Reward And Punish

I recently stumbled upon a report issued (and constantly updated) byJeffrey Sonnenfeld, a professor at the Yale School of Management identifying the U.S. companies that have–and have not– withdrawn from Russia in the wake of Putin’s invasion of Ukraine. The report separates the companies into four categories:

1) WITHDRAWAL – Clean Break: companies completely halting Russian engagements;

2) SUSPENSION – Keeping Options Open for Return: companies temporarily curtailing operations while keeping return options open;

3) SCALING BACK – Reducing Activities: companies scaling back some but not all operations, or delaying investments;

4) DIGGING IN – Defying Demands for Exit: companies defying demands for exit/reduction of activities .

The date I logged on, there were 34 companies “digging in.”Unsurprisingly, Koch Industries was–and remains– among them, and there are calls to boycott goods like Bounty paper towels, that are produced by Koch subsidiaries.

American pundits sometimes seem divided between the tiresome ideologues who  believe the market  can solve every problem known to humankind, and the equally tiresome scolds who want to replace capitalism entirely. Actually, both the unwillingness of some companies to forego profits in order to help pressure Russia to withdraw, and the calls to boycott those companies, display what we might think of as the yin and yang of capitalism.

Ignore, for the purposes of the ensuing discussion, the fact that the American economy has devolved into crony capitalism and corporatism, a situation that deserves its own analysis.

America’s most pervasive and longstanding economic error has been one of categorization–determining what goods and services should be left to free  (appropriately regulated) markets, and which by their very nature must be collectively supplied by government. Other western nations have long understood that the provision of effective and accessible health care, for example, is incompatible with a market approach. (Market transactions require a willing buyer and willing seller, both of whom are in possession of all information relevant to the transaction–an impossibility with respect to health care.)

On the other hand, there is no reason for government to be involved in the manufacture or sale of most consumer goods. The genius of a properly operating capitalism is its ability to provide us with a multiplicity of products and sources of entertainment. Government  agencies would be highly unlikely to invent the iPhone…or Netflix.

If we are to have a properly operating economy–not to mention a properly operating government–we need to distinguish between the consumer goods that are most efficiently provided by the market, and the social and physical infrastructure that must be provided by government.

A good example is education. Efforts to “privatize” public education rest on the mistaken assumption that education is just another consumer good–that schools exist only to provide children with the skills to compete–or at least operate–successfully in the economy. That assumption entirely ignores what has been called the “civic mission” of public education–the role of our public schools in the transmission of democratic norms, and the forging of a common American identity among children from  diverse backgrounds.

So what does all this have to do with Ukraine?

When we look at Sonnenfeld’s list of companies that have placed profit above morality, we see the dark side of capitalism–its tendency to incentivize greed over concern for the human consequences of economic (mis)behavior. (It is encouraging, and worth noting , that the list of companies that have elected to remain is far, far shorter than the list of those that have pulled out–often at considerable cost.)

When we look at the calls to boycott the products of the companies that have elected to “dig in,” we see the power consumers can wield in market economies. Consumers “vote” with our dollars, and if enough of us choose to do so, we can punish companies engaging in behaviors of which we disapprove. A number of such boycotts have succeeded in the past and there are several websites enumerating those successes.

When it comes to mega-businesses like Koch Industries, it’s admittedly difficult: their products are pretty much everywhere. (Here’s a list.) Others–like Subway– are much easier to spot.

Bottom line: market economies provide consumers with the ability to reward good behavior and punish bad behavior–but just like democracy, delivering those rewards and punishments requires an informed  and engaged populace.

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Education And Economic Development

As Indiana’s legislature continues its multi-year assault on public education, evidence confirming the importance of a state’s educational system continues to mount. (Not that evidence matters to the culture warriors who dominate Indiana’s Statehouse. )

Intel  has announced that it plans to build its twenty billion dollar factory in Ohio–an announcement that business publications have called “arguably the most consequential manufacturing announcement in recent decades.”

