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Better Economics Education Needed

By the News-Register
POSTED: June 12, 2009

State Treasurer John Perdue wants children in West Virginia schools to learn more about personal finance. One example might be the dangers of buying a house with a low down payment and without the resources to make monthly mortgage payments.

We agree wholeheartedly with Perdue and the many Mountain State educators who want to beef up personal finance education in schools.

At the same time, schools clearly need to do a better job on teaching children about the economy as a whole. For example, what happens when government and some big financial institutions encourage Americans to take on mortgages they can't afford?

What happens, as we have seen, is a massive collapse in the housing industry. We also have seen that a few demagogues in politics continue to be able to mislead Americans about the cause of the crisis and what needs to be done to end it.

Perdue has been working with other state agencies and the state Board of Education on a program called NetWorth. The idea behind it is to prepare young people to handle personal finance issues - everything from balancing checkbooks to using credit prudently.

Ideas such as NetWorth are nothing new. For many years it has been obvious that schools need to do a better job in personal finance education. Also for many years, there have been various initiatives to accomplish just that. It does not appear that they have done the job.

Instead of merely declaring that more emphasis is to be placed on both personal and general economics, educators should take a close look at what has worked - and what has not - in such programs. It is our impression that there ought to be plenty of information available.

And again, just teaching students how to avoid personal finance pitfalls is not enough. They need better education on business, industry and government, too. To judge by developments during recent years - more irresponsible spending by Americans, in part because of government actions - that is a pressing need.

Member Comments
View Comments: | 1-19 | Post a comment
Graysongs
06-14-09 4:38 PM
robo - I was out at a party last night among a bunch of Nashville songwriters and artist. I always steer way clear of politics in that setting. I keep things to myself. But, last night, I heard several folks who I happen to know voted for the current president expressing very profound regrets and concerns about the damage he is doing. And he needs to get it done fast because after 2010 he won't have a compliant Congress. I can only hope there's enough obstructionism around to at least slow him down.

robojock
06-14-09 2:45 PM
Just some perspective. I made approximately $80,000 lasy year. Ovey $17,000 was taken in state and federal taxes. That is over $1200 monthly. Talk about confiscatory! How abot we agree that we are ALL taxed too much, while our taxes are given to special interest groups.

Graysongs
06-14-09 10:25 AM
I think a whole lot of adults are getting a better level of education in economics right about now. It seems that even a lot of "social liberals" are aghast at what it being pushed as far as federal spending.

EllisWyatt
06-14-09 9:22 AM
Barron

I just looked at the data. I know where you found it. I will concede that $388,805 in AGI puts you in the top 1%. I will also concede that my $108,904 actually puts you in the top 10%. Fair enough.

Now then, to the rest of the numbers (which you conveniently left out):

PERCENTAGE OF PERSONAL FEDERAL INCOME TAXES PAID:

Top 1% (AGI $388,806)- 39.89%

Top 5% (AGI $153,542) - 60.14%

Top 10% (AGI $108,904) - 70.79%

Bottom 50% (AGI of $31,987 or less) - 2.99%.

SO, based on YOUR data, the top 1% pay nearly 40% of all personal income taxes, while the bottom 50% pay about 3%.

Would the bottom 50% be able to pay for our debt, welfare, the military, roads and bridges without the "evil" corporations and "greedy" rich? No, they wouldn't. Without people smarter then themselves, they would live in 3rd World poverty. That's just a fact.

RockEReputation
06-13-09 7:44 PM
You gotta' just overlook it wvbarron...juxtaposing numbers and facts is commonplace and easily rationalized into acceptance in small-time venues and their tabloid nomenclature.

RockEReputation
06-13-09 7:27 PM
"Everybody knows the war is over and everybody knows the good guys lost.. everybody knows the fight was fixed, the poor stay poor and the rich get rich Everybody knows that the boat is leaking, everybody knows the captain lied.. everybody got this broken feeling that their father or their dog just died

everybody talkin' to their pockets, everybody wants a box of chocolates and a long stem rose.. and everybody knows" - Leonard Cohen (Hebrew songmaster 1990)

robojock
06-13-09 11:56 AM
I quite enjoy assisting my classes in reasoning, as I recently had a whole group decrying against rich CEOs, and this was a class graduating in 3 months. I asked them who signs their paychecks at the jobs they have now, a rich guy that owns the place. I then informed them that most companies are LLCs and pay taxes accordingly, so if their taxes go up, they don't hire. I love to see my students lightbulbs go on. One student even came to the conslusion that a corp. that pays less in taxes will hire more to expand. As a group they came to the conslusion that "punishing the rich" equals no jobs.

