Wintery Knight

…integrating Christian faith and knowledge in the public square

Tad Hopp accumulates six figures of college debt, wants taxpayer bailout

From: theawkwardyeti.com

From: theawkwardyeti.com

Here’s an interesting editorial from a “Christian” left blog. (H/T Acton Institute via Lindsay)

The author, Tad Hopp is graduating a PCUSA seminary – an extremely liberal, left-wing denomination.

He writes:

I graduated college in 2007.

[…] I majored in English, not exactly what most people consider a ‘marketable’ or ‘practical’ degree…

[…]I went to a somewhat expensive private school…

[…]I did what many students in their last year of high school do: I went to the school where I felt I was being called…

[…]I do not regret my four years at my undergraduate institution one bit.

[….]When I graduated college, I owed nearly $50,000 in student loan debt and was unemployed for almost six months before I finally found a low-paying office job.

[…]“Can’t find a job? Well, you should have majored in something more ‘practical’, like economics or business or medicine.” Yeah, that would be great…if those were the subjects where my skills and passions lie. They’re not.

[…]I felt called to go to seminary.

[…]I will graduate seminary with close to six figures worth of student loan debt.

Let’s take stock of what he’s said so far:

  • he studied English, a language that he already spoke, which has one of the lowest employment rates
  • he was warned by people who knew something about earning and saving money not to study English
  • he went to a school he couldn’t afford to go to, and he graduated with $50,000 in debt
  • he went to seminary, another subject that doesn’t pay, and added another $50,000 or so of debt
  • he says that he doesn’t have to study subjects that lead to a career because he isn’t “passionate” about them
  • he “followed his heart” by going to the school that he had mystical, emotional, intuitions about = “calling”

My advice to Tad at this point would be for him to take the Bible seriously when it says this:

2 Thessalonians 3:10:

10 For even when we were with you, we used to give you this order: if anyone is not willing to work, then he is not to eat, either.

And 1 Timothy 5:8:

8 But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever.

Now, for a Bible-believing Christian, these are inerrant and cannot be denied. But we have to go outside the Bible and learn how the world really works in order to figure out how to achieve those stated goals. Why should anyone hire us? What is working really about?

But even before looking at economics, Tad needs to push away all his friends who tell him to “follow his heart” and stick close by his friends who understand economics, who have jobs already, who have savings already, and so on. Don’t look for advice from dreamers, you look to advice from doers – people who can read the times, run the numbers and who have demonstrated the ability to create plans that work to achieve results that please God. When it comes to planning about the future, look at the past accomplishments. Weaving a happy narrative sounds nice, but judge future predictions based on past performance.

I would recommend that Tad read an economist like Thomas Sowell, especially on work, prices, etc., and realize that work means providing value to others. It then follows that he is obligated by the Bible to NOT “follow his heart”, but to instead do something that offers value to his fellow man. Prices are a way of determining what is most valued by your fellow man. And we know what careers have the highest value:

Petroleum Engineering – Starting Salary: $103,000 / Mid-Career Salary: $160,000
Actuarial Mathematics – Starting Salary: $58,700 / Mid-Career Salary: $120,000
Nuclear Engineering – Starting Salary: $67,600 / Mid-Career Salary: $117,000
Chemical Engineering – Starting Salary: $68,200 / Mid-Career Salary: $115,000
Aerospace Engineering – Starting Salary: $62,800 / Mid-Career Salary: $109,000
Electrical Engineering – Starting Salary: $64,300 / Mid-Career Salary: $106,000
Computer Engineering – Starting Salary: $65,300 / Mid-Career Salary: $106,000
Computer Science – Starting Salary: $59,800 / Mid-Career Salary: $102,000
Physics – Starting Salary: $53,100 / Mid-Career Salary: $101,000
Mechanical Engineering – Starting Salary: $60,900 / Mid-Career Salary: $99,700

English and seminary are dead last on the list – he literally could not have chosen worse than he did. I don’t mind if a woman studies these things, but Tad is a man – he has the Biblical obligation to be the primary provider, as we saw in the verse above.

More Tad:

Is the PCUSA doing anything to address this crisis?

[…]What has our government done to address this issue?

[…]I, like so many in my generation, voted for Obama…

[…]It seems to me that we’ve bought into the lie that student loan debt is brought on by the individual person…

[…]You know what I think might stimulate the economy? Automatically cancelling every single outstanding student loan!

[…]If we can spend $640 billion dollars on defense spending, why can’t we find the money to better support public education?

