The New Republic

Private equity is a reform movement, growing inequality is a reform movement, Birtherism is a reform movement, epistemic closure is a reform movement, global warming denialism is a reform movement. Let's have no more of such "reform movements."

- liberalref

May 22, 2012 at 1:59pm

"Tax breaks, government bailouts, profit assured even when investments fail. If this is reform, I’d hate to see what corruption looks like." Best. Conclusion. Evar.

- GSpinks

May 22, 2012 at 3:50pm

Eating with my parents, the conversation turned to pensions. I joked, "Why did we get rid of those again?" Mom looked at me earnestly and said, "You mean you *chose* a 401(k) over a pension?" Oh, if only we had ever been given a choice.... I wish time & energy did not have to be spent rebutting David Brooks or private equity firms or other self-evidently misguided things. But, as mom would say, it's the Lord's work: Otherwise, the devil gets in, and when no one is looking, pensions turn into 401(k)s..... I'm on Chapter 4. Keep givin' 'em hell!

- Wonderland

May 22, 2012 at 4:09pm

I'm with Brooks. Bain kept the company going years after it would have crashed, and just because they didn't end up with the same fate as steelworkers doesn't make them vampires. If you want to see what corruption looks like, best look to places where instead of private equity re-structuring you get government re-structuring. There's a wide range of examples, none of them particularly appealing and some of them the stuff of dystopian fiction.

- Robert Powell

May 22, 2012 at 5:12pm

Bob, you mean you don't find GM to be particularly appealing? I do.

- blackton

May 22, 2012 at 6:35pm

I work for a nationally vital company that was taken over by a Private Equity company, who shall remain nameless, a few years back. They borrowed obscene amounts of money to buy us a few years before the crash. The debt was loaded onto the company balance sheets and they extracted tens of millions in "Management Fees". We had to sit through endless corporate propaganda events and presentations and even had to endure endless employee award ceremonies and "Mgt Listening" tours but we all knew the harm that the owners were doing because we could see a dramatic collapse in vital investment. Moreover, the mythical efficiency drive that was to "modernise" our company resulted in employee numbers dropping by about a quarter over two years and the exit's were chaotic with vital skilled workers taken huge payouts and moving to competition. Speed seemed of the essence. The balance sheet clock was all important. In this respect, it wasn't inept management but rather corruption and theft. The private equity owners were forced out by the bondholders, who took over what remained. I have seen first hand what Private Equity is all about and it has nothing to do with the quaint notions of enterprise or free market efficiency turning around "bloated", "sluggish" companies held by beltway journalists who can't open a spreadsheet. Private Equity owners are expert thieves taking advantage of a loophole in the capitalist legal system. O'bama's right to go after them and I'm delighted he hasn't taken a step back after Booker and other simple minded careerists try to take advantage. Good for him.

- IggyPop

May 22, 2012 at 7:33pm

What I find most notable this week, and which I think some enterprising journalist should address, is the absolutely laughable disconnect around risk. Forget Mitt for a minute and look at his partner at Bain, Edward Conard, who has thrust himself into the spotlight with a new book in which he lauds the American system for rewarding "risk takers" like himself. These heroes of capitalism boldly lead the economy to huge gains by gambling everything against 100-1 odds (his own numbers) of success. In a recent interview he likened the risks these people take to walking across the Grand Canyon on a tightrope. Meanwhile, it turns out these very people, these private equity people, are engaged in a game with no risk at all - unless you count retiring at 50 as "only" a multimillionaire rather than a billionaire as a risk. Obligatory statement - I don't hate private equity investors and I think they have an important role in the system. I'd encourage my son to be one. But the notion that they're being rewarded for risk is absolutely ridiculous, and they are making that case quite baldly right now.

- boyski

May 22, 2012 at 8:00pm

I sometimes wonder how David Brooks lives with himself. He is utterly incoherent. He exists primarily to hit back whatever ball gets lobbed across the net to the GOP side of the court and he'll hit it back using whatever means seems most convenient at the time. He slathers it all in a shtick of reasonableness, but at the core he's just a flack for the conservative movement with zero intellectual chops.

- AaronW

May 22, 2012 at 8:59pm

"Tax breaks, government bailouts, profit assured even when investments fail. If this is reform, I’d hate to see what corruption looks like." Funny comment, Tim. I'd add moving many millions of jobs overseas to the "reform movement." What that's reforming is profits--kicking them up to obscene levels, without thought of the consequences to any but corporate Americans. Robert Powell, In terms of the number of people affected, government restructuring is infinitely more beneficial than the corporate version. The government restructures to save jobs. Corporations restructure to save profits. Like blackton, I give you G.M.

