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Great post, Greg -- except I'm not sure about students not being able to afford tuition. As a Tempe resident, I can assure you it's hopping down here. I just Googled enrollment figures and got an ASU release that says it's hitting new records: http://asunews.asu.edu/20100909_enrollment

58K kids on the Tempe campus alone and hitting records for out-of-state and international students, too.

Sin City Souldbrother,

I agree that enrollments are up, but there's a big difference in being able to afford college and being able to attend.

The students can still "attend" college because they are taking upon themselves MASSIVE amounts of debt. The time will come within a couple of years of graduation that they won't be able to "afford" the overpriced education they purchased on credit.

A Liberal Arts Degree, a $26K per year job working in a call center, and $50K in student debt (not to mention credit cards and a car payment) will swamp a good portion of this generation of college students.

Wasn't it every conservative along with the Goldwater Institute trumpeting the magic of Ireland and it's corporate tax structure? The Irish miracle or something?

Greg -

Amen. I'm one of those parents (daughter at NAU) that has taken on the MASSIVE debt. The education system forces the parents to take on the MASSIVE debt, the student gets debt, but nothing like the parents.

Keep building Michael Crowe, keep building monuments to your education (non-real world) fairyland utopia.

Michael Crowe couldn't be a head janitor in the real world. In the real world you've got to live within budgets, you've got to have a product and sell it at a price where you can make a PROFIT, or you go out of business. And the price has to be competitive, or the consumer will go elsewhere.

You can't spend your way out of debt ... unless you are in the government (or some fairyland utopia like 'higher' education).

Janet sez the frisky feelie parties at the airports are good for Arizona and America.


I would really like a follow up post on this topic. Jon Talton (and others) looked at what Ireland was doing - investing in educating first and foremost, but also providing incentives, etc. to lure businesses to its country and suggested it was something we could learn from.

Here's a liberal blogger, Matt Yglesias also making fund of people touting the Irish miracle:




Here's his analysis:

"As I’ve said before, the problem with this kind of punditry is that regulating your financial sector poorly so as to generate lots of bum real estate lending really does seem to be a can’t lose path to growth in the short term. People need to check themselves against knee-jerk praise of leaders who preside over this sort of thing."

So, are you saying that the reason why Ireland's economy is in the tank is because they spent too much money on education...

And it had nothing to do with a poorly regulated banking industry.

I wish there was a more thoughtful analysis on stuff like this.

When are we going to return to the basic, sound principles found in the U.S. Constitution? We do not need to mirror anything from Europe. In spite of the much ballyhooed EU, that continent is on the downside of history--and gettign worse. Most of the problems we are suffering are because of the elitists in this country dragging us into a Europe lite-type economy and society. American exceptionalism is a fact--whether Obama and his radical lefties want to admit it or not. We need to be Americans--again.

Great Post Greg.

Any chance we can get some local libs to try and bribe Jon Talton to 'poach' Mike Crow for U of Washington?

As a 2nd gen removed Irish - tis a real wanker that the pot of gold thought to be at the end of the tiger is all fairy dust & spoiled pudding.

Of course the Irish being the Irish the Swiftian irony abounds.

Prior to the greatest foreign policy achievement of the Clinton years - namely bringing peace to the emerald Island - the root of the violence was as much about land as it was culture & religion.

It's really a crying shame. After 500 years of misery and violence - less than twenty of peace & prosperity - all now utterly destroyed by a land and credit speculative bubble.

How long before the minor push and shoves in the street on the news resurrects the IRA? A much more disturbing prospect that the price of interest set by Germans or Dutch.

Phil Lopes was crushed by Paula Aboud??? What??? They served in the Legislature together and are in different districts. Accuracy please.

Thanks for that context Greg. Forgot about the pseudointelligentsia pimping of Irish command economics.

God I miss Talton. What a spectacular rube.

The Wizards of financhial Alchemistry and easy money have created a mess that will take years to resolve.

Many students at the Michael Crow school will have 20 years to regret student loans.

