the investments that have soared over the past eight years endure the inevitable downward correction, CalPERS will be even more underfunded. Put another way, pension systems should be registering deficits like this at the end of a bear market, not after eight years of a bull market.

The bull market did not save the pension funds. If it had, CalPERS would have a surplus, not a $138 billion deficit.

Taxpayers, public servants, elected officials, pension fund management, public sector union leadership: Beware. Public sector pensions are not financially healthy, they are going to require higher contributions every year, and what precarious stability they do maintain is only a result of a bull market that is very long in the tooth.

REFERENCES

CalPERS Annual Report 2017 (ref. page 120 for data on funded status 2007-2017)

CalPERS Annual Report 2008 (ref. page 64 for data on funded status 2006-2002)

CalPERS Annual Report 2004 (ref. page 56 for data on funded status 2001-1999)

Graphics to Explain the Pension Crisis to Colleagues and Constituents

Explaining the Pension Crisis – Additional Graphics

Pension Questions To Ask Your Agency’s CFO, Actuary & Auditor

The source for the pension contributions required at various rates of return were calculated using the downloadable Excel spreadsheet “Pension Analysis Model.” A tutorial on how to use that model is provided in the article “A Pension Analysis Tool for Everyone.” Please note this Excel model calculates the “normal contribution” only, and does not calculate required contributions as a percent of payroll for underfunded systems.

The Coming Public Pension Apocalypse, and What to Do About It, CPC Study, 2016

Marc Joffe from the Reason Foundation contributed to this article.

Unions rigged the rules, but can do little more than brace for end of mandatory union dues

Rhetoric to Challenge California’s Statist Elites

California’s ruling elites have enacted policies that make it impossible for middle class citizens to live here. They have artificially elevated the cost of living, nearly destroyed public education, decimated public services, neglected public infrastructure, and declared war on small business. To deflect criticism, they’ve convinced a critical mass of voters that any attempts to roll back these abominable policies are being engineered by racist, sexist plutocrats, and their willing puppets in the Republican party.

Exposing this diabolical, conniving scam won’t be easy. The ruling elites are a powerful coalition, comprised of left wing oligarchs including most of Silicon Valley’s billionaires, California’s public sector unions armed with the billion dollars (or more) they collect every year in forced dues, and the environmentalist lobby and their powerful trial lawyer cohorts.

Defeating California’s ruling elite requires a new coalition, comprised of the private sector middle class, enlightened members of the public sector middle class, and members of disadvantaged communities that aspire to the middle class. Attracting members of these communities, especially California’s Latinos, Asians, and African Americans, requires convincing them that current policies actually harm their interests.

To do this, there are two moral arguments the elites make that have to be debunked, because they underlie all of the intrusive, statist policies that are destroying California’s middle class. The first is the argument that capitalism is inherently evil and must be strictly curbed if not completely replaced by socialism. The second is the argument that unprecedented sacrifices must be made in order to save the planet from an environmental catastrophe.

Corrupt Capitalism vs Competitive Capitalism

Here are examples of two very different ways to critique wealth. In each example, the first phrase is employed by the ruling elites. It feeds on resentment and ignorance. The second phrase is offered as a counter argument. It appeals to the aspiring middle class family, or the small businessperson. It is designed to extol the positive virtues of capitalism and expose the opportunistic cynicism of the statist elites.

(1) “Tax the corporations” vs “make corporations compete.”

(2) “Capitalism is inherently evil” vs “no economic system in history has delivered more individual freedom and prosperity.”

(3) “Wealth is usually the result of privilege” vs “Wealth is usually the result of hard work in a free society.”

(4) “Government needs to regulate corporations” vs “corrupt corporations use regulations to destroy their smaller competitors.”

(5) “We have to redistribute wealth so people can afford to live” vs “we have to nurture capitalist competition to lower the cost of living.”

