We Need Economists, Civil Libertarians, and Epidemiologists in the COVID-19 Discussion

At the supermarket last week, amidst too many empty shelves, the manager looked at me through a plexiglass sneeze barrier and groused, “they need to open things up. I’d rather get the sniffles than face an angry mob.”

COVID-19 is more than the “sniffles”—so far, over a quarter-million people have died globally during the pandemic, according to the Johns Hopkins University Coronavirus Resource Center. But it’s also not the only risk human beings face, even if many policymakers seem consumed with it to the exclusion of all else. There are also the economic repercussions of harsh enforcement of lockdown measures to consider. And we should also include in there the danger to life and liberty inherent in mandated shutdown orders that are enforced by police and jails.

To focus on the virus alone to the exclusion of other threats is to court disaster. Well, not just to court it—disaster is here.

For the week ending May 2, another 3.2 million Americans filed unemployment claims, bringing the total number to over 33 million for the seven weeks since pandemic-related lockdowns began. On a similar note, the European Union predicts its economy will contract by 7.5 percent in 2020 because of the pandemic and related lockdown measures. And “the global economy likely shrank an annualized 12.6 percent in first quarter 2020 relative to fourth quarter 2019 and will weaken a further 8.6 percent in the second quarter,” according to the Federal Reserve Bank of Dallas.

If numbers bore you, we can just go with the International Monetary Fund’s pithy description: “worst economic downturn since the Great Depression” because of the pandemic and related lockdowns. Or there’s the United Nations’ equally catchy forecast of “multiple famines of biblical proportions“—not entirely due to the pandemic, but certainly made much worse by the disruptions it has created.

Enforcing lockdowns inflicts a cost on our freedom, too.

“As countries around the world institute extraordinary measures to fight the pandemic, both dictatorships and democracies are curtailing civil liberties on a massive scale,” Florian Bieber of Austria’s University of Graz observed in Foreign Policy.

That has meant opportunistic muzzling of dissent and arrests of critics, as documented by monitors including Amnesty International and Human Rights Watch. But it has also meant moronic enforcement of stay-at-home orders, such as protecting people from infection by beating them (the predictable go-to for many law-enforcers around the world). Less brutal but just as stupid are arrests for playing with family members in public parks, and jailings for hanging out with friends and opening businesses without government permission—heavy-handed moves that increase the danger of transmitting disease through contact with cops and incarceration in crowded cells.

Which is to say, focusing narrowly on the danger of the virus has made billions of human beings poorer than they were before, and less free than they have every right to be. And, as the phrase “multiple famines of biblical proportions” implies, there are add-on costs in terms of human life and welfare to being impoverished and under the boot.

“In some cases, people are dying because of the inappropriate application of measures that have been supposedly put in place to save them,” United Nations High Commissioner for Human Rights Michelle Bachelet concedes.

That’s probably a little more analysis than the local supermarket manager had in mind when he talked about balancing fear of “sniffles” against that of an “angry mob,” but he did a fair job of recognizing that there are tradeoffs in dealing with the pandemic. He knows that his customers are hurting because of the measures taken to battle the virus, that their paychecks are drying up, and that it’s difficult to fully stock shelves because some items are in short supply.

That’s not to say he and I would necessarily agree on the proper balance between the competing dangers. Like I said, I think there’s more to COVID-19 than “sniffles.” But if one of us enforces his judgment on the other with a nightstick, that disagreement becomes a lot more costly than if we’re free to make our own assessments about the proper balance of risks—especially since we don’t know each other’s risk tolerances and abilities to weather one danger relative to another.

Noah Feldman, professor of law at Harvard, frames the ability to conceive of tradeoffs in handling the pandemic in terms of the different ways epidemiologists and economists think.

“Unlike epidemiologists, who identify a biological enemy and try to defeat it without thinking much about the costs, economists live on trade-offs,” he wrote for Bloomberg. “It’s an article of faith for economists that there is no such thing as an absolute value—not even the value of human life. Instead, most economists embrace the hardheaded reality that helping one person often leaves another less well-off.”

If you add a civil libertarian (or perhaps just a jaded defense attorney, who knows that “law enforcement” is synonymous with busted heads) to that mix, you might get an even better-balanced discussion of the tradeoffs in various approaches to dealing with the pandemic. That would make for a much more serious discussion about the danger of a new, deadly, and highly contagious virus, balanced with the risk of poverty and despair from shutting down societies in order to battle that virus, and considering the peril inherent in turning the world into a vast prison in order to enforce a shutdown.