Why Ohio? As the linked article notes, Indiana can easily compete with Ohio when it comes to the Hoosier State’s economic development tools of choice:  tax breaks, tax rates and regulatory environment. However,

To attract the kind of high-paying, advanced manufacturing jobs, cities and states need an abundant share of college graduates, a steady flow of new graduates and communities in which these workers will desire to live.

 Indiana  can offer tax breaks, tax rates and  a regulatory environment similar to Ohio’s, but we come up short on such all-important measures as quality of life and the supply of an educated workforce. Ohio offered plenty of fiscal incentives to capture the projected 3,000 jobs–jobs that swill pay an average of $125,000 in salary and benefits– but it is highly likely that Indiana could have matched those financial incentives.

So what were the factors that gave Ohio the edge?

This factory is a 25-minute drive from the College of Engineering at Ohio State University and close to the fastest-growing parts of the Columbus metropolitan area. The entire metro area has absorbed some 130% of the state’s population growth since 2000 .

The salary levels also suggest that the workforce at this plant will be primarily comprised of college graduates.  Ohio workers in the semiconductor industry earned $65,490 per year in the last 12 months before the COVID downturn. To be profitable, this factory will be much more than the clean-room production facilities of a traditional semiconductor factory.  I suspect this site will involve considerable product development and testing.

This evidence points to the need for a large number of college graduates as a driving factor in Intel’s decision. Close to a dozen top engineering colleges are within a five-hour drive.  These include Purdue University, the University of Michigan, Michigan State University, Carnegie Mellon University, the University of Kentucky and of course Ohio State.

The only other Midwest location that could boast the same geographic concentration would be Indianapolis.  The fact that Indiana was not chosen in this case offers a harsh lesson for states that rely on incentives rather than an educated workforce as an economic development strategy.  It is the same lesson the Amazon HQ deal provided state policymakers around the nation.

As important as quality of life was, the presence of an educated population was even more important.

Statewide, Ohio just does much better than Indiana on educational attainment.

In 2020, 29.6% percent of adults in Ohio had a college degree; in Indiana, it was 26.9%.  That may seem like a modest difference, but it places Indiana in the bottom 10 states in both college graduates and those holding an advanced degree.  Ohio ranks in the middle third on both measures.

Most troubling, though, is that Indiana’s share of adults with a college degree has been in decline since 2018, a factor that would immediately remove it from the long list of applicants for an advanced semiconductor plant.

The author analyzed the environments/inducements of Indiana and Ohio, and concluded that the “only meaningful difference” came down to  the availability of well-educated workers.  That  one difference made Ohio the beneficiary of the “most consequential industrial expansion in the country in this century.”

It isn’t that more college graduates leave Indiana than Ohio. Neither state has significant levels of outmigration. The problem is that Indiana doesn’t attract many college graduates from outside the state. We also have low numbers of high school graduates who enroll directly in college.  (Ohio has 3,600 more students per year heading to college than Indiana.)

We all know that old political saying: follow the money. In this case, we need to follow the money that isn’t being spent–and where it isn’t being spent– because state spending reflects what that state’s legislators value. Not only does Indiana spend less on education, our legislature siphons off millions of the education dollars that would otherwise go to our public schools, and sends them via vouchers to predominately religious private schools, a significant number of which are of dubious educational quality.

Though Ohio hardly spends a lavish amount on schools, it has allocated $3 billion more to education than Indiana over the past decade. Ohio continues to spend a larger share of its GDP on schooling of all types. Ohio spends almost 20% more per child on education, or roughly $1,500 per kid aged 0 through 24 than does Indiana. That extra spending spending just paid off.

The World’s Worst Legislature never learns…..

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Is Florida the Fourth Reich?

A couple of weekends ago,  Nazis demonstrated in Orlando. According to media reports, they screamed antisemitic slogans and threats against Blacks and Hispanics, waved swastikas, and assaulted a couple of people who stopped to argue with them.

According to Newsweek, Twitter users posted videos of the neo-Nazi rally and reported the slurs.