Wall Street Journal

Oregonians don't whine. In the face of adversity, we grit our teeth and carry on. Land use, bottle- deposit bills, beach protection—Oregon has led the nation.

But Oregon's 25- to 34-year-olds are less likely than their parents to have college degrees. We have one of the worst-funded systems of public higher education in America: Oregon ranked 44th in the latest measurement of state funding per student.

The easy response to decades of reduced funding is to simply ask the state for more. But with Oregon expecting a $3.3 billion budget shortfall for the coming biennium and a "decade of deficits,"


Just wanted to post some links from those who are doing thoughtful analysis on the Irish problem.

Here's the economist Tyler Cowen:


He lists 6 pretty thoughtful possible explanations. I think the EURO has proven to be a pretty bad idea and that is tagged as one culprit.

Here's another from Megan McArdle:


Who basically agrees with Cowen's list but makes a few caveats:

"Ireland remains better off than it was twenty years ago. The current pain is real, and perhaps unnecessary. But it is no small thing that a generation of Irish workers didn't have to migrate abroad."

Ireland has transformed its economy and has largely deregulated it. A lot of good came of it, but also this massive bubble came as well.

To blame it on a government intervention just sounds pretty partisan to me.

Real estate never goes down.

College degrees never cost too much!

All the Tempe kids can work at Starbucks and stay in Arizona in the homes of their parents.

Scott Turley,
Cowen isn't always right but he is certainly not interested in revisionist history so he provides some intellectually honest perspectives. This of course means people like RonJ, Nick and Mesaeconoguy won't have any interest in the points he brings up.

First you said Phil Lopes was crushed by Paula Aboud and I corrected you. You changed that to Phil Lopes was crushed by Olivia Cajero Bedford. Wrong again. Cajero Bedford ran unopposed. Phil Lopes was term-limited out and did not run this year. There is a handy site called the Arizona Secretary of State that tells who ran in the election. You might want to check it. I know you want to make your point at any cost, but do you make even the slightest effort to be accurate? It casts doubt on everything you write if you are this sloppy with basic facts.

Blomberg News

Ireland to Cut Spending 20%, Raise Taxes.

Welfare cuts of 2.8 billion euros ($3.8 billion) and income tax increases of 1.9 billion euros are among the steps planned to narrow the budget deficit to 3 percent of gross domestic product by the end of 2014.

Bonds Fall.
The decline pushed the yield on the country’s 10-year debt up 52 basis points to 9.17 percent.

Also Bloomberg - min wage to get cut.

Note to California, Illinois & New York - pay close attention. Ghost of Xmas future is playing out in the Euro PIGS right now.

Greece & now Ireland - soon Portugal & Spain to follow. Despite the civil unrest THESE COUTNRIES HAVE NO CONTROL OVER THEIR FUTURE VIA the Euro bailout.

It is imposed by the Union.

Ditto when Ca, Il & NY inevitably come begging hat in hand to congress - which they will.

The newly minted Rep majority need to add one vital priority to the list when attacking the Dodd/Frank monstrosity:

Legilsation authorizing State Bankruptcy.

This is the path of least resistance to alow states to veto the piracy the state unions have saddled them with via pensions.

It solves half the insolvency problems in all these states - AND - is politically possible now but much more improbable when the crises hits.

Let Europe serve as the canary in the coal mine here.

And, despite the pension problems we have here in AZ, our saving grace is that we don't have 40+ years of unionized legacy entrenched, making reversing them much more doable.

Crow like so many before him will leave with his pockets full thanks to the taxpayers who have been emptying theirs so that those in government, Arizona Royalty can life like those we left behind 230 years ago.

Elites deserve rewards!


What can Europe do to save the euro?

Even German Chancellor Angela Merkel has acknowledged this is no longer an academic question, describing the current situation as "extraordinarily worrying." While markets steadied Wednesday, there still were signs of stress: Senior bank debt spreads in Portugal and Spain continued widening, and the cost of insuring Belgian government bonds against default reached a record.

European leaders are responding to each crisis country by country, providing individual bailout packages designed to prevent contagion. But the Irish bailout has failed to settle market nerves.

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