sense

Green Ambitions, Brown Realities: Making Sense of Renewable Investment Strategies in the Gulf

Gulf countries have hailed their investments in renewable energy, but some basic questions remain about the extent to which it makes sense for GCC states to invest aggressively in renewables. The sheer magnitude of such investments will require these countries to mobilize significant public resources.  Therefore, such an assessment requires these countries to focus on national interests, not just a desire to be perceived as constructive participants in the global transition away from carbon energy. 

This report starts by identifying four common strategic justifications for investing in renewable energy in GCC countries. Each of these rationales highlights a different aspect of renewable energy investments. In addition, each rationale is based on different assumptions about the underlying drivers of such investments, and each rationale is based on different assumptions about the future of energy. 
 




sense

Green Ambitions, Brown Realities: Making Sense of Renewable Investment Strategies in the Gulf

Gulf countries have hailed their investments in renewable energy, but some basic questions remain about the extent to which it makes sense for GCC states to invest aggressively in renewables. The sheer magnitude of such investments will require these countries to mobilize significant public resources.  Therefore, such an assessment requires these countries to focus on national interests, not just a desire to be perceived as constructive participants in the global transition away from carbon energy. 

This report starts by identifying four common strategic justifications for investing in renewable energy in GCC countries. Each of these rationales highlights a different aspect of renewable energy investments. In addition, each rationale is based on different assumptions about the underlying drivers of such investments, and each rationale is based on different assumptions about the future of energy. 
 




sense

Green Ambitions, Brown Realities: Making Sense of Renewable Investment Strategies in the Gulf

Gulf countries have hailed their investments in renewable energy, but some basic questions remain about the extent to which it makes sense for GCC states to invest aggressively in renewables. The sheer magnitude of such investments will require these countries to mobilize significant public resources.  Therefore, such an assessment requires these countries to focus on national interests, not just a desire to be perceived as constructive participants in the global transition away from carbon energy. 

This report starts by identifying four common strategic justifications for investing in renewable energy in GCC countries. Each of these rationales highlights a different aspect of renewable energy investments. In addition, each rationale is based on different assumptions about the underlying drivers of such investments, and each rationale is based on different assumptions about the future of energy. 
 




sense

Green Ambitions, Brown Realities: Making Sense of Renewable Investment Strategies in the Gulf

Gulf countries have hailed their investments in renewable energy, but some basic questions remain about the extent to which it makes sense for GCC states to invest aggressively in renewables. The sheer magnitude of such investments will require these countries to mobilize significant public resources.  Therefore, such an assessment requires these countries to focus on national interests, not just a desire to be perceived as constructive participants in the global transition away from carbon energy. 

This report starts by identifying four common strategic justifications for investing in renewable energy in GCC countries. Each of these rationales highlights a different aspect of renewable energy investments. In addition, each rationale is based on different assumptions about the underlying drivers of such investments, and each rationale is based on different assumptions about the future of energy. 
 




sense

Making sense of the monthly jobs report during the COVID-19 pandemic

The monthly jobs report—the unemployment rate from one survey and the change in employer payrolls from another survey—is one of the most closely watched economic indicators, particularly at a time of an economic crisis like today. Here’s a look at how these data are collected and how to interpret them during the COVID-19 pandemic. What…

       




sense

Long-range stand-off does not make sense, nor do its proposed numbers


The U.S. military will carry out a major modernization of its strategic nuclear forces in the 2020s.

It will cover all three legs of the strategic triad.

Much of the planned program makes sense. The long-range standoff (LRSO) — a new nuclear-armed cruise missile to outfit strategic bombers — does not.

The primary reason for the modernization program is that many US strategic weapons systems are aging out, and American policy is that, as long as there are nuclear weapons, the United States will maintain a safe, secure and robust nuclear deterrent.

The Ohio-class ballistic missile submarines will begin to hit the end of their service life in the late 2020s, and the Navy will need new submarines. Submarines and submarine-launched ballistic missiles (SLBMs) make up the most survivable leg of the triad, and they carry the bulk of deployed US strategic warheads.

The service life of the Minuteman III intercontinental ballistic missile (ICBM) runs out in 2030. The Air Force seeks a replacement ICBM. At a minimum, keeping an ICBM leg of the triad would require another life extension program for existing Minuteman III missiles.