These arguments shine a spotlight on the great con job promulgated by the elites: The ruling class does not care about you, but we do. Because like you, we have to try to make payments on a half-million or even a million dollar mortgage, just to own a small house. Like you, we have to pay more for gasoline and electricity than any other citizens in any other state in America. Like you, we have to send our children to failing K-12 schools, then sink further into debt to pay tuition for them to attend colleges and universities where they don’t get a good education.

Extreme Environmentalism vs Practical Environmentalism

Apart from the distraction of race and gender, environmentalism provides the moral argument used as cover for policies that have imposed a punitive cost of living on Californians. It is important to make the distinction between attacks that discredit environmentalism in its entirety, and environmentalist reform that exposes the hidden agendas and inherent futility of California’s extremist environmental policies. Here are examples of two very different ways to apply environmentalist values.

(1) “Stop urban sprawl” vs “California has 163,000 square miles of land and is nearly empty, adding 10 million more people on quarter acre lots (even including new roads and new commercial/industrial centers) would consume less than 2,000 square miles!”

(2) “People need to live in multi-family dwellings” vs “detached single family homes are cheaper per unit to build than multi-family dwellings, and are more popular among buyers.”

(3) “There isn’t enough water for people to have detached homes and yards” vs “for less than $20 billion, we could build enough desalination capacity to provide water to every home and business in Los Angeles County; farming consumes 80% of all water diversions in California, we are exporting water intensive crops like alfalfa, grown using massively subsidized water, in the Imperial Valley (desert)!”

(4) “The government needs to discourage further development of fossil fuels such as clean natural gas” vs “Californians are paying as much as ten times what energy consumers pay for electricity in low cost states, and that California’s CO2 emissions are a minute fraction of those from other nations such as China and India.”

(5) “We have to get people out of their cars and build passenger rail” vs “cars, trucks and buses offer far more convenience and versatility, and are on the verge of becoming 100% clean and sustainable modes of transportation.”

(6) “No new mines and quarries should be allowed within California, and existing ones should be phased out” vs “developing in-state natural resources creates in-state jobs and costs less than importing materials from elsewhere in the U.S. and Canada.”

When the elites demand “environmental justice” for people of color, ask them (using the San Francisco Bay Area as an example) what any of that has to do with why we can’t build homes on the eastern slopes of the Mt. Hamilton Range, or in San Jose’s Coyote Valley, or along the I-280 corridor in the Santa Cruz mountains. Ask them why they’re paying 60% of their income for rent or a mortgage, when California has 163,000 square miles of land and is nearly empty. Ask why money that is being spent on high speed rail, using imported materials, isn’t instead being used to create high paying jobs in road and infrastructure projects that will actually improve lives. Ask why thousands of people aren’t working in high paying jobs in mining and quarrying, so building materials can cost less.

For aggressive reformers, good questions are plentiful. What have California’s elites done for working families? Have they gotten you better jobs? Have they nurtured robust and competitive housing markets to lower the price of a home? Have they widened the freeways? Have they enabled competition to drive down the cost-of-living? Have they made your communities safe and prosperous and affordable? Have they done anything other than bribe your so-called leaders with campaign contributions so they’ll do what they’re told?

It comes down to this: These purported spokespersons for true environmentalist values have become personally successful by fomenting environmentalist panic, but they do not represent the best interests of ordinary Californians, and they do not articulate a realistic or practical vision of environmentalism.

California’s elite has declared war on the working class. They have used race as a distraction, and extreme environmentalism as the phony moral justification for their self-serving policies. They must be exposed.

The Moral High Ground

This fact – that the rhetoric of California’s elite does not translate into a better quality of life for the people they govern – is the core moral argument against current policies. Across virtually every issue, the policies of the elites are failing ordinary Californians. Pouring money into public schools has not helped students. Raising taxes has not improved services. Expanding college curricula that replace academic rigor with what amounts to political indoctrination has not improved employment opportunities for graduates. And creating artificial scarcity in the name of saving the planet has not helped the planet, but it has impoverished millions of California’s most economically vulnerable residents.

