Low-Interest Education Loans Are a Temptation to Destruction

    Education Week says, "Senate Leaders Say They Have Student Loan Deal.
WASHINGTON (AP) — The Senate's top Democrat and Republican said Tuesday that they've reached a deal that would prevent interest rates on college loans from doubling beginning this weekend for millions of students. But House Speaker John Boehner, R-Ohio, has yet to decide whether the pact will be acceptable to his Republican-run chamber."
    Bad move. Only John Boehner may be on the right track. We have already too many young people with college degrees who can't find jobs. They are also burdened with tremendous debt and little hope of repayment using the low interest loan rates previously in effect. I liken this to the housing bubble, where everybody could buy a house with a smile. They subsequently couldn't pay and the whole thing collapsed.
    It's never a good idea to tell people to do something because it's cheap. Look first for a good program and then decide whether you can afford it.

UK Budget Cuts for Science

    There is a report that the UK has a budget problem similar to that of the US. The government is considerably overspent, with respect to its income and they are trying to find ways to decrease spending.
    The UK agency responsible for science funding is the Engineering and Physical Sciences Research Council (EPSRC). It recently decided to give higher priority to research in areas with foreseeable applications rather than open- and science and will also decrease funding for PhD students. Anthony Barrett, of the Imperial College of London says that this strategy is misguided and in the death of British science. for Barrett is also the leader the leader of a protest movement where about 100 researchers took to the streets of London last week.
    The protest is a natural reaction. If you take away a child's lollipop, he cries. However, the EPSRC says it is, "Committed to ensuring that the UK continues to have an enviable international research reputation, punching above its weight in quality, and maximizing the societal and economic benefits of what we invest in". Well said!. However, they give no numbers, and I suspect that similar to the US, there is more talk about cutting funding rather than actual cuts.

Robust Science Budgets in Times of Federal Budget Deficits?

    In the May 21 Issue of Chemical and Engineering News, Andrea Widener and Susan Morrissey report on "Robust Science Budgets".
    The House passed HR 5326 for $51.1 billion, which includes a 10.5% increase over last year for the National Institute of Science and Technology and a 4.3% increase for the National Science Foundation. NASA gets a slight cut.
    Glenn Ruskin, Director of the American Chemical Society's Office of Public Affairs says, "The House passed bill demonstrates bipartisan support for science and recognition that is critically important for US innovation and global competitiveness". Baloney! We have real federal budget problems and the new House of Representatives, with supposed high Republican representation, should recognize this. Apparently, it does not.
    Harold Rogers, Republican from Kentucky and Chair of the House Appropriations Committee said the total $1.6 billion cut is necessary. Correct but not enough. He also said, "This legislation funds important programs at adequate responsible levels while cutting spending." However, keep in mind that a $1.6 billion cut, which still leaves 51.1 billion, is not a significant recognition of the budgetary problems of the federal government. The NIST and the NSF still get $830 million and $7.3 billion, respectively, of taxpayer money or borrowings to fritter away.
    The only thing I like about this report is the amendment, which would halt all National Science Foundation funding for political science research.

Natural Gas will Boost Segments of the Economy

    There is good news for a couple of segments of the economy.
    Energy costs are dropping and raw material costs for the chemical industry are also dropping. This comes about from the production of natural gas through the fracking process.
    It will be recalled that fracking involves pumping water into gas wells at high pressure in order to break up the ground strata and release the gas.
    For the energy sector, new electricity production can use lower-cost natural gas in new plants, which are less capital intensive will construction.
    For the chemical industry, low-cost natural gas, also gives low-cost ethane, which is a component of natural gas. The chemical industry uses ethane in a cracker to produce ethylene, which is a basic raw material for a number of plastics, including polyethylene and polyacrylates. The chemical industry is lauding this development. One of the celebration locations was the annual dinner meeting of the American Chemistry Council. CEO Calvin Dooley proposed a toast to shale gas, which is another term for natural gas from the fracking process.
    The price of shale gas has not yet reached the anticipated low point, but unless the EPA goofs up the program, the ACC celebration is not premature.
    It should be noted that markets for the downstream chemical products are not expanding in this recessionary economy, but the development has placed the US in a more favorable position to obtain business previously held by companies in other countries. An additional advantage is a reduction of supply line. Raw material access in close proximity to manufacturing plants and customers is a favorable advantage, because it reduces the likelihood of something going wrong in the supply line.
    Hooray for fracking and natural gas!