It’s important to understand that an English degree and a seminary degree do not prepare a person to make statements on economics and government. Tad has never studied these things, has no experience in them. He cannot state what the impact of his suggestions would be to all groups, i.e. – he cannot answer “and then what happens?” for every impacted group. Thinking economically is a valuable skill, but as Tad’s personal life shows, it’s not an area he is really knowledgeable about. But he wants to shift money from defense spending (which he knows nothing about) so that he can have a personal bailout. I personally doubt that taxpayers would be better served by paying for his English degree and liberal seminary degree than they would be if a peace-loving democracy could project power abroad to deter aggression from countries like North Korea, Iran, Russia, China and Syria.

Here is the solution to Tad’s problems:

  • we need to put Tad to work in a minimum wage job and confiscate his entire salary, until his loans are paid off.
  • we need to put Tad on a watch list such that he is never allowed to borrow money from anyone ever again.
  • once Tad’s loans are paid off, he should be taxed on his future earnings at the top tax rate for the rest of his life. The money we tax from him can fund education – that’s what he said he wanted.
  • Tad and his household should all be barred from collecting any money for unemployment, welfare or other social programs.

That’s the only bailout Tad should get. It would actually be in his best interest that he encounter real life as quickly as possible, because the longer he waits, the harder it’s going to be for him to recover to independence. He needs to stop his crazy retreat from adult responsibilities, and start working and saving now. I would say that at this point, marriage and parenting is out of the question for him (in another post, he comes out as gay, so that also complicates things). And he can thank the politics of the secular left for marriage and family being less affordable now, thanks to laws like Obamacare, which raised the cost of health care by thousands of dollars. I found it interesting that he actually did work at some point but he mocked the job as a “dead-end job” – as if it was beneath him.

I know some of you will be thinking, “but God called him things and so of course God is going to bail him out with $100,000 for his student loans”. But the thing is, God doesn’t usually work like that. First, I don’t accept that he is a Christian at all. Second, just because you have feelings that your plan will work, that isn’t a calling. The truth is that you certainly can assess the feasibility of things that you feel “called” to do, and if the plan looks crazy, then don’t do it. If you find yourself at odds with wise, practical people when explaining your calling to them, then you’re probably doing it wrong.

Filed under: Mentoring, , , , , , , , , , , , , , , , , , , , , , ,

New study: outstanding student loans reduce a woman’s odds of marrying

First, the study, which was published in Demographic Research.

Abstract:

BACKGROUND

With increasing levels of student loan debt, the path to economic stability may be less smooth than it was for earlier generations of college graduates. This paper explores this emerging trend by assessing whether or not student loan debt influences family formation.

OBJECTIVE

The objective of this study is to examine whether student loan debt delays marriage in young adulthood, whether or not the relationship between student loan debt and marriage differs for women and for men, and if this relationship attenuates during the years immediately after college graduation.

METHODS We estimate a series of discrete-time hazard regression models predicting the odds of first marriage as a function of time-varying student loan debt balance, using a nationally representative sample of bachelor’s degree recipients from the 1993 Baccalaureate and Beyond Longitudinal Study (N = 9,410).

RESULTS We find that the dynamics of loan repayment are related to marriage timing for women, but not for men. Specifically, an increase of $1,000 in student loan debt is associated with a reduction in the odds of first marriage by 2 percent a month among female bachelor degree recipients during the first four years after college graduation. This relationship attenuates over time.

CONCLUSION Our study lends support to the proposition that the financial weight of monthly loan repayments impedes family formation in the years immediately following college graduation – however, only for women. This finding questions traditional models of gender specialization in family formation that emphasize the economic resources of men.

I think that a woman who is serious about studying something that will allow her to get a job related to her field so she can quickly pay off her loans in the first few years is a very good sign of RESPECT for a man, and for his role as primary/sole provider. Men choose tough majors / trades for a reason, and they do tough jobs for a reason. When a woman chooses something hard to study and then chooses a hard job to do to pay off her loans, it’s showing to her man that she respects what he is doing to provide for the family. I think this is something that parents need to encourage young women to do, but so often parents focus too much on spiritual / emotional concerns instead of practical wisdom when leading their kids.

When a woman asks a man to work to pay for the marriage – with all the costs of home, furniture, diapers, tuition, etc. – she is asking him for a commitment to work until he is 65. That is a lot to ask, and it is very hard to accept this from a woman who doesn’t understand the difficulty of earning and saving money.