And a Florida resident posted to Daily Kos, 

In addition, the Nazis protested at several overpasses on I-4 toward Disney, with Nazi flags and a large “Let’s Go Brandon” sign with swastikas. Another one said, “Vax the Jews.” This protest followed another one in Mount Dora earlier. The fact is that antisemitic incidents in Florida rose by 40% since 2020. The undeniable rise of antisemitic demonstrations in Florida even got Sen. Rick Scott’s attention, and he condemned them in a tweet. Democrats, including the candidates for governor and senator, strongly condemned the Nazis. However, the two incumbents they are running against, Ron DeSantis and Marco Rubio, have remained silent. 

It’s bad enough that DeSantis refused to condemn the demonstrations; his spokesperson was worse. She tweeted “How do we even know they’re Nazis?” and suggested they might  have been Democrats “pretending.”

If this were a one-off, DeSantis’ silence could be attributed to oversight, overwork…something. But no one who has followed DeSantis and his enablers in the Florida Legislature is likely to give him the benefit of the doubt. (There’s a reason The New Republic made him their “Scoundrel of the Year.”)

A Miami newspaper recounted “Eight Times DeSantis ‘Accidentally’ Did Racist Stuff.”That article was written during DeSantis’ gubernatorial campaign, and started as follows:

After enough racism scandals involving a particular political candidate, you’d think everyone might just admit that person is simply racist. Yet a whole lot of people — from bad-faith conservative pundits to easily fooled reporters — continue offering excuses for Republican gubernatorial candidate Ron DeSantis’ infamous statement on Fox News that Andrew Gillum would “monkey… up” Florida.

At best, that gaffe implies DeSantis, who is a seasoned lawyer with degrees from Harvard and Yale, is so ignorant he doesn’t know it’s a really bad idea to use the word “monkey” when talking about a black person.

But claiming his use of the word was a simple accident is also hard to believe because DeSantis has a clear, repeated pattern of making offensive and/or outright racist statements, hanging out with racists, and defending other people who are also racists. It’s past time that DeSantis — long considered the most right-wing Florida congressman who is running on a platform of fealty to Donald Trump and pure anti-immigrant bile — lost the benefit of the doubt.

The article enumerated the reasons DeSantis isn’t entitled to the benefit of the doubt: among other things, he spoke at a Muslim-bashing event alongside Milo Yiannopoulos and Steve Bannon, defended a supporter who advocated”bringing back the hanging tree,” leveled a slur at AOC’s ethnicity, and was moderator of a Facebook group that was a haven for racist memes.

Since he’s been governor, of course, he has worked hard to out-Trump Trump. His anti-vaccination, anti-mask, anti-mandate efforts have received wide publicity, but those efforts are arguably not targeted at minorities–they’re unforgivably dangerous to the health of all Florida citizens (especially the elderly, and Florida has more than its share of elderly folks.)

Other measures are more clearly bigoted.

 DeSantis and Republicans in the state legislature have joined the campaign  against what DeSantis calls”woke” schools. As this Washington Post article describes it:

As part of the “stop-woke” agenda of Gov. Ron DeSantis (R), Florida lawmakers are now considering bills that would allow almost anyone to object to any instruction in public school classrooms. DeSantis wants to give people the right to sue schools and teachers over what they teach based on student “discomfort.” The proposed legislation is far-reaching and could affect even corporate human resources diversity training.

While the legislation mirrors national efforts to ban critical race theory in schools, the debate in Florida has turned especially raw and emotional, a testament to how central multiculturalism is to the state’s identity. Many parents and teachers — who note that critical race theory is not taught in Florida’s public schools and is already banned under state law — fear the legislation would force teachers to whitewash history, literature and religion courses.

 In Florida, more than 1 in 5 residents are foreign-born and nearly half the population is Latino, Black or Asian American. That might explain DeSantis’ multiple new voting restrictions.

DeSantis and GOP lawmakers have also advanced a bill opponents are calling “don’t say gay.” It would effectively forbid classroom discussions of sexual orientation.