Maybe that’s a discussion we could have soon. Because the tradeoffs among considerations of health, prosperity, and liberty are catching up with us even if we don’t want to acknowledge them.

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Linda Hirschman: Yes, Biden Is A Rapist But He Should Be The Next President

Linda Hirschman: Yes, Biden Is A Rapist But He Should Be The Next President

Authored by Jonathan Turley,

Yesterday, we discussed the astonishing tweet from Lisa Bloom that she believes that Joe Biden is a rapist and continues to lie about raping a former staffer, but she still will endorse him for President. 

Now Linda Hirshman in the New York Times has run an opinion piece entitled “I Believe Tara Reade. I’m Voting for Joe Biden Anyway.” 

It is a chilling example of how feminist writers are retaining their “women must be believed” position from Kavanaugh and simply declaring that they will support someone they believe to be a rapist.

Hirshman declared:

“Let’s be clear: I believe Tara Reade. I believed Anita Hill, too,” Hirshman added.

“Democratic primary voters knew all about Mr. Biden’s membership in that boys’ club when there was still time to pick someone else. Alas.” 

That “Alas” led to the surprising conclusion:

“I’ll take one for the team. I believe Ms. Reade, and I’ll vote for Mr. Biden this fall.”

As with Bloom, it is notable that the nomination still has not occurred, but Bloom and Hirshman are still lining up behind someone who they believe is a rapist and someone who is continuing to lie to the public about his raping a female staff member. 

That moral flexibility and relativism allows for highly convenient positions but little principle. 

It is not clear how many women they would have to believe Biden raped to change that calculus.  However, since there is no call for a full investigation of all of the Biden papers (including those at the University of Delaware) for any allegations of sexual misconduct by anyone, there is little risk of facing that choice.


Tyler Durden

Fri, 05/08/2020 – 13:10

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The Nasdaq Is Now Bigger Than The Rest Of The World’s Stock Market

The Nasdaq Is Now Bigger Than The Rest Of The World’s Stock Market

Presented without comment (for those who desperately need a comment, read Goldman on why there is never a happy ending when the entire stock market is just five stocks).


Tyler Durden

Fri, 05/08/2020 – 12:55

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Sen. Josh Hawley’s Plan To Abolish the World Trade Organization Is Based on Fake Economics and False History

In calling for the United States to abandon or abolish the World Trade Organization (WTO), Sen. Josh Hawley (R–Mo.) is charting the next path for the Trump-style anti-trade nationalism that has infected the Republican Party. It’s a plan that misunderstands both history and economics, one that would leave both America and the world poorer.

Writing in The New York Times on Tuesday, Hawley argued that the economic crisis created by the COVID-19 pandemic is “an opportunity to build…a better international order and a better economy for a better future for America.” Doing so, Hawley argued, would require major reforms to a global trading system that he thinks has empowered China at the expense of American workers. For starters, he wanted to abolish the WTO.

Two days later, Hawley put his political capital where his mouth is: He introduced a one-sentence bill proposing that the United States withdraw from the WTO. That stops short of abolition, but then, the U.S. can’t actually “abolish” the WTO; it can only pull out of it. (You’d think a China hawk like Hawley would think twice before leaving China as the largest member of the world’s most influential trade organization, but I guess not.) In any case, either abolition or withdrawal would be an economic disaster for the United States and the world at large. Two economists at the University of Indiana estimate that the “disintegration of existing trade agreements will erase 30 percent of the overall gains from trade, which amounts to a $2.7 trillion loss in global GDP.”

Hawley’s op-ed included some made-up statistics meant to show that global trade is impoverishing America. “Under the W.T.O.’s auspices, capital and goods moved across borders easier than before, no doubt, but so did jobs,” Hawley wrote. “As factories closed, workers suffered, from small towns to the urban core. Inflation-adjusted, working wages stagnated and upward mobility flatlined.”

That’s just false. According to the Bureau of Labor Statistics, inflation-adjusted median weekly earnings for American workers have increased by 17 percent since 1995, when the WTO was founded.

