European Union Offers Financial Aide To Ukraine And Seeks Diplomatic Solutions To Crisis

This article describes the actions of the EU, and some its member states, to find a solution to the problems in Ukraine.  The EU has offered substantial financial assistance to help Ukraine deal with its financial problems.  It has also frozen the financial assets of 18 individuals from the Ukraine who are suspected of misusing government funds.  The US Secretary of State, John Kerry, also offered $1 billion in aide the Ukraine government.  Kerry, along with leaders from other European states have been meeting to assess the situation in Ukraine and Crimea and to insure that existing treaties between the Ukraine, Russia and Europe can be enforced.  The Russian official responsible for foreign policy chose not to attend the meeting.

George Will Claims He Knows More About How To Respond To Events in Ukraine Than Obama Or Kerry

As one might expect, George Will offers his reading of history which enables him to understand how to deal with Russia.  His reading of history would not get him high marks on his understanding of history. However, it will reinforce those who share his view of history.  Will's historical perspective on history is quite simple to understand.  Liberals and progressives are responsible for the mistakes that have been made in dealing with tyrants.  Obama and Kerry are making the same mistakes that progressives have made in the past.  George Will's opinion pieces are syndicated in a large number of small cities and towns in the US.  He plays an important role as an opinion maker.  His role is to build and maintain disdain for progressive ideals in his readership.  His role is somewhat different than that played by Fox News.  He has a better vocabulary. 

The Politics Of Higher Education

This article in The Chronicle of Higher Education by Suzanne Mettler from Cornell University is a more detailed version of an article by Mettler that I posted a few days ago.  In general, the changes that have occurred in higher education are a reflection of the political changes that taken place over the last few decades.  In the first place, leaders in the Republican Party, like Dwight Eisenhower and Richard Nixon were strong supporters of public higher education.  Democrats, of course were also strong advocates as well. That is no longer true.  Politicians in both parties have been influenced by changes in the political climate.  Republicans have developed a passion for cutting public spending on almost everything but national defense. That passion coincides with their desire to make the tax system less progressive. The Democratic Party has also been influenced by the growing role that money plays in politics.  They voted against efforts by the Department of Education to impose tighter regulations on for-profit colleges.  Lobbyists supporting the for-profit colleges overwhelmed the critics who saw the need for tighter control.

The article that follows illustrates in great detail how financial support for public higher education has shifted in the last decade. The public, and most of our leaders, believe that higher education plays a key role in our economic and social future.  Our leaders do not agree, however, on how we should pay for it. 

Who Pays For Public Higher Education?

 The Chronicle of Higher Education shows that the answer to the above question varies from state to state.  The relative contribution to the cost has changed over time.  In general, students are paying a higher share of the cost. This article shows how each state has altered the distribution of cost.  There is a wide difference between the states on how the cost sharing has been altered.

Why Inequality Matters

The Financial Times published the results of a study by the Deputy Director of the Research Department at the IMF which explains why income inequality matters.  While most people would like to see a more fair distribution of income, policy makers are wary of using the tax system to redistribute income.  Opponents of income redistribution believe that it distorts the incentive system and that it reduces economic growth.  The data in this cross sectional study of countries with different levels of equality and income redistribution did not find evidence to support that belief.  It found that growth is faster in more equal societies even with highly redistributive tax policies.  Moreover, it found that modestly redistributive tax policies have two important benefits.  They lead to a more equal distribution of post-tax income, which in turn, leads to a higher and more durable growth rate.  The redistributed tax revenues help to improve the infrastructure and human resources that are supportive of economic growth.

The GOP Can't Decide Whether Obama is An Imperial Tyrant or A Weakling

Dana Milbank attended a House meeting in which Republican's called the president all kinds of names which suggest that he is a power hungry tyrant.  Suddenly, the power hungry tyrant is being called a weakling whose foreign policy mistakes convinced Putin that he could send troops to Crimea.  The real Obama is none of those things.  He can't do anything right according to Republicans.  They keep changing their reasons for his behavior so that they suit the problem at hand.  None of the Republicans who criticize the president for weakness have offered a plan that has not been considered by the White House.  If there were an easy solution to the problems in Ukraine the president would have employed it.

Ukraine Borrowing Costs Skyrocket

Yields on Ukraine 6 month bonds have risen dramatically since the unrest in Kiev and again since Russia's actions in Crimea.  If you think the country will stabilize you can earn a lot on Ukraine debt.