In claiming the moral high ground, reformers can use the same rhetoric the elites have employed for decades, and by doing so will find the elites have already done much of their work for them. The seditious goal of making California friendlier to small businesses, with more affordable housing, more affordable energy, better jobs and better schools is furthered by reminding Californians what the elites have done. They have engaged in one of the biggest cons of all time, enriching themselves at the expense of the average worker.

Once the issues of race and environmentalism are exposed as overstated issues, overemphasized in order to manipulate the electorate, then the resentment the elites have inculcated in their constituents can be turned against them.

Pro-growth policies don’t have to rely on terminology that has been tainted by the status-quo elites. “Free market,” “Libertarian,” “Conservative,” “Classical liberal,” etc. have seductive appeal for many ideologically driven reformers, but they have limited value in California politics. Reformers have to supplement their vocabulary, borrowing more from the left than from the right. The values and slogans that the ruling class has invested decades in inculcating in the minds of Californians can be used against them, because these elites have engaged in rank hypocrisy. Terms such as “social justice” and “equity” now have tremendous value to reformers, because reform policies will further those goals, whereas the policies implemented by California’s elite have condemned ordinary people to poverty.

Examples of using terms popular with the left to advance reformer causes:
Social justice – charter schools, teacher accountability
Civil Rights – the right to a quality education in a school chosen by parents
Equity – competitive land development to create affordable housing
Micro-aggression – countless taxes, hidden taxes, fees and regulations
Fairness – prices for energy and water competitive with other states
Progressive – pension benefits with lower percentage formulas for highly paid public employees
Diversity – college curricula that embrace conservative as well as liberal values
Anti-Discrimination – merit based, color blind criteria for hiring and college admissions

A pragmatic, centrist ideology that co-opts the rhetoric of the status-quo elites to attack the ruling class can resist being pigeonholed as left or right, or conservative or socialist. We are pragmatists. We are pro-growth, pro-job Californians and our policies will lead to prosperity, affordable housing, affordable utilities, affordable education, and social justice and equity for all Californians, and not just the elites.

CalPERS is shocked – just shocked – to find cities reeling under the burden of growing pension debt

After Janus

The Government Union War on Meritocracy

How can you persuasively counter arguments for diversity quotas, when implacable fanatics purporting to represent every identifiable group whose aggregate achievements fall short of the mean will argue it is discrimination, not merit, that determine outcomes? Expect no help from government unions. Resentment gives them passion, restitution gives them power. Undermining the meritocracy is key to their survival.

Imagine a public school system where the excellence of teachers was the only institutional criteria for their job security and prospects for career advancement. Imagine government bureaucracies where innovative, more effective practices were adopted even if it meant smaller budgets and fewer employees. Imagine law enforcement agencies that had zero tolerance for officers that abused their authority. Are we there yet? Not if government unions have anything to say about it.

But the government union war on the meritocracy goes well beyond protecting bad employees. Government unions representing K-12 teachers and college faculty have been overran by “social justice warriors” who preach identity politics as the new religious gospel and the new academic canon. They have taken their war on the meritocracy into the classrooms and lecture halls, saturating the curricula from kindergarten to graduate school. Their message? Unless you are a heterosexual white male, you are a victim of discrimination by heterosexual white males. You live in an unjust society. Merit, according to this doctrine, is a smokescreen. It is discrimination in disguise.

What do you do if you believe in meritocracy? What do you do about this?

Math SAT Scoring Distribution by Ethnicity – 2015

If you want to earn more money in a merit-based, productive market economy, quantitative reasoning skills are required. The more of these skills you’ve got, the more money you’ll earn. So what happens when you have far, far higher percentages of highly qualified individuals in some groups than in other groups?

When it comes to college admissions and college curricula, the solution of the social justice warriors, and the faculty unions who nurture them, is many faceted. Here are some of their mitigating strategies:

  • Invent “holistic” admission criteria that diminishes the importance of quantitative aptitude.
  • Concoct theories of cognition that claim math itself is an arbitrary and subjective expression of white power (yes, this really happened).
  • Create entire college departments that are academically weak but instead offer separatist political indoctrination.
  • Blame most if not all of the gap in aptitude on systemic discrimination by the “white patriarchy.”
  • Demand race-driven quotas of ever-expanding scope; in hiring, promotions, housing, wealth, political office, whatever.