- magboy47.

May 22, 2012 at 9:22pm

Forty years ago, David Brooks was an idiot. These days, even after private equity reformed him, he remains an idiot.

- chaitless

May 22, 2012 at 9:57pm

Interestingly, a big problem with people saying, "Romney wasn't there when Bain fired people!" is that Romney is still on the payroll. In fact, that's how he is able to maintain the carried interest loophole. If he weren't on the payroll as a manager, he would pay slightly higher taxes (probably the long-term capital gains and dividend rates) but carried interest would not be an issue. This point hasn't been stressed enough on the news, but the more the Obama campaign picks up on it, the worse Romney looks to blue-collar voters who actually, you know, work.

- chaitless

May 22, 2012 at 10:03pm

"Tax breaks, government bailouts, profit assured even when investments fail. If this is reform, I’d hate to see what corruption looks like." Education "reform" is a disaster waiting to happen. Hoping to see TNR report on this from a legitimately liberal angle. The more you look at it, the more you notice it's a cynical move by rich people to bust unions and profit from privatizing education. Scott Walker and Chris Christie have been unsparing in their hatred of teachers' unions, and though these unions aren't angels, you can see why it's in their interest to try to destroy this reliable supporter of Democratic priorities. What makes less sense is Booker, Obama, and Duncan joining them.

- chaitless

May 22, 2012 at 10:11pm

And finally, to repeat a comment I left on MacGillis's Cory Booker post: I actually hope the anti-Bain ads continue on heavy rotation. There are far too many dangling loopholes that these guys exploit to reduce corporate tax payments, make jobs much less secure, shift jobs overseas, and drive American firms bankrupt. Private equity as a class of investment does not outperform the market by much, so in another sense, they are fleecing pension funds of elderly and middle class Americans (which pay hefty management fees that help negate any market-beating edge) even as they make it more precarious to be a retiree or middle-class worker. It's toxic and it's about time someone tore them a new one. As to the private equitization of the US: note that when firms get the Bain treatment, workers soak up unemployment, disability, and need to be bailed out by the citizen-funded Pension Benefit Guarantee Corporation. [Very much like what Iggy and Noah pointed out.] But Bain makes bank, no matter how well or poorly the company does. That, of course, is what Sarah Palin called crony capitalism. It's the same privatize the profits, socialize the losses, heads I win, tails I win template we saw in 2008 when it came to the TARP and bailout of the big banks. Not only is it fair game for Obama to exploit, it would be political malpractice if he didn't use it as a wedge to separate the wheat from the chaff. Here, the wheat are everyone from liberal Dems to moderate Republicans who don't like how their party sold out their economic interests and aren't reminded often enough of this fact. And the chaff are the Republican partisans who will pull the lever anyway. I'm hopeful that this line of attack (as well as the rescue of GM with real costs for all involved but benefits to the entire country--the way you're supposed to do a bailout [cf blackton, magboy]) will keep the Rust Belt in play and possibly shift it to 'lean Democratic'. Heck, maybe it will help offset the gay marriage losses Democrats are taking in NC and in Congressional races in Blue Dog territory.

- chaitless

May 22, 2012 at 10:19pm

The GM bailout was necessary, and as far as I can tell could only have been done by the government. That said, the final chapter is far from written. GM has been one of the worst managed large corporations for decades, and based on the "Chevy Dolt" fiasco still is. Shielding companies from the consequences of their own mistakes is a losing strategy long term, and in countries where the government is the rescuer of first resort the shambles of their economies presents an object lesson. We need substantial and real reform--entitlements, taxes, and education foremost. In terms of the latter, people like Christie, Booker, Mike Bloomberg, Joel Klein--in fact anyone who has really tried to tackle it-- understand that by far the biggest obstacle to real reform is in fact teachers' unions. Knee-jerk support for traditional Democrat constituencies is not going to be the path to any other than faux reform.

- Robert Powell

May 23, 2012 at 3:01am

Of course, RP's coda on how teachers' unions are the true hindrances to better education proves the point of my third post. Think about it. Ever notice how upper middle class schools that have few poor people and almost no minorities always do well? I suppose Scarsdale is being held back by its teachers' unions, right? And the right-to-work states, which uniformly rank at or near the bottom are also being hobbled by all-powerful teachers' unions. (Which manage to have little real power in many southern states.) While you're busting teachers unions, can you turn over public schools to the banks? They have a great record of maintaining things in the public interest.

