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Solis: ‘I Think We Miss The Boat’ If We Can’t Make College More Affordable

Editor’s note: The Wonk Room is reporting from the Clinton Global Initiative conference this week. This is our fourth post.

solis1Echoing the comments made by former President Bill Clinton, Secretary of Labor Hilda Solis took to the Clinton Global Initiative stage today to talk about America’s need — and apparent inability — to make enough investments in human capital. She pointed towards the Obama administration’s commitment to community colleges, which she called the “rapid, ready-response institutions” of America, but said that the real problem is tuition at four-year colleges:

The fact of the matter is, there are a lot of young people, young adults, that don’t have the financial ability to enter into a four-year university or, say, a tailored program that could take them even out of poverty. The President just recently talked about making an investment, $12 billion, in community colleges. And community colleges are kind of the rapid, ready-response institutions that allow for a broader group of people to enter into, say, very specified business training that they need. [...]

That’s one step in the right direction, but we need to also continue that and allow for four-year universities to make their tuition more available so that more people can go…I think we miss the boat if we don’t really talk about trying to spread that wealth, that educational opportunity.

Listen here:

The ever-increasing cost of tuition at higher education institutions is a serious problem, with a serious detriment of ideas for how to deal with it. In addition to the average debt load of $23,186 that today’s typical student borrower accrues, the National Postsecondary Student Aid Survey shows that 47 percent of full-time students are now working more than 20 hours a week (which is the recommended maximum), a number which goes above 50 percent for most underrepresented racial or ethnic groups.

The Lumina Foundation estimates that the American economy will face a shortage of 16 million college educated workers by 2025, and “the United States may not only be losing ground compared to other countries, but also in relation to its own population,” as the projected 13 percent increase in college enrollment over the next ten years would occur at a time when the U.S. population is increasing by 14 percent.

The government can increase student aid each and every year, but it won’t mean much unless the rate of increase in tuition can be reined in, as it makes little sense to have aid simply spiral out of control alongside tuition. And in the end, our future economic competitiveness depends on us finding solutions to these problems.

GE CEO Immelt: Government Has To Play A ‘Key Role’ In Clean Energy Investments

Editor’s note: The Wonk Room is reporting from the Clinton Global Initiative conference this week. This is our third post.

immeltEarlier this year, the American Society for Civil Engineers roundly panned America’s disintegrating infrastructure, giving it an overall D grade and estimating that “it would take a $2.2 trillion investment…over the next five years to bring it into a state of good repair.” One of today’s discussions at the Clinton Global Initiative focused on how to develop infrastructure in both the U.S. and the rest of the world, and the role that government plays in such development.

General Electric CEO Jeffrey Immelt — who has been critical of the business community for investing too much money in preserving America’s status quo — noted that successful infrastructure improvements, particularly in creating the capacity for clean energy, means coordinating government standards with private investment:

The thing about infrastructure is that it’s a systems problem, and by a systems problem I mean you have to align technology, government policy, capital markets, execution skills — all have to be aligned to make it happen. And the government is a central part in how that goes, both in terms of the U.S., but also in terms of any country in the world.

Energy in this country, if we want to have a clean energy future, the investments are basically 40, 30, 20 year investments…I think, one of the key roles the government has to play is what are the standards? How should the capital markets work? How do you risk-share some of the key technology evolutions? And so, if you want to have effective infrastructure, you really do have to have a good public-private partnership.

Listen here:

In Immelt’s world, the government would set the standards, and then let the private sector loose to achieve them, or, as in China, lay out five-year plans for infrastructure development. This is a distinctly different take from most of the rest of the business community, which recoils from standards, aided by conservatives who claim that if we just “let the free market work,” everything will take care of itself.

Of course, Immelt must see a way for GE to come out ahead under such a policy, but that doesn’t mean that his viewpoint doesn’t make sense. Smart standards, regulation, and a cohesive policy from the government would make energy investment — and infrastructure development as a whole — much less scattershot and much more effective.

Former Insurance Executive: Lobbyists Make Empty Promises For Reform, Instead Trust CEOs Under Oath

NOTE: This is the fourth installment of our series — Meet Your Insurance Company Executive: An Interview with Wendell Potter.

Last week, ThinkProgress spoke with Wendell Potter, a former VP of communications at health insurance giant CIGNA, about how insurance companies deceive the public with vague promises of “being at the table” for reform. Earlier this year, Karen Ignagni, the chief lobbyist and leader for AHIP, the trade group representing the health insurance industry, came to the White House and pledged to President Obama, “You have our commitment to play, to contribute and to help pass healthcare reform this year.” This trope, repeated by other representatives for the insurance industry, achieved the goal of persuading many that this year would be “different” for reform and that insurers would not torpedo legislation like in previous efforts. But as Potter notes, lobbyists and public relations professionals like Ignagni can make broad promises without ever being accountable. Individual insurance companies are not on board with what Ignagni is selling:

– AHIP says the industry will end the immoral practice of rescinding coverage of sick customers. But when asked this summer — under oath — by Rep. Bart Stupak (D-MI) if they would “commit” to stopping this practice, executives from UnitedHealth Group, Assurant, and WellPoint all refused.

– AHIP says the health insurance industry is fully supportive of the idea of covering everybody, regardless of medical condition. However, in conference call with investors last month, Aetna CEO Ron Williams bluntly stated that he would pursue profits rather than add or keep enrollment.We have a clear bias toward profitability over growth,” said Williams.

Potter continues by arguing that the public should be examining the business practices of insurers, not blindly accepting the promises of lobbyists:

POTTER: But if those companies are under oath, three different companies, including one of the largest in the land, that they will continue those, that’s who you should believe. That’s what will be the policy going forward. The trade association doesn’t have power to change practices of the insurance industry at the insurance company level. It can’t change a business model or a way of doing business.

Watch it:

The friendly, positive statements by Ignagni and her colleagues are part of the “duplicitous” campaign by the insurance industry to charm the public while secretly working to kill and undermine reform. ThinkProgress has documented this campaign and produced this page explaining the insurance industry tactics.

Update

Writing for Vanity Fair, Matt Kapp reveals some key stats about health care profiteering:

With median annual compensation of more than $12.4 million, C.E.O.’s at the big health-care companies make two-thirds more than their counterparts in finance and are the highest paid of any industry. The health-care industry’s total annual profit has grown to an estimated $200 billion, and it doled out nearly $170 million in campaign contributions in 2007 and 2008. It now spends more than any other industry lobbying the federal government—$3.5 billion over the past decade and a record $263 million in the first six months of this year.

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