As for the air-breathing leg of the triad, the Air Force wants to procure 80 to 100 B-21 bombers. Plans are shrouded in secrecy but reportedly will incorporate stealth features and advanced electronic warfare capabilities to allow the aircraft to penetrate contested air space. The Air Force is also modernizing the B61 nuclear gravity bomb for use on strategic bombers.


One can and should question the Pentagon’s desired numbers for these programs. That is especially the case given the projected costs of strategic modernization, which Pentagon officials openly admit they do not know how to fund.

It is not clear why the United States will need to replace 400 deployed ICBMs on a one-for-one basis, particularly as the Air Force several years ago was prepared to go down to 300. A force of 200-300 ICBMs would suffice and result in significant cost savings. Likewise, one can challenge the requirement for 12 new ballistic missile submarines, as opposed to nine or 10.

The biggest question, however, arises over the LRSO, with a projected cost of $20 billion to $30 billion. The Air Force originally developed nuclear-armed air-launched cruise missiles (ALCMs) in the 1970s because the B-52 — then the mainstay of the strategic bomber fleet — presented a big target for adversary radars. That would make it hard for the aircraft to penetrate air defenses. A B-52 armed with ALCMs could remain outside of radar range and release its cruise missiles.

The B-2, with its stealth features, was designed to restore a penetrating capability. The Air Force plans to use stealth and electronic warfare capabilities to give the B-21 a penetrating capability as well. If these bombers can defeat and penetrate air defenses, that makes the LRSO redundant. (Moreover, unlike in the 1970s, the Air Force today has very capable long-range conventionally armed cruise missiles that provide a standoff capability for bombers.)

If, on the other hand, the stealth of the B-21 will be compromised in the not-too-distant future, then one has to question the wisdom of spending $60 billion to $80 billion — and perhaps more — to procure the B-21. If we believe the B-21 would soon encounter problems penetrating air defenses, scrap that program. Buy instead modified Boeing 767s, a variant of which will serve as the Air Force’s new aerial tanker, and arm them with the LRSO.

The Air Force’s evident attachment to the B-21 suggests, however, that it believes that the aircraft will be able to defeat adversary air defenses for some time to come. That means that the LRSO would add little capability to the US strategic force mix.

If one were to argue for the redundant capability provided by the LRSO, the number of new ALCMs that the Pentagon proposes to purchase — 1,000 to 1,100 — is difficult to understand. Even allowing for extra cruise missiles for test purposes, the number seems excessively high.

In its 2010 annual report to Congress on implementation of the Strategic Offensive Arms Reduction Treaty (SORT), the State Department advised that, as of Dec. 31, 2009, the United States had 1,968 operationally deployed strategic nuclear warheads. That figure captured the actual number of nuclear warheads atop SLBMs and ICBMs plus the number of nuclear bombs and ALCMs at air bases for use by bombers.

On June 1, 2011, a State Department fact sheet showed the number of deployed US strategic warheads as 1,800 as of Feb. 5, 2011, when the New Strategic Arms Reduction Treaty (New START) went into force. A Dec. 1, 2011, fact sheet provided a more detailed breakdown of US strategic forces. It stated that, as of Sept. 1, 2011, the United States had 1,790 deployed strategic warheads and 125 deployed strategic bombers. Like SORT, New START counts each warhead on a deployed ballistic missile as a deployed warhead. But New START counts bomber weapons differently from SORT. New START attributes each deployed bomber as one warhead, regardless of the number that it can carry or the number of weapons that may be at bomber bases.

The 125 deployed bombers on Sept. 1, 2011, would have counted as 125 under New START’s deployed strategic warhead total. Reducing 1,790 by 125 yields 1,665 — the number of deployed warheads then on US SLBMs and ICBMs.

Comparing the SORT and New START numbers is a bit of an apples-and-oranges comparison, but it gives some idea of the number of bomber weapons at US strategic bomber bases. Unless there was a dramatic increase in the number of warheads on ICBMs and SLBMs between the end of 2009 and September 2011 — and there is no reason to think that there was — comparing SORT’s 1,968 figure (end of 2009) to the 1,665 deployed warheads on ICBMs and SLBMs (under New START counting rules in September 2011) suggests some 300 nuclear bombs and ALCMs were at bomber bases. The B-2s would have been armed with bombs, which indicates a maximum of 200-250 ALCMs. The Federation of American Scientists (FAS) also estimates that there are about 300 nuclear weapons at strategic bomber bases, of which 200 are nuclear-armed ALCMs. FAS believes an additional 375 ALCM airframes are held in reserve.

