Americans have feared coming inflation for some time now. We’ve heard all the warnings from economists and pundits. After all, we can’t possibly sustain the current debt load. Instead of exercising fiscal prudence, the federal government acts more like a rich debutante on Rodeo Drive armed with her Daddy’s credit card.

But what happens when the credit limit is maxed out? We can then expect the Fed to print money. And printing money creates inflation.

Should we hedge inflation by reallocating investments and retirement savings? Or should we just stock up on toilet paper and other non-perishables before they become luxury items?

Before you empty the Walmart shelves, you might want to consider another scenario. The Wall Street Journal reports in two separate articles this month (August 7, 2010, “How to Beat Deflation” and Aug. 18, 2010, “What Deflation Means for Your Money”) that deflation may be on the horizon. This scenario also makes sense.

Jobless claims hover around 10%. The stock market reacts in a downward spiral, companies spend and invest less, and workers see wages cut. Less spending equals less money in circulation so prices stagnate. Companies lose profits, cut jobs, benefits, and wages. The cycle continues and we have deflation.

Faced with two opposite scenarios, how can we possibly know what to do? Taking any one approach to the extreme would probably be a mistake. We don’t know what will happen. It might not be a bad idea to talk to a financial advisor about reallocating some stocks into more secure markets, or even into proven stocks that produce more necessities than luxury items. But even this is no guarantee. The stock market is always a gamble.

Even in an economy that may be spinning out of control there may be one thing you can do now: Pay down your debt as quickly as possible.

In his article “What Deflation Means for Your Money”, (Wall Street Journal, Aug. 18, 2010) Brett Arends gives a great explanation of deflation and the best way to gain some protection now. While he gives advice regarding bonds and stock purchases, I believe his best recommendation is to pay down your debt now. He points out that increasing income is crucial during deflation.

But how do you increase income when the money just isn’t there? Decrease spending. This puts more money in your pocket, increasing available income. Let’s say you pay $200 a month for a student loan. If you can pay that off now, you’ve added $200 to your pocket, or just given yourself a $200 a month raise.

But what if inflation hits? I still believe paying down debt is a win-win situation – just make sure you are also putting money aside for emergencies. Inflation would likely spike interest rates. You could wind up paying 20% interest on credit card expenses, making it even tougher to make ends meet in a bad economy. Suddenly the outdated Nintendo that you intended to pay for over three months doesn’t seem so appealing.

Whether inflation or deflation occurs, decreasing debt seems to be the wisest move. Cut back on discretionary spending and put it towards any debt payment or savings. For some families, this may seem impossible. In that case, do what you can. Even the smallest step, is a step in the right direction, allowing you to take some control in an uncertain world.

The economy could go into a double-dip recession, we could lose our jobs, or our wages could be cut. But as a whole, Americans are resilient. As parents, we cannot give up hope. But I’m not fatalistic enough to rely on hope. We must carve out our own destiny and that requires action. So do what you can to protect yourself. Decreasing debt load and increasing savings to the best of our abilities, are sensible and responsible actions.

“Teachers’ pay, benefits take hit” (Wisconsin State Journal, Matthew DeFour)
The Wisconsin State Journal, which ran this story on August 9, leads with the following statement: “Statewide increases in teacher compensation contracts are on track to be the lowest in more than a decade following last year’s changes in state school district financing.”

I read it quickly, and not very closely, while drinking my morning coffee and eating breakfast. I’m not a morning person, so I probably read it while still waking up. My first thought was, “What a shame, teachers are also getting a paycut – and cut to the lowest wages in ten years.”

Who among us wants to see that happen? After all, we love our teachers.

But then I took a few more sips of coffee, got up, took the dog out, waking up bit by bit. More alert, I came back inside finished my coffee and read the next paragraph. The next paragraph changed everything.

Teachers aren’t getting their pay cut. No, they are getting raises! Ok, good for them. Most of them probably deserve it. Heck, most of us probably deserve it. I also think I deserve a new car with less than 100,000 miles on it, one where the check engine light isn’t on all the time even though the last two mechanics say nothing is wrong.