 One proponent of the “anti-woke” bills gives the racist game away: “To say there were slaves is one thing, but to talk in detail about how slaves were treated, and with photos, is another.” 

It is indeed.

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It’s About More Than Banning Books And Distorting History

Anyone who hasn’t been marooned on a desert island or hiding in a cave for the past few years (options that sound increasingly appealing, actually…) has been inundated with reports of the unrelenting attacks on public school boards, curriculum, gay and transgender students, and the teachers and administrators who dare to stand up for any of them.

We shouldn’t get distracted by the purported targets of these attacks. The specific charges are monumentally phony–the actual aim is to dismantle American public education.

It’s tempting to respond to the absolute idiocy, for example, of claims that the schools are teaching “Critical race theory”–to point out that those leveling that charge couldn’t define CRT if their lives depended on it, and that it is explored (not “taught”) by legal researchers.

It’s equally tempting to point out that the parents “testifying” at school board meetings (actually, threatening school board members) are overwhelmingly the same parents who fail to attend parent-teacher conferences or otherwise involve themselves in the details of their kids’ educations (and those are the parents who actually have children in the system.)

And the effort to ban books, or remove them from the curriculum or the school libraries is ludicrous at a time when virtually all young people carry with them a device that connects them to a vast and dangerous world their parents cannot control.

The real goal of these efforts is to undermine support for the nation’s public schools, in order to make it easier to privatize them. As an article from Common Dreams began

When champions of market-based reform in the United States look at public education, they see two separate activities—government funding education and government running schools. The first is okay with them; the second is not. Reformers want to replace their bête noire—what they call the “monopoly of government-run schools”—with freedom of choice in a competitive market dominated by privately run schools that get government subsidies.

Today, that privatization movement is alive and pushing ahead, with Republican legislators in 16 states actively pushing bills to create or expand school vouchers and/or charter schools that are part of that movement.

The author then interviewed a lobbyist who had worked for the privatization movement; it’s worth clicking through and reading what a former “insider” has to say.

A more recent column in the New York Times, written by a resident of Tennessee, explains why the effort to remove “Maus” from the curriculum is the “least of our worries.” She reviewed the persistent and ongoing efforts of conservatives “trying desperately to insulate their children from the modern world without quite understanding how the modern world works”–and she argued that the new bans–often aimed at books that had been used without incident for decades– are really “a response to contemporary political forces whose true motivation has nothing to do with books. What they really want is to destroy public education.”

She writes that she is willing to give many censorious parents the benefit of the doubt, in the sense that they are deeply conservative and believe they are “protecting” their children. But as she points out,

these parents are being manipulated by toxic and dangerous political forces operating at the state and national levels. Here in Tennessee, book bans are just a small but highly visible part of a much larger effort to privatize public schools and turn them into conservative propaganda centers. This crusade is playing out in ways that transcend local school board decisions, and in fact are designed to wrest control away from them altogether.

I don’t mean simply the law, passed last year, that limits how racism is taught in public schools across the state. I’m talking about an array of bills being debated in the Tennessee General Assembly right now. One would purge books considered “obscene or harmful to minors” from school libraries across the state. Another would ban teaching materials that “promote, normalize, support or address lesbian, gay, bisexual or transgender (LGBT) issues or lifestyles.” Yet another would prevent school districts from receiving state funding for undocumented students.

Most of all I’m talking about Gov. Bill Lee’s announcement, in his State of the State address last week, that he has approached Hillsdale College, a Christian institution in Michigan, to open 50 charter schools in Tennessee — Mr. Lee reportedly requested 100— that would follow a curriculum designed to make kids “informed patriots.” Not informed citizens; informed patriots, as conservative Christians define that polarizing term.

What the author calls–correctly–an “existential threat to public education”  is part and parcel of the GOP’s effort to destroy democracy.

As the late political scientist Benjamin Barber explained, public education is constitutive of a public; without it,  democracy is simply not feasible.

