Comments on: No skin in the game http://cafehayek.com/2009/08/no-skin-in-the-game.html where orders emerge Mon, 16 Jan 2012 02:06:33 +0000 hourly 1 http://wordpress.org/?v= By: JB http://cafehayek.com/2009/08/no-skin-in-the-game.html/comment-page-1#comment-179201 JB Sun, 30 Aug 2009 00:44:00 +0000 http://cafehayek.com/?p=6058#comment-179201 Announcing is one thing; closing loans is another. I would check with the California Housing Insurance Fund to see if any of the loans described in the press release were actually made. My bet is any teachers who applied either didn't qualify or were bait-and-switched into a subprime loan sold to Wall Street. Lenders made more money selling subprime loans to Wall Street than prime loans to Fannie or Freddie. Announcing is one thing; closing loans is another. I would check with the California Housing Insurance Fund to see if any of the loans described in the press release were actually made. My bet is any teachers who applied either didn’t qualify or were bait-and-switched into a subprime loan sold to Wall Street. Lenders made more money selling subprime loans to Wall Street than prime loans to Fannie or Freddie.

]]> By: Anonymous http://cafehayek.com/2009/08/no-skin-in-the-game.html/comment-page-1#comment-179200 Anonymous Sun, 30 Aug 2009 00:36:00 +0000 http://cafehayek.com/?p=6058#comment-179200 I think, JB, that it's because it's very interesting to see such living, breathing history. It's exhibit IA for what was going on for the past decade. The most interesting part, to me, is that I had absolutely, positively no idea this was going on- even until last year when the crash hit- and I guarantee you the 95% or more of our population that are tuned-out, videophiles had no idea either. Amazing. I think, JB, that it’s because it’s very interesting to see such living, breathing history. It’s exhibit IA for what was going on for the past decade.

The most interesting part, to me, is that I had absolutely, positively no idea this was going on- even until last year when the crash hit- and I guarantee you the 95% or more of our population that are tuned-out, videophiles had no idea either. Amazing.

]]> By: JB http://cafehayek.com/2009/08/no-skin-in-the-game.html/comment-page-1#comment-179192 JB Sat, 29 Aug 2009 22:02:00 +0000 http://cafehayek.com/?p=6058#comment-179192 This program was announced in 2000! It has been defunct a long time. Why are you posting about a defunct, nine-year old program? This program was announced in 2000! It has been defunct a long time. Why are you posting about a defunct, nine-year old program?

]]> By: Anonymous http://cafehayek.com/2009/08/no-skin-in-the-game.html/comment-page-1#comment-178903 Anonymous Fri, 28 Aug 2009 02:27:00 +0000 http://cafehayek.com/?p=6058#comment-178903 Er, yeah I guess that does make a difference. Ouch. Er, yeah I guess that does make a difference. Ouch.

]]> By: Anonymous http://cafehayek.com/2009/08/no-skin-in-the-game.html/comment-page-1#comment-178885 Anonymous Fri, 28 Aug 2009 00:10:00 +0000 http://cafehayek.com/?p=6058#comment-178885 "A starting salary for a California public school teacher is $29,000 a year, according to the California Teachers Association, while the average teacher’s salary is $44,000." Here is a funny problem... why is teacher pay so low (especially when we hear of shortages of qualified teachers)? My guess is that the school system has a monopoly on pay. There are few opportunities for skilled teachers to increase their salaries by changing schools... there is only one employer. The school system can afford to underpay teachers and teachers have to take it. Some people get in the profession as kid-helping idealists, others like the hours. In any case, the state has managed to set pay that attracts as many people as possible for a low salary. Because the school systems have no competition for labor prices, they can keep salaries low. Another consideration is that the most desirable teachers will be skilled in math or science. These skills are marketable outside the education industry... so few people will see suffiecient incentive to teach given the trade-offs. “A starting salary for a California public school teacher is $29,000 a year, according to the California Teachers Association, while the average teacher’s salary is $44,000.”

Here is a funny problem… why is teacher pay so low (especially when we hear of shortages of qualified teachers)?

My guess is that the school system has a monopoly on pay. There are few opportunities for skilled teachers to increase their salaries by changing schools… there is only one employer. The school system can afford to underpay teachers and teachers have to take it. Some people get in the profession as kid-helping idealists, others like the hours. In any case, the state has managed to set pay that attracts as many people as possible for a low salary. Because the school systems have no competition for labor prices, they can keep salaries low.

Another consideration is that the most desirable teachers will be skilled in math or science. These skills are marketable outside the education industry… so few people will see suffiecient incentive to teach given the trade-offs.

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