- chaitless

May 23, 2012 at 7:45am

it's also important to note that workers feel a great deal of pain even if the private equity firm succeeds. Among the innovations and efficiencies introduced by private equity firms to fight "corporate bloat" is the getting out of contracts with workers that involve health plans and wages. At BEST, the workers whose jobs have been "preserved" will see reductions in wages, the elimination of health plans and retirement plans, and getting put on temp or part time tracks, decimating any compensation for having stuck with the company. When David Brooks talks about "bloat," he's not talking about executive salaries or benefits. he's talking about living wages and benefits for front line workers.

- miceelf

May 23, 2012 at 9:57am

You don't have to take my word for it chaitless. Anyone who has really tried to accomplish school reform will tell you the same thing without much regard to their political orientation. Teachers' unions exist to maintain the "all the right reasons for going into teaching" as explained by the Cameron Diaz character in "Bad Teacher": "short hours, lots of time off, no accountability..." The dirty little secret here is that kids from Scarsdale can't be held back by teachers'unions because they come from generally bright, well-educated families that read to them when they were small, place a high value on education, have books in the house and a generally high level of education by the parents-- the single most determinative factor in school success. These kids are not the problem. Good schools have almost nothing to do with teachers' salaries and benefits, which is really all the unions care about. When I first had a classroom of learning disabled kids in Connecticut right out of college I made about $9 k per year. Twenty years later teachers there were starting at over $40 k, and the test scores were substantially worse.

- Robert Powell

May 23, 2012 at 10:02am

What miccelf said. I am so tired of people like Brooks speaking in terms of leaner, meaner corporations. But then I'm just a working class person who's been on the receiving end of all this leanness and meanness. Several times; repeatedly. THEN, we hear it's all our fault that we don't have nice fat retirement portfolios.

- Sophia

May 23, 2012 at 12:39pm

Also, as to boyski and "risk." Risk takers should go mountain climbing and leave the rest of us alone. This is all so dumb. I've been watching the Facebook IPO situation evolve. The arbitrary nature of the valuation in the first place, NASDAQ screwups, now we have stockholders suing FB because they're aren't automatically rich? This is a game but the money and the hurt people are real. There's something really screwed up here. A few years ago my dad did a series of drawings, sculptures and paintings about a steel mill out west (Pueblo) that is now closed. The mill was absolutely central to the vitality of the little city and its people. Now it's gone and the lives of thousands upon thousands of people, the culture of a whole city will never be the same. Why? The skilled workers were there; the coal and iron ore and the rail lines are still there. The demand for steel remains. But the mill is gone and the jobs are gone.

- Sophia

May 23, 2012 at 12:44pm

PS oh right. Blaming the teacher's unions for the poverty of the inner cities, for the lack of resources, crumbling infrastructure, emotionally and physically challenged children that nevertheless are "mainstreamed;" teachers stressed to the max - dedicated people who've given their lives to try and educate the next generation. Shame on you Robert Powell!

- Sophia

May 23, 2012 at 12:48pm

Robert Powell obviously learned nothing. I was educated until 7th grade in ghetto schools. The teachers were great. The kids had lousy homes. I did fine because I had two parents with values. You can learn as much from a dog-eared book as from a shiny new one. Peeling paint never held me back in math class either. My classmates were screwed by single parents who had lousy values, not by teachers.

- Mikelawyr22

May 23, 2012 at 1:06pm

With respect, Mikelawyr22, my mom raised me and my sister alone. I think it's just wrong to accuse, as you seem to, single parents of having lousy values.

- Sophia

May 23, 2012 at 1:50pm

PS I went to an inner city school too and the teachers were the max.

- Sophia

May 23, 2012 at 1:51pm

AND SO WAS MY MOM.

- Sophia

May 23, 2012 at 1:51pm

Good for you guys. Your single parents had good values and inculcated them in you. It's all about the values.

- Mikelawyr22

May 23, 2012 at 2:05pm

"Lean and Mean" equals "when times get lean, management gets mean". Vulture capitalists like Bain bring nothing to the table. Go ask the Chrysler people what Cerberus did that nearly killed the company. Go read the history of what happened to Simmons, the mattress maker, at the hands of equity capital. The "reforms" were a group of guys that know how to rape a company legally get rich while the rest suffer. And whenever I hear comments about a "Chevy Dolt" then I know the commenter is the dolt and whatever follows is pure uninformed garbage and stupidity.

