Friday, April 30, 2021
The anniversary
Sunday, April 26, 2015
How Should Christians Respond to Gay Behavior They Consider Sinful? A Lapsed Mennonite Replies Awkwardly to Bishop Silva
Friday, June 17, 2011
Mandatory sick leave: It's not just Philadelphia
Here is what opponents of paid sick leave apparently desire: that you enter a local restaurant for a delicious meal prepared by a flu-ridden cook who can't afford to take the day off -- or else her own kids might have to do without a meal of their own. Enjoy your Virus Burger, folks!Ben: "Don't be surprised if unemployment remains high if these bills pass."
Hyperbolic? A little. But the reason the sick-leave moment exists is that many low-paid workers often have to choose between working sick -- or leaving sick children at home -- or losing desperately needed income.
Business owners are understandably concerned that such a requirement would cut into their revenues, and possibly make it impossible to do business. Their concerns are fueled by studies that exaggerate the potential costs by assuming -- implausibly -- that workers would take every possible day of sick leave. An additional underlying belief is that businesses see little or no benefit from offering such benefits to their employees.
Neither belief is warranted. In Connecticut, for example, the Economic Policy Institute discovered that employees who already had access to five paid sick days took off just 2.41 of those days.
And while advocates for paid sick leave say that a national law would cost businesses $20.2 billion, those same businesses would reap $28.4 billion by reducing job turnover and lost productivity from workers who show up ill and can't properly perform their duties.
In these dark economic times, policymakers understandably hesitate to add to the burdens of small businesses. It would be nice if government could provide incentives to business to provide sick leave, instead of merely piling on new regulations.
The underlying principle of such proposals is sound, however: Jobs should offer more than a labor opportunity-- they should offer a living.
If that means you eat a hamburger with fewer germs, so much the better.
Monday, June 13, 2011
Bill Dunkelberg bait-and-switches Inquirer readers about the sick-leave bill
But sometimes opponents make such misleading arguments that it gets easier to choose sides. That's the case with today's Inquirer column from Bill Dunkelberg, a professor of economics at Temple University.
Here's how he starts:
Philadelphia universities clearly produce more graduates than we can use, so we "export" them. The Philadelphia region specializes in the production of drugs and graduates (among other things). It is silly to think we could keep most of them.There's an implication here that the sick days benefit will chase away Philadelphia's best and brightest—that it will so thoroughly kill the creation of new jobs that folks from Penn, Drexel, Temple, Villanova and all the other universities will have to leave town in greater numbers than they already do.
Graduates will stay only if there are jobs to be had. Yet Philadelphia is hostile to new business creation. The wage tax, the gross-receipts tax, the Department of Licenses and Inspections, and poor city services are just a few of the things that discourage job creation.
Now, City Council wants to put another nail in the job-creation coffin - a requirement that firms provide each employee a "paid sick days" benefit.
But does that make sense? If you go by Dunkelberg's examples, I'd say no:
For a small restaurant with 10 employees, paying $10 an hour on average, this could add up to serious dollars. Let's say it creates $7,000 in additional annual expense. To make this up, firms with, for example, a 10 percent profit margin, would need to generate $70,000 in new business to cover the increase in costs.Certainly not, but ask yourself a question: If you're a grad of Penn, Drexel, Temple, or Villanova, is a $10-an-hour restaurant job going to keep you in Philadelphia? In most cases, the answer is no.
For the small competitive firms that provide most of our jobs, this is not chump change.
In fact, if you think about the types of jobs the majority of those grads will be looking for, one thing is probably self-evident: those jobs probably come with sick leave benefits. Does Comcast make its employees come in with the flu or stay at home without pay? The pharmaceutical companies? The hospitals? That's where a lot of Philadelphia's brightest young workers are going.
In fact, I'd suggest that Dunkelberg uses the $10-an-hour example precisely because those kinds of jobs—physically laborious, low-paying—are actually the kinds of jobs that are targeted by the bill, where sick leave isn't generally offered, and where employees could really use it. These aren't university-grad jobs; in lots of cases they're not even high-school grad jobs.
