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1031. Why Does College Cost So Much?

Author:
Richard Vedder
Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
As college students begin a new academic year, many parents are reeling from tuition charges. This fall's estimated 8 percent average increase at public universities, added onto double-digit hikes in the two previous years, means tuition at a typical state university is up 36 percent over 2002—at a time when consumer prices in general have risen less than 9 percent. In inflation-adjusted terms, tuition today is roughly triple what it was when parents of today's college students attended school in the 1970s. Tuition charges are rising faster than family incomes, an unsustainable trend in the long run. This holds true even when scholarships and financial aid are considered. One consequence of rising costs is that college enrollments are no longer increasing as much as before. Price-sensitive groups such as low-income students and minorities are missing out. A smaller proportion of Hispanics between eighteen and twenty-four attends college today than in 1976. The United States is beginning to fall below some other industrial nations in population-adjusted college attendance.
Topic:
Development, Economics, Education, and Government
Political Geography:
United States

1032. Market Comrades

Author:
R. Glenn Hubbard
Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Ceremonial gift-giving is an integral part of doing business in China. The value lies not so much in the gift (whose packaging is often more elaborate), but in the possibility of cementing a mutually beneficial relationship. And so it was a few weeks ago with the headline-grabbing announcement that China would revalue the yuan against the U.S. dollar. The modest gesture may make more possible a comprehensive economic dialogue between China and the United States in the interest of both nations. The announcement on July 21 by the People's Bank of China that it would revalue the yuan, abandoning the eleven-year-old peg of 8.28 yuan per U.S. dollar, caught financial markets by surprise. The jolt led market participants to gauge effects of current (and perhaps future) revaluations on currency values and interest rates. And, some U.S. political leaders claimed a victory in the campaign to blame Chinese “market manipulation” for external imbalances facing the United States.
Topic:
Economics, Emerging Markets, and International Trade and Finance
Political Geography:
United States, China, and Asia

1033. Freezing U.S. Assets of Syrian Officials

Author:
Matthew Levitt and Jamie Chosak
Publication Date:
07-2005
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
On July 11, al-Seyassah, an independent Kuwaiti newspaper, reported that Syrian president Bashar al-Asad froze the assets of his country's minister of interior affairs, Ghazi Kanaan. If so, that is surely a reaction to Kanaan's June 30 designation—along with Chief of Syrian Military Intelligence for Lebanon Rustum Ghazali—by the U.S. Treasury Department as a Specially Designated National (SDN) under Executive Order (EO) 13338. The two were cited for directing “Syria's military and security presence in Lebanon and/or contributing to Syria's support for terrorism.”
Topic:
International Relations and Economics
Political Geography:
United States, Middle East, Kuwait, and Syria

1034. Bans, Tests and Alchemy: Food Safety Standards and Ugandan Fish Export

Author:
Stefano Ponte
Publication Date:
10-2005
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Fish exports are the second largest foreign exchange earner in Uganda. When Uganda's fish export industry started to operate in the late 1980s and early 1990s, one may have thought that fish was being turned into gold. From an export value of just over one million US$ in 1990, the mighty Nile Perch had earned the country over 45 million US$ just six years later. But alchemy proved to be more than the quest of the philosophers' stone to change base metals into gold. From 1997 to 2000, the industry experienced a series of import bans, imposed by the EU on grounds of food safety. Despite claims to the contrary, the EU did not provide scientific proof that fish was actually 'unsafe'. Rather, the poor performance of Uganda's regulatory and monitoring system was used as a justification. The 'system', as the characters of an allegory, has no individual personality and is the embodiment of the moral qualities that 'the consumer' expects from 'responsible operators' in the fish sector. Only by fixing this system of regulations and inspections, and by performing the ritual of laboratory testing did the Ugandan industry regain its status as a 'safe' source of fish. Fish exports now earn almost 90 million US$ to the country. This apparent success story was achieved by a common front comprising government authorities and the processing industry, a high level of private-public collaboration not often seen in East Africa. Yet, important chunks of the regulatory and monitoring system exist only on paper. Furthermore, the system is supposed to achieve a series of contradictory objectives: to facilitate efficient logistics and ensure food safety; to match market demand and take care of sustainability; to implement a top-down food safety monitoring system and a bottom-up fisheries co-management system. This means that at least some food safety-related operations have to be carried out as 'rituals of verification'. Given the importance of microbiological tests and laboratories in the food safety compliance system, alchemic rituals are perhaps a more appropriate metaphor. While the white coats and advanced machinery of present-day alchemists reassure insecure European regulators and consumers, it leaves the Ugandan fish industry in a vulnerable position. In Uganda, fish can now be turned into gold again – but for how long?
Topic:
Economics, Government, and Human Welfare
Political Geography:
Uganda, Africa, United States, and East Africa