But what we want, and yes, sometimes what we deserve, doesn’t always work out. It’s part of reality, and part of being an adult. I try to teach my children this. At times, I’m still learning this. After all, why not replace my car since I feel I deserve it? Why not give these teachers raises which I’m certain most of them deserve?

The increase in compensation packages come with a cost, a cost to you and me.

President Obama just signed an aid package doling out 10 billion dollars to states for teachers. In other words, he and congress appeased the demands made by powerful teachers’ unions by reaching further into empty pockets and giving teachers another annual raise. Do congress and the president need to be reminded of the mounting debt crisis: 13 trillion in debt and a 1.5 trillion federal deficit?

Then there is the all too familiar state and local money paid out to teachers. Guess how that will get funded. Either the states go more into the red or they reach their hands out to to the rest of us. In other words, as taxpayers, we get double-whammied with this financial burden.

So while Wisconsin teachers are whining about a modest 3.75% compensation increase (salary and benefits), I’m wondering how many of you, how many tax payers, received a raise this year? How many of you have had your benefits cut? How many of you had hours cut? And how many are still employed?

From my vantage point, that 3.75% raise looks pretty good during these times. It looks down right generous considering its funded by people who haven’t seen a raise in the past few years.

But 3.75% isn’t good enough for teachers. It was less than last year. Less than the year before, probably less than the year before that. Sounds bad when it’s stated like that, doesn’t it?

How about if I take out the spin and give a more accurate presentation of their compensation packages. Here is my version of their compensation: “As part of their regular annual raise, Wisconsin teachers will receive a 3.75% increase in salary. Wisconsin teachers have received an average of 4.13% since 1993 according to the State Journal article. Due to a down-turned economy, the pay increase is the lower than it has been in the past 10 years.”

If I were a teacher I wouldn’t complain to someone living in Janesville or Milwaukee about a pay increase — a pay increase that is likely funded by someone who is out of work.

Wisconsin, like most states is hurting badly. Our state is in the red. Either we cut spending across the board or we come up with a way to finance what we spend. The next line of attack is to increase local taxes. How much more can you tax people? At some point, the government is going to run out of people to tax as more people lose jobs or just watch their income dwindle and their houses foreclose.

The Washington Post reported that the School Chancellor in Washington D.C., Michelle A. Rhee, fired 165 teachers for poor performance. Performance was judged by a new evaluation method, called IMPACT. IMPACT is a radical new approach that ties teacher performance to student improvement.

IMPACT’s approach differs from the No Child Left Behind law. In No Child Left Behind teachers are judged by student test scores (Washington Post, Oct. 1 2009). IMPACT evaluates teachers on improvement in test scores. Proponents claim this “value-added” method reflects a correlation between teacher contribution and each student’s learning development.

Fairness of IMPACT
Washington D.C.’s struggling school system is no secret, so a radical approach may be necessary. Teacher, Jonathan F. Keiler, makes no excuses for teachers who don’t do their jobs in his article “Another Silly Education Fad” (American Thinker, Aug. 5, 2010). As a former Jag Officer and former private practice attorney, Keiler knows that second rate performance does not cut it in most real world situations. Yet, this has become acceptable with one of the most important jobs in the world, teaching our children.

Keiler, however, does not agree with the “value-added” methodology. Citing a study by the Department of Education, Keiler said that this model can be wrong as much as 35% in the first year.

I certainly would not want my performance judged by a system that is wrong more than a third of the time. (By the third year, the number reduces to a mere 25%.) Something this flawed should not be an indicator of teacher performance.

IMPACT does integrate in-class evaluation into the process. While this could be an added tool, it runs the risk of becoming too subjective, and even arbitrary. Other issues must also be taken into consideration.

Testing as an Indicator of Student Performance
As a parent, I don’t want my children taught just for testing. I expect them to apply their learning to future academic and real-life endeavors. Children need to learn critical thinking skills and the ability to adapt those skills to the world around them. Test performance does not always evaluate this. Furthermore, some students don’t test well.