The problem with these solutions, if you want to call them that, are their actual consequences. In pursuit of quota driven diversity, colleges are turning away qualified applicants at the same time as colleges are failing to produce anywhere near the number of STEM graduates that American industry demands. Meanwhile, the students that are waved in despite being marginally qualified to pursue higher education are being trained to ascribe any failures they may encounter to racism, and any successes they may encounter to fortuitous state intervention. And not least, there is the consequence of bitterness and cynicism being bred into the psyche of all those more qualified students and future employees who are passed over in favor of meeting diversity quotas.

How does one challenge the doctrine of equality over merit? How do you challenge allegations of systemic racism? How do you do it persuasively, with hard facts, but also with compassion and empathy? It’s not easy. College youth need passion, they need a cause, they need clarifying polarities. The teachers unions offer them a good one: A rich and wealthy white patriarchy that has exploited people of color for centuries, one that must be resisted, uprooted, and replaced.

Tough love arguments should be part of any campaign of persuasion. Reality therapy. Why are people with lower test scores admitted to college if they’re being discriminated against? That’s ridiculous. And why do they think taking classes that replace difficult coursework with political indoctrination – fomenting resentment and advocating separatism – are going to give them marketable skills? Do they really believe they need on-campus “cultural safe spaces”? Aren’t those just a 21st century version of Jim Crow laws? Where does this end? And why do Asians perform so well on college aptitude tests? Why are Asians so successful economically? Aren’t they also “people of color”? Could it be because they study so diligently, and that a meritocracy is colorblind?

Along with tough love, opponents of quotas should offer understanding. It is our individuality that defines our abilities and challenges much more than the groups we’re a part of. All ethnic groups are collections of individuals with infinite diversity; short and tall, thin and obese, weak and strong, plain and beautiful, slow and smart, timid and assertive, surly and charming, lucky and unlucky, good and bad. As individuals we succeed and we fail. We endure crushing disappointments and spectacular success. Life is not always easy or fair – for anyone. We are joined by our common humanity, no matter what color we are. And nothing overcomes prejudice, should it ever exist, better than a smile.

Despite occasional rhetorical acknowledgments, government unions don’t like the message of individual accountability. But that is the message that must prevail, if we are to avoid the tyranny of quota-driven equality of outcome.

REFERENCES

Race gaps in SAT math scores are as big as ever – Brookings Institution (source for chart)
https://www.brookings.edu/blog/brown-center-chalkboard/2017/02/01/race-gaps-in-sat-math-scores-are-as-big-as-ever/

How Public Sector Unions Exploit Identity Politics

As the ethnic composition of America changes from mostly white to a kaleidoscope of color within a generation, there is no better way to fracture society than to teach everyone to resent everyone else. Nurturing tribal resentment is a winning strategy for government unions, because a swollen, authoritarian, unionized government becomes the referee. Government union power increases every time another “person of color” becomes convinced that only government redistribution and racial quotas can mitigate their persecution at the hands of a racist white “patriarchy.”

When society fractures, when we face increasing unrest and poverty, government unions win. It is inherently in the interests of government unions for society to fail. If public education fails, hire more teachers and education bureaucrats. If crime goes up, hire more police and build more prisons. If immigrants fail to assimilate, hire more multilingual bureaucrats and social workers. If poverty increases, hire more welfare administrators.

If you don’t think this strategy can work, come to California, America’s most multi-ethnic state, and a place where government unions wield absolute power. Their wholly owned subsidiary, the Democratic party in California, has spent the last 20+ years perfecting the art of convincing the electorate that Republicans are racists. The strategy has been devastatingly effective, especially with people of color.