GoldenArm
06-13-09 10:49 AM
"Where would lower income people be without higher income people to finance all their goodies? "

Lets flip that around genius. Where would higher income people be, without the lower income folks that provide the services, manufacture the items, buy the items, etc. etc. etc.

GoldenArm
06-13-09 10:48 AM
Sorry Ellis, but $108,000 is not the top 1% in this country.

GoldenArm
06-13-09 10:47 AM
Why don't you parents teach your own kids about economics? Or would that interfere with your Oprah time?

EllisWyatt
06-13-09 10:45 AM
Barron

This reminds me of the writings of Cicero in ancient Roman times. He said, in effect, that the average Roman citizen was not concerned with what the wars being won by the legions in far off lands. They did not care about politics, new territories, treaties, etc. Their only concern was what they were going to have for dinner, what they would do for fun later on and so forth. More immediate concerns.

When the people stop caring, a nation crumbles. The Supreme Court has a major effect on all our lives. It is good to know who they are and what they do.

As for the wealthy paying taxes, you made my point for me. Yes, they hold assets. But do you know that "the rich" (the top 1%) are those who earn about $108,000 per year, or more? Why should a guy who earns $125,000 pay a top rate of nearly 40%, or $50,000 in taxes, when a guy who earns $12,000 pays $300?

Where would lower income people be without higher income people to finance all their goodies?

EllisWyatt
06-13-09 6:47 AM
Robo

Today's kids are too busy texting and displaying their illiteracy. They are not taught anything. They are "social promoted" and passed on to the next grade. Teachers get paid to spend time in a classroom. They do not get paid based on the success of their students.

Go up to ANY person, of any age, and ask them to name 5 Supreme Court Justices. Most will not be able to answer this.

Ask the average person who pays the bulk of the taxes and they will say "the middle class" or "the working man". They will say "the little guy gets ****** by the rich". They have been brainwashed into thinking they are victims of the top 1% who pay 35% of all taxes. They don't understand that the bottom 50% of taxpayers pay just 4% of the total tax bill.

Most people think Social Security is a pension fund, invested in their name. The average taxpayer doesn't know that every dime you pay today is spent today and that there is no trust fund.

Sad.

robojock
06-12-09 9:39 PM
This is coming from a college educator. I have watched in 5 years the decline of each class I have taught. I have kids TOTALLY ignorant of the Constitution and business. I recently taught a regulation and law class where 20 year olds could not tell me what a corporation was and how taxes are handled in corps. Frankly, I am left asking, what is being taught?

topsie
06-12-09 6:54 PM
SO =SAY

EllisWyatt
06-12-09 6:54 PM
How can teachers, who have no grasp of economics, teach our kids? I think that an economics test, as well as a history, civics, English, writing, reading, basic math and basic Constitutional law exam ought to be required before you can vote or receive any government handout.

Of course, an educated population is a dangerous population. I don't mean educated like a college professor who has never held a job. I mean educated as in understanding where how the economy and the government works.

We should also teach kids that, Obama's actions notwithstanding, contract law is one of the foundations of our great country. Teach kids to read what they sign, and to understand it before they do so. Also teach them that, once signed, it must be upheld. Contracts are not just a piece of paper. If you agreed to pay $2,000 a month for 30 years, you must pay it.

This nation was built on freedom, contract law, capitalism and morality. The lack of these cornerstones is evident in our decline.

topsie
06-12-09 6:53 PM
LIBERALS WANT A SAFTY NET not bcz they cant do but bcz they cant so NO. THEY SPEND and spend without thinking about tomorrow. FUN FIRST

topsie
06-12-09 6:50 PM
right on blackrock- you can give them a fake baby,house,or checking account but the only way they learn is when they fall. JUST LIKE ROLLER SKATING.

Blackrock
06-12-09 3:18 PM
Educate and even better yet, when they fail, let them fail and dig their way out. Experience, the true teacher.

cory1978
06-12-09 11:37 AM
excellent and way overdue

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