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The conventional wisdom seems to be that our biggest economic challenge is runaway government spending. The reality is that government spending is contracting and pulling economic growth down with it.  And worse is yet to come.

Perhaps the best measure of active government intervention in the economy is something called “government consumption expenditure and gross investment.”  It includes total spending by all levels of government (federal, state, and local) on all activities except transfer payments (such as unemployment benefits, social security, and Medicare).  

The chart below shows the yearly percentage change in real government consumption expenditure and gross investment over the period 2000 to 2012 (first quarter).  As you can see, while the rate of growth in real spending began declining after the end of the recession, it took a nose dive beginning in 2011 and turned negative, which means that government spending (adjusted for inflation) is actually contracting.

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The next chart, which shows the ratio of government consumption expenditure and gross investment to GDP, highlights the fact that government spending is also falling as a share of GDP.

dolan-relative-to-gdp.png

Adding transfer payments, which have indeed grown substantially because of the weak economy, does little to change the picture.  As the chart below shows, total government spending in current dollars, which means unadjusted for inflation, has stopped growing.  If we take inflation into account, there can be no doubt that total real government spending, including spending on transfer payments, is also contracting. 

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The same is true for the federal government, everyone’s favorite villain.  As the next chart shows, total federal spending, unadjusted for inflation, has also stopped growing.

federal-current.png

Not surprisingly, this decline in government spending is having an effect on GDP. Real GDP in the 4th Quarter of 2011 grew at an estimated 3 percent annual rate.  The advanced estimate for 1st Quarter 2012 GDP growth was 2.2 percent.  A just released second estimate for this same quarter revised that figure down to 1.9 percent.  In other words, our economy is rapidly slowing.

What caused the downward revision? 

The answer, says Ed Dolan, is the ever deepening contraction in government spending:  

What is driving the apparent slowdown? It would be comforting to be able to blame a faltering world economy and a strengthening dollar, but judging by the GDP numbers that does not seem to be the case. The following table (see below) shows the contributions of each sector to real GDP growth according to the advance and second estimates from the Bureau of Economic Analysis. Exports, which we would expect to show the effects of a slowing world economy, held up well in the first quarter. In fact, the second estimate showed them even stronger than did the advance estimate. The contribution of private investment also increased from the advance to the second estimate, although not by as much. Exports and investment, then, turn out to be the relatively good news, not the bad, in the latest GDP report.

Instead, the largest share of the decrease in estimated real GDP growth came from an accelerated shrinkage of the government sector. The negative .78 percentage point decrease of the government sector is the main indicator that we are already on the downward slope toward the fiscal cliff.

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If current trends aren’t bad enough, we are rapidly approaching, as Ed Dolan noted, the “fiscal cliff.” That is what I was referring to above when I said that worse is yet to come. As Bloomberg Businessweek explains 

Last summer, as part of its agreement to end the debt-ceiling debate (debacle?), Congress strapped a bomb to the economy and set the timer for January 2013. Into it they packed billions of dollars of mandatory discretionary spending cuts, timed to go off at exactly the same time a number of tax cuts [for example, the Bush tax cuts and the Obama payroll-tax holiday] were set to expire  

The congressional deficit supercommittee had a chance to disarm the bomb last fall, but of course it didn’t. And so the timer has kept ticking. The resulting double-whammy explosion of spending cuts and tax increases will likely send the economy careening off a $600 billion “fiscal cliff.”

The fiscal contraction will actually be even worse, since the extended unemployment benefits program is also scheduled to expire at the end of the year.  

So, what does all of this mean?  According to Bloomberg Businessweek:

If Congress does nothing, the U.S. will almost certainly go into recession early next year, as the combo of spending cuts and tax hikes will wipe out nearly 4 percentage points of economic growth in the first half of 2013, according to research by Goldman’s Alec Phillips, a political analyst and economist. Since most estimates project the economy will grow only about 3 percent next year, that puts the U.S. solidly in the red.

One can only wonder how it has come to pass that we think government spending is growing when it is not and that it is the cause of our problems when quite the opposite is true.  Painful lessons lie ahead — if only we are able to learn them.

Yesterday I posted about the extraordinary number of people in Louisiana prisons.  The rise in imprisonment mirrors the U.S. growth that began with the so-called war on drugs, but was also triggered by a crisis in the early 1990s, after two decades of growth.  A federal court ordered Louisiana to reduce overcrowding in prisons, which had risen to an inhumane level.  They  had to either let criminals out or build more prisons.  They did the latter.