So what do I recommend to a woman? I recommend she do a STEM degree, pay off her debts, guard her chastity, marry young when she is fertile, have a few years of work to pay off student loans and get used to the workplace, demonstrate ability in apologetics and mentoring others, etc. A wife needs to have a lot more skills than just being pretty and young. There are things she has to do in the marriage – things that take preparation. The more accustomed she is to hard work and self-sacrifice, the easier she will take to her role in the marriage. Women who are used to having to do hard things that they don’t feel like doing make the best wives and mothers. It’s something that a woman can grow into, if she lets herself be challenged to grow.

My friend Amy is fond of telling me that people usually adapt to their friends. So if all your friends are very spiritual and impractical, and they don’t have jobs or savings, then chances are you’ll be like them, too. To get out of debt, don’t take financial advice from people who, in their own lives, show no evidence of knowing what to study, how to find a job, how to save money, and so on. Instead of pushing away the people who “rain on your parade” with wisdom, grab them and keep them close. Watch what they do. Talk to them about your finances. Rely on them to hold you accountable for choosing a good major, updating your resume, and continuously growing your salary, through annual raises or job changes. That’s how you get better.

I don’t say these things in order to make women feel bad, or limit their freedom unnecessarily. I tell women to make good decisions to prepare for marriage, to practice self-denial and self-sacrifice, to choose the right men, to not be scared away by strong providers and men with moral and religious convictions. Although on one level, women can be scared off by men who have firm and definite convictions, they need to understand that these men are the most reliable men to marry. Men who don’t make demands on women usually don’t respond well to demands that women make on them. A strict moral and theological framework can seem scary to a woman – she might feel scared that she could be rejected. But it’s exactly these convictions that ground a man’s ability to keep loving her, to stick with her, and to encourage and support her as she grows.

Instead of being frightened by men who ask her to do good things, she should view it as an asset, not a liability. And the more she listens to his leading and grows, the more independent and capable she will be. She will feel better about doing hard things and playing a role. Better than she would feel about always choosing the easy way and then finding herself without accomplishments. Demanding men can be bad, but not if the demands they make are to build the woman up. The demand that a woman be serious about paying her debts with a real plan might seem scary to some women, but the study shows that this is good advice for her to be more attractive – to any man who might want to marry her.

Filed under: News, , , , , , ,

Should we care that Democrats ran up the debt from 8.5 to 18.1 trillion?

In 2007, Democrats seized control of the House and Senate after winning the 2006 mid-term elections. The last Republican budget through 2007 had a 160 billion deficit. What followed next was years and years of trillion dollar deficits under Nancy Pelosi and Harry Reid. The Republicans only gained back the House in 2011, and the Senate in 2015.

Here’s what happened to the deficit while the Democrats had control of spending:

National Debt and Deficit 2007-2013

National Debt and Deficit 2007-2013

Now let’s take a look why this is a problem going forward, especially for young people. We’ll use this article from the Wall Street Journal.

It says:

The U.S. has come a long way since the days of trillion-dollar deficits, just a few years ago. The White House projects 2016 will have the smallest budget deficit in eight years. Yet the budgetary impact of the debt that’s been accumulated–$18 trillion in total, $13 trillion of that owed to the public–will reassert itself.

Currently, the government’s interest costs are around $200 billion a year, a sum that’s low due to the era of low interest rates. Forecasters at the White House and Congressional Budget Office believe interest rates will gradually rise, and when that happens, the interest costs of the U.S. government are set to soar, from just over $200 billion to nearly $800 billion a year by decade’s end.

By 2021, the government will be spending more on interest than on all national defense. according to White House forecasts. And one year later, interest costs will exceed nondefense discretionary spending–essentially every other domestic and international government program funded annually through congressional appropriations. (The largest part of the budget is, and will remain, the mandatory spending programs of Social Security, Medicare and Medicaid. Mandatory spending is over $2 trillion and is set to double to $4 trillion by 2025.)

The advice I would give to young people just entering college is to make sure that you don’t vote for more spending and borrowing. Because you’re the ones who are going to have to pay it off!!! Also, don’t waste your money on a discipline for which there are no jobs. Stay away from anything that is not STEM – science, technology, engineering, and math. Try not to borrow money. One lady I know just completed a couple of years of community college, before heading into a computer science program at a university. That is smart – I really recommend that.