“If we turned back the clock to 1995, most Americans would be poorer,” writes Bryan Riley, director of the free trade initiative at the National Taxpayers Union. “Trade allowed the American economy to create new, higher-paying jobs while making traded goods like clothing and electronics more affordable.”

But the biggest problem with Hawley’s proposal is that he doesn’t seem to have any idea how the WTO actually works. In his telling, the global trade system puts nations in the back seat as “new, multilateral institutions, like the W.T.O., would take on the role of managing the global economy.”

In fact, the WTO doesn’t manage anything. It’s basically just “mutually agreed constraints on protectionism,” writes Simon Lester, associate director of the Cato Institute’s Center for Trade Policy Studies. Nations are still in control of trade policy, but membership in the WTO comes with the recognition that moderating the political impulse to protect national industries makes everyone less well off.

Shawn Donnan, a senior writer for Bloomberg, offers a more poetic metaphor. The WTO is like a wedding venue, he suggests: “It helps pull off the event if you book it. But it doesn’t do much more. Whether you decide to get married and the terms of your marriage are entirely up to you.”

When political scientist Ian Bremmer, president of the Eurasia Group, criticized Hawley’s understanding of how the WTO operates and why it was created in the first place, Hawley doubled down on his misunderstanding of history and geopolitics. In a series of tweets, the senator claimed that the creation of the WTO in 1995 marked a turning point for the global economy (at least in liberal western nations), away from the Cold War focus on containing socialism.

That’s a completely backwards reading of history. The chief economic project of the Cold War—at least in its final two decades, once Europe was fully rebuilt—was the creation of a global market for liberal economies. And it made sense for that effort to continue even after the USSR fell. In a 1989 letter to Congress, sent less than a month before he left office, President Ronald Reagan declared that “the United States remains committed to full multilateral liberalization” and endorsed the negotiations that, a few years later, produced the WTO.

Economic data also show how Hawley distorts history. Tariffs and other trade barriers didn’t begin falling around the world in 1995 when the WTO was signed; they had been steadily falling for decades. The long decline in American manufacturing jobs didn’t begin after the WTO was created, either: The number of American manufacturing jobs peaked in 1979 at around 19.5 million. But the era of greater global trade has helped spur a new wave of American manufacturing growth—jobs in that sector are up 12 percent since bottoming out in 2010. And when it comes to outputs, American manufacturing has never been more valuable than it is now. America’s industrial production last year was 48 percent higher than in 1995, according to the Federal Reserve.

Outsourcing low-end manufacturing has allowed America to focus on manufacturing more expensive goods while maintaining access to cheap consumer goods that are now mostly made elsewhere. That shift has had negative consequences for some individuals, but addressing those human costs is a very different project than the one Hawley and the other neo-nationalists are proposing. Withdrawing from the WTO won’t bring those jobs back. It will only make it more difficult for Americans to access the trading networks that are the backbone of the global economy.

The creation of the WTO, viewed in its proper context, is not an inflection point that marked the beginning of some “new model global economy” that Hawley wants to tear down. It was the culmination of a decades-long fight to stop socialism, expand markets, and boost production and prosperity all around the world. If those are the outcomes Hawley wants to reverse, he should say so.

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Facebook Censorship Council Includes Pro-Muslim Brotherhood Activist

Facebook Censorship Council Includes Pro-Muslim Brotherhood Activist

Authored by Paul Joseph Watson via Summit News,

Facebook’s new censorship council, which will decide what content gets deleted from the website, includes a pro-Muslim Brotherhood Yemeni activist.

The independent board, which will be able to overturn Facebook and its CEO Mark Zuckerberg’s decisions on whether individual pieces of content should be allowed on Facebook and Instagram, is a high-profile response to criticism of how the social media company handles problematic content,” reported Channel News Asia.

The “oversight board” will include none other than Nobel Laureate Tawakkol Karman, the Yemeni woman who became one of the faces of the Arab Spring uprising in 2011.

Karman’s activism includes supporting the Muslim Brotherhood, an Islamist organization that has been blamed for terrorist attacks.

Karman previously denounced arrests of Muslim Brotherhood members and opposed the move to bar the Muslim Brotherhood from participating in Egyptian politics.