Instead of building more state-funded prisons, though, for-profit prisons were built by sheriffs and residents of local parishes.  Today there are more inmates housed in local, for-profit prisons than in state prisons (left) and Louisiana has more inmates in private prisons than any other state in the U.S. (right):

Why should we care if so many prisoners are housed in private, for-profit institutions?

The conditions in these prisons are worse than those in state prisons, especially when it comes to quality of life (like the opportunity to develop hobbies or practice their religion) and rehabilitative services (like high school equivalency classes and job training). These are desperately needed services; the average Louisiana prisoner has a 7th grade education and nearly a 3rd read below a 5th grade level:

State facilities simply spend more money, while for-profit prisons skim as much off the top as possible.  Writes reporter Cindy Chang:

An inmate at the Angola state penitentiary costs $63.15 a day, compared with the $24.39 sheriff’s per diem. State facilities house the sickest and oldest, but [Department of Corrections] Secretary Jimmy LeBlanc admits part of the differential is the lack of educational offerings.

In fact, Louisiana spends less on its prisoners (in state and private facilities combined) than any other state in the U.S.:

Law enforcement officials and parish residents may not like what’s happened in Louisiana, but many feel trapped.  For-profit prisons are sustaining local communities: they fund police departments and employ residents. Often they are the only local jobs with decent wages and benefits. Those residents support the local economies and keep small towns alive.

In this short video, an employee talks about the occupational opportunity the prison provides:

Many Louisianans, then, see the harsh sentences and high imprisonment as a price worth paying.  Says Sheriff Charles McDonald: “I know it sounds crazy and impersonal… but we’re stuck with this jail. We can’t walk away. We’ve got investors, employees.”

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

This is the second of two posts about cruel practices in horse industries. The first was about horse racing.

Yesterday we covered the abuse of horses in horse racing; in this post we discuss a recent video released by the Humane Society. The video highlights an instance of a larger issue, which is how arbitrary human tastes can create incentives for cruelty.

The concern revolves around the Tennessee Walking Horse (TWH), a breed developed in the U.S. in the late 1800s and bred to have smooth gaits, including their distinctive “running walk,”  that are unusual in most breeds. Over time, a more exaggerated version became popular among show judges and spectators at TWH shows; called the “big lick,” it requires horses to shift their weight to their back legs and pick their front legs high off the ground. Fans enjoyed the flashy, unusual movements and horses that performed the gait began taking home more prizes. This created a powerful incentive to get horses to exhibit the unnaturally exaggerated gait.

How do you get this gait? It’s possible to get some horses to do so through careful training. But to speed up the process, or for horses that aren’t learning, trainers developed a range of techniques. These first two are still allowed, under varying circumstances, during training and in the show ring:

  • Using padding and weighted shoes to change how the horse stands and moves its feet (akin to how high heels shift a person’s weight and stance).
  • Placing chains around the tops of their hooves to encourage them to pick their feet up more highly than they would otherwise (presumably they’re irritating).
However, some trainers use prohibited versions of these two items, using pads and chains that were not within the allowable height and weight.
The next three techniques are illegal, but many insiders argue that they are still common.  I warn you now: much of this post from this point on will be very upsetting for many readers.
  • Place screws or nails in different parts of their front hooves or soles to cause discomfort.  While horses’ hooves are hard, the soles are quite sensitive.  The screws or nails make it painful for the horse to put its front legs down, so it shifts its weight back, helping to attain the gait.
  • Intentionally cut the horse’s front hooves so short that the sensitive sole hits the ground directly, which is extremely painful (think of what happens if your fingernail gets cut or broken off too short).
  • Coating a horse’s hooves and lower legs with caustic substances, then wrapping them in plastic wrap, for as long as several days, until they’re very sore — a process called, aptly, “soring.” This causes the horse to shift weight to its back legs in an effort to reduce the pain from the front feet. This is often used in conjunction with chains, which irritate and rub up against the raw skin.

Many inspectors argue that these practices, once widely accepted in the industry, are still common today. Recently the Humane Society released undercover footage of training practices at Whitter Stables, a facility in Collierville, TN that has been the center of a federal investigation. It is a very distressing video that includes many of the practices listed above, as well as horses being whipped when they have difficulty standing:

In 1970, Congress passed the Horse Protection Act, which outlawed the exhibition of sored horses. So trainers have developed techniques to hide them; they paint horses’ hooves and legs to cover evidence of soring or use boots to cover tacks embedded in their hooves.