This comparison raises the question: Why would 1,000-1,100 ALCM airframes be needed to support a couple of hundred deployed ALCMs?

The United States should sensibly modernize its strategic deterrent, particularly in a time of tight defense budgets. The case for the LRSO is demonstrably weak, especially for the planned size of the program. The LRSO should be shelved.

This piece was originally published in Defense News.

Authors

Publication: Defense News
Image Source: © Kim Hong-Ji / Reuters
     
 
 




sense

Making sense of the monthly jobs report during the COVID-19 pandemic

The monthly jobs report—the unemployment rate from one survey and the change in employer payrolls from another survey—is one of the most closely watched economic indicators, particularly at a time of an economic crisis like today. Here’s a look at how these data are collected and how to interpret them during the COVID-19 pandemic. What…

       




sense

Making sense of the monthly jobs report during the COVID-19 pandemic

The monthly jobs report—the unemployment rate from one survey and the change in employer payrolls from another survey—is one of the most closely watched economic indicators, particularly at a time of an economic crisis like today. Here’s a look at how these data are collected and how to interpret them during the COVID-19 pandemic. What…

       




sense

Making sense of the monthly jobs report during the COVID-19 pandemic

The monthly jobs report—the unemployment rate from one survey and the change in employer payrolls from another survey—is one of the most closely watched economic indicators, particularly at a time of an economic crisis like today. Here’s a look at how these data are collected and how to interpret them during the COVID-19 pandemic. What…

       




sense

Making sense of China’s stock market mess


Nearly two years ago China’s Communist Party released a major economic reform blueprint, whose signature phrase was that market forces would be given a “decisive role” in resource allocation. That Third Plenum Decision and other policy pronouncements raised hopes that Xi Jinping’s government would push the nation toward a more efficiency-driven growth model in which the private sector would take a greater share of economic activity and the state would exercise its leadership less through direct ownership of assets than through improved governance and regulation.

Over the past two weeks, Xi’s bureaucrats launched the most heavy-handed intervention in China’s stock markets in their twenty-five year history. Spooked by a sudden 19% plunge in the Shanghai Composite Index, regulators halted initial public offerings, suspended trading in shares accounting for 40% of market capitalization, forced state-owned brokers to promise to buy stocks until the index reached a higher level, mobilized state-controlled funds to purchase equities, and promised unlimited support from the central bank. At first these measures failed to prevent a further fall. But by the end of last week, the market stabilized, at a level 28% below its June 12 peak but still up 82% from a year ago, when the bull run started. What ever happened to the “decisive role” of market forces?

A skeptic would argue that the contradiction between market-friendly rhetoric and dirigiste reality shows up the hollowness of Xi’s reform program. Under this reading, the promised economic restructuring is unlikely to make much progress, either because Xi doesn’t really believe in it, or because the power of entrenched interest groups and bad old habits is simply too great to overcome.

This view finds support in both the embarrassing stock-market spectacle and the fitful progress of reforms. Progress in a few areas has been solid: slashing of bureaucratic red tape has led to a surge in new private businesses; full liberalization of interest rates seems likely following the introduction of bank deposit insurance in May; Rmb 2 trillion (US$325 billion) of local government debt is being sensibly restructured into long-term bonds; tighter environmental regulation and more stringent resource taxes have contributed to a surprising two-year decline in China’s consumption of coal. But many other crucial reforms are missing in action. Most important, almost nothing has been done to dredge the dismal swamp of state-owned enterprises (SOEs), which deliver a return on assets only half that of private companies, but still suck up a share of national resources (capital, labor, land and energy) grossly disproportionate to their contribution to output.

Given this record, it is plausible to interpret the stock market’s wild ride over the past year as a diversionary tactic by a government facing economic growth that ground ever lower and reforms that seemed ever more stuck in the mud. First Beijing tried to pump things up by encouraging retail investors to return to a stock market they had abandoned after the last bubble burst in 2007, and let brokers extend huge amounts of credit to enable investors to double their bets on margin. By early July, margin credit stood at Rmb 2 trillion, four times as much as a year earlier. That figure equaled 18% of the “free float” value of the market (i.e. the value of all freely tradable shares, excluding those locked up in the hands of strategic long-term shareholders). Even after a recent decline, margin credit is nearly 14% of Shanghai’s free-float market capitalization, compared to less than 6% in New York and under 1% in Tokyo.