In Yemen, the Muslim Brotherhood is led by Abdul Majeed al-Zindani, a Sunni Islamist viewed by the United States as a “Bin Laden loyalist” and someone who is listed as a “Specially Designated Global Terrorist” by the US Treasury Department.

No doubt Karman’s tolerance for allowing criticism of Islam on Facebook’s platform will be in short supply.

As we highlighted earlier this week, another one of Facebook’s censorship czars is none other than anti-Trump Professor Pamela Karlan.

Karlan made a name for herself because of a rant at the impeachment hearings during which she made Barron Trump the punch line of a joke.

Karlan was also described by the New York Times as a “full-throated, unapologetic liberal torchbearer.”

These are the people who will be deciding whether your Facebook posts violate the social media network’s increasingly draconian rules.

FCC Commissioner Brendan Carr responded to the announcement of the oversight board by slamming it as a partisan fraud.

“Meet your new speech police,” said Carr. “Facebook now has an Oversight Board empowered to take down posts.”

Gotta be non-partisan people, right? Nope! 1 is Pam Karlan: testified to impeach @POTUS, “baron” Trump line, Obama DOJ, & NYT calls ‘full-throated, unapologetic liberal torchbearer.’”

Facebook’s decision undermines its claim that posts won’t be censored for partisan political reasons. Karlan testified that ‘President Trump must be held to account.’ She wrote *in 2016* that she felt ‘a responsibility to challenge [Trump] in the court of public opinion.’”

*  *  *

My voice is being silenced by free speech-hating Silicon Valley behemoths who want me disappeared forever. It is CRUCIAL that you support me. Please sign up for the free newsletter here. Donate to me on SubscribeStar here. Support my sponsor – Turbo Force – a supercharged boost of clean energy without the comedown.


Tyler Durden

Fri, 05/08/2020 – 12:40

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Buybacks Are Back: Stocks Soar Even Equity Outflows Hit Two Month High

Buybacks Are Back: Stocks Soar Even Equity Outflows Hit Two Month High

Back in 2019 we posted on several occasions that a “conundrum” had emerged in the stock market: with equities hitting new all time highs, especially in the last quarter after the Fed relaunched QE to bailout a bunch of basis trading hedge funds under the pretext of saving the repo market, equity outflows soared to all time highs…

… as investors fled risk assets realizing that the market was unsustainable high and artificially propped up by the Fed (as a reminder 2019 saw zero earnings growth and all the equity upside was thanks to multiple expansion).

Fast forward to today when the “conundrum” is back, and as BofA reports today citing the latest EPFR numbers, in the last week investors again fled into cash, allocating $53.5BN to money markets which has pushed money market fund assets by a record $1.2tn in the past 14 weeks to an all time high $4.8tn…

… and while investors have also rushed to allocate fund to “risk free” bonds, now that the Fed is set to begin buying bond ETFs and issues in the second market, resulting in an $11.3BN inflow into bond funds last week including a record $32BN allocated to HY bonds over the past 6 weeks, what is remarkable is that while the S&P soared again in the past week, now trading just 80 points away from 3,000, investors sold again, and in the last week alone they dumped $16.2 billion in outflows – selling both ETFs ($13.8BN) and mutual funds ($2.5BN) – of which $9.3 billion was in US stocks the largest outflow in 6 weeks since the March crash.

It wasn’t just US stocks: investors also sold Japanese stocks, sold European stocks for the 4th consecutive week ($1.9BN last week alone), and dumped $4.5 billion in emerging market stocks, the 12th consecutive week of outflows.

Drilling down into flows by style, reveals inflows in US growth ($2.4bn); outflows US small cap ($1.4bn), US value ($5.2bn), US large cap ($9.4bn). And here is by sector: inflows hcare ($2.2bn), consumer ($0.6bn), energy ($0.2bn), utils ($0.3bn), com svcs ($0.1bn); outflows materials ($15mn), tech ($43mn), financials ($46mn), real estate ($0.8bn).

A quick tangent: as we noted last week, it’s not the entire market that is surging: it is mostly the Big 5 “FAAMG” tech names which now comprise a record 20% of the S&P500’s market cap, and which are up 10% in 2020 while the remaining 495 S&P stocks are down 13%.

And yet, this week’s continued surge in tech is also paradoxical, because as Hartnett notes, Tech fatigue is setting in with “the first week of tech outflows this year ($43MM).” That, however, did not stop the NASDAQ from turning green on the year this week.