They also beat them so that they learn not to show any sign of pain when inspected before a show.  They do this by simulating an inspection and then punishing the horse if it shows any signs of distress (e.g., punching or hitting them in the face or administering an electric shock).  Eventually horses learn that if they flinch, they get hurt twice; hiding signs of pain prevents the infliction of more suffering.

Trainers may also use a fast-acting but short-term numbing agent to reduce the pain just long enough to pass inspections. Other trainers and owners simply leave a show if word gets out that USDA inspectors were present.

The Tennessee Walking Horse Breeders’ and Exhibitors’ Association argues that these practices are not widespread. However, in 2006 the last class in the World Grand Champion competition at the Tennessee Walking Horse Celebration (the TWH show equivalent of the Kentucky Derby, in terms of importance) was canceled because of the 10 entered horses, 5 did not pass the inspection and another was removed by the owner without being inspected. In 2009, the USDA issued over 400 violations at the Celebration.

A USDA report states the organization only had the resources to send their own veterinarians to 6% of official TWH shows in 2007; the other 94% were inspected by individuals hired, trained, and licensed by organizations sponsoring shows, a system the USDA found to be plagued by conflicts of interest. The report also noted that hostility toward USDA inspectors is so high that they routinely bring police or armed security with them to shows.

Jackie McConnell, the trainer in the video, has been indicted on federal charges. But without sustained attention and commitment to punishing violators, the problem will continue due to the pressure to produce horses that satisfy the tastes that have become entrenched in the industry. As one industry insider explained to Horse Illustrated magazine in 2004,

As long as the big lick wins at shows, the trainer must produce it to stay in business….The day a trainer stops producing big lick horses is the day all the horses in his or her barn are removed and taken to another trainer.  The pressure is enormous.

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Gwen Sharp and Lisa Wade are professors of sociology. You can follow Gwen on Twitter and Lisa on Twitter and Facebook.

Gwen Sharp is an associate professor of sociology at Nevada State College. You can follow her on Twitter at @gwensharpnv.

The splashy introduction of the new LEGO friends line earlier this year stirred up a lot of controversy. My goal with this set of posts is to provide some historical perspective for the valid concerns raised in this heated debate. 

This is Part IV, see also:

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2012: LEGO Friends and the Ensuing Backlash

In Parts I through III, I’ve discussed the history of LEGO’s attempts to capture (or abandon) the imagination of girls and boys.  In this final installment, I discuss their newest effort to market to girls, LEGO Friends.

Several weeks before the first wave of LEGO Friends sets were available in U.S. retail stores, Bloomberg Businessweek ran a cover story that presented an in-depth look at TLG’s thought process in creating the sets. This was a very deliberate move on the part of TLG: it got their version of the story out there first (“four years of marketing research show this is what girls want”) and it made a bold statement about the LEGO brand (“like it or not, the minidoll is LEGO now”).

This move implies that they foresaw the backlash this line would inspire and hoped to mitigate it. The article portrays TLG sympathetically, as a company that wants to help girls build important skills and is trying to figure the most effective way to reach them. This idea is echoed in TLG’s official press release responding to the controversy. To a certain degree, this maneuver has been successful on TLG’s part. I have seen plenty of people point to the quote about “four years of marketing research” to dismiss the arguments that LEGO Friends perpetuates harmful gender stereotypes. But the attempt to integrate the minidoll into the LEGO brand is ultimately doomed.

In many ways, LEGO Friends is an improvement over the previous “girls only” themes. Even more so than Paradisa, for example, LEGO Friends has a building experience that is on par with other currently available LEGO sets (mostly City and Castle, as the action themes use more complex techniques.)

The interests/occupations of the female characters are just a little bit broader than previous lines. While Andrea and Emma have clear predecessors from Belville, Olivia the inventor, Sophie the Veterinarian, and Stephanie the farmer/pastry chef (?) broaden the range of possible careers just a little bit.

Despite the presence of a beauty salon and a fashion designer, the clothing options in Heartlake City are also very limited. There is only one pair of full length pants available and threes shirts with sleeves, everyone else has skirts or capri pants with tangtops and sleeveless blouses. Olivia will have to raid her dad’s wardrobe if she wants to make her laboratory OSHA compliant.