To today’s GOP, that’s a feature, not a bug.

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About That War On Education

Evidently, Indiana’s censorious legislature has company–ours aren’t the only lawmakers issuing “gag orders” to educators.

According to a January report from Pen America,

It has been an extraordinary month for educational gag orders. Over the last three weeks, 71 bills have been introduced or prefiled in state legislatures across the country, a rate of roughly three bills per day. For over a year now, PEN America has been tracking these and similar bills…

According to the Pen report, 122 educational gag orders have been filed in 33 states since January 2021. Of those, 12 have become law in 10 states, and another 88 are currently live.

Of those currently live:

84 target K-12 schools
38 target higher education
48 include a mandatory punishment for those found in violation

When Pen looked at the measures that have been introduced so far in 2022, it found “a significant escalation in both scale and severity.”

Forty-six percent of this year’s bills explicitly target speech in higher education (versus 26 percent in 2021) and 55 percent include some kind of mandatory punishment for violators (versus 37 percent in 2021). Fifteen also include a private right of action. This provision, which we analyzed in an earlier post, gives students, parents, or even ordinary citizens the right to sue schools and recover damages in court.

One final feature that is increasingly common to 2022’s bills is how sloppily many are written. Legislators, in their haste to get these bills out the door and into the headlines, are making basic factual errors, introducing contradictory language, and leaving important terms undefined. Given the stakes, the result will be more than mere confusion. It will be fear.

The Pen report then zeroed in on legislation from a single state, in order to help readers “appreciate” the chilling nature of the threat.

That state? Indiana. (I am so not proud.)

With eight bills currently under consideration, only Missouri (at 19) has made a greater contribution. Of the eight in Indiana, all target public K-12 schools, two target private K-12 as well, six would regulate speech in public colleges and universities, four affect various state agencies, and two threaten public libraries. All are sweeping, all are draconian, and few make any kind of sense.

House Bill 1362, sponsored by Bob Behning ( because of course it was), prohibits teachers and professors from including in their instruction any “anti-American ideologies.” What this means is never defined (because of course it wasn’t), but violators may be sued in court.

Pen tells us that House Bill 1040 is even more confusing. That bill requires teachers to adopt a “posture of impartiality” –but also contains the following language:

Socialism, Marxism, communism, totalitarianism, or similar political systems are incompatible with and in conflict with the principles of freedom upon which the United States was founded. In addition, students must be instructed that if any of these political systems were to replace the current form of government, the government of the United States would be overthrown and existing freedoms under the Constitution of the United States would no longer exist. As such, socialism, Marxism, communism, totalitarianism, or similar political systems are detrimental to the people of the United States.

As the report notes, this would be farcical if the consequences of failure to comply weren’t so dire. A teacher or school  that failed to navigate the whiplash mandated by this effort to ensure that teachers indoctrinate, rather than educate, would–under this bill– face civil suits, loss of state funding and accreditation, and/or professional discipline up to and including termination.

The linked article describes several other, similar efforts, and I encourage anyone who wants to wallow in despair over Indiana governance to click through.

The none-too-savvy legislators pushing these bills are evidently unaware that kids today can easily access multiple sources of information. (There’s this newfangled thing called the Internet.)

Ironically, these legislative efforts that display our lawmakers’ anti-intellectualism and bigotry also motivate young people to access the information they are trying to suppress. After a Tennessee school board censored a graphic novel about the Holocaust, it soared to the top of Amazon’s best-seller list. Young people (and a number of older ones) have rushed to form banned book clubs.

A few days ago, when I threatened to start an online class in “banned history,” the response was so heavy and positive I’m now seriously considering doing so. (Once I’ve done some research and figured out the logistics, I’ll let you all know.)

What we should be teaching students is how to evaluate the credibility of the sources they consult. Efforts to “shield” them from the uglier realities of the past are  likely to spark interest in exploring that past, and it would be helpful to give them the tools to separate sound scholarship from the propaganda produced by both Left and Right.

Several lawmakers could use those lessons too.

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