According to the Public Policy Institute of California, among California’s “likely voters,” slightly more Whites remain registered as Republicans, 39%, than Democrats, 38%. Among Latinos the registered Democrats, 62%, far outnumber Republicans, 17%, and among Blacks the disparity is even greater, 82% Democrat vs. 6% Republican. Among Asians, where the disparity is less, the Democrats still have a nearly two-to-one advantage, 45% to 24%.

All of this racial perseverating comes at tragic cost. Among the fifty states, California has the highest taxes, the highest state and local government debt, the most welfare recipients, the most people living in poverty, and the highest cost-of-living. The roads and bridges are crumbling, and the water and energy infrastructure hasn’t been significantly upgraded in 30 years. But purveyors of identity politics have a strategy that earns votes, so why engage in actual governance? It’s all about race, stupid. Hire more bureaucrats.

The worst consequence of choosing identity politics over actual governance is the slow but relentless destruction of California’s once great system of public education. There has been negligible improvement in educational achievement for members of California’s disadvantaged, despite decades of political control by public sector union funded Democrats who pander incessantly to the voter’s lowest common denominator of resentment, race. Rather than admit that failures of culture, community, and public education are the real reasons some ethnic groups underachieve, the Democrats that run Sacramento attribute every disparity in outcome among races to the pervasiveness of racism. Their solution? Quotas.

Here is an interesting comparison to prove that quotas are being used to discriminate against California’s “privileged” youth. All data is for 2017. The first column shows what percentage of students taking the SAT, by ethnicity, achieved a score at or above the minimum to be considered “college ready.” The second column shows the ethnic breakdown of college age students in California. Column three uses a factor calculated from columns one and two, for each ethnicity, the percent of college ready students is multiplied by that ethnicity’s percent of the total pool of college age Californians. Each factor is then divided by the sum of all four factors, to calculate a crude but significant indicator of what percentage of 2017 college admissions would be offered to students of each ethnicity, if admissions were based on merit as expressed by SAT scores. Column four shows the actual admissions to California’s UC System in 2017 by ethnicity.

California’s UC System – 2017 Admissions – Actual vs. SAT Based

There are a few obvious takeaways from the above chart. Most salient is the fact that white applicants, if SAT scores were the sole basis for admission, are clear victims of discrimination. After all, if based on their college readiness as assessed by their SAT performance combined with their percentage of the population, they should have earned 43% of the admissions to the UC System, why did they only represent 23% of the incoming freshmen in 2017? But there are other disparities that point to an even bigger problem.

Why, for example, do actual Asian admissions, 34%, exceed the merit based admissions percentage, 21%, as indicated based on their percentage of the college age population and the percentage of them achieving the SAT benchmark? Why, for that matter, are the actual Latino admissions, 33%, slightly less than the amount they would theoretically earn, 35%, based that same criteria? The answer in both cases is the same, and can be best summarized in this quote taken from a report released earlier this year by the Brookings Institution:

“Race gaps on the SATs are especially pronounced at the tails of the distribution. In a perfectly equal distribution, the racial breakdown of scores at every point in the distribution would mirror the composition of test-takers as whole i.e. 51 percent white, 21 percent Latino, 14 percent black, and 14 percent Asian. But in fact, among top scorers—those scoring between a 750 and 800—60 percent are Asian and 33 percent are white, compared to 5 percent Latino and 2 percent black. Meanwhile, among those scoring between 300 and 350, 37 percent are Latino, 35 percent are black, 21 percent are white, and 6 percent are Asian.”

What this means in plain English is that in the UC System, where supposedly only the most elite high school graduates are granted admission, you will find the distribution of the higher SAT scores by ethnicity skewed even more in favor of Asian and White students than you find when evaluating how many students merely achieve the “benchmark” SAT score. This is why Asian admissions, which are arguably the only UC admissions in 2017 that were based truly on merit, skew higher than you would otherwise expect. That is also the reason that Latino admissions skew somewhat lower. And it also indicates that White applicants are discriminated against even more than shown on the table.

Such is the landscape of California’s public system of higher education, considered among the best in the world.