The minidolls may be the biggest barrier to efforts to use LEGO Friends as a gateway to the rest of the LEGO product.  In addition to being sexified and out-of-proportion to the classic minifig, their articulation makes them simply less interesting than the classic LEGO person.  The classic minifig has 7 points of articulation (8 if you count the hairpiece’s ability to move rotate independently of the head) whereas the minidoll only has 4 points (5 with the hair.) Minidolls can’t rotate their hands (which limits the ability to accurately pose accessories) or move their legs independently (which prevents them from being posed in active positions like running, they can only sit, stand or bend over).

The value of the LEGO system is the ability to connect all the different pieces to each other. The only compatibility between minidolls and minifigs is the hairpieces and accessories (think about the message that sends.) More, unlike the legs and torsos of minifigs, which easily connect to standard LEGO bricks so you can build any type of legs you want, the leg to torso connection on the minidoll is not compatible with any standard LEGO connection.  Additionally, the minidolls do not have LEGO connections on the back of their legs like minifigs do, making it impossible to securely attach to vehicles in seated positions.

To be fair, the minidoll has a slight advantage over the minifig in regards to racial diversity. Though darker skin tones were introduced to minifig in 2003 with Lando Calrissian, there has yet to be an identifiably feminine, dark-skinned minifig. Andrea (and Sarah) are therefore trailblazers. Friends is also the first instance of a LEGOLAND scale theme that integrates realistic flesh colors and is not connected to an external franchise (movies, comics, sports, etc.). This is a topic I’d like to discuss at length another time, but I hope this is the start of a trend that leads to a more ethnically diverse range of minifigures.

In sum, LEGO Friends is far from perfect, but it is a decided improvement over previously girly-LEGO iterations.  Still, many consumers object to the line vociferously, coining the clever slogan: “LEGO for girls already exist – it’s called LEGO.” 

TLG seems to fundamentally misunderstand this argument. In a press release, for example, they explained:

We want to correct any misinterpretation that LEGO Friends is our only offering for girls. This is by no means the case. We know that many girls love to build and play with the wide variety of LEGO products already available.

This isn’t satisfying to detractors because the critique of Friends (as I understand it) is not that it is being presented as the only LEGO product line for girls, but that TLG is so clearly marketing LEGO Friends only to girls. Rather than creating themes that appeal to both boys and girls and marketing them to both boys and girls, TLG is creating products for boys and products for girls. The fact that the focus groups for LEGO friends consisted of girls and women and the focus groups for lines like Power Miners and Atlantis consisted primarily of young boys proves that TLG fundamentally believes that boys and girls have entirely separate needs and desires. This is a harmful belief that we as a culture need to rid ourselves of.

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David Pickett is a social media marketer by day and a LEGO animator by night.  He is fanatical about LEGO and proud to be a nerd. Read more from David at Thinking Brickly.

Recently Talking Points Memo posted a 1960s coloring book sent in by a reader, who found it among her grandmother’s things. The coloring book, New Frontier, mocks John F. Kennedy and a number of his policies.

What’s fascinating is how closely some of the arguments in it match rhetoric in the presidential debate today. There’s concern that the President’s programs — in this case, Medicare — will negatively affect the quality of medical care, inserting the federal government between patients and doctors:

And an association with Harvard advisors was worthy of scorn then, too:

Another accuses Kennedy of attacking business at the expense of dealing competently with external national security threats:

It’s an interesting reminder that many of the attacks we see against President Obama today aren’t new; there’s the newest round in an ongoing struggle about social policies and political priorities.

Cross-posted at Montclair SocioBlog.

The politics of motherhood reared its head again last month when Hilary Rosen, who the news identified as a “Democratic strategist,” said that Ann Romney (Mrs. Mitt) had “never worked a day in her life.” (A NY Times article is here.)

“Worked” was a bad choice of words.  Raising kids and taking care of a home are work, maybe even if you can hire the kind of help that Mrs. Romney could afford.  Rosen’s comment implied that family work is not as worthwhile as work in the paid labor force.  That’s not such an unreasonable conclusion if you assume that we put our money where our values are and reward work in proportion to what we think it’s worth.  Mitt’s supporters use this value-to-society assumption to justify the huge payoffs Romney derived from those leveraged buyouts at Bain Capital.*

Even Mrs. Romney apparently felt that there must be some truth to the enviability of a career.   Why else would she refer to stay-at-home motherhood as a career?  “My career choice was to be a mother.”

Still, regardless of the truth of Rosen’s remark, it was insulting.**  Stay-at-home motherhood is work – a job.