Be willing to move if a good job presents itself, because earning money now before the storm is really important. Work while it’s day, in other words. Try not to stay in school any longer than you have to, because work experience is usually worth as much or more than school, and you get paid to work – you don’t get paid to go to school. Don’t think that things are going to be as good as thy are now, or that things are good enough to take unnecessary risks. This probably isn’t the time to “follow your heart” unless your heart is telling you to take the job that pays the most, regardless of how much you like it.

It’s very important to start saving as early as possible so that you can take advantage of interest rates when they go up to earn interest. The earlier you start to save, the more you earn in interest. The key is to never miss a chance to earn and save. Always keep working, and never go to school unless you really need to and you are sure that it will produce a return on investment. Your priority has to be working and saving, and not spending money on frivolous things like travel or thrills. We are not at the right time in history for concentrating on sky-diving, zip-lining and surfing. Now is the time for saving.

Filed under: News, , , , , ,

Obama said Obamacare would not add to the deficit, CBO says it adds $1.35 trillion

In the video above, Obama promised the American people that his health care plan would not add one dime to the deficit. And the low-information voters who voted for him believed him. Just like they believed that they could keep their doctor, that they could keep their health care plan, that Obamacare would lower the costs of health care, that Benghazi was caused by a YouTube video, and so on.

So how much did Obamacare add to the deficit?

The UK Daily Mail has the latest numbers from the Congressional Budget Office.

Truth:

It will cost the federal government – taxpayers, that is – $50,000 for every person who gets health insurance under the Obamacare law, the Congressional Budget Office revealed on Monday.

The number comes from figures buried in a 15-page section of the nonpartisan organization’s new ten-year budget outlook.

The best-case scenario described by the CBO would result in ‘between 24 million and 27 million’ fewer Americans being uninsured in 2025, compared to the year before the Affordable Care Act took effect.

Pulling that off will cost Uncle Sam about $1.35 trillion – or $50,000 per head.

The numbers are daunting: It will take $1.993 trillion, a number that looks like $1,993,000,000,000, to provide insurance subsidies to poor and middle-class Americans, and to pay for a massive expansion of Medicaid and CHIP (Children’s Health Insurance Program) costs.

Offsetting that massive outlay will be $643 billion in new taxes, penalties and fees related to the Obamacare law.

That revenue includes quickly escalating penalties – or ‘taxes,’ as the U.S. Supreme Court described them – on people who resist Washington’s command to buy medical insurance.

It also includes income from a controversial medical device tax, which some Republicans predict will be eliminated in the next two years.

If they’re right, Obamacare’s per-person cost would be even higher.

Did Obama know that he was lying when he said that his health care plan would not add one dime to the deficit?

Well, his buddy Gruber, the architect of Obamacare, certainly did:

But we should not be surprised, either by the low intelligence levels of Democrat voters or by the lies of Democrat politicians. After all, they want single payer health care – look what Harry Reid says:

“What we’ve done with Obamacare is have a step in the right direction, but we’re far from having something that’s going to work forever,” Reid said.

When then asked by panelist Steve Sebelius whether he meant ultimately the country would have to have a health care system that abandoned insurance as the means of accessing it, Reid said: “Yes, yes. Absolutely, yes.”

And they know – from looking up North to Canada – that single-payer health care will necessarily involve massive increases in taxes.

CTV News describes a recent study on the costs of single-payer health care in Canada:

A typical Canadian family with two parents and two kids will pay up to $11,786 for public health care insurance this year, according to a new study from the conservative think tank Fraser Institute.

Using data from Statistics Canada and the Canadian Institute for Health Information, the Fraser Institute study estimated the amount of taxes Canadian families will pay for public health insurance this year.

What do you get for $11,786?

You get to be on a waiting list for a primary care physician, and you get to wait months for treatment. You can pay taxes your whole life, and then wait behind people who want sex changes – people who have never paid a dime into the system. And sometimes, you die while waiting for treatment. That’s “fairness” and “equality”. And that’s where the Democrats want to take us.

Remember when Obama said that we could keep our health care plans and our doctors?:

Democrats voters looked at this man, and they just knew – without any studies or any evidence – that he was telling the truth.

But the Congressional Budget Office says that TEN MILLION people will lose their employer health plans under Obama by 2021.

Look:

The Congressional Budget Office now says ObamaCare will push 10 million off employer-based coverage, a tenfold increase from its initial projection. The “keep your plan” lie just gets bigger and bigger.

The latest CBO report is supposed to be a big win for the Obama administration because the projected costs are 20% below what the CBO first projected in 2010.