Educators can also evaluate student performance by observing how students apply classroom learning. Class projects, writing, speaking, community jobs, and even properly supervised mentoring, add a richer dimension to the learning and evaluation process.

I am not suggesting that testing should be abolished. Testing does have value. It does offer hard concrete data on performance, and there are times in life when all of us have to perform in a test situation. So while testing should be done, it should be one of many factors when evaluating teacher and student performance.

Responsibility of Parents, Community and Administrators
No doubt, the teacher stands on the front line to learning. But as parents, we must also share in this responsibility. The teacher is not a miracle worker. Parents, community, and society at large, leave an imprint on each child. The teacher then deals with each child’s personal experience in the classroom. Sometimes the experience can be good, other times it is not so good.

Finally, when evaluating a teacher, administrators must ensure that she has the resources to succeed in the classroom. Proper training, quality text books, and access to technology can positively impact learning. But classroom size and classroom dynamics play a bigger role. Small classes are essential for younger and struggling students. In addition, teachers need more classroom support when dealing with students who have discipline problems.

None of these mitigating factors relieve the responsibility of the teacher. If teachers aren’t able to do their jobs, they should be out of the classroom. I don’t believe in tenure. Nobody is entitled to a job for inadequate performance. It makes no difference if they’ve been there for five years or twenty years. Most employees in business who underperform lose their position regardless of time spent at the company. Companies who keep underperforming employees run into serious problems, ranging from inability to compete in the market place to safety hazards. Our education system faces these same risks. High standards have always been a trademark of success in our country. Our children deserve to also live by these standards.

I agree with holding teachers accountable for student growth. Test scores show student development in the clearest way. But they are not the only indicator. They are one piece of information in a sea of data. Use it, but don’t expect the impossible. We all play a role in our children’s performance. Teachers can only do so much. Hold teachers accountable, but appreciate the majority who do a good job, often under difficult circumstances.

Planning Saves Money

A little planning can make even the simplest family outings more affordable, as well as more enjoyable. Unfortunately, I didn’t have the foresight to heed my own advice when we attended the county fair last weekend, a lesson I won’t repeat next year.

In less than three hours, our family of four went through $50 eating meager sandwiches, sharing drinks, and paying for a total of four rides. I grew more exasperated when I learned that we could have eaten better and enjoyed more rides for the same amount of money if I would have planned ahead.

Fortunately, my low threshold for unnecessarily overspending has turned this into a good learning experience. Below is a list of little epiphanies (as well as common sense) that I discovered. Maybe others can benefit from my mistakes.

Tips for Saving Money at the County Fair

1. Look in the paper AND online for admission costs, discounts, or free days. County or fair ground officials are likely to have a website with information. We missed out on the free admission day for kids.
2. If admission prices aren’t listed, call the fair office. A number should be available through the county. The website for our fair didn’t list admission costs.
3. Get a fair schedule with events and prices listed. Events may be discounted at certain times of the day. Often the best prices are earlier in the day. If the fair schedule isn’t available through the paper or online, contact the fair office.
4. If the fair does not list discounts or deals, call the fair office and ask about any specials available. Also check with local organizations that have food booths. For example, the Knights of Columbus might sell two for one ice cream on a particular day. This is a good way to support an organization while saving money.
5. Look for free or discounted ride days. Rides eat up a lot of the budget, especially if you have more than one child. After paying $3 a ride, I learned about the “10 rides for $10” special that ran earlier that week.
6. Avoid the big vender concessions if you want to hold on to your cash. We wanted to give money locally as much as possible so we did this, but we also found it was much cheaper to do so.
7. Search all the food tents, or as many as possible, before choosing a vendor. Check out some of the buildings or tents off to the side that may sell concessions. This was a big mistake for us. The 4-H groups sold food for a fraction of the costs of any of the other concessions. We stumbled upon this after we had already eaten. Later, however, we came back and got ice cream cones for $1.25 each.
8. Find out parking costs and alternative parking arrangements ahead of time. This was not an issue for us since parking was free. Busy, high-traffic areas, however, are likely to charge for parking. Don’t underestimate the cost of this.
9. If no free/discounted ride day is available, plan for expensive rides, and prepare your children accordingly. It’s just a fact of life: Thirty second rides cost more than they are worth. Let kids know ahead of time there is a limit to the number of rides they can go on.
10. Choose rides or activities that are more interactive. Not only do these tend to last longer, my children seemed to get more out of these activities than the passive whirly-rides that spin them around in circles for ninety seconds. My kids enjoyed the maze of mirrors better than any of the rides, and it lasted three times as long.
11. Bring a backpack with bottled water. It’s likely to get hot and everyone needs to stay hydrated. You can still patronize local clubs and businesses for the typical fair treats like lemon shake-ups. But there is no reason to spend $3 for a bottle of water. (I’d also recommend bringing wipes/hand sanitizer. Fairs aren’t the cleanest place. It’s also helpful after petting the animals.)
12. Spend time petting the animals and looking at the exhibits. This shouldn’t cost anything. Often a 4-H or FFA group will have an interactive exhibit about farm life that even very young kids can participate in. My kids loved petting the goats and sheep. Also, many of the 4-H exhibits have really come a long way. There really is something for everyone. My son loved the lego and rocket displays. My daughter was fascinated by all the different art projects.