So what’s going on? The answer is well-known. While most companies in the S&P – including all banks – have frozen shareholder distributions as they go into cash conservation mode, the techs continue to actively engage in buybacks, with AAPL on Monday issuing $8BN in bonds which are already being used to repurchase stock. The result: AAPL stock is up 5% since it re-activated its buyback…

… and with AAPL leading the Nasdaq, and the broader market, the S&P is now back to its post-crisis highs.

And in case there is still confusion how to explain the “conundrum” of investors selling yet stocks rising, here is what SocGen said last November: “the answer to this conundrum can partly be found in the reduced trading volume on the US equity market and the massive wave of buybacks over the past two years.”

The irony, of course, is that the coronacrash has taught us absolutely nothing: massively levered companies like Boeing which were on the cusp of collapse have merely papered over their liquidity needs, by issuing even more debt (last week Boeing sold a ), this time with the direct backstop of the Fed…

… while those companies that still can repurchase their shares are doing just that, and using generous creditors to put a bid in stocks just as they did for much of 2019. Which names are those? Why the FAAMGs of course, the companies which repurchased tens of billions in shares in exchange for selling tens of billions in debt. This cycle will continue until i) either the FAAMGs join the rest of corporate America in being massively engorged with debt and can’t find willing buyers for more debt used to repurchase shares or ii) the FAAMGs become too big and force a regulatory intervention to break up their monopolies.

Unfortunately now that the Fed is explicitly backstopping these 5 market leaders, it is impossible to guess when either of those two will happen.


Tyler Durden

Fri, 05/08/2020 – 12:28

via ZeroHedge News https://ift.tt/2ytqnd7 Tyler Durden

Sen. Josh Hawley’s Plan To Abolish the World Trade Organization Is Based on Fake Economics and False History

In calling for the United States to abandon or abolish the World Trade Organization (WTO), Sen. Josh Hawley (R–Mo.) is charting the next path for the Trump-style anti-trade nationalism that has infected the Republican Party. It’s a plan that misunderstands both history and economics, one that would leave both America and the world poorer.

Writing in The New York Times on Tuesday, Hawley argued that the economic crisis created by the COVID-19 pandemic is “an opportunity to build…a better international order and a better economy for a better future for America.” Doing so, Hawley argued, would require major reforms to a global trading system that he thinks has empowered China at the expense of American workers. For starters, he wanted to abolish the WTO.

Two days later, Hawley put his political capital where his mouth is: He introduced a one-sentence bill proposing that the United States withdraw from the WTO. That stops short of abolition, but then, the U.S. can’t actually “abolish” the WTO; it can only pull out of it. (You’d think a China hawk like Hawley would think twice before leaving China as the largest member of the world’s most influential trade organization, but I guess not.) In any case, either abolition or withdrawal would be an economic disaster for the United States and the world at large. Two economists at the University of Indiana estimate that the “disintegration of existing trade agreements will erase 30 percent of the overall gains from trade, which amounts to a $2.7 trillion loss in global GDP.”

Hawley’s op-ed included some made-up statistics meant to show that global trade is impoverishing America. “Under the W.T.O.’s auspices, capital and goods moved across borders easier than before, no doubt, but so did jobs,” Hawley wrote. “As factories closed, workers suffered, from small towns to the urban core. Inflation-adjusted, working wages stagnated and upward mobility flatlined.”

That’s just false. According to the Bureau of Labor Statistics, inflation-adjusted median weekly earnings for American workers have increased by 17 percent since 1995, when the WTO was founded.

“If we turned back the clock to 1995, most Americans would be poorer,” writes Bryan Riley, director of the free trade initiative at the National Taxpayers Union. “Trade allowed the American economy to create new, higher-paying jobs while making traded goods like clothing and electronics more affordable.”

But the biggest problem with Hawley’s proposal is that he doesn’t seem to have any idea how the WTO actually works. In his telling, the global trade system puts nations in the back seat as “new, multilateral institutions, like the W.T.O., would take on the role of managing the global economy.”

In fact, the WTO doesn’t manage anything. It’s basically just “mutually agreed constraints on protectionism,” writes Simon Lester, associate director of the Cato Institute’s Center for Trade Policy Studies. Nations are still in control of trade policy, but membership in the WTO comes with the recognition that moderating the political impulse to protect national industries makes everyone less well off.