To further investigate this evidence, I talked someone who spent over a decade serving on the Board of Regents at the University of California. They did not mince words. Here are a few of the things they had to say:

– SAT scores have become less important because the university has gone to “holistic admissions” instead of SAT based admissions – the SAT is also watered down with a subjective 3rd “essay” section. The subjectivity of the admissions criteria makes it harder to prove discrimination.

– For years now, the UC System has diversified the faculty by taking more professors to fill positions in African American and Latino studies and shielded itself from discrimination because they can say the person hired had strength in the discipline they needed to fill.

– Ethnic studies departments are academically weak and don’t provide graduates with anything they can use. Most ethnic studies departments are growing because people are being hired and enrolled in order to fulfill de facto diversity quotas both for faculty and students. The alternative would be to destroy the integrity of the hard sciences with unqualified faculty and students.

– After the passage of Prop. 209, the admission of Asians rose to about 35% because you could not suppress their achievement without admitting you’re breaking the law. Latino and Black admissions track at 29% and 6%, respectively, more consistent with their percentage within California’s population. To accommodate the Asian over-enrollment and the Black and Latino quotas, qualified White applicants are the victims – Whites represented less than 25% of admissions to the UC system last year.

– California’s legislature is controlled by the Latino Caucus, which makes sure that 25% Latino admissions are maintained. Whites don’t go out and protest and make noise because that is politically incorrect and the media doesn’t report the data anyway.

Readers are invited to challenge the accuracy of any of the above statements, made by an informed observer. And what is the result of all this mediocrity that hides behind diversity, this discrimination that hides behind achieving quota-driven equality of outcome? A fracturing of society into identity groups, each of them, whether via propaganda or via reality, encouraged to harbor resentment towards every other group.

If one were to identify which of California’s public sector unions is the most guilty of fomenting racial disharmony, it would certainly be the ones representing K-12 public school teachers and the ones representing college faculty. Their outlook, which is reflected in their policies, their curricula, and only somewhat camouflaged on their websites, is to blame the academic achievement gap on anything but their own poor performance as the most influential determinant of educational policy in California. Blame the rich. Blame capitalism. Blame Western Civilization. Blame “white privilege.” Blame racist Republicans. But don’t look in the mirror.

A rising trope among these neo-racialist purveyors of separatist identity politics is that white people should engage in “allyship,” which to them means for well behaved white people to do whatever they’re told by the high priests of the disadvantaged, no matter how disingenuous or ridiculous. But a true ally would provide tough, genuine love, and tell the truth. Which is if you want to achieve in America, the most inclusive and tolerant nation in the history of the world, you have to work hard, stay sober, stay out of jail, keep your families intact, be thrifty, and hit the books.

That truth would unify and enrich this nation. And a unified and prosperous nation would mean less government, less government employees, and weaker public employee unions. We can’t have that now, can we?

REFERENCES

Race and voting in California: Public Policy Institute of California
http://www.ppic.org/content/pubs/jtf/JTF_RaceandVotingJTF.pdf

Class of 2017 SAT Results, College Board
https://reports.collegeboard.org/sat-suite-program-results/class-2017-results

California Demographics by Age and Ethnicity – University of California
https://www.universityofcalifornia.edu/infocenter/ca-demographics

Percentage of 2017 UC Admissions by Ethnicity – EdSource
https://edsource.org/2017/uc-admits-more-students-from-outside-california-but-officials-expect-more-state-residents-will-enroll/584321

Race gaps in SAT scores highlight inequality and hinder upward mobility – Brookings Institution
asdfasdfhttps://www.brookings.edu/research/race-gaps-in-sat-scores-highlight-inequality-and-hinder-upward-mobility/

Even With Affirmative Action, Blacks and Hispanics Are More Underrepresented at Top Colleges Than 35 Years Ago – New York Times
https://www.nytimes.com/interactive/2017/08/24/us/affirmative-action.html

Are We All Unconscious Racists? – City Journal
https://www.city-journal.org/html/are-we-all-unconscious-racists-15487.html