County fairs can be a great experience for the whole family. Not only is it fun, it’s a great place to learn about animals and farm life. It might even open new doors for your kids. The 4-H clubs hold many opportunities for children to learn and gain leadership skills.

Unemployment, pay cuts, and pay freezes have hit families hard. Income has dwindled while costs have increased.

Now time for some more bad news: Net incomes will drop again if the Bush tax cuts are allowed to expire.

Who will pay?
News surrounding these tax cuts has always focused on the highest earners ($250,000 and above.). In fact, repealing the Bush tax cuts impacts all families with children.

We are facing “the largest tax hikes in the history of America” according to the group, Americans for Tax Reform, The child tax credit would be reduced from $1000 to $500 per child. Middle income earners will pay a 3% increase in taxes. Families’ earning as little as $17,000 per year, would jump from a 10% to 15% tax bracket.

Grandparents also will feel the pinch. Retirees depending on investment income can expect a large drop in their net income. Capital gains taxes increase from 15% to 20%. Dividend taxes will more than double, jumping from 15% to 39.6%.

These aren’t tiny ripples that will go unnoticed. Instead we can expect a series of tidal waves that will wreak havoc on personal income and the overall standard of living.

Find out more
Complete news coverage has been sparse in this area. I’ve heard various sound bites offering vague promises that were short on facts. I’m still waiting to hear coverage of specific, written proposals instead of campaign rhetoric.

Forbes, however, has recently put out a good article summarizing the major parts of the tax cuts as they stand.

For first hand knowledge, The Joint Committee on Taxation, a congressional body involved with tax legislation, has pdf files with updated information. I used this site to verify and research the facts. It’s not the most exciting summer read but it takes you right to the source of some of the most current and likely proposals that will make it to the floor. (Of course, this does not include proposals from members of congress not on the committee.)

A variety of proposals is likely to come to the table, including suggestions from the White House. The Wall Street Journal discusses positions taken by Speaker Pelosi and Treasury Secretary Geithner. Many lawmakers and White House officials are taking a partial position that would eliminate tax cuts for higher earners. How this will actually play out remains to be seen.

Can anything be done?
We could speculate over which party will vote to extend the tax cuts, which tax cuts will be extended – if any, and whether or not President Obama will support the extension. But it amounts to nothing but mere speculation.

Before a decision is made, doors will shut, deals will be made. With the impending November elections, our best bet is to urge our senators and representatives to extend the Bush tax cuts.

Then, pray that they listen.

While Nebraska lawmakers mull over revisions to its current safe-haven law, I am at a complete loss for understanding this situation — not the law but its unintended consequences.  Someone explain to me how so many parents can see a legal loophole as an opportunity to abandon their children, some who are teenagers. 