Shawn Donnan, a senior writer for Bloomberg, offers a more poetic metaphor. The WTO is like a wedding venue, he suggests: “It helps pull off the event if you book it. But it doesn’t do much more. Whether you decide to get married and the terms of your marriage are entirely up to you.”

When political scientist Ian Bremmer, president of the Eurasia Group, criticized Hawley’s understanding of how the WTO operates and why it was created in the first place, Hawley doubled down on his misunderstanding of history and geopolitics. In a series of tweets, the senator claimed that the creation of the WTO in 1995 marked a turning point for the global economy (at least in liberal western nations), away from the Cold War focus on containing socialism.

That’s a completely backwards reading of history. The chief economic project of the Cold War—at least in its final two decades, once Europe was fully rebuilt—was the creation of a global market for liberal economies. And it made sense for that effort to continue even after the USSR fell. In a 1989 letter to Congress, sent less than a month before he left office, President Ronald Reagan declared that “the United States remains committed to full multilateral liberalization” and endorsed the negotiations that, a few years later, produced the WTO.

Economic data also show how Hawley distorts history. Tariffs and other trade barriers didn’t begin falling around the world in 1995 when the WTO was signed; they had been steadily falling for decades. The long decline in American manufacturing jobs didn’t begin after the WTO was created, either: The number of American manufacturing jobs peaked in 1979 at around 19.5 million. But the era of greater global trade has helped spur a new wave of American manufacturing growth—jobs in that sector are up 12 percent since bottoming out in 2010. And when it comes to outputs, American manufacturing has never been more valuable than it is now. America’s industrial production last year was 48 percent higher than in 1995, according to the Federal Reserve.

Outsourcing low-end manufacturing has allowed America to focus on manufacturing more expensive goods while maintaining access to cheap consumer goods that are now mostly made elsewhere. That shift has had negative consequences for some individuals, but addressing those human costs is a very different project than the one Hawley and the other neo-nationalists are proposing. Withdrawing from the WTO won’t bring those jobs back. It will only make it more difficult for Americans to access the trading networks that are the backbone of the global economy.

The creation of the WTO, viewed in its proper context, is not an inflection point that marked the beginning of some “new model global economy” that Hawley wants to tear down. It was the culmination of a decades-long fight to stop socialism, expand markets, and boost production and prosperity all around the world. If those are the outcomes Hawley wants to reverse, he should say so.

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America’s Colleges Awarded $12.5 Billion In COVID-19 Bailout – Who Got It And How Much?

America’s Colleges Awarded $12.5 Billion In COVID-19 Bailout – Who Got It And How Much?

Submitted by Adam Andzejewski, first published in Forbes,

Harvard decided not to apply for their $9 million share of the $2.2 trillion CARES Act – the Coronavirus Aid, Relief, and Economic Security Act, after President Donald Trump brought the issue into the national limelight. Princeton followed suit.

The other Ivies are still deciding whether to accept up to $62.9 million in CARES money — despite their collective endowment of $140 billion. However, our auditors at OpenTheBooks.com discovered that these funds are just the tip of the iceberg.

We scoured the backend of the U.S. Department of Education website and found the full database: 5,137 colleges and universities that were awarded $12.5 billion in coronavirus relief. None of it has to be paid back.

We created an interactive map on a state-by-state basis of the colleges and universities that were allocated the aid. (The institutions still must apply for the funds in order to receive it.)

Just click a pin (state) and scroll down to the chart beneath the map to see which college (by name) can receive how much taxpayer money. For example, you’ll find 530 schools in California, 389 in New York, 295 in Texas, 261 in Florida, and 260 in Pennsylvania.

The five colleges and universities allocated the most money were Arizona State University ($63.5 million); Penn State ($55 million); Rutgers, The State University of New Jersey ($54.1 million); University of Central Florida ($51.1 million); and Miami Dade College ($49.1 million).

Responding to our request for comment, Arizona State applauded and Central Florida was “grateful” for CARES Act funding.

Here are five facts you probably didn’t know about the coronavirus bailout of America’s colleges and universities:

#1. The $350 Billion Club: The 25 universities with the largest endowments were allocated $801.3 million in coronavirus subsidies. These wealthy institutions had $350 billion in their collective endowments.

