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August 30,
2006
Vol. 2, No. 13
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Also in
this issue:
National expert to testify on
‘ed funding adequacy’ studies
L.A. mayor's school plan passes Senate, but
legal battles loom
Vegas growth faces
more BLM resistance
Welfare-to-work
rules tighten up
Scores drop on
revamped SAT
eBay bounces the homeschoolers
MySpace cowboys
Commentary:
School funding is
adequate, results are not
Face it: The
housing bust is here
Why are we worse off?
Money and the stock market: What is the
relation?
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Terrorists
School funding is adequate, results are not
By Brandon Dutcher
Oklahoma Council
of Public Affairs
In
January Oklahoma’s largest labor union,
the Oklahoma Education Association (OEA), filed
a lawsuit claiming that school funding in
Oklahoma is inadequate. On July 28 an Oklahoma
County district judge dismissed the lawsuit. Now
it’s time to address education’s real problems.
The union says education has reached “a crisis
state.” That’s true, but it’s not a funding
crisis.
Data derived from a March 2006 Census Bureau
report tell us, for example, that the Plainview
School District is managing to spend $25,667 per
student. The Sweetwater School District spends
$20,014 per student. The Reydon School District
spends $17,686 per student.
[continued]

Face it: The housing bust is here
Growing numbers of homeowners
can’t make payments.
By Bill Fleckenstein
MSM Money
Back on
June 12, 2005, Time Magazine chose
this headline for its cover: “Home $weet Home:
Why We’re Going Gaga Over Real Estate.” I did
not share the euphoria, as I believed that the
housing bubble was about to peak.
In fact, in my column two months later -- the
headline of which, “It’s RIP for the housing
boom,” stood in stark contrast -- I said that
Time’s cover would be shown in retrospect as
basically having marked the peak. That real-time
view little more than a year ago has been
validated, regrettably.
[continued]
Cost of living
Why are we worse off?
By Llewellyn H. Rockwell, Jr.
LewRockwell.com
New wage data
indicate what you might have suspected. Average
wages are not keeping up with the cost of living. This
has given rise to claims that we live in the first
sustained period of economic growth that has failed to
offer a similarly sustained increase in real wages.
Indeed, wages have declined in real terms by 2 percent
in the last three years. The first concern is political.
The Democrats, despite their moderating image, carry
with them the intellectual baggage of a Marxist morality
play in which business skims the excess productivity of
labor’s value. This new data is framed in a way that
plays right into this model. Productivity is up, the
rich are richer, but the workers are losing out.
Meanwhile, the Republicans have a very strange response,
as typified by the comments of pollster Frank Luntz. The
bad economic news would not do serious damage to
Republicans, he said, because voters will blame
corporate America and not government for their problems.
[continued]
The Fed
Money and the stock market: What is the
relation?
By Frank Shostak
Ludwig von
Mises Institute
Is it
true
that changes in stock prices are predominantly
set by changes in money supply? At some level,
it makes sense that an increase in the rate of
growth of money supply strengthens the rate of
increase in stock prices. Conversely, a fall in
the rate of growth of money supply should slow
down the growth momentum of stock prices.
The chart below seems to indicate that the
yearly rate of growth of the combined South East
Asian stock prices has a good visual correlation
with the yearly rate of growth of the combined
money M1.
Austrians have generally accepted this causal
connection, though for different reasons than
others, as I will explain.
[continued]
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WHY
BusinessNevada
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Predation
The Trojan
Horse amendment
Union bosses would get new power to sell
workers out if the minimum wage ballot measure passes
this fall
By Steven
Miller
BusinessNevada
Unwitting Nevada
voters appear all set to send out an engraved
invitation this November — to the Mob.
“C’mon
back,” the invitation would say. “Because we fell asleep
at the switch, we’ve passed a scheme that rolls out the
red carpet for you!”
The scheme
in question is buried in the “minimum-wage”
constitutional amendment pushed by the state’s union
bosses. Passed with little discussion in 2004, the
ballot measure goes before voters again this fall. If
approved, its language becomes a permanent part of the
Nevada Constitution.
[continued]
State waste
National expert to testify on ‘ed funding adequacy’
studies
NPRI news
release
A controversial
state-financed study that last week recommended a
$$438
million
per-year increase in Nevada government education
spending already has become the object of severe
academic criticisms.