But is it a good job?

A recent Gallup poll provides some more evidence as to why stay-at-home moms might be both envious or resentful of their employed counterparts.  Gallup asked women about the emotions, positive and negative, that they had felt “a lot” in the previous day.  Gallup then compared the stay-at-home moms, employed moms, and employed women who had no children at home.

The stay-at-home moms came in first on every negative emotion.  Some of the differences are small, but the Gallup sample was more than 60,000 so these differences are statistically significant.   The smallest difference was for Stress – no surprise there, since paid work can be stressful.  Worry and Anger too can be part of the workplace.  The largest differences were for Sadness and Depression.  Stay-home moms were 60% more likely to have been sad or depressed.

Gallup also asked about positive feelings (Thriving, Smiling or Laughing, Learning, Happiness, Enjoyment), and while the differences were smaller, they went the same way, with stay-at-home moms on the shorter end.  Still it’s encouraging that 86% of them had Experienced Happiness 86%; so had 91% of the employed moms.

Money matters.  As Rosen said,

This isn’t about whether Ann Romney or I or other women of some means can afford to make a choice to stay home and raise kids. Most women in America, let’s face it, don’t have that choice.

Gallup found a small interaction effect.  The stay-at-home mom-employed difference was greater for low-income women.

The Gallup poll does not offer much speculation about why stay-at-home moms have more sadness and less happiness. One in four experienced “a lot” of depression yesterday.  That number should be cause for concern.

Maybe women feel more uncertain and less able to control their lives when they depend on a man, especially one whose income is inadequate.  Maybe stay-at-home moms find themselves more isolated from other adults. Maybe they are at home not by choice but because they cannot find a decent-paying job. Or maybe money talks, and what it says to unpaid stay-at-home moms is society does not value your work.  Nor, in comparison with other wealthy countries, does US society or government provide much non-financial support to make motherhood easier.

The late Donna Summer sang,

She works hard for the money
So you better treat her right

But how right are we treating women who work hard for no money?

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* For example, Edward Conrad is a former partner of Romney.  In a recent article in the Times Magazine, Adam Davidson writes, “If a Wall Street trader or a corporate chief executive is filthy rich, Conrad says that the merciless process of economic selection has assured that they have somehow benefitted society.”

** Hillary Clinton committed a similar gaffe twenty years ago in response to a reporter’s question about work and family “I suppose I could have stayed home and baked cookies and had teas, but what I decided to do was to fulfill my profession which I entered before my husband was in public life”

Sociologists have observed that employment in the U.S. is largely structured around an assumption that the worker has no family responsibilities.  The ideas that an employee should be able to work during non-school hours, stay late when needed, take off time for their own illness but never anyone else’s, for example, all presume that the workers have either no children or someone else taking care of children for them.

Most jobs, then, are not designed to be compatible with family responsibilities.  Since most people doing primary child care are women, this hurts mothers disproportionately.  Mothers have a more difficult time being the “perfect employee” and also face discrimination from employers.  This translates into some telling numbers.  Women make about 69% of what men make (not controlling for type of occupation), but most of this disadvantage is related to parental status, not sex. Women without children make 90% of what men make, while mothers make 66%.  Ann Crittenden’s book, The Price of Motherhood, lays out these numbers starkly.

These issues are at the heart of this well-crafted Ampersand cartoon by B. Deutsch, which prompted this post in anticipation of Mother’s Day in the U.S.

Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

Cross-posted at Montclair SocioBlog.

In case you wondered about what we in the U.S. pay for health care compared with those unfree unfortunates who suffer under various forms of socialized medicine, here are some graphs from 2009 showing the advantages of what is sometimes called “the best health care system in the world.”

The graphs are from the International Federation of Health Plans. I’ve selected only four — to show the relative costs* of

  • an office visit
  • a day in the hospital
  • a common procedure (childbirth without complications)
  • a widely used drug (Lipitor)

You can download all the charts here, but be warned: it gets boring. We’re number one in every chart, at least in this one category of how much we shell out.

Since we have the best health care in the world, this must mean that you get what you pay for. Our Lipitor must be four to ten times as good as the Lipitor that Canadians take.

Hat tip: Ezra Klein.

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*These amounts are what providers are paid by governments or other insurers, not what the patient pays, which in many Eurpean countries is essentially nothing. See the footnotes for the tables in the original document. Or look at the comments on this at Boing Boing, a discussion which is remarkably civil (do they monitor comments?).