- tmmats

May 23, 2012 at 2:07pm

Sophia, you go, girl. Exactly a year ago this month, I was extremely saddened as I read about the death of 13 year-old Hana Grace-Rose Williams, an Ethiopian girl who was adopted by a Skagit County, Washington, couple in 2008 (north of my location in Seattle, toward the Canadian border). Her parents punished her by making her stay outside in the back yard on a cool May night with inadequate clothing and she died of hypothermia. She had been deprived of food for months before her death. I recall the tears in my eyes when I read about this horrific episode in my local newspaper. Now, there is a stellar example of an intact heterosexual, two-parent family with robust values. Kudos to your mother, S.!

- liberalref

May 23, 2012 at 2:49pm

Thanks for making my point Mikelawyr. It's the home environment that determines school success, almost never the schools or teachers (although there are of course exceptions). I'm the product of public schools in poor districts, and spent enough years in inner-city education to be completely unimpressed with romantic bullshit about "dedicated people who have given their lives" blah blah. We are in dire need of real reform, in entitlements, taxes, and education. We won't get any of it by kow-towing to the traditional vested interests, which includes teachers' unions. They are, without any serious question by anyone other than themselves and their uncritical boosters, the greatest single obstacle to reform that places the needs of kids above that of teachers and administrators. Much the same can be said of the industrial unions, which have lost out because they failed to adjust to change as unions in Germany, for example, did, and instead developed their own hierarchy of fat-cat bosses to the detriment of their membership. Democrats who are uncritical cheerleaders for such corrupt unions are also significant obstacles to reform.

- Robert Powell

May 23, 2012 at 4:24pm

Damn it Robert, you bring out the Tory in me, hard to disagree with any of that.

- IggyPop

May 23, 2012 at 7:11pm

I've worked for two companies that were bought by private equity firms, and both times it ended very badly. The second time I was working at the director level of the company and was able to see exactly where the money was going, and it was obscene how a company full of talented hard working people was driven into the red solely by fees and the burden of their purchase price. In both cases it wasn't a case of just raiding the company, but involved merging our company with competitors they'd also bought, massive layoffs, failing to spend a cent on R and D, and massively increased work hours that drove off some of the best talent. In the second case it also involved false billings to clients that landed a few people in jail. The bottom line looked great for a year or two, but after that the hollowing out of the companies began to show and clients left in droves. I'm currently in the middle of a job search and based on my previous experience I won't go near a company if saddled with paying off it's purchase price to a private equity firm. On a side note, I propose a new rule - If you are using "the Cameron Diaz character in "Bad Teacher"" as part of your argument, you've already lost your argument.

- Attrill

May 23, 2012 at 10:35pm

Robert Powell: " They are, without any serious question by anyone other than themselves and their uncritical boosters, the greatest single obstacle to reform that places the needs of kids above that of teachers and administrators." That is simply a gross overgeneralization. There are good unions and bad unions. Some are cooperating with reforms (I hear the Denver union has been a good partner), some have not. There is nothing inherent in teachers unions that make them pro- or anti-reform. People are fond of pointing to Finland as a great model for schools, and their teaching force is unionized. I've taught, and I'm involved in education grantmaking work, and I've seen a lot of teachers working very hard in difficult conditions for what I consider modest if not inadequate reward. There are lots of "'dedicated people who have given their lives' blah blah." Yes, I've seen some dead wood too. But let's not denigrate the many fine teachers we have just because there is a relatively small portion of loafers, which exist in every field. And let's not throw all their unions into the same pot as well, because I don't think the evidence supports doing so.

- dsimon

May 24, 2012 at 12:37am

I noted that there are exceptions, dsimon, and I accept that broad generalizations aren't the best way to make an argument. That said, my experience in the field and my reading about reform efforts (particularly in larger cities like New York, Chicago, and Los Angeles), confirms the impression that teachers' unions represent, as an institution, the major obstacle to serious education reform. I would also suggest that trying to make comparisons to societies with major cultural differences (Finland, Japan, Korea, etc) generally falls apart as an argument on close examination. Look, I don't think you will find a single major institution anywhere that allows workers to have nice salaries, great benefits, total job security (even in the face of gross malfeasance and incompetence); work nine months of the year about six hours a day with lots of holidays; and still portray itself, successfully in some circles like tnr comments, as victims. The real victims are the kids who are the absolute last priority in far too many public school systems, with the top priority being maintaining the gravy train for teachers and, especially, administrators (most of whom started as teachers).

