Pittsburgh’s Tuition Tax, the University of California, and the war against the young
Fifty years from now the Collapse of 2008-? might be looked at as primarily a fight between the old and the young. The New York Times yesterday carried a story about the city of Pittsburgh taxing college tuition to pay pensions:
“a 1 percent tuition tax on students attending college in Pittsburgh, which he says will raise $16.2 million in annual revenue that is needed to pay pensions for retired city employees.”
This is the most direct example I’ve seen of a tax on the young (the tax will be collected from universities but substantially paid by customers, as with most taxes on business) to benefit the old. An 18-year-old will pay more for college so that a 50-year-old can enjoy his retirement as though the Collapse of 2008 had not occurred. In California the pensions of those over age 50 are preserved while students at the University of California will pay 32 percent more (source).
The young start out with a lot of advantages. They have tremendous energy and physical health. But one wonders how much can be loaded onto their backs. Let’s look at what the U.S. government and state/local governments are doing to hobble young people:
- running schools with unbreakable standards for what administrators and teachers are paid and how much they will be paid decades after retiring, but no standards at all for the effectiveness of teaching (this is probably the worst because it will deprive many of America’s kids of the option to emigrate to countries where good jobs are available)
- borrowing trillions of dollars to pay for programs that primarily benefit the old, e.g., Medicare; this money to be paid back by today’s youth once they enter the workforce
- making it a legal requirement for healthy young people to pay for overpriced health insurance (Congress’s latest health care scheme includes new limits on the maximum difference that insurance companies can charge based on age)
- minimum wage laws that make young workers who would otherwise be cheap to employ unattractive to employers
- laws forcing employers to recognize unions; unions are run by older workers and they tend to organize things for the benefit of older workers at the expense of the young (which is why a 65-year-old airline pilot might earn over $200,000 annually for working ten 8-hour days per month while a 30-year-old airline pilot will earn $19,000 for working twenty-two 16-hour days per month)
- immigration policies that allow young inexperienced workers from foreign countries to flood into the U.S. and compete for low-skill jobs (a 50-year-old lawyer or doctor does not face competition from a 20-year-old coming in from Sudan, Iraq, or Latin America, but an American 20-year-old who received a poor public school education does)
- transferring hundreds of billions of future tax dollars into the pockets of Wall Street bankers, who tend to be older (we haven’t heard about too many 18-year-olds paying themselves $100 million bonuses)
- corporate governance laws for public companies that allow trillions in shareholder wealth to be transferred into the pockets of executives (I wrote about this in my economic recovery plan); senior executives at public companies tend to be older than average and the reduction in value for public company shares tends to weaken pension funds and inevitably it seems that taxes on young working people are required to bail out those funds… so that people aged 48-120 can continue to receive a pension (see GM and Chrysler)
- outlawing certain recreational drugs, which tend to be consumed disproportionately by the young, and therefore raising prices. Drug laws also result in a lot of young people being sent to prison while old people benefit from well-paid and pensioned government jobs in drug law enforcement, prison administration, etc. The drugs most preferred by old people, e.g., alcohol, tobacco, and various prescription opiates, remain legal and inexpensive.
- consuming the Earth’s resources at a rate greater than natural replenishment (a 35-year-old friend, when asked his views on global warming and pollution, replied “I don’t understand what the problem is; the Earth only needs to last another 50 years.”)
As a 46-year-old who has the right to vote, when I look at teenagers these days sometimes I wonder “What did they do to us that was so bad that we’ve decided to do all of this to them?”
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