According to Bloomberg, the cost of college tuition has increased thirteen-fold since 1978—more than medical care, at nearly five times the rate of CPI. But that’s because a college education is five times as good now, right? Possibly not—anecdotes suggest that our universities have not become dramatically better at teaching than they were four decades ago, and the record number of bachelor degrees we’ve awarded has not necessarily yielded a smarter populace. It has, however, produced an enormous quantity of debt—Americans owe $1.2 trillion in student loans, compared to just under $900 billion in credit-card debt. The class of 2015 is graduating with an average of $35,00 in debt per borrower; meanwhile, 46% of recent college graduates are working jobs that do not require degrees.
As of this morning, the Congressional Deficit Super Committee is neither super nor really a committee, since they managed to agree on exactly no things. Congress and the deficit remain real. Meanwhile, the group of six Republicans and six Democrats cannot even settle on why they failed to reach an agreement, although both sides concur in principle: it was them. “We made a reasonable offer and got nothing in return. We got naked in the room. Republicans are standing there in overcoats, hats and gloves and are toasty warm,” said one Democrat on the panel. “We showed some leg. The Democrats want us to get completely naked,” explained a Republican aide. As usual when two parties can’t bring themselves to take their clothes off at the same time, somebody else is going to get fucked.
As the August 3rd deadline to either raise the federal debt ceiling or submit to our Chinese masters nigh approaches, Mitch McConnell has proposed a new solution: Congress could authorize President Obama to increase the borrowing limit himself. The Senate Minority Leader suggested that the President be given the authority to allow an additional $2.4 trillion in debt over the next year, provided he specifies an equal amount in spending cuts. It’s an odd move, given that negotiations have foundered for weeks on Republican demands that the President agree to cuts before the ceiling is raised. Unless you are a Republican, in which case negotiations have foundered on the President’s insistence that 25% of the increase be covered by taxes on corporations and the wealthy.
Harrisburg is a city famous for two things: it’s not the one chocolate comes from, and now it’s the one steel doesn’t come from, either. The 50,000-person capital of Pennsylvania used to be a center of making stuff, but it has since drifted into the vague purposelessness of post-industrial America. Harrisburg is one of many medium-sized American towns with no particular reason to exist: too small to be an urban center, too big to be quaint/farmy, it is a city because a bunch of people live there. It is also in fiscal crisis. Back in 2003, Harrisburg borrowed $125 million to repair a garbage incinerator. That project was delayed, but the city spent the money anyway, only to borrow millions more later because, oh shit, the garbage incinerator. Now the government of Harrisburg has $310 million in guaranteed debt, and a state-appointed panel has determined that it needs to cover that by selling its city parking system. Also their garbage incinerator, which is a real kick in the pants.
It’s moving day here at the Combat! blog offices, where certain dismayingly materialistic acquisitions (real mattress) have led us to A) complain that this was much easier last time, when literally everything we owned fit into the bed of a Ford Ranger and B) assume that the economy has recovered. Things must be going well when even people who don’t want stuff have stuff, right? Of course it turns out that things are not so sunny. The US economic metaphor has been upgraded from crash to lingering illness, and while total work hours, productivity and corporate profits are all up, unemployment and the housing market—the two segments of the economy that most pertain to actual people and not Excel files—continue to suck it for coke money. And yet, the hot issue in politics is deficit spending. As the New York Times points out, the international mania for curbing government spending and balancing budgets—which has thus far dominated the G-20 summit, to say nothing of discourse at home—has the potential to trigger another Roosevelt Recession. What the fudge is that, you ask? Looks like someone’s going to have to click on the jump.