Dunkelberg is on safer ground when he argues the other possible economic consequences of the bill. (Although his suggestion that Philadelphia workers are itching for an opportunity to rip off their employers is contemptible, as it is when every other opponent makes it.) But Dunkelberg clearly wants you to think that the bill will chase high-education high-wage jobs away from Philadelphia. Since those jobs generally already provide such benefits, that result is unlikely. And Dunkelberg surely knows that.
Tuesday, May 31, 2011
Would mandatory paid sick days hurt Philadelphia businesses? Maybe not
Among the highlights:
• If all employees used all five paid sick days, the average cost to an employer that currently provides no paid sick days to any employees would be 0.40% of sales.Says EPI: "The data clearly show that the potential cost of providing paid sick days is in fact extremely small relative to the total sales of a firm. In addition, available research shows cost-savings for employers that provide paid sick days, largely resulting from reduced employee turnover."
• Among workers who currently have access to five paid sick days, the industry-weighted average number of days taken is 2.41 days; if employees used this average number of paid sick days, the total cost would be 0.19% of sales.
It would be interesting to see similar research brought to bear on Philadelphia, but I'm guessing the outlook wouldn't be all that different. In any case, if I were running a business, I'm not sure why I'd want to put my employees in the position of coming to work sick—infecting other employees, my customers, and even me. Based on EPI's memo, such burdens appear unnecessary.
Thursday, December 16, 2010
ObamaCare and the individual mandate
Ben and I wrestle with the lawsuit against the health reform bill in our Scripps Howard column this week. My take:
Let's be clear: Conservatives didn't think the individual mandate was unconstitutional in the 1990s -- when the conservative Heritage Foundation came up with the idea, then pitched it as an alternative to President Bill Clinton's health proposals. No Tea Partiers shouted about "tyranny" just a few years ago, when GOP Gov. Mitt Romney made the requirement a centerpiece of Massachusetts' health law.
While some conservatives sincerely see the mandate as an intolerable infringement upon American freedom, it's not unreasonable to think the GOP is cynically moving the goalposts in its never-ending opposition to Democratic policy ideas -- even if those ideas were originally Republican.
The irony: The mandate was an effort to leave health insurance in the hands of private industry and avoid a true government takeover of the health care system.
During the 2009 debate, after all, many Republicans agreed reform should include a rule that insurance companies couldn't deny coverage to customers with pre-existing conditions. But that left open the likelihood people would wait to get sick before buying insurance -- saddling companies with the costs of sick patients without enough healthy customers to help pay the way. That would've driven the companies into bankruptcy and, in all likelihood, triggered the rise of a government-run "socialized" health insurance system.
So there are good policy reasons for the individual mandate. But as a political matter, many liberals recognize that the mandate is a particularly ugly way to make the sausage of health insurance reform -- more likely to trigger protests against the bill rather than make Americans grateful for the welfare state.
There less-burdensome ways to replace the individual mandate. Insurers could offer financial incentives for early sign-up and penalties for late arrivals, the way parts of Medicare work now. Other, market-friendly ideas abound. But never fear: Republicans would certainly oppose those ideas, too. They always do.
Monday, August 9, 2010
Conservatives Against Philanthropy: Are Bill Gates and Warren Buffett Socialists?
They're wearing red. That can't be a coincidence. |
As it turns out, however, the writer, senior editor-at-large Carol Loomis, struck a raw nerve with Fortune readers. Most were outraged – regarding the philanthropy plan as grandstanding that would do nothing to create jobs or to address horrific problems, including runaway government spending, the spiraling deficit, and the near-comatose state of the economy. As Fortune notes in its July 26 issue, “When Carol Loomis reported on Warren Buffett and Bill and Melinda Gates’ plan to pledge half of their wealth away, the comments – nearly 500 of them – came in fast and, literally, furious.”
