Innumeracy: A front page story in Monday’s Free Press noted that the Vermont Student Assistance Corporation (VSAC) “is pushing to hold on to Vermonter’s loan accounts, arguing that Vermont default rate (4.7 percent) is well below half the national rate (7 percent)…”

Forget the lack of either the word ‘the’ before, or an ‘apostrophe s’ after, ‘Vermont,’ and just concentrate on 4.7 being “well below half” of seven.

Let’s see. “Below half” would be less than twice as much. So multiply the lower number by two. Seven times two is 14. Put down the four and carry the one. Four times two is 8. Add the one and you get nine. Twice 4.7 would seem to be 9.4, which at least to the untutored eye is more than seven, making 4.7 definitely above half of seven.

“Well” above?

That’s a judgment call.

Illiteracy (economic version): In a column in Sunday’s Free Press, Betsy  Bishop, president of the Vermont Chamber of Commerce, declared, “government does not create jobs.”

A widely held and bipartisan sentiment. Sen. Susan Bartlett posted the same words on her web site during her primary campaign for governor. But it’s economic illiteracy.

Cops, firefighters and teachers are employed, almost all of them by one government or another. While employed, they provide a service, which creates wealth, which produces more jobs.

There is a name for the system described above. It’s called a market economy, sometimes known as capitalism. Among Adam Smith’s great insights in Wealth of Nations (1776) was that it made no difference how wealth was created or who created it. By any means, from any source, it enriched society and created jobs.

Our society, to be sure, has decided that most economic activity – and therefore most wealth-creation and job-creation – should take place in the private sector. For all sorts of reason, that’s a very wise decision. But it does not mean that government does not create both wealth and jobs. In fact, five days a week for most of the year, in almost every town in America, schools (the vast majority of them public, meaning government-run) create human capital, perhaps the single greatest source of wealth, and therefore of jobs.

Numbers, good and bad: Via Huffington Post and an organization called Mint.com, comes this inter-active map showing poverty rates by state and county in 2009, when the poverty reached its highest levels in 51 years. No big surprises. Vermont’s poverty rate (10.4 percent) is lower than the national average (14.3 percent), but not as low as the rates in several other states, including neighboring Massachusetts and New Hampshire. The states with the lowest rates were Wyoming, Hawaii, New Jersey, and Minnesota. Mississippi, Alabama, and the District of Columbia had the highest rates.

Vermonters between the ages of five and 17 had almost the same poverty rate (10.6 percent) as the entire population, but the rate for children under five was a surprisingly high 16.2 percent. Even that was lower than in most other states. In Mississippi, more than 30 percent of children under five were poor.

Unlike most states in the deep South, Texas, New Mexico, Arizona, and both Dakotas, no county in Vermont had a poverty rate of anywhere close to 30 percent. Still, there were obvious – and perhaps not surprising – differences among the state’s 14 counties. The lowest rate was Grand Isle County’s 8.4 percent; the highest Essex County’s 14.8 percent.

The rates in the rest of the state were as follows: Addison 10.4; Bennington 12.2;  Caledonia 11.8; Chittenden 9.6; Franklin 9,9; Lamoille 10.1; Orange 10.9; Orleans 14.3; Rutland 11.6; Washington 9.7; Windham 9.8; Windsor 9.3.

Numbers and Words: The following is clarification, not criticism. Vermont Public Radio has been trickling out reports from the statewide poll that it commissioned from Mason-Dixon Polling and Research. The results are interesting, and probably accurate, but the latest accounts could be misleading if not understood in context.

For instance, the poll showed that 44 percent of the respondents think the Vermont Yankee nuclear power plant should be shut down when its license expires in 2012, while 39 percent want it to get the 20-year renewal it seeks and 17 percent are undecided.

Asked whether they support or oppose a plan to consolidate the state’s 278 school districts into 45 “to save administrative costs, which could result in the closing of some smaller schools,” 45 percent supported the idea, 36 percent opposed it, and 19 percent were undecided. On health care, a 56 percent majority supported either a universal government-run program like Medicare or a “public option” alternative like Catamount Health Care.

As mentioned in Monday’s post, Mason-Dixon is a respected firm, the sample of 625 was big enough, so there is no reason to doubt that these results are accurate.

But there is some reason to doubt that they accurately represent popular opinion on those issues by the people of Vermont.

That’s because, as also noted Monday (just scroll down) the average age of those 625 people is substantially higher than the average age of Vermont’s voting age population. A full 60 percent of the respondents are over 50. Almost 60 percent of voting-age Vermonters are under 50.

The pollsters didn’t goof (although “to save administrative costs,” though accurate, might invite a positive reply on the school question). They were first and foremost trying to figure out who’s likely to win next month’s elections, so they “screened” for likely voters. Older folks vote more. The sample, then, quite likely represents those Vermonters who are going to vote on November 2.

But no matter who wins the elections, the results on those three questions are likely to be used during next year’s legislative session as though they reflect where Vermonters stand on those issues. Perhaps they do not.