- Robert Powell

May 24, 2012 at 3:52am

Thanks Iggy. Always a pleasure to introduce another perspective, although in fairness I think major unions like the NEA represent the real conservative position. They have established a nice, cozy vested-interest niche, and will defend it to the last ditch against reform. The ultimate irony is that they usually appeal to a "do it for the kids" argument, all the while resisting any change that would actually benefit their students if it goes against their very well-protected interests.

- Robert Powell

May 24, 2012 at 4:44am

If teachers and schools don't make much difference and the real driver of school success is families, then what difference does it make what teacher's unions do? Either teachers matter or they don't. Pick one.

- miceelf

May 24, 2012 at 7:51am

And furthermore, if you think that teachers only work six hours a day, you probably were one of those kids in school who thought that papers magically got graded, lessons got planned, etc., just instantly. Object permanence. The teachers I know spend a lot of time weekends and evenings grading and writing lesson plans. A typical week isn't 30 hours, as you suggested, but closer to 55 to 60.

- miceelf

May 24, 2012 at 7:53am

mice - On the "six hours a day," thank you, I had the exact same thought. A teacher might spend six hours a day in front of students, but he or she also spends hours a day grading papers, revising plans for the next day, dealing with parents, dealing with the administration, and twenty or thirty other things that make that six hours a day both possible and meaningful. I don't know where you went to school, Powell, but where I grew up, teachers were at school before I got there and stayed long after I left. In eighth grade, my social studies teacher started each morning with a 15-minute video, a roundup of the previous day's political news geared towards kids; she got up every morning at 4 a.m. to record it for us. Tell a teacher like that that she works six hours a day and it's a kindness if she doesn't break your nose. And to say they work nine months out of the year? Teachers get some vacation in the summer, yeah, but they also spend a huge chunk of that time cranking out the first versions of the entire year's lesson plans and taking classes to maintain certification and continuous education requirements. Again, that the teaching in the classroom is all you see (or think of) doesn't mean that it sprang from nothing. If teaching was the cushy job it's made out to be, you'd think people would be flocking to it, and yet cities are desperate to fill their teaching vacancies. I wonder why...

- janus

May 24, 2012 at 8:56am

I understand where you're coming from Iggy, but in the US we have pretty different realities to contend with. I can tell you how well your public school is doing based on where its located and what its median income is. Basically irrespective of the teachers unions that tend to exist in most of the country (but lack much power in the South). The fact that teachers unions as a variable seem to float off into the ether is the most obvious condemnation of RP's notation (and the Republicans and many Democrats generally) that they're the greatest single obstacle to reform. In fact, studies of the achievement gap tend to put in-school factors at about 20% and teachers themselves at about 10%. We have a national problem wherein people who become teachers are not generally graduating at the top of the class and foregoing medicine or law to teach. That's part of the reason that some reformers demand that we pay teachers more. But at the same time, everyone keeps complaining that we are "taxed enough already" and it stands to reason that if you raise compensation (and salaries are a pretty large part of school expenses), you need to raise funding which means you need to raise property taxes. And everyone hates paying higher property taxes. Which is somewhat logical since in the aggregate we actually spend more on education per child than most countries and certainly more than the success stories like South Korea and Finland. The real problem, though, is poverty and societal breakdown. If we could get kids from poor households into early childhood education (to reduce the gaps in education at school entry), pay for maternal leave, and support comprehensive after-school programs (or just lengthen the school day), we would do serious work towards improving school outcomes. Note that while Finland and South Korea spend less on education per se, they spend more on these things and manage to lap us when it comes to performance--these are better places to spend more money for a good return on investment. If, on top of that, we could desegregate the schools in the cities and the suburbs by race and by class, we could start to improve outcomes of our poor and needy students, who do much better when mixed in the middle class and upper class rather than isolated in their mainly poor ghettos. This makes sense because in poor neighbourhoods, many of the same social impediments strike families, make it more difficult for any individual student to succeed, and make it more difficult still for teachers and social support staff to devote adequate resources and time to remedying these problems. Think about those tear-jerker stories you hear: when teachers make house visits and discover the squalor their students live in. And then think about the fact that maybe 20 out of 30 students live in this depravity and may yet be helped out of it. It's too much for one person to do, and it's too much because the concentration of poverty for even a gifted and giving teacher is too high. The fact that the above reforms are still controversial should tell you all you need to know about trying to re-make our system in the guise of Finland. The Finnish story is primarily one of better social services making life better for people from the middle class down to the poor (i.e., most people, and certainly most families raising children). And then secondarily it is one of a better teacher corps and an education system focussed on just that, as opposed to mandates, testing, and college-readiness in spite of a college affordability crisis. (Let me go on the record here. I'm pro-college. But I'm also pro-vocational school. And most importantly, I'm pro-public funding of college. Student loans are just a more pernicious route of funding education that immiserates students and saddles them with a debt millstone. Other countries take care of this by having taxes support education. Could you imagine what would happen if we made families take out student loans to pay for high school or junior high?)

