By Rob Nikolewski │ New Mexico Watchdog
President Obama keeps talking about the economic recovery, but it sure doesn’t feel like we’re in one and, judging from his State of the Union speech, he doesn’t quite believe it anyway.
Here in New Mexico, we have a similar contradiction. While the state escaped the worst of the recession, we’ve been a Grade-A laggard since then. Our neighboring states have all posted better economic numbers than we have for more than a year.
On the macroeconomic level, the contradictions abound.
Rob Nikolewski. Photo courtesy of Santa Fe New Mexican/Clyde Mueller.
For example, take a look at cars.
It wasn’t that long ago that buying and repairing a car could be a real adventure. We all had stories of friends who ended up buying lemons, and finding a reliable mechanic made one feel like Diogenes, searching for the world’s one honest man.
But now, virtually across the spectrum, cars are better-made, and a trip to the auto dealer for upkeep and repairs is often pain-free. (Yes, I know there are notable exceptions, but admit it, horror stories are much fewer and farther between.)
Computerization and improved efficiency account for much of the industry’s improvements.
Yet at the same time, the efficiency model appears to have collapsed when it comes to, say, education.
As a nation, we spend more money than ever on public schools, yet in December, we saw another disheartening study.
U.S. students ranked 26th out of 34 developed nations in the world and finished below average in math.
Here in Santa Fe, the high school graduation rate — already at alarming numbers — actually got worse in 2013. A mere 60 percent picked up diplomas.
Yes, funding is essential for education, but at the same time, money alone is hardly the answer. There has to be accountability for the tax dollars spent and on the national and statewide levels, it’s logical to ask: Why spend more on a system that isn’t producing results?
Some argue for more emphasis on boosting the number of young people with college degrees. Perhaps, but I’d argue the focus should be on making sure our kids can perform essential tasks before they get to college. Too many employers complain of high school graduates who cannot write declarative sentences or perform basic math.
And once in college, it’s important that students major in disciplines best-suited for a competitive global job market.
A 25-year-old with a master’s degree in chemical engineering might have a decent shot at landing a job at Los Alamos. A 25-year-old with a master’s in philosophy has a decent chance at a job pouring shots at Señor Frog’s.
Which brings us to the minimum-wage debate. Santa Fe and San Francisco are neck-and-neck for the highest minimum wage in the country at well more than $10 an hour, and the Santa Fe County Commission is on the verge of extending it across the county. At a recent commission meeting, a local merchant spoke in favor of the raise, saying she pays her employees more than 10 bucks an hour and her business hasn’t been hurt. Good for her, but that doesn’t mean the small-business owner down the street who is barely scraping by won’t be.
Having said that, the political reality is, the minimum-wage rate is going to go up. Whenever it’s put up to a vote (as it was in Albuquerque last fall), voters approve it, and when the likes of Bill O’Reilly is firmly on the side of bringing the hourly rate to $10.10 (which he is), it’s a fait accompli.
But raising the minimum wage merely treats one symptom of America’s economic problems. Plus, there are plenty of unintended consequences — such as increasing the pressure on inflation.
And on the ground, there will be more incentives for companies to automate. Just as we see kiosks when we check in at the airport, expect to see them soon at fast-food restaurants. The workers at McDonald’s may get $10.10 an hour, but I suspect that instead of seven employees working one shift, we’ll end up seeing four.
The truth is, we cannot act like King Canute and stand on the shore, hoping to hold back the tide of a global economy.
That’s something to ponder as we — in the words of one of my readers — make way for the $10 Big Mac.
(This column originally appeared in the Santa Fe New Mexican on Feb. 9, 2013. Contact Rob Nikolewski at rnikolewski@watchdog.org and follow him on Twitter @robnikolewski)
