Craig Harrington

Author ››› Craig Harrington
  • Fox Suggests Ficticious Cheaper Colleges Are Solution To Mounting Student Debt

    Blog ››› ››› CRAIG HARRINGTON

    Fox Business host Liz Claman suggested that students should attend less expensive colleges as a solution to the mounting student debt problem, a recommendation that does not comport with facts about higher education costs.

    Commenting on President Obama's speech concerning the importance of finding loan solutions for students and families, Claman argued that parents ought to prioritize "finding a less expensive college" during their university search. From the May 31 edition of Fox News' America's Newsroom:

    Claman's argument that aspiring college students should base their choices on tuition costs has little value since education costs are increasing across the board. According to the National Center for Education Statistics (NCES), the average cost of attendance (tuition, room and board) for the 2010-11 academic year at a public university was about $13,600. This rate represented a 42 percent inflation-adjusted increase from the 2000-01 year.

    The growing costs have already altered students' choices about where to attend school. More than four in 10 college students are already choosing less selective college options to avoid mountains of debt. Many students opt for public over private universities based on cost calculations, but they still graduate with too much debt and too few employment options.

    Claman's argument is even less valuable to the more than 37 million American students and parents who already carry student loans. According to data from the Federal Reserve Bank of New York, the share of 25 year olds with outstanding student debt increased from just 25 percent in 2003 to 43 percent in 2012. The average debt balance-per-student increased from $10,649 to $20,326 during that period -- a 91 percent increase.

    Meanwhile, median annual earnings among full-time workers aged 25 to 34 with a bachelor's degree have dropped -- from 2000-2010, earnings fell 12.2 percent among men and 9.5 percent among women.

    With interest rates set to double on July 1, from 3.4 to 6.8 percent on subsidized federal loans, tens of millions of Americans need real time solutions, not empty suggestions that ignore reality.

  • New Study Further Discredits Reinhart-Rogoff Debt Paranoia

    Blog ››› ››› CRAIG HARRINGTON

    A new review of the infamous Reinhart-Rogoff debt-to-GDP study further undermines the right-wing claim that high sovereign debt leads to low economic growth.

    In their paper, "Growth in a Time of Debt," Harvard economists Carmen Reinhart and Kenneth Rogoff supported the notion that high levels of sovereign debt carry disastrous consequences -- particularly when debt reaches 90 percent of GDP -- that was promoted throughout the media.

    Even though that premise was thoroughly debunked in April, members of the right-wing media have clung to the notion that while the 90 percent debt-to-GDP threshold in the Reinhart-Rogoff study was inaccurate, its conclusion that high debt slows economic growth remained unchanged.

    When faced with the discredited research, Wall Street Journal editorial board member Stephen Moore claimed as debt mounts, "the negative effects of that become more pronounced." Fox Business' Lou Dobbs dismissed the critique of the Reinhart-Rogoff study as focusing too heavily on "a small mistake." Douglas Holtz-Eakin of the American Action Forum claimed that "the simple fact that debt ultimately hinders growth is unchanged." And editorials in both The Washington Post and The Wall Street Journal responded to the critique of the study by renewing calls for debt reduction in fear of negative economic outcomes.

    New research further undermines this right-wing narrative. University of Michigan economist Miles Kimball and undergraduate researcher Yichuan Wang, examining the Reinhart-Rogoff data, conclude that high levels of debt have no link to slow, much less reverse, long term economic growth:

    Based on economic theory, it would be surprising indeed if high levels of national debt didn't have at least some slow, corrosive negative effect on economic growth. And we still worry about the effects of debt. But the two of us could not find even a shred of evidence in the Reinhart and Rogoff data for a negative effect of government debt on growth.

    Kimball and Wang's findings provide yet another blow to right-wing media's academic defense of austerity. 

  • To Media, Effects Of Spending Cuts Confined To Flight Delays

    Blog ››› ››› CRAIG HARRINGTON

    Media coverage of the effects of across-the-board spending cuts has narrowly focused on Federal Aviation Administration (FAA) furloughs, largely ignoring the broad effects of cuts on other programs and agencies.

    On April 26, the House of Representatives approved legislation to end furloughs at the FAA, which had caused significant flight delays. The agency had previously warned that automatic spending cuts would force rolling furloughs of roughly 15,000 air traffic controllers and other staff.

    In the week leading up to the House vote, media was heavily focused on the effects of FAA furloughs. A Media Matters analysis found that in the week of April 22 to April 28, 49 cable and broadcast evening news segments mentioned the automatic budget cuts. These segments offered little analysis beyond highlighting the long lines and flight delays expected at airports.

    Media's focus on the effects of budget cuts in the past two months has largely been confined to discussing effects on the FAA. On May 24, "Furlough Friday", four federal agencies -- the Environmental Protection Agency (EPA), the Department of Housing and Urban Development (HUD), the Internal Revenue Service (IRS) and the Office of Management and Budget (OMB) -- forced 115,000 employees to take a day of unpaid leave. As reported by Politico, this forced closure represented the "largest nonweather related partial government shutdown in recent memory."

    Despite the impact of "Furlough Friday" on the ability of federal agencies to operate, media remained largely silent. Broadcast and cable news segments were seven times more likely to cover sequestration during the week of FAA furloughs than the week of EPA, HUD, IRS and OMB furloughs. The disparity comes despite the latter round of forced leave affecting nearly eight times more workers across a broader range of government.

    MMFA

    Despite the media's lack of coverage, sequestration is still in place and all federal agencies are being forced to cut corners. The budget cuts even altered Memorial Day celebrations across the country over the holiday weekend.

    The long-term effects of fiscal austerity can be seen from low-income school closures to impaired military readiness. Another 700,000 federal employees -- mostly in the Department of Defense -- will be forced to take unpaid leave through the remainder of the year.