- chaitless

May 24, 2012 at 9:17am

Robert Powell: "I don't think you will find a single major institution anywhere that allows workers to have nice salaries, great benefits, total job security (even in the face of gross malfeasance and incompetence); work nine months of the year about six hours a day with lots of holidays" Nice salaries? Yes, better than average median pay. But a lot of these people could be making more money elsewhere. Job security? Yes, it should be easier to get rid of bad teachers. But I doubt there are really that many of them. And if you're not going to pay me what I think you should, you'd better give me something else in return--like job security. I've always thought there should be a trade of substantial pay increases for less job security. Six hours a day? Follow some teachers around for two weeks and let me know how that six hour day works out. I was consistently working well into most evenings, as were most of my colleagues. Again, there are always some slackers, but it seems like this description falls back into the gross (and mostly incorrect) overgeneralization that you say "are not the best way to make an argument." "The real victims are the kids who are the absolute last priority in far too many public school systems, with the top priority being maintaining the gravy train for teachers and, especially, administrators" Again, I advise following some teachers around and seeing how much effort they put in for their students. And look at some principals too; most of the ones I've met put in tremendous hours in an unforgiving job where they have a lot of accountability with insufficient responsibility. Sometimes I'm amazed anyone takes that job at all. Yes, reforms would be helpful. But there is good management and bad management, just as there are good unions and bad unions. Most teachers don't go into the profession to ride the "gravy train." Even if it were easier to dismiss teachers for incompetence, how many would really get the boot? I suspect few, because most teachers are competent and care about their students. That's not to say they shouldn't go, but it's only one aspect of the problem. And some unions have been more accommodating on this issue.

- dsimon

May 24, 2012 at 11:45am

Having spent a number of years as a teacher, I don't really need the boosterism. If teachers are so wonderful, why aren't we getting better results? Of course some teachers work hard, usually in their first few years before they either burn out an leave for a better job or worse, burn out and stay until retirement. The problem is not individuals but the system, which rewards diligence and commitment exactly the same as laziness and incompetence. As would be the case in any organization this leads inevitably to crashing morale and deteriorating results. We need reform, not knee-jerk defense of the indefensible in the name of solidarity with a key partisan constituency.

- Robert Powell

May 25, 2012 at 4:58am

it's not boosterism to point out that you are grossly underestating the work involved. I also want to point out that we are having a conversation about the tragedy of teachers having living wages and how corrupting this is, in the context of a TN post about private equity, which involves a lot less of anything that ressembles work, a lot higher rate of remuneration, regardless of outcomes, etc.

- miceelf

May 25, 2012 at 5:58am

Some teachers work very hard mice. Many don't. I've been there long enough to know. I agree that it's not fair that Wall Street types make so much money, but in the long run the damage done by an education system that routinely drives out good teachers while retaining to the bitter end the mediocre and incompetent, is more harmful to the nation.

- Robert Powell

May 25, 2012 at 8:39am

Well, we agree that reforming education is necessary. But I just don't see a lot of the proposals having much to do with the problem that good teachers leave. They'll burn out just as quickly if they are being paid less and have less job security, and while it's true that the mediocre will leave somewhat quicker, they'll just be replaced by more mediocres. McDonald's has low wages and little job security, and yet there's still a fair number of mediocre workers there.

- miceelf

May 25, 2012 at 11:03am

I'll end on a note of agreement--reforming education is necessary. I also agree that decent pay and job security are valuable in any organization. But so is accountability. It's lack is demoralizing, most especially for those we should most want to keep. I wouldn't want to put Bain Capitol in charge of school reform, but something rather more similar than most tnr readers would think is what's required IMHO.