The Chinese government also tried to entice foreign investors by permitting them to invest in the Shanghai market via brokers in Hong Kong. And for a while it seemed possible that domestic A-shares would be included in the MSCI Emerging Markets Index, which would have forced global institutions to move billions of dollars of equity investments to Shanghai in order to ensure their funds matched their index benchmarks. (In early June, MSCI deferred that decision for at least another year.) Amid a dearth of good economic news, the government could point to a buoyant stock market as evidence that it was doing something right. And after a couple of years spent cracking down on wealth-making activities through a fierce anti-corruption campaign, Beijing could also reassure business and financial elites that it had their interests at heart.

For a while it worked: the Shanghai index more than doubled in the 12 months before its June peak. But the ill-informed enthusiasm of novice investors, magnified by credit, pushed valuations to absurd levels that could lead only to an ugly crash. Now that the crash has come, China’s leaders must face the grim reality of a broken market, a stagnant economy, and a stalled reform program.

This account has much truth to it. The government did encourage the stock bubble, and its blundering intervention last week did undermine the credibility of its commitment to markets. Yet there is another way of looking at things that is both less dire and better attuned to China’s complexities.

Little evidence suggests that the stock market lay anywhere near the center of policy makers’ concerns, during either the boom or the crash. The main aims of macroeconomic policy over the last nine months have been to support investment growth by a cautious monetary easing, and to stabilize a weakening property market (important because construction is the key source of demand for heavy industry). The stock market was a sideshow: an accidental beneficiary of easier money, and the fortuitous recipient of funds from investors fleeing the weak property market and seeking higher returns in equities.

There was good reason for policy makers not to pay much attention to the stock market. China’s market is essentially a casino detached from fundamentals. It neither contributed much to economic growth while it was rising, nor threatened the economy when it collapsed.

In countries such as the U.S.—where about half of the population own stocks, equities make up a big chunk of household wealth, and corporations rely heavily on funds raised on the stock market—a big stock-market fall can inflict great pain on the economy by slashing household wealth and spending, and making it harder for companies to finance their investments. China is different: less than 7% of urban Chinese have any money in the market, and their equity holdings are dwarfed by their far larger investments in property, wealth management products, and bank deposits. Equity-raising accounts for less than 5% of total corporate fund-raising; bank loans and retained earnings remain by far the biggest sources of investment funds.

But hold on—if the market were really so economically irrelevant, then why did the government panic and try to prop it up with such extreme measures? It’s a fair question. One plausible answer is that the China Securities Regulatory Commission (CSRC), which oversees the market, got worried by the chaos and begged the State Council to mobilize support so that it could gain time to deal with the underlying problems, such as excessive margin borrowing. This explanation certainly seems to be the one the State Council wants people to believe. Despite its strong actions, the Council and its leader, Premier Li Keqiang, have stayed studiously silent on the stock market. The implied message is: “Okay, CSRC, we’ve stopped the bleeding and bought you some time. Now it is up to you to fix the mess and return the market to proper working order. If you fail, the blame will fall on you, not us.” If this interpretation is right, we can expect restrictions on trading and IPOs to be gradually lifted over the next several months, and rules on margin finance tightened to ensure that the next rally rests on a firmer foundation.

The episode highlights the built-in contradictions in China’s present economic policies. Based on numerous statements and policy moves over the last 15 years, there can be no doubt that influential financial reformers want bigger and more robust capital markets—including a vibrant stock market—in order to reduce the economy’s reliance on politically-driven bank lending. Moreover, the success of proposed “mixed ownership” plan for SOE reform likely depends on having a healthy stock market, in which the state shareholding in big companies can be gradually diluted by selling off stakes to private investors.

But the financial reformers are not the only game in town. As analysts like me should have taken more care to emphasize when it was released, the Third Plenum Decision is no Thatcherite free-market manifesto. In addition to assigning a “decisive role” to market forces, it reaffirms the “dominant role” of the state sector. Like all big policy pronouncements during China’s four decades of economic reform, it is less a grand vision than an ungainly compromise between competing interests. One interest group is the financial technocrats who want a bigger role for markets in the name of more efficient and sustainable economic growth. Another consists of politicians and planners who insist on a large state role in the economy so as to maintain the Party’s grip on power, protect strategically important industries and assets, and provide a mechanism for coordination of macro-economic policies.