But the CBO report also shows that ObamaCare will be far more disruptive to the employer-based insurance market, while being far less effective at cutting the ranks of the uninsured, than promised.

Thanks to ObamaCare, the CBO now expects that 10 million workers will lose their employer-based coverage by 2021.

This is in addition to the FOUR MILLION who already lost their health care plans in 2013.

Filed under: News, , , , , , , , , , , , , ,

Young Texan earns $140,000 a year, with a two-year degree and hard work

I love this story from the Wall Street Journal. I’m linking to the free version on Yahoo News, though!

Excerpt:

Justin Friend ’s parents have doctoral degrees and have worked as university lecturers and researchers. So Mr. Friend might have been expected to head for a university after graduating from high school in Bryan, Texas, five years ago.

Instead, he attended Texas State Technical College in Waco, and received a two-year degree in welding. In 2013, his first full year as a welder, his income was about $130,000, more than triple the average annual wages for welders in the U.S. In 2014, Mr. Friend’s income rose to about $140,000.

[…]The risks of a mismatch between costly university degrees and job opportunities have become clearer in recent years. Anthony Carnevale, director of the Center on Education and the Workforce at Georgetown University, said nearly a third of people aged 22 through 26 with a Bachelor of Arts degree either don’t have a job or are working at one that doesn’t require a university degree. The numbers are similar for young people with vocational degrees, but those lower-cost degrees don’t typically lead to heavy debts.

Student loan debt outstanding in the U.S. totaled $1.13 trillion as of Sept. 30, up by $100 billion from a year earlier, according to the Federal Reserve Bank of New York. (Mr. Friend has no debts.)

[…]Mr. Friend, who is single, typically works 72 hours a week, usually including at least one day of the weekend, often on an overnight shift. His base pay is more than $25 an hour, up from about $22 when he started in 2012. He gets overtime after 40 hours a week. Pay is doubled on Sundays and tripled on holidays. He receives health insurance, a 401k retirement plan and paid vacation.

With little free time, expenses are low. He rents a one-bedroom apartment for $1,080 a month in a building with a pool and gym. To stay in shape for mountain-climbing trips, he sometimes runs up and down steps wearing a weighted backpack.

He showed an early inclination to make things. “At three years old, he was using a screwdriver and a hacksaw skillfully,” said Dr. Vaughan, his mother. Later, dyslexia made writing and math a struggle for him.

In junior high school, he took a course in welding. Within a few years, he was earning money repairing fences and doing other welding jobs for neighbors.

A documentary on World War II stirred Mr. Friend’s interest in pulse jet engines, which were used by Germany to propel bombs. He and his father, Ted Friend, a professor of animal science at Texas A&M, together built such an engine. “We used a leaf blower to start it,” pumping in air needed to ignite the engine, the younger Mr. Friend said. “It ran on propane.” When he attached the engine to a golf cart, he said, the vehicle proved difficult to steer after reaching 30 miles an hour.

“Mom didn’t like it,” he said. “She thought I was going to blow myself up.” One of his goals is to put a jet engine on a motorcycle, he says, adding: “I’d try to make it as safe as I could.”

On a recent day, while country music played on a colleague’s radio, Mr. Friend used gas tungsten arc welding techniques to attach two steel parts destined for an oil apparatus. Wearing a T-shirt and Wrangler jeans, he hunched over work requiring the precision of a jewelry maker. After welding, he buffed the part with a wire brush. Colleagues would later X-ray the part to make sure the weld was flawless.

The long hours mean “it’s hard to have a life,” Mr. Friend said. Eventually, he said he may pursue an advanced degree in metallurgy and research welding materials and techniques. For now, he’s building up his savings.

He’s debt-free, and probably didn’t even need student loans for this program. You couldn’t say that about most college students these days – and the ones in non-STEM fields will never be able to pay their loans back. What causes people to go into programs that don’t produce a return on investment? I think I know why. I think that many Americans have the idea that life should be about personal fulfillment, and not about doing things that don’t feel right to them. Hard work doesn’t “feel” right to many young Americans. They want work to make them famous, and to make them happy. Well, work isn’t supposed to be like that. Work is about making money, and very often the most difficult degrees and jobs are the least fame-making, and the least happiness-inducing. This guy is a welder! It’s not glamorous.

I would advise my younger readers, especially my male readers, to take a page out of this welder’s handbook. Make a plan to avoid debt, and stick to it.

Filed under: News, , , , , , , , ,

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