Feeds:
Posts
Comments

Posts Tagged ‘CATO Institute’

Earlier today, the Department of Labor published a new rule requiring overtime pay for workers who make up to $50,400 a year are eligible for overtime pay if they exceed 40 hours a week.

The idea, championed by President Obama, is this: If more employees are eligible for overtime pay (the average American worker makes less than 50 grad a year), then businesses will either pay their hardest-working employees more, or hire more workers to avoid paying the additional overtime penalty. The DOL estimates about 5 million people will benefit from this new ruling.

So this is wonderful, right? It’s well-known that for many people, employers can require more than 40 hours a week at no extra pay because employees are salaried and not hourly. The Cato Institute offers an opinion:

“In the very short run, employers affected by this expansion may have little choice but to pay their employees higher total compensation; in the very short run, employers have few ways to avoid this added cost.

But in the medium term, employers will invoke a host of methods to offset these costs: re-arranging employee work schedules so that fewer hit 40 hours; laying off employees who work more than 40 hours; or pushing such employees to work overtime hours off the books.

And in the longer term, employers can simply reduce the base wages they pay so that, even with overtime pay, total compensation for an employee working more than 40 hours is no different than before the overtime expansion.

So, expanded overtime regulation will benefit some employees in the very short term; cost others their jobs or lower their compensation in the medium term; and have no meaningful impact on anything in the long term.

Is that a victory for middle class economics?”

We at CRI agree with Cato. Just like with every other “well-intentioned” government law, those who are likeliest to “suffer” from it (in this case, employers), will find a way around it, especially in the long-haul. Employees who demonstrate clear value will likely not have to worry about their jobs, but anyone who doesn’t demonstrate clear value should be concerned. While many will benefit right away with the increases in pay, new hires may find their base pay is lower, so their potential overtime is lower. After all, time-and-a-half for a worker at $8.50 an hour is much less than at $15 an hour.

Plus, those who benefit now could see hours cut or, if the overtime pay began to turn business revenues from a profit to a loss, the businesses will lay off employees to stay in the black. This is what’s happened for many people as a result of the ACA: turning full-time workers into part-time in order to avoid the penalty, or simply paying the penalty and dumping people into the health exchanges, since that’s cheaper than offering health insurance. And with insurance companies asking for premiums increases, things are not looking up for American workers.

Read Full Post »

The College Board recently released new SAT data for 2013-2014 and for Delaware it doesn’t look any better than last year. On the positive side Delaware is no longer 51st in SAT scores and 16th out of 16 “High Participation Rate” states and D.C. (70% or greater participation). The state moved to 50th this year and 15th out of 16, surpassing Washington D.C. in both categories.

Total average SAT scores, class of 2013-2014:

Critical reading: 456

writing: 444

math: 459

Total: 1359

For college-bound seniors the numbers improve slightly:

Critical reading: 497

writing: 487

math: 513

Total: 1497

The number best estimated to predict success at the college level is a total score of 1550 for the entire SAT. Delaware scores nearly 190 points below average. 26 out of 51 states and D.C. reach this 1550 threshold. The CATO Institute studied Delaware and factored in the mandatory SAT testing, and even weighted we are still near the bottom. Even when factoring in only high school seniors who attended any college institution this year, the average scores were still below 1550.

Another interesting note: for college-bound seniors, writing scores dropped 10 points from 2006 for both boys and girls, and both boys and girls score 32-34 points lower respectively in reading than in 1972. Math was up 4 points combined since 1972, with girls making slightly bigger gains.

Excluding the writing section, in 1972 the average college-bound high school senior in Delaware earned a 1039 on their SAT’s, while the class of 2014 had a mean of 1010. Meaning, we’ve DROPPED¬†in proficiency, particularly in reading, from the 1970s. Remember, these are seniors who went to college this year. We aren’t counting those who didn’t go.

The only real way we can move forward is to agree that only a robust range of education options for children will allow children to learn as best they can. A one-size-fits-all public school model does little to understand that some students do better in bigger classrooms, others smaller. Some students may do better with the parent as a teacher and for others cyber school may be a better choice. Even among charter and magnet schools there are diverse options, such as the First State Military Academy set to open in Clayton later this year, which is a Junior ROTC program charter school for which some students will benefit from more than others who enter. For some kids and parents issues like safety, school hours, or programs will determine the best options.

The point is we want a system which allows parents or the children’s legal guardians to choose the place best suited for the kids. There is absolutely no reason a child’s fate should be determined by their zip code or that a child should attend a school which either a) is not serving them properly, or b) is not suited to the child’s best method of learning, simply to appease those whose primary interest is keeping the system as-is.

It’s time we made education options available for all children. Visit our website www.caesarrodney.org and sign up for our e-mail newsletters. See what you can do today to make tomorrow’s education a better experience for all children.

Read Full Post »