In short Xi and his colleagues, like all their predecessors since Deng Xiaoping, are trying to have it both ways: improve economic performance by widening the scope of markets, but guide the outcomes through direct intervention and state ownership of key actors and assets. Both elements, from the leadership’s standpoint, are necessary; the critical question is how they are balanced. Free-market fundamentalists might say such an approach is unsustainable and doomed to failure. But they have been saying that since reforms began in 1978, and so far they have been proved wrong by China’s sustained strong economic performance.

Of course the task now is tougher, since China no longer enjoys the tailwinds of favorable demographics and booming global export markets. Moreover, “market guidance” is fairly easy to pull off in physical markets such as those for agricultural commodities, industrial metals or even property, where the government can manipulate supply and demand through control of physical inventories. It is far trickier in the ether of financial markets, where transactions take nanoseconds and billions of dollars of value can vanish in the blink of an eye. Yet Beijing will doubtless keep trying to develop bigger and better capital markets, while at the same time intervening whenever those markets take an inconvenient turn. It is too early to say whether this strategy will prove successful, but one thing is for sure: we will see plenty more wild rides in the Shanghai stock market in the years to come.


Arthur Kroeber is non-resident senior fellow at the Brookings-Tsinghua Center and head of research at economic consultancy Gavekal Dragonomics.
Image Source: Aly Song / Reuters
      
 
 




sense

High quality preschools make good sense (cents): A response to Farran


In her February 25 Brookings report, Dr. Dale Farran questions the scientific case for endorsing widespread policy in preschool education. Indeed, she argues that enthusiasm for public preschool and its promise is “premature.” Her argument is founded on three points—that the data on impact is mixed, that we do not have scientific direction with respect to the key quality constructs, and that our measurement of these constructs lack empirical validity. There is a grain of truth in each of these statements. Yet, a closer look reveals that when the data are focused on high quality preschools, the weight of the evidence for effectiveness is compelling. The early childhood science is at least evidence informed on the skill sets that will promote later school and life success and valid measures exist for many of the important outcomes. While there is always more to be learned, the bulk of the scientific community contends that high quality preschool programs will play a role in preparing young children for success in school and beyond.

A look at the evidence

There is no doubt that the literature looking for relationships between preschool access and school readiness outcomes in literacy, mathematics, and other domains are mixed.  Both the Head Start Impact Study and recent findings from Farran’s own Tennessee pre-k study (Lipsey et al., 2015) indicate that preschool of less than high quality produce only modest short-term gains. 

The data do not look bleak, however, when we look across preschool outcomes in the aggregate. And when high quality programs are investigated, whether in well-controlled studies of intensive models (e.g., Perry and Abecedarian) or in studies of strong public programs in Boston (Weiland & Yoshikawa, 2013), Cincinnati (Karoly & Auger, 2016), New Jersey (Barnett et al., 2013), North Carolina (Peisner-Feinberg et al., 2015), and Tulsa (Hill et al., 2015), the results are downright promising  (Yoshikawa et al., 2013; Minervino. 2014). Society reaps benefits from fostering early skill development, as children participating in high quality preschool programs had lower rates of grade retention, less need for special education, decreased antisocial behavior, and greater productivity as adults (Reynolds & Temple, 2015; Cunha & Heckman, 2006). In 2014, over 1,200 scientists who work in the area of early education signed the ECE Consensus Letter for Researchers, attesting to the mountains of data in support of the role of preschool education in improving child outcomes in social development, language, pre-literacy, and mathematics.

Though Farran’s brief reviews only data from the United States, a growing literature suggests that preschool education has long and lasting and causal effects on outcomes around the globe (Atinc & Gustafsson-Wright, 2013). For example, an impact evaluation of a preschool program in Mozambique found that the program increased on-time enrollment into primary school among beneficiaries by 22 percent relative to the children in the control group. Enrolled children also experienced a 6 percent increase in fine motor development, and an 87 percent increase in cognitive development. More importantly, this is not just a story of “everything is bleak in the developing world so the program is bound to have an impact.”