Notre Dame was allocated a $5.8 million share ($8.4 billion endowment). However, the school told us that they aren’t going to even apply for the funds. Their share will be returned to the U.S. Treasury Department’s general fund. 

Here are the allocations for some other wealthy schools: Ohio State University $42 million ($3.6 billion endowment); Northwestern University $8.5 million ($9.7 billion endowment); The University of Chicago $6.2 million ($7 billion endowment); and Massachusetts Institute of Technology (MIT) $5 million ($13.2 billion endowment).

An MIT spokesperson responded to our request for comment: 

“MIT senior leaders are still reviewing information from the government, considering the range of needs facing our students, and determining how best to proceed.”

The biggest systems are allocated the most bailout money: Penn State $55 million ($3.6 billion endowment); Texas A&M $82.2 million ($10.5 billion endowment); University of Texas $173 million ($24.2 billion endowment); and the University of California $260 million ($8.3 billion endowment).

Responding to our request for comment, a Penn State spokesperson defended their share:

“The University is grateful that the Department of Education prioritized this funding to support students who have the most need… The other half of the funds will be used to help keep Penn State employees working…”

#2. Big 10 Conference is #1 – In the battle among the major conferences, the fourteen schools of the Big 10 Conference were allocated the most bailout money ($393 million) – an average of $28 million per institution.

For example, Indiana University (Big 10) has an endowment of $2.4 billion, yet they will receive $24.6 million in bailout monies. Recently, a student journalist failed to convince the university to use their endowment to mitigate student tuition. However, we found the president of the school made $3.5 million (2017-2019) and the IU Foundation employed his wife ($303,641) and daughter ($58,271).

Responding to our request for comment, IU decided to take the bailout and claims their billion dollar endowment can’t help out in the crisis because donors earmarked their gifts for other purposes.

The Pacific-12 Conference (Pac-12) was allocated $318 million. The University of Oregon will receive $16.1 million even though the school’s endowment approached $1 billion. The university chancellor earned $738,000 in salary with up to $200,000 in additional bonuses. Before the virus, students had been protesting program cuts and tuition hikes.

The Southeastern Conference (SEC) has fourteen schools and was allocated $280.2 million. The University of Alabama was allocated $20.7 million, despite the fact that the school employs the most highly compensated public employee in the nation. In the last three years, Alabama paid their head football coach Nick Saban a total of $29.2 million.

Responding to our request for comment, The University of Alabama contended that athletics are self supporting.  

The fifteen schools of the Atlantic Coast Conference (ACC) collected just $194 million in aid.

#3. Worst junior colleges: The 50 worst community colleges scored by WalletHub received $200 million in taxpayer funding. Collectively, these schools had a graduation rate of 12.3 percent (2017-2018).

The top 10 worst schools were allocated $66 million despite reporting graduation rates between 4-9 percent. The U.S. taxpayer may want to know why these schools are even allowed to operate.

#4. Beauty schools called cosmetology colleges: Four-hundred and nine “cosmetology colleges” were allocated $102.7 million in bailout money. Many times these schools charge higher student tuition prices than established universities. It’s a phenomenon whereby taxpayer dollars – Pell grants and student loans – drive up the cost of education.

The Empire Beauty School was allocated the most coronavirus funds (nearly $18 million) even though the school admits to charging up to $22,100 in tuition and fees – exceeding the in-state tuition costs of all Big Ten universities except Northwestern. It’s a 35-40 week program and graduates are qualified to cut hair, manicure nails, and do massage therapy.

Empire Beauty did not respond to our request for comment. 

Other non-traditional colleges were allocated money, including a professional golf college ($84,000); two schools of wooden boat building ($107,000); and a bartending and gambling school ($558,000). Twenty-four art academies collected a combined $29 million.

#5. Red states vs. blue states: Our auditors found that colleges and universities located in the thirty states that voted for President Trump in 2016 were allocated $6.8 billion. Institutions located in states that did not vote for Trump were allocated $5.4 billion.

Those summary numbers obscure the fact that the blue states were allocated more money on average than the red states, $270 million vs. $222 million. This is because blue states had more higher ed institutions than the red states. In the twenty blue states, there were 2,155 institutions allocated aid (an average of 108 schools per state). The thirty red states had 2,853 institutions (an average of 95 schools per state).