In case you’re unfamiliar with Nebraska’s safe-haven law, here’s a brief update.  Like most states, Nebraska lawmakers wanted to make sure young children aren’t abandoned in unsafe places.  The law was intended to protect the youngest and most vulnerable of our population, newborn infants. Many states allow parents to leave newborns at a hospital without any criminal repercussions.  The laws are designed to ensure a child’s safety; hospitals provide a safe haven for infants when parents find they cannot care for a child.  No doubt, this option could save a child’s life.

But like many well-meaning laws, it has turned into a moral hazard  — the intended good has been counteracted by its misuse.  Because Nebraska didn’t put an age limit on the law, children of all ages are literally being dumped on hospital steps.  As of last count, 34 children have been left at hospitals. And most of these children aren’t infants. As a matter of fact, ages range from 5 to 17.

What goes through an 11 year old child’s mind when his parent leaves him at a public institution with no intention of returning? Does the parent tell the child what is happening? Or is he not told: Is he dropped off with the expectation of someone returning for him in a few hours? And how many times does his heart break when he discovers no one is returning for him? 

Extraordinary circumstances have probably brought parents to this point, but I believe with few exceptions — such as safety issues, there must be other alternatives. For some it could be churches, synagogues, or family. For others it could be social services. Even if it means placing children in new homes, it is better than abandonment. Parents can still play a role in that child’s life, or at the very least, they can stick around long enough to make sure their child finds a good home.

So who is at fault? Parents? Social services? Maybe it’s the Nebraska legislature, who unintentionally uncovered this problem? It speaks volumes that it’s not always parents leaving these children at hospitals, but relatives who have stepped in as caretakers; many of the parents are already out of the picture. According to USA Today, 22 of these children have parents who have been incarcerated at some point. So most of these children come from troubled homes. Abandoning these kids at a hospital is probably not the first time many of them have been pushed aside. This just legitimizes it.

Many people blame the social service system in Nebraska, claiming it is one of the worst in the country. Should social services have done more? Probably. But does that absolve parents of their responsibility? These children are human beings, not objects that you dump when they become too much of a burden. Right now there is a lot of finger pointing. Fingers are pointed at social services, state legislatures, and parents. A post at Type A Mom addresses the issue of social service outreach.

If these parents feel that they have reached the end of their rope and that abandonment is the only solution, then I would suggest that the social services systems have failed them. Nebraska’s dilemna should serve as a wake-up call to all 50 states - there is a need for emergency services to parents of teens. If services are already available (as has been suggested), then their effectiveness should be evaluated. Marketing campaigns should be launched to be sure parents are aware of the services available to them when desperation forces them to consider the unthinkable.

However, the Associated Press (”Neb. senators told safe-haven law exposes problem”, Nate Jenkins)reported today that lawmakers say help is available.

State officials disagreed with child welfare experts, state senators and others who criticized what they said was a lack of access to mental health and other services. Parents, the state officials say, are unnecessarily abandoning their children at hospitals.

Todd Landry, who oversees the state’s children and family services, said there are resources available to parents. “It is not the role of government to intervene in a family’s life” when children are not in danger, Landry said.

So again who is at fault? Or more importantly, how do we solve this problem? It’s not that I don’t feel any sympathy for these parents; I do, but I feel more sympathy for these abandoned children. If you aren’t willing to fight for your child, the very child you brought into this world and parented for the last five, ten, fifteen years, is there anything you would fight for?

Many of these children might be serious problems to their families, or society. Maybe living at home isn’t the best option. But there are other options. They deserve the extra effort to find an appropriate home. It shows them they are still worth it.  And if our children aren’t worth that extra effort, who in this world is?

Madagascar entertains, but prepare yourself for some disturbing stereotypes, along with a good dose of over-the top-hostility from a cantankerous, old woman. The hostile old lady wields a purse like a javelin, usually targeting poor Alex, the theatrical dancing lion. Throughout the movie she is either throwing punches or on the receiving end of repeated blows. It’s like watching a hybrid of Brazilian Jiu Jitsu and a dirty street fight. Not only was it way over the top, it went on forever. At one point, I wanted to scream “Enough! I get the point.”