With compelling data in the United States and across the globe, one might ask why there is such a great divide between Farran’s interpretation and that of the wider academic community? One reason appears to be that Farran discounts any data that did not emerge from random assignment longitudinal studies. While correlational studies are not the gold standard, they are informative. Surely practitioners and policymakers would not dismiss data on parenting practices because children were not randomly assigned to parents. Further, in the area of preschool education, there is no difference in findings between randomized trials and other methodologies with respect to targeted cognitive, achievement-related outcomes when other study and program features are taken into account (Duncan & Magnuson, 2013; Camilli et al., 2010). 

Farran also discounts many of the randomized trials because she says they do not tell us enough about cause and effect. She writes of the famous Abecedarian and Perry Preschool studies:

The primary difficulty with this approach as a basis for designing interventions is that there is no way to identify what specifically changed about children’s abilities that enabled them to perform better in school or to link those changes to any particular set of active ingredients in the treatment. Neither Perry nor Abecedarian explicitly describes beyond the broadest level the “treatment” that brought about their positive effects.

But the children did improve, and at some level—while it would be wonderful to isolate the exact recipe for preschool success—we need not deny children the benefits of preschool while scientists probe for the precise combinations of active ingredients that yield the best results. Consider an analogy: the impact of storybook reading on children. While numerous studies document that reading storybooks with children in a joint way improves vocabulary and early literacy, we have yet to isolate the exact causal factors that matter in book reading. Perhaps it is the cuddling that occurs between child and parent; perhaps this crucial unstudied variable is the key that has not yet been turned. But no one would argue that we should stop book reading as a way to foster young children’s interest in reading. So it is with preschool. A quality preschool can heighten young children’s desire to attend school and prepare them for learning—even if all the ingredients in the magic sauce have not yet been identified.

In short, the evidence does provide models of high quality preschool that effectively prepare children for entrée into school and that change a child’s trajectory toward success. Not knowing the exact mechanisms by which preschool exerts its impact is secondary to the fact that poor children need good preschools now and we know how to provide them.

But which skills should we support?

Farran raises the very important point that a narrow focus on only reading and math outcomes would be misplaced in our quest to build high quality preschool curricula. We could not agree more. She goes on to write, however, that “premature as well is the presumption that solid research exists to guide the content and structure of pre-K programs.”

Here we beg to differ. There are thousands of studies that speak to the skill sets children need to achieve success in the changing world. Reading and math are among these skills—collectively bundled under what Golinkoff and Hirsh-Pasek (2016) call “content skills.” But there is overwhelming evidence that children need to master skills that move beyond just reading and math. Content knowledge has, at its base, language and executive function skills. Language is the medium of instruction and executive function skills empower children with the ability to control their impulses and attend. Flexibility and working memory (Galinsky, 2010; Blair, 2016), also part of executive function, enable children to shift gears and remember what they have been told. But even language and executive function are not enough. Children must be prepared to participate alongside others (collaboration), to question when they are unclear (critical thinking) (Kuhn, 1999), and to have the persistence needed to stick with difficult problems—grit (Duckworth et al., 2007). These skills have been tested, are predictive of later achievement, have been shown to be malleable and to relate to academic, social, and learning outcomes in school.

Measuring quality

Farran argues that we cannot provide high quality preschool because we lack strong measures of quality. Again, there is some truth in her assertion, but it seems to us somewhat confused. Farran mixes together policy benchmarks, measures of classroom practice, and child outcome measures. All are useful, but for different purposes. The first is meant to set a floor across many domains including health and safety. The second is designed for providing feedback on classroom practice. The last allows us to assess children’s wellbeing and progress. Well-designed continuous improvement systems for pre-K have detailed standards for learning and teaching that align with assessments of classroom practice and systems operation as well as with child assessments. Together with program standards these can provide a clear vision of high quality. They set high expectations for children’s learning and development and for pedagogy. Our ability to specify all of this exceeds our ability to measure it with reasonable investments of time and money. Nevertheless, classroom observation measures and child assessments as elements of a continuous improvement system help inform teachers and administrators about where they are and what steps they need to take next (Hall et al., 2012; Sylva et al., 2006; Williford et al., 2013). None of us would argue that this is easy, or that any single measure of classroom quality or child development is sufficient. Providing guidance for the improvement of learning and teaching is hard work and domain specific, but it is not futile.