Scheduled
to appear before state lawmakers on Thursday is Richard
P. Phelps, Ph.D., of Massachusetts, author of
Thoroughly Inadequate: The 'School Funding Adequacy'
Evasion, a white paper released Monday by the Nevada
Policy Research Institute.
The paper
levels detailed criticisms against both the methodology
and premises used by the Colorado firm of Augenblick,
Palaich and Associates (APA), in its Nevada study,
issued last week. The Phelps paper also addresses the
more fundamental question, “If money is not the answer
[to Nevada’s education woes], what is?”
[continued]
School wars
L.A.
mayor's school plan passes Senate, but legal battles
loom
By Aaron C. Davis
Associated Press Writer
California’s state Senate
Monday voted to grant Los Angeles Mayor Antonio Villaraigosa
unprecedented powers over the city's troubled schools,
even as critics blasted the plan as unconstitutional and
the mayor acknowledged that legal battles might prevent
him from taking control any time soon.
[continued]
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L.A.
mayor flexes muscle with school board
Los
Angeles Times
With passage
of the bill to increase his role in the district
virtually certain, Villaraigosa threatens to fire any
superintendent hired without his OK.
[continued]
(requires
registration)
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Real estate
Vegas growth faces
more BLM resistance
By Brian Wargo
InBusiness Las Vegas
The Bureau of
Land Management
has launched an environmental study that will determine
whether Las Vegas would lose thousands of acres that
could be developed because of the need to preserve
prehistoric animal fossils.
[continued]
Subsidies
Welfare-to-work
rules tighten up
Receiving drug counseling
to no longer count as ‘work’
By Ian Mylchreest
LV Business Press
Last week,
many officials celebrated the success of ending welfare
as we knew it 10 years ago. Writing in The New York
Times, President Bill Clinton congratulated himself on
bridging the gap between Democrats and Republicans:
“While we compromised to reach an agreement, we never
betrayed our principles and we passed a bill that worked
and stood the test of time.”
[continued]
Entry-level workers
Scores drop on
revamped SAT
Education Week
Average SAT scores
for this
year’s high school graduates—the first class to have
undergone the revamped test that was introduced in March
2005—dipped 7 points below last year’s composite scores
for both the mathematics and critical-reading sections,
according to a report released today by the College
Board, the New York City-based nonprofit organization
that sponsors the test.
[continued]
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SAT records drop
biggest in 31 years
USA
Today
The high school class of 2006 recorded the sharpest drop in SAT
scores in 31 years, a decline that the exam’s
owner, the College Board, said was partly due to
some students taking the newly lengthened test
only once instead of twice.
[continued] |
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Powermongers
eBay bounces the
homeschoolers
If
you’re a homeschooling parent looking for good
textbooks, don’t bother with eBay
Edspresso.com
A new policy
by Internet trading behemoth eBay that bans homeschool
teachers’ texts from its auctions is prompting an
avalanche of complaints from the company’s faithful
customers.
“Really the homeschooling community is a huge
participant in eBay when you get to thinking about it,”
said one customer who was identified as “angels*wings”
on an eBay blog. “We buy textbooks naturally but we also
purchase items like microscopes, slides, globes, maps,
manipulatives, educational games, reading books,
supplies for our classrooms … stickers, idea books,
folders, sheet protectors, school supplies, software,
educational movies, models, post cards … the list is
enormous.”
The policy, which is inclusive of all teachers’ texts,
was made known recently as those who were auctioning
various books watched as their postings were deleted.
[continued]
Entrepreneurship
MySpace cowboys
They run the fastest-growing Web site on the planet.
They have 100 million friends. Not bad for two guys who
just wanted a place to hang out.
By Patricia Sellers
Fortune editor-at-large
One night this
past
April, Tom Anderson was surfing MySpace.com, as he does
for hours every night, when he spotted a link to
something called kSolo on another member’s profile page.
The service, Anderson learned, lets you record karaoke
online and e-mail songs to friends. A karaoke man
himself (he used to be the lead singer in a band called
Swank), he immediately tried kSolo - playing a scorching
anthem called “Cowboys From Hell” by the thrash-metal
band Pantera.
“It was cheesy but great,” Anderson says. The next day,
he told his business partner, Chris DeWolfe, to check
out the site.
[continued]
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