1035. Growth in the Exclusion of Employer Health Premiums

Author:
Adam Carasso
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
The single largest tax expenditure in the federal budget is the employer exclusion of contributions for medical insurance premiums and medical care from employee income taxes. In fiscal year 2005, the Office of Management and Budget estimates this exclusion is worth $112 billion. If the payroll tax exclusion component were also counted here, the total would be significantly higher. (For details, please see Len Burman, Cori Uccello, Laura Wheaton, and Deborah Kobes, ''Tax Incentives for Health Insurance,'' Discussion Paper No. 12, Washington, DC: The Urban-Brookings Tax Policy Center, May 2003.)
Topic:
Economics, Human Rights, and Human Welfare
Political Geography:
United States

1036. Well Being and Unemployment in Russian in the 1990's: Can Society's Suffering Be Individuals' Solace?

Author:
Andrew; Gaddy Eggers
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper studies the effect of regional unemployment rates on subjective well-being in post-Soviet Russia. Research conducted in Europe and the United States has documented that higher unemployment rates lead to lower reported life-satisfaction. By contrast, our Russian study finds a small but significant effect in the other direction. We estimate that du ring the period of our study (1995-2001), each percentage point increase in the local unemployment rate was correlated with the average well-being of people in the region increasing by an amount equivalent to moving 2% of the population up one level in life satisfaction measured on a five-point scale. Our intuition is that the so-called comparison effect drives this result: when individuals observe their peers suffering in a troubled economy, they lower their standards of what is good enough. All else equal, they thus perceive themselves to be better off in worse times. In highlighting the dependence of subjective well-being scores on expectations and reference groups, we sound a note of caution against using happiness data from economies in crisis to draw macroeconomic policy conclusions.
Topic:
Economics and Human Welfare
Political Geography:
Russia, United States, Europe, Asia, and Soviet Union

1037. Financial Access for Immigrants: Learning from Diverse Perspectives

Author:
Audrey Singer and Anna Paulson
Publication Date:
10-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Policymakers and academics are now catching up to financial institutions in their desire to understand how and why immigrants use U.S. financial markets. “Financial Access for Immigrants: Learning from Diverse Perspectives,” a conference co-sponsored by the Brookings Metropolitan Policy Program formerly the Center on Urban and Metropolitan Policy) and the Federal Reserve Bank of Chicago, was held at the Chicago Fed on April 15-16, 2004. It included presentations from scholars and practitioners who discussed recent research on the financial practices of immigrants as well as the practical experiences of for-profit and nonprofit institutions working to provide financial services to the immigrant community.
Topic:
Economics, International Trade and Finance, and Migration
Political Geography:
United States and Chicago

1038. Law of the Sea Convention: Should the U.S. Join?

Author:
David B. Sandalow
Publication Date:
08-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
The United States has vital interests in the oceans. U.S. national security depends on naval mobility. U.S. prosperity depends on underwater energy resources. Ocean fisheries help feed the United States and much of the world. On February 25, 2004, the Senate Foreign Relations Committee unanimously recommended that the United States accede to the Law of the Sea Convention, which sets forth a comprehensive framework of rules for governing the oceans. The recommendation followed two hearings in which the committee heard testimony supporting the Convention from the Bush administration, the armed services, ocean industries, and environmental groups, among others. Following the favorable report from Foreign Relations, other congressional committees held hearings at which several lawmakers raised concerns about the treaty. The United States should promptly join the Law of the Sea Convention. Doing so would help protect U.S. national security, advance U.S. economic interests, and protect the marine environment. Prompt action is needed to ensure that the United States is a party by November 2004, when the Convention is open to amendment for the first time.
Topic:
Economics and International Law
Political Geography:
United States

1039. Offshoring, Import Competition, and the Jobless Recovery

Author:
Charles L. Schultze
Publication Date:
08-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Until the end of 2003, the United States had been experiencing a “jobless” recovery, with employment stagnating at levels well below those in 2000. A widespread perception has arisen that a major culprit behind the dearth of jobs was the growing practice of U.S. firms to relocate part of their domestic operations to lower-wage countries abroad. “Offshoring” presumably caused a reduction in U.S. output and a corresponding loss of jobs.
Topic:
Economics, Government, and Human Welfare
Political Geography:
United States

1040. Improving the Saver's Credit

Author:
William G. Gale and Peter R. Orszag
Publication Date:
07-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
For decades, the U.S. private pension system has provided preferential tax treatment to employer-provided pensions, 401(k) plans, and individual retirement accounts relative to other forms of saving. The effectiveness of this system of subsidies is controversial. Despite the accumulation of vast amounts of wealth in pension accounts, concerns persist about the ability of the pension system to raise private and national saving, and in particular to improve saving outcomes among those households most in danger of inadequately preparing for retirement.
Topic:
Economics, Government, and Human Welfare
Political Geography:
United States