Letting science lead the way

Farran closes her report by suggesting that “[the] proposition that expanding pre-K will improve later achievement for children from low-income families is premature.” Perhaps instead it is Farran’s prognosis that is overly pessimistic. Research to date indicates that sustained access to high quality preschool does alter the trajectory of low-income children who are otherwise not exposed to early math and to age-appropriate books. In several now classic studies, the effects of a quality preschool education has far reaching consequences linked to not only reading and math, but to fewer incarcerations, teen pregnancies, and higher employment well into adulthood. As economists have shown, high quality early learning programs save money for society—a finding that has been replicated in different programs across the globe—in the United States, Canada, the U.K., and Mozambique.

Do we need to know more about what constitutes high quality and how to harness this reliably? Absolutely. But science offers evidence-based and evidence-informed advice on what has worked and what should work when brought to scale. We have an obligation to use the best science to serve our struggling children. Recent surveys indicate that a majority of the American public—Republican and Democrat—agrees that all children deserve a chance to reach their fullest potential. Let the science progress and let us use what we know at this point in time to meet the promise that all children should have a fighting chance to succeed. Better to light a candle than curse the darkness.

Authors

      
 
 




sense

Making sense of the monthly jobs report during the COVID-19 pandemic

The monthly jobs report—the unemployment rate from one survey and the change in employer payrolls from another survey—is one of the most closely watched economic indicators, particularly at a time of an economic crisis like today. Here’s a look at how these data are collected and how to interpret them during the COVID-19 pandemic. What…

       




sense

King v. Burwell: Chalk one up for common sense


The Supreme Court today decided that Congress meant what it said when it enacted the Affordable Care Act (ACA). The ACA requires people in all 50 states to carry health insurance and provided tax credits to help them afford it. To have offered such credits only in the dozen states that set up their own exchanges would have been cruel and unsustainable because premiums for many people would have been unaffordable.

But the law said that such credits could be paid in exchanges ‘established by a state,’ which led some to claim that the credits could not be paid to people enrolled by the federally operated exchange. In his opinion, Chief Justice Roberts euphemistically calls that wording ‘inartful.’ Six Supreme Court justices decided that, read in its entirety, the law provides tax credits in every state, whether the state manages the exchange itself or lets the federal government do it for them.

That decision is unsurprising. More surprising is that the Court agreed to hear the case. When it did so, cases on the same issue were making their ways through four federal circuits. In only one of the four circuits was there a standing decision, and it found that tax credits were available everywhere. It is customary for the Supreme Court to wait to take a case until action in lower courts is complete or two circuits have disagreed. In this situation, the justices, eyeing the electoral calendar, may have preferred to hear the case sooner rather than later to avoid confronting it in the middle of a presidential election.

Whatever the Court’s motives for taking the case, their willingness to hear the case caused supporters of the Affordable Care Act enormous unease. Were the more conservative members of the Court poised to accept an interpretation of the law that ACA supporters found ridiculous but that inartful legislative drafting gave the gloss of plausibility? Judicial demeanor at oral argument was not comforting. A 5-4 decision disallowing payment of tax credits seemed ominously plausible.

Future Challenges for the ACA

The Court’s 6-3 decision ended those fears. The existential threat to health reform from litigation is over. But efforts to undo the Affordable Care Act are not at an end. They will continue in the political sphere. And that is where they should be. ACA opponents know that there is little chance for them to roll back the Affordable Care Act in any fundamental way as long as a Democrat is in the White House. To dismantle the law, they must win the presidency in 2016.

But winning the presidency will not be enough. It would be mid 2017 before ACA opponents could draft and enact legislation to curb the Affordable Care Act and months more before it could take effect. To borrow a metaphor from the military, even if those opposed to the ACA win the presidency, they will have to deal with ‘facts on the ground.’

Well over 30 million Americans will be receiving health insurance under the Affordable Care Act. That will include people who can afford health insurance because of the tax credits the Supreme Court affirmed today. It will include millions more insured through Medicaid in the steadily growing number of states that have agreed to extend Medicaid coverage. It will include the young adult children covered under parental plans because the ACA requires this option.

Insurance companies will have millions more customers because of the ACA. Hospitals will fill more beds because previously uninsured people will be able to afford care and will have fewer unpaid bills generated by people who were uninsured but the hospitals had to admit under previous law. Drug companies and device manufacturers will be enjoying increased sales because of the ACA.