The movie is PG, so parents are given notice. But the PG rating doesn’t excuse poor taste or bad judgment in a children’s movie. Kids shouldn’t be laughing at human punching bags. I felt some relief when the elderly woman’s aggression was directed at a Machiavellian lion, who had used trickery to conquer the peaceful savannah and then cruelly banished Alex.

Thankfully, young children probably won’t pick up on many of the worn stereotypes. Adults are the intended audience here, part entertainment and part message. The message is clear to adults, zebras who all look the same and can’t be recognized one from the other. Disturbing, and maybe not so funny. But like it or not, the filmmakers use stereotyping for a reason.  Children are entertained, while adults look on with that “Aha” recognition of real life stuff. (Even if it’s real life stuff that makes us squirm.)

Once you get past all of this, the movie has some good scenes and a pretty decent cast. Bernie Mac (who sadly died this year) plays Alex’s dad; Ben Stiller, Alex; Jada Pinkett, the hippo who realizes she is more than the sum of her voluptuous parts; Chris Rock, Marty the Zebra; and David Schwimmer, the giraffe who is secretly in love with the hippo. My daughter loved the dancing scenes–nothing like lions performing street dances in Africa. My son laughed a little too much at the kickboxing old lady for my comfort. And for the adults, there were monkeys blackmailing a dictatorial penguin for his tryst with an unknown, female bobble-head. Hmmm…How often has this been the downfall of powerful penguins men?

Then again, maybe my I’m reading too much into this. After all, it is just a kids’ movie, isn’t it?

The other day, my first grade son brought home another basic phonics paper he had done in class; so basic, my four year old daughter did her own version of it. It consisted of listening for short vowel sounds and rhyming words. My son, who has been actively reading since the age of four, complained he’s bored in class, understandably so. Now, to keep things in perspective “I’m bored” has become a euphemism in our house for “I don’t want to do any work.” Work ethic aside, he needs more challenging learning activities.

My husband and I both love reading: we read often, visit the library, and keep our bookshelves well-stocked. So, it’s natural that reading began early for our children. They enjoy storytelling, as well as what many consider the pedantic side of reading, such as phonics and grammar. I don’t think my children are unusual. In fact, they are average children who excel in some areas and struggle in others. They love learning new things and enjoy challenges. Sometimes they meet those challenges; other times, they backtrack and try again. Don’t we want our children to be challenged in school, not to the point of frustration, but to the point of good, mental stimulation? At the very least, each child should be working at his ability, not below it.

The school does not deserve all the blame, or even most of it. I think the problem runs deeper. My son attends a good school. He has excellent teachers, a dedicated principal, and a pretty decent peer group. So what’s the problem? Why do American students rank in the twenties (out of thirty) for math and science? Why do seventy percent of our eighth grade students read below their grade level?

We’ve become a nation of underachievers and this has crossed over into the classroom. If society has one expectation, it’s difficult for teachers to enforce higher expectations. As a result, teachers design a curriculum that targets the most basic levels but does not accommodate more challenging levels. I think we underestimate the ability of our children. If a child struggles in an area, he deserves special attention to move him forward, but let’s make sure all students are progressing. If average children can understand basic phonics at four and five, why is so much time spent teaching basic phonics at six and seven? Shouldn’t the learning process gradually become more challenging? Right now, my son’s learning process is in reverse, and I believe this is more common than we realize.

Probably one of the most beneficial solutions would be more classroom help, whether from teacher’s aides, parents, or even older students who could act as mentors. The additional support would allow for more individualized attention. Self-paced learning could allow each child to reach his full potential. Let’s face it, none of us learn at the exact same pace.

Self-paced learning does not always mean working ahead in the classroom. Perhaps, a child who has mastered one subject area could exchange some of that time for a subject in which he struggles. Another option is to allow students to pair up and work as mentors to each other. This offers schools an opportunity to teach leadership, cooperation, and mutual respect among students.

I realize self-paced learning is no easy task. But in the end, I believe it would be worth the effort. Our children deserve this effort. Americans should rank number one in math and science, not twenty-one or twenty-four, and literacy should be mastered by eighth grade.