- Robert Powell

May 25, 2012 at 5:23pm

Robert Powell: "If teachers are so wonderful, why aren't we getting better results?" Maybe because there are a lot of factors in children's lives other than who they have as a teacher? Do we believe that teachers are completely in control of student outcomes? That every child has a quiet, secure, and supportive home environment to work on their studies? Yes, there should be accountability. The profession needs to be professionalized, and good teachers can make a difference. But it's also the case that it's hard to attract the best teachers to the schools that need them most. And it's also the case that if one could freely dismiss teachers, most of the ones who are presently teaching would continue to be teaching because they are at least competent, and it's doubtful that those who are dismissed would be replaced by a bunch of superstars because there simply aren't enough of them going into the field. That's not the unions' fault, nor will union-bashing change it. "the damage done by an education system that routinely drives out good teachers while retaining to the bitter end the mediocre and incompetent, is more harmful to the nation." Good teachers are driven out because it's a tough job, not because of some union rules. One thing that might help is smaller class sizes. I believe the research shows it doesn't have that much effect on student achievement past elementary school, but I wonder what effect it has on teacher retention (it's a lot easier to teach classes of 17 than classes of 35). Unions are far from perfect, but at least they usually push for smaller classes, even if it's in the self-interest of their members to do so.

- dsimon

May 26, 2012 at 12:45am

There is no question that the republicans are no friends of the middle class. They have to be defeated in the upcoming elections. I hope and pray the electorate will respond accordingly. And to quote Yogi Berra, it ain't finish until it is finish. America to work fecund and creative.

- JAIMECHUCH

May 28, 2012 at 4:16am

Private equity companies being mean is as old as apple pie. Years ago there was a movie where Danny DeVito was the head of the private equity co. acquiring this old good co. gone on bad times headed by Gregory Peck. I always remember Danny DeVito saying OPM Others People Money. At the end Gregory Peck looses and the workers get fired. And the private equity co. profits from OPM Others People Money. Look at the successes of the biggies Warren Buffet and Carlos Slim. The richest men in the world. Their main business is to buy companies in distress and make them profitable. You know, the people from those companies are never listed in Forbes, or interviewed in CNBC. BTW, Carlos Slim has recently declared that Europe is going to get all of his attention. He will acquire as many companies as he can swallow. Carlos Slim owns a good chunk of the New York Times, who used to be in distress. Well, David Brooks and Thomas Friedman have not lost their jobs yet. Go and figure. BTW, didn't TNR was acquired recently by a young wealthy financier? Well did Martin Peretz loose his job? More things change, more things remain the same. On the other hand... Read about being proactive in the Center for Education Technology in Israel: PRESS RELEASE May 21, 2012, 7:00 a.m. EDT Education Moves up a Grade: Israel's Center for Educational Technology (CET) to Start First-of-its-kind Educational Incubator in the Negev TEL AVIV, Israel, May 21, 2012 /PRNewswire via COMTEX/ -- Incubator to host start-ups and entrepreneurs involved in innovative educational technologies CET to mobilize $10 million in the project over the next five years The Center for Educational Technology (CET) today announced the launch of an educational-technological incubator for educational startups and entrepreneurs from Israel. Scheduled to start operations this June in the city of Yeruham in the Negev, the Incubator seeks to develop the area of EduTech, namely leveraging high tech knowhow and capabilities for the development of innovative educational technologies. The Incubator will mobilize local startups and entrepreneurs involved in education and will focus on developing dedicated technological models and solutions for the educational system as well as research the relationship between the digital culture and education. The Incubator will be headed by Avi Warshavsky, Head of Humanities and Social studies at CET and one of the entrepreneurs behind KOTAR, the digital book platform. CET's technological incubator will consist of three areas: the Garage, where developers and entrepreneurs will look for solutions for various educational challenges; the Aquarium, the first research center on education and technology; and the lab which will liaison between the incubator and the classes through a network of selected schools. The lab will identify technological needs of the educational system and will pilot the technological products developed in the Incubator. Gila Ben-Har, the CEO of CET, commented, "While Israel has acquired a reputation as a global high tech superpower, it is necessary to invest in education to close the gap between our technological capabilities and their implementation in the education. The establishment of the first technological-educational incubator in Israel seeks to create an optimal affinity between creative and entrepreneurial startups and the educational system so as to position Israel in the forefront of innovative technological education. The choice of Yeruham to host the Incubator came natural for us as we seek to encourage start-up companies and entrepreneurs to work in the Negev as well as become engaged in the community activity in the area and in the educational institutes of Yeruham and its vicinity." Over the next five years, CET will mobilize $10 million in the project. Start-up companies that join the incubator will enjoy financial support and will be able to use the Lab's schools as an experimental field, and the team of the Aquarium for research and business and pedagogical consulting. In choosing Yeruham as the venue for the incubator, CET hopes to encourage and spur settlement in the Negev, creation of new jobs and interaction between the Incubator and the community. The mayor of Yeruham, Michael Biton, said, "The opening of CET incubator in Yeruham is wonderful news for the city and a major advance for the citizens. The opening relies on Yeruham's having the human capital necessary to run the Center and the conviction to start Zionist momentum in the Negev. The high tech industry has shown it is capable of overcoming borders and physical distance. I am confident that CET's decision is the first bird of spring and that more organization will follow suit with initiatives which will create more jobs and more high tech ventures in the region." Avi Warshavsky, Head of Humanities and Social studies at CET, said, "CET has identified the need of establishing an independent body devoted to research, entrepreneurship, innovation and experiments in education. We urge local developers and entrepreneurs join us and partner in making a real difference in the future of Israel's educational system." Organizations interested in joining CET Technological Incubator in Yeruham are invited to write to Hamama@cet.ac.il ABOUT THE CENTER FOR EDUCATIONAL TECHNOLOGY (CET) The Center for Educational Technology (CET) is an Israeli nonprofit organization, dedicated to the advancement of the education system in Israel. CET is active in establishing rich, media-intensive digital knowledge pools, development and implementation of breakthrough digital models for teaching, learning and assessment, development of high quality books and websites aligned with the curricula and various population groups, and professional development of educational teams and measurement and assessment tools. Since its inception in 1971, CET has been fulfilling a social mission of promoting achievements in the information age, creation of equal opportunities for all the children in Israel, making information and cultural assets more accessible, and nurturing the values of democracy. CET employs over 400 people in research and development, technology, content, and more. For more information, contact Sharon Blum, Moshe Hager, Stern-Ariely Public Relations, +972-3-6122130 SOURCE The Center for Educational Technology (CET) Copyright (C) 2012 PR Newswire. All rights reserved Financial Glossary Words used in this article: PR incubator Garage momentum CEO Suggested stories Carl Zeiss Presents Fluorescence Technology for Intraoperative Analysis… Facebook's Zuckerberg, Thiel sell shares U.S. stocks fall, but still halt 3-week slide Ferrari Crash Fuels Antiforeigner Ire in Singapore   Investors may be headed toward ‘fiscal cliff’ China manufacturing activity worsens: HSBC From Around the Web Content from Sponsors What's this? Why You Should Cancel Your Cell Phone Contract (Daily Finance) How to Use HDMI to Stream HDTV from Your PC (Intel) 12 Companies that Could Go Bankrupt Very Soon (StreetAuthority) 10 Worst Cars of All Time (TheStreet) FDIC sues former NFL star (Bankrate.com) [what's this]

