Posts Tagged ‘American Enterprise Institute’

Richard Florida
by Richard Florida
Tue May 5th 2009 at 10:00am EDT

Rethinking U.S. Housing Policy

Tuesday, May 5th, 2009

What can be done to kick-start the housing industry, and also make housing more affordable for the poor and middle class buyers? A new book by economists Ed Glaeser and Joseph Gyourko takes on these questions and more. Here’s a blurb from the American Enterprise Institute which commissioned the book:

Even after the burst of the housing bubble, homes remain unaffordable for the poor and the middle class in many parts of the country. In a new NRI-commissioned book, Rethinking Federal Housing Policy: How to Make Housing Plentiful and Affordable (AEI Press, December 2008), Edward L. Glaeser and Joseph Gyourko examine why. They show that local building restrictions are the cause of much of the continued high cost of housing.

Glaeser and Gyourko argue that reform of the home mortgage interest deduction would provide incentives to local governments to reduce these barriers, allowing the market to provide more housing and reducing costs. Additionally, they believe that federal subsidies for the production of low-income housing should be eliminated and the funds reallocated to increase the scope of federal housing voucher programs, which allow poor households to relocate to areas of greater economic promise.

Here’s a link for the PDF of the entire book.

Michael Wells
by Michael Wells
Mon Jan 5th 2009 at 6:11pm EST

The Value of College for Most Students

Monday, January 5th, 2009

Two conservative intellectuals have recently raised questions about the value of college for most students. While they come from different starting points, they make the same basic point. I find the sources mildly interesting but I think the basic concept is long overdue. Just as high school needs to be reinvented, so does the undergraduate college model.

Charles Murray from the American Enterprise Institute had a piece in the New York Times about a week ago, which is summarized in these first paragraphs.

Barack Obama has two attractive ideas for improving post-secondary education – expanding the use of community colleges and tuition tax credits – but he needs to hitch them to a broader platform. As president, Mr. Obama should use his bully pulpit to undermine the bachelor’s degree as a job qualification. Here’s a suggested battle cry, to be repeated in every speech on the subject: “It’s what you can do that should count when you apply for a job, not where you learned to do it.”

The residential college leading to a bachelor’s degree at the end of four years works fine for the children of parents who have plenty of money. It works fine for top students from all backgrounds who are drawn toward academics. But most 18-year-olds are not from families with plenty of money, not top students, and not drawn toward academics. They want to learn how to get a satisfying job that also pays well. That almost always means education beyond high school, but it need not mean four years on a campus, nor cost a small fortune. It need not mean getting a bachelor’s degree.

Then yesterday George F. Will had a rambling column in the Washington Post about civil rights court cases that included this nugget:

…many employers, fearing endless litigation about multiple uncertainties, threw up their hands and, to avoid legal liability, threw out intelligence and aptitude tests for potential employees. Instead, they began requiring college degrees as indices of applicants’ satisfactory intelligence and diligence.

This is, of course, just one reason college attendance increased from 5.8 million in 1970 to 17.5 million in 2005. But it probably had a, well, disparate impact by making employment more difficult for minorities. O’Keefe and Vedder write:

“Qualified minorities who performed well on an intelligence or aptitude test and would have been offered a job directly 30 or 40 years ago are now compelled to attend a college or university for four years and incur significant costs. For some young people from poorer families, those costs are out of reach.”

Indeed, by turning college degrees into indispensable credentials for many of society’s better jobs, this series of events increased demand for degrees and, O’Keefe and Vedder say, contributed to “an environment of aggressive tuition increases.” Furthermore they reasonably wonder whether this supposed civil rights victory, which erected barriers between high school graduates and high-paying jobs, has exacerbated the widening income disparities between high school and college graduates.

Maybe this rings true to me because it matches my own experience. I never liked school with its emphasis on memorization, and was bored to tears as a college freshman when I dropped out. By the time I went back years later and got a BA, I was able to test out of about two years worth of courses. By then I had started a couple of small businesses, edited and published two newspapers, been a broadcast engineer, managed a radio station, done a lot of political activism, and had many other jobs. None of these required me to have a college degree at the time.

However, I don’t accept Murray’s thesis that this is primarily Obama’s responsibility – everyone under the sun is trying to pile more work on his desk. Instead it should be the basis of a public conversation involving universities, think tanks, unions, and other interested parties.

What do others think?