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Does Michigan’s Emergency-Manager Law Disenfranchise Black Citizens?

My big one is out today in The Atlantic, on Michigan’s emergency manager law and the residents suing to overturn it. A taste:

The suit highlights the paradox of American municipal governance. Local government is deeply ingrained in the ethos of American democracy, from colonial-era New England town hall meetings to New York City’s experiment with people-powered budgeting. But it is not an inalienable right. The U.S. Constitution guarantees all states a “republican government,” but gives states power to grant — or not grant — home rule to municipalities.

Governor Rick Snyder, a Republican, contends that the state has an obligation to make sure local governments are on solid fiscal footing. Despite the demographic disproportions in the affected cities, it’s unlikely that discrimination has motivated the governor’s EM appointments. The areas under emergency management are some of Michigan’s largest clusters of concentrated poverty, ravaged by decades of deindustrialization.

Discrimination aside, the Michigan appointments — whether constitutional or not — set a troubling precedent by curtailing local representation in the state’s most chronically impoverished cities.

Read the whole thing

Here’s Your Crisis: Student Loan Debt Isn’t A Myth [Infographic]

The student loan crisis is a myth.

So say Nicole Allan and Derek Thompson, who argue in this month’s issue of The Atlantic that the economic returns of college far outweigh the burden of student loan debt.

“Horror stories of students drowning in $100,000+ in debt might discourage young people from enrolling in college, but they are as rare as they are terrifying,” Allan and Thompson wrote in the article. “The economic value of college, meanwhile, is indisputable.”

Allan and Thompson looked for crisis in the wrong places. Six-figure calamities are indeed rare, but millions of Americans are caught between stubbornly weak labor markets and increasingly costly higher education.

1. The employment prospects for young grads are pretty gloomy. According to an Associated Press analysis, 53 percent of recent college graduates are either unemployed or not putting their degree to use

2. Because of the weak job market, borrowers are struggling more and more to keep up with payments. According to TransUnion, federal student loan delinquencies shot up 27 percent between 2007 and 2012. (Private loan delinquencies dropped 2 percent.) 

3.Ddon’t expect the problem to go away once the economy picks up. As Campus Progress recently reported, the growth in Americans with degrees is far outpacing the growth in jobs that require them, meaning jobs that offer a secure path to debt repayment will become ever more competitive.

4. But repayment is already causig hardship: 13 percent of students whose loans came due in 2009 to default on their debt by 2012. Another 26 percent are delinquent, on the cusp of default.

5. It’s not just a debt crisis—it’s an affordability crisis.

CNN Money found that the cost of attending a public university has more than doubled since 1988, even as Americans’ median income stagnated. If our incomes had kept pace with the cost of higher education, the average American would now make $77,000 yearly. 

Finally, the cost of college prevents many low-income Americans from even seeking a higher education. Forty-eight percent of adults aged 18 to 34 without degrees told the Wall Street Journal that they can’t afford to go to college.

Among high schoolers who score highly on the SAT and ACT, 80 percent of kids from wealthy families go on to get college degrees, compared with just 44 percent of those from low-income families. Student loan debt not only makes life miserable for many graduates, it prevents some Americans from even setting foot on a college campus. That’s what we call a crisis.

Posted at Campus Progress.

Why Can’t College Graduates Find College-Graduate Work?

Recent grads

Good luck on the job hunt, grads. You’re gonna need it.

Kate really wants to work in Washington. This young Ivy League alumna, recently profiled in the Washingtonian, has been interning for a year and a half—at a political outfit, a media company and now a law firm. Until she finds salaried professional work, Kate is waiting tables in the evenings to make ends meet, which means she often works 15-hour days.

About half of recent grads are, like Kate, in jobs that don’t require a four-year degree, and the problem is only going to get worse. In the next decade the number of degree-holders will grow more than twice as fast as the growth in jobs that require them.

Why then, are so many young Americans like Kate dead set on college-level employment? And why are they willing to take on tens of thousands of dollars of potentially crippling student loan debt in order to secure a college education?

Here’s a hypothesis: What if the overstock of American college graduates is not a reflection on the market for educated labor, but rather on the decreasing quality of alternatives?

In the eyes of many Americans, “It’s either ‘I have to go to college or I’m going to work at Wal-mart,’” Janelle Jones, researcher at the Center for Economic and Policy Research, said. Jones co-authored the report “Where Have All the Good Jobs Gone?” which found that since 1979, the economy’s ability to generate what the authors consider “good jobs” has diminished by about a third. This is due to deregulation, privatization, a declining minimum wage and a decrease in union membership.

The Atlantic’s Richard Florida wrote last year that with the decline of American manufacturing, workers in the U.S. now fall mostly into one of two classes. The creative class, about a third of working Americans, averages more than $70,000 in take-home pay. Meanwhile, everyone else—about 60 million people—are in the service class, and make an average of just over $30,000.

So where does college fit in to all this? To oversimplify, young Americans once faced a choice between going to college and working a unionized manufacturing or government job with benefits and a middle-class wage. The choice now is between trying to angle your way into the creative class, or working for tips at a restaurant with no benefits or job security.

“The restaurant offered me something full-time, but that’s not a field I want to go into,” Kate told the Washingtonian. Can you blame her?

Mirrored from Campus Progress. Photo: Flickr / scot2342