OK, there’s a certain amount of conjecture here, because the poll did not break out the voter preferences by age groupings. But there’s something close to a consensus among politicians that younger voters are:

–More likely to oppose Vermont Yankee;

–Less likely to be for school consolidation because they are more likely to have kids in school. Rare is the parent who wants his/her child to have a longer bus ride to school. If nothing else, it means getting up earlier in the morning.

–Perhaps (though this one is murkier) not as keen on government-run health care.

Still in the realm of conjecture, but restrained conjecture, here’s a suggestion that a poll of all registered voters – not just those likely to vote this year – would find a small majority against Yankee’s relicensing, with perhaps 30 percent in favor and almost 20 percent undecided.

Politically, that’s a big difference because the undecideds don’t matter; they’re not going to vote against a legislator either way over the issue. But a lawmaker who might hesitate before displeasing 39 percent of the electorate, while earning the thanks of only five percentage points more, is less likely to pause before pleasing a majority and annoying only a third of the people.

As is often true in life, in polling, when it comes to numbers, nothing is more important than the words.

So what kind of governor – based on the (sort of) detailed economic policy statements all have now unveiled – would any of these five Democratic candidates for governor be?

A Democratic governor, that’s what kind.

Whatever their differences – and there are some – all the Democrats propose to govern the state as one would expect a Democrat would govern. Unlike Brian Dubie, the unopposed Republican one of them will run against after Tuesday’s primary, not one of them promises to cut taxes.

Which does not mean any would raise taxes. Only one even dares to mention the possibility, and the possibilities he mentions are either temporary or selective or both.

So to say that the Democrats would govern like Democrats is not to say that they would govern as Republican caricatures of Democrats, the kind who would make the rich pay higher taxes to finance more generous services for the poor.

These are five center-left Democrats. One or two are a tad lefter and one or two a tad centerer than the others. But as is often the case, Candidate A might be slightly to the left of Candidate B on one issue, but slightly to the right of him/her on another. So where one puts them along the ideological spectrum (assuming that the ideological spectrum is important) depends on which issues any voter finds most important.

From one perspective, for instance, Doug Racine might be considered the most liberal of the contenders. He’s the one who’s open to tapping into the “Rainy Day Fund” or even imposing a temporary tax hike (though he doesn’t think it’s needed now) to avoid budget cuts harmful to the poor. He’s even suggested making sure Internet sales are subject to the state sales tax, and perhaps a special tax on sugar-heavy processed snacks and sodas.

But Racine’s overall policy outlook is relatively restrained. He proposes no big spending programs. Instead he wants to “get back to basics” by being a governor who is “directly involved in every phase of our economic development strategy,” starting with the selection of “the right Secretary of Commerce and Community Development.”

Racine, then, seems to be pledging to improve the state’s economy less by a specific economic program than by his own forceful leadership, with which he hopes to energize state government.

By contrast, Matt Dunne’s rhetoric is unabashedly pro-business. His economic policy paper is titled, “The Innovation State: a Business Plan for Vermont,” and he even accepts the Republican complaint that the state’s economy is held back by “complicated regulations and taxes (and) burdensome costs.”

But Dunne’s specific policy proposals are possibly the most audacious of the bunch (if not always the most comprehensible, at least to those to whom power point presentations remain exotic). He’s calling on the state to issue two separate revenue bonds, each for roughly $400 million, one to finance renewable energy production, the other to bring high-speed Internet service “to the last mile” of every road in the state.

Similarly, Susan Bartlett, the self-described “moderate” in the race, has one of the more novel ideas. Arguing that “innovation and entrepreneurs have always been a part of Vermont,” and could be “true job creators,” Bartlett would establish an ”Office of Innovation and Intellectual Property” to “coordinate the various pieces of our business support organizations (and) educate regional economic development groups about the potential of intellectual property.”

The other two candidates, arguably the most establishment as well as (by the conventional political wisdom) the front-runners, exhibit a comparable mix of caution and daring. Deb Markowitz’s “Jump Start VT” (she does not use spaces between the words; there are depths of degradation to which this web site will not descend) isn’t just an economic policy document. It’s an all-purpose laundry list of positions on issues ranging from ethnic diversity to education.

No sweeping, big-spending programs, but a few bold moves. Markowitz would emulate New Hampshire and require young Vermonters to stay in school until they are 18 unless they have graduated and she would take state money out of big banks that don’t grant adequate credit to Vermont businesses.

Peter Shumlin does have one big-spending plan, $33 million to provide “universal pre-kindergarten education” statewide. But he would pay for it, according to his economic policy (“Vision for Vermont,” spaces in the original) by releasing the state’s imprisoned “non-violent offenders back into society,” which he claims would save $40 million.

Shumlin’s numbers seem to be accurate. His confidence that the Legislature will agree to such a large-scale release of convicted criminals may be misplaced.