The rest of the aid, approximately $389 million, was allocated to the 128 institutions located in Washington, D.C., or U.S. territories, i.e. Puerto Rico, Guam, etc.

So, who was not allocated coronavirus bailout money?

There are sixteen U.S. colleges and universities that do not accept federal money. The most prominent are Hillsdale College in Michigan, Grove City College in Pennsylvania, and Patrick Henry College in Virginia.

In February, our team audited Hillsdale’s assertion of no federal funding and found their statements 100 percent true. Hillsdale has never taken any aid directly from the federal government. This has allowed the college to operate without government interference and with maximum institutional independence.

None of the sixteen colleges were allocated any coronavirus bailout money, either. These schools decided long ago to pay their own way.


Tyler Durden

Fri, 05/08/2020 – 12:10

via ZeroHedge News https://ift.tt/2zifTNM Tyler Durden

A Tragic Record: For The First Time Ever, More Than Half Of The US Population Is Not Working

A Tragic Record: For The First Time Ever, More Than Half Of The US Population Is Not Working

Today’s jobs report was, as expected and as previously discussed, absolutely horrific, although as Bank of America points out there was one silver lining which Larry Kudlow quickly latched on to: with 72% of jobs lost being reflected as temporary layoffs, workers should be able to be more seamlessly rehired as the economy reopens. However, the longer this pandemic goes on, the more likely that what was temporary becomes permanent, and as we pointed out in a previous post, even baseline cases see unemployment not returning back to normal until 2022 or later.

Offsetting this “good news”, however, there was one especially scary aspect of today’s jobs report that has not gotten enough publicity, namely that as BofA writes, the employment to population ratio plunged to a record low, with only 51.3% of the population working. Inversely, this means that in April, 49% of the US population was not working.

It gets worse.

As a reminder, the BLS said that if the workers who were recorded as employed but absent from work due to “other reasons” had been classified as unemployed on temporary layoff, the overall unemployment rate would have been almost 5 percentage points higher than reported, meaning that the true unemployment rate as of this moment is 20%

White House economic advisor Kevin Hassett laid the groundwork for shocking the US population for this devastating reality, when he said in a CNN interview that next month’s jobs report “should be around 20%,” adding that the U-6, or the underemployment rate, will probably hit around 25% in the next report.

This means that the employment-to-population ratio is also undercounted by about 4-5%, and that as of this moment (we will get the May jobs data in 1 month), the employment to population ratio is below 50%, indicating that for the first time in history, more than half of the US population is unemployed!

Which is great news for stocks: think of all the people who have nothing better to do than buy the fucking dip all day with all that helicopter money the Fed will be showering on them for the coming years.


Tyler Durden

Fri, 05/08/2020 – 11:55

via ZeroHedge News https://ift.tt/2Ac23Nh Tyler Durden

Aide To Mike Pence Tests Positive For COVID-19

Aide To Mike Pence Tests Positive For COVID-19

One day ago, the White House confirmed that President Trump’s “valet” had tested positive for COVID-19, though it swiftly added that both Trump and VP Pence had both tested negative shortly after.

Now it seems an aide to VP Pence has also tested positive, according to a report by NBC News.

A planned trip to Des Moines was delayed so Pence and his staff could deal with the news.

Pence drew widespread criticism in late April for not wearing a mask during a visit to the Mayo Clinic in Rochester, Minnesota. Pence later said he “should have worn the mask at the Mayo Clinic,” but that he didn’t think it was necessary because he is tested frequently for the coronavirus.

[…]

Pence was scheduled to travel to Des Moines, Iowa, Friday morning, but his departure from Andrews Air Force Base was delayed by nearly an hour as staff dealt with news of the diagnosis. Reporters traveling with Pence said several staffers disembarked from Air Force Two at the last minute, prior to takeoff.

The president said Thursday that he and Pence would both be tested daily for the virus, up from the weekly tests that had been administered up until then. It’s unclear if this policy also applies to staffers. MSNBC reported last night that Trump got “hot lava mad” at his staff after learning his valet had been diagnosed. The president reportedly accused his team of not making his safety a priority.


Tyler Durden

Fri, 05/08/2020 – 11:42

via ZeroHedge News https://ift.tt/2Wd083C Tyler Durden