According to Fortune’s own tally, the comments ran 2-to-1 against Buffett and Gates. The included 36 percent of who readers described the philanthropy plan as “a publicity stunt/dangerous/the work of socialists” and another 26 percent who said the money that Buffett, Gates, and the other billiionaires were proposing to spend on charity should be spent in other ways – to pay off the U.S. debt, to help individuals, or reinvested in the creation of new businesses and job opportunities.
Any number of readers wrote in to urge Buffett and Gates to remember that they were supposed to be capitalists. As one put it, “For all their vast wealth, these people don’t have a clue about how economies flourish and fail. Don’t GIVE your money away. That’s called putting it in a bottomless pit. INVEST IT. Create some badly needed jobs by creating something called BUSINESSES with that capital.”
This is why I'm confused: Conservatives have typically sought to defuse allegations that they're heartless moneygrubbers by saying that they're not against helping poor or needy people, exactly -- they just think it's the job of communities and churches and private charity, not the state. But if they're now so critical of private individuals actually giving their money to charity, what's left?
Is the Ayn Randization of the business community becoming complete? Is the only virtue to build yourself and your profit? Is altruism morally suspect in this universe?
A conservative friend suggests that some of the response is less "anti-charity" than a reaction against the kinds of charity Gates and Buffett are supporting. (Buffet has, quietly, used his philathropical reach to try to expand access to abortion.) And their efforts do seem aimed at more than feeding the hungry and healing the sick -- they want to use their billions to transform societies. From the Fortune article, a description of a dinner where several billionaires told their stories of philathropy:
The charitable causes discussed in those stories covered the spectrum: education, again and again; culture; hospitals and health; the environment; public policy; the poor generally. Bill Gates, who found the whole event "amazing," regarded the range of causes as admirable: "The diversity of American giving," he says, "is part of its beauty."
But it's not as though Gates or Buffett have the power to compel other rich people to give to charity -- much less determine which philanthropies those rich people choose to fund. So statism -- usually the bugaboo of capitalist-conservatives -- seems to be absent from the equation. How the effort equates to "socialism," I'm at a loss to understand.
As it happens, today's New York Times has a front-page story about India -- that economic up-and-comer whose growth sometimes seems to come at the expense of America's -- and the debate there over whether the poor have a right to eat. Even with the availability of more good-paying jobs than ever before, there are still many, many Indians in poverty: 421 million. Which happens to be more people than exist in the United States, rich or poor.
The point here is not to disparage capitalism. It may have some warts, but it has also created more wealth -- and lifted more people out of poverty -- than any other force in history. So Gates and Buffett's critics are right to an extent: Start some businesses and put some people to work! You know what? That can easily be done with the billions of dollars each man will still have, even after their sizable philanthropic donations. It's not an either-or question.
The critics seem more than a little foolish when they suggest that two self-made billionaires don't understand economics. They're also guilty of narrow thinking. As India shows -- and American history demonstrates -- there are places the market cannot reach and people the market cannot help, even in the most vibrant of economies. (There are places it probably shouldn't reach, but that's another discussion.) Conservatives usually seem to know this, which is why they've advocated private charity as a solution to such ills. To see them now sneer at altruism is weird and a little unsettling.
Sunday, March 28, 2010
Bag O' Books: Eating Animals
So what's new for Foer to say? Not much, honestly. His reportage here covers much of the same ground already trod by Pollan. Factory farming -- we're told again -- is a dirty, cruel process that is awful to behold is probably making us sick. If you've read Pollan, you're likely to find yourself in the grip of a second possible reaction:
* IRRITATION: What Foer does offer is attitude and sanctimony. Where Pollan is professorial, using narrative to nudge his reader toward a conclusion, Foer comes across a smart, profane, angry undergrad -- one you might try to avoid on the quad when he starts hectoring passerby to stop and watch his Meet Your Meat video. He might be in command of the facts, but damn he's annoying.
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