As any Vermonter who has been watching television in recent weeks knows, Shumlin also wants to bring a single-payer health care financing system to the state. So does Dunne. Racine favors a similar approach, though he doesn’t say so on his campaign web site, calling only for “universal” coverage. That’s what Bartlett and Markowitz want, too.

Does this mean that if one of these candidates gets elected, Vermonters can expect a universal health insurance system?

No, at least not for a while. The single-payer option is especially iffy, being, for the moment, illegal until 2017 under the new national health law. Sen. Bernie Sanders, the U.S. Senate champion of a “Medicare for all” plan, has said he will try next year to get Congress to move that date up to 2014. Congress seems unlikely to comply, and at any rate, 2014 is two years beyond the term of the governor to be elected this November.

Health care is not the only area of near-unanimity among the Democrats. They all want to bring high-speed Internet to everyone.  They all want to provide small businesses with more credit options. They all want Vermonters to produce and consume more “sustainable” energy, created neither from fossil fuels nor from the Vermont Yankee nuclear power plant, which they all think should shut down when its license expires in 2012. They all want to use the state’s higher education institutions to help spark a knowledge-based “green” economy.

All five also clutter their position papers with stale bromides. “I want every family to know that if they encourage their children to do well in school and to work hard, they will be better off,” proclaims Racine. “To move together as a state we will need to work together,” intones Markowitz. “Build a Vermont future that is a global leader in the innovation economy, based on a foundation of authentic communities, strategic location, and our premium Vermont brand,” says Dunne.

If pressed, all five would probably endorse motherhood and apple pie, too.

Another commonality is that, like most candidates these days, the Democrats (Shumlin’s pre-kindergarten plan being the exception) make little effort to provide the nitty-gritty details of how much their proposals will cost and how they would pay for them.

In fairness, most of their plans wouldn’t cost much, and they all suggest trimming some state programs. But, just to take one example, Dunne does not seem to have asked an economist to run the numbers on how (or whether) the revenues from Internet and energy users would pay off those $400 million bonds. The other contenders are comparably vague about how they would pay for everything they suggest.

It may be too early to condemn the candidates for this fuzziness. At this point, only Democratic primary voters care what the candidates say, and they are saying enough to give those voters an idea of how each of them would try to govern the state. Each is presenting a vision. Whether the numbers add up isn’t all that important yet.

After all, they are running for governor, not emperor. Governors do not promulgate programs. They suggest them to the Legislature, which will create nothing it can’t pay for. Almost certainly, that means pay for without raising taxes, which the candidates (Racine’s limited exceptions noted above) don’t want to do, either. Like presidents, governors not only don’t get everything they want, they end up not even asking for everything they really want.

It’s still helpful for the voters to know what the governor-to-be really wants.

This generosity of spirit will not last long. Whoever wins the Democratic primary and Brian Dubie will both be pressed harder to tell the voters how they will pay for new programs or for tax cuts. But that’s for next week.

Has everybody been keeping up with the campaign websites?

You don’t know what you’re missing.

First, of all, printed out, they are perfect cures for insomnia. Just try to stay awake reading prose such as “Supporting and sustaining Vermont’s businesses will be the first step in an eonomic development strategy” (Deb Markowitz, and, yes, that’s cut and pasted; her web site really says ‘eonmic’) or “I devoted my time to bringing entrepreneurs and business leaders together to develop economic development legislation that would create jobs” (Matt Dunne).

What is remarkable about the candidate web sites is not that they are filled by writing that recalls the late novelist Nelson Algren’s term “dead stick prose,” but that most of them read as though they were written by the very same practitioner of dead stick prose. It seems highly unlikely that there could be four writers who are quite that bad in exactly the same way.

(Four, not six, because the sort-of exceptions here are Sen. Susan Bartlett’s and Lt. Gov. Brian Dubie’s web sites. When Dubie “speaks” in the first person on his site, he does so in plain if uninspired English. On her site, Bartlett is both breezy and specific).

But today’s post is not primarily a literary critique. It is a plea to Vermont’s voters – and especially to its journalists – to read some of these web sites carefully, to note the (often concealed) specifics in the public policy positions, and to insist that all the candidates flesh out their relatively indistinct proposals with real detail.

Specifically, with dollars and cents detail.

The first job of any governor of any state is to be a prudent steward of that state’s fisc, as the public treasury used to be called. So when a candidate pledges, for instance, to take steps to improve the state’s economy, somebody ought to ask that candidate just how much those steps will cost, and just how the candidate intends to pay that cost.

And any candidate who responds, “by making government more efficient,” or words to that effect, is not qualified to be governor.

For instance, most of the Democrats say they will “expand broadband to every last mile by 2012” (Sen. Peter Shumlin on his web site; in his television commercial he says 2013) or “(b)ring the economic development potential of high-speed internet and cell service to all of Vermont’s businesses and to the last mile of every town in Vermont,” (Dunne).

That has to cost money. As Sen. Doug Racine had the gumption to acknowledge, “we cannot rely on the private sector to provide this service.”

Private