- JAIMECHUCH

May 28, 2012 at 4:48am

THis is the link for Israel's CET http://www.marketwatch.com/story/education-moves-up-a-grade-israels-center-for-educational-technology-cet-to-start-first-of-its-kind-educational-incubator-in-the-negev-2012-05-21

- JAIMECHUCH

May 28, 2012 at 4:56am

There is Jack Welch that introduced General Electric to the methodology of six sigma to make products with the maximum quality. Made manufacturing and business very efficient and productivity sky high. Also using the minimum of workers to achieve maximum profits. Corporations are product driven not people driven. We admire these successful business "giants" and put them as examples of success, Jack Welch, Carlos Slim, Warren Buffett. Human compassion is not compatible with business success, it so appears. Of course tax breaks for the super rich, bailout of Wall Street, letting the super banks get away with murder, every little thing helps. Also it helps having 25 million unemployed and 10 million homes under foreclosure. And to add insult to injury the republicans want to rob the middle class and give it to the rich. As somebody told senator MaCarthy years ago they have no shame. BTW members of this gang include federal reserve big chief Bernanke and BHO treasury sec. Timothy Geitner, and the gone but not forgotten Henry Paulson previous treasury sec. to George W Bush and previous CEO of Goldman Sachs all originators of the great robbery called Wall Street Bailout. Please don't forget "women are not good for math" Larry Somers previous big chief economics advisor to BHO. I guess people can live with shame, as long as they have the money, Other Peoples Money. So ruminating Romney is part of the gang and David Brooks defends him. BTW David Brooks is a guest all over the leftist media, PBS, Charlie Rose , NBC, and now TNR. He is a likable chap nonetheless .

- JAIMECHUCH

May 28, 2012 at 12:10pm