The elderly will have better drug coverage because the ACA has eliminated the notorious ‘donut hole’—the drug expenditures that Medicare previously did not cover.

Those facts will discourage any frontal assault on the ACA, particularly if the rate of increase of health spending remains as well controlled as it has been for the past seven years.

Of course, differences between supporters and opponents of the ACA will not vanish. But those differences will not preclude constructive legislation. Beginning in 2017, the ACA gives states, an opening to propose alternative ways of achieving the goals of the Affordable Care Act, alone on in groups, by alternative means. The law authorizes the president to approve such waivers if they serve the goals of the law. The United States is large and diverse. Use of this authority may help diffuse the bitter acrimony surrounding Obamacare, as my colleague, Stuart Butler, has suggested. At the same time, Obamacare supporters have their own list of changes that they believe would improve the law. At the top of the list is fixing the ‘family glitch,’ a drafting error that unintentionally deprives many families of access to the insurance exchanges and to tax credits that would make insurance affordable.

As Chief Justice Roberts wrote near the end of his opinion of the Court, “In a democracy, the power to make the law rests with those chosen by the people....Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them.” The Supreme Court decision assuring that tax credits are available in all states spares the nation chaos and turmoil. It returns the debate about health care policy to the political arena where it belongs. In so doing, it brings a bit closer the time when the two parties may find it in their interest to sit down and deal with the twin realities of the Affordable Care Act: it is imperfect legislation that needs fixing, and it is decidedly here to stay.

Authors

Image Source: © Jim Tanner / Reuters
     
 
 




sense

The Pedal Wash makes a lot of sense; somebody should start a laundro-gym

Steven M. Johnson beats a whole lot of TreeHugger posts to the punch.




sense

Steven M. Johnson's idea for solar heating makes a lot of sense.

It's reminiscent of some other crackpot ideas from the seventies.




sense

Life with a Sense home energy monitor: More devices, real savings

I knew that real-time data on our energy use would be interesting. But I wasn't sure how much it would actually save us.




sense

Does sewer pipe architecture make sense?

A new proposal for Hong Kong tries to fit people into pipes.




sense

Does shipping container architecture make sense? This hotel in London might

Because shipping containers are designed to move and these ones might have to.




sense

Do hydrogen powered trains make sense?

They actually might in certain cases, using off-peak power at peak times.




sense

Chile's new hydropower project will be in the world's most arid desert, but it actually makes sense

The project will take advantage of the sun, mountains and sea.




sense

A sense of community may be the best medicine

The English town of Frome has seen a significant drop in emergency hospital admissions since it began connecting ill residents with volunteers and support groups.




sense

The Shakers' Design Sense is Still an Influence in America

The Shakers may be long gone but their simplicity of design still has an influence on American furniture.




sense

This makes sense: BMW tells kids to dress up in fluorescent clothing

It's Blame the Victim time as the car company tells pedestrians to brighten up.




sense

7 Short and Senseless Flights We'd Love to Ban

Sometimes it's better to drive. Whether that means you carpool, rent a car, or take public transportation the fact of the matter is that you'd blow more carbon emissions if you traveled by airplane. Not only do you




sense

Why the five-second rule, sadly, makes no sense

Scientists decided to put the old five-second rule to the test, to prove once and for all whether there is any truth to it.




sense

Onelink by First Alert® Brings Common Sense to the Smart Home Revolution - Onelink by First Alert

The new HomeKit-enabled Onelink by First Alert® Wi-Fi Smoke + Carbon Monoxide (CO) Alarm pairs First Alert’s legacy of safety and innovation with Apple’s revolutionary HomeKit technology.




sense

Whole You Celebrates The Senses And Encourages People To Live A Life Without Limitations - Video of legally-blind photographer living his Whole Day

Video of legally-blind photographer living his Whole Day, as he captures a celebration of senses and movement




sense

Jim Cramer on Wall Street trading trends: 'This action makes little sense'

"The staples and the retailers should be moving in opposite directions" meaning "somebody's wrong here," the "Mad Money" host said.




sense

Can stocks and bonds both be right? Making sense of rising equities and ultra-low Treasury yields

Both markets are responding, each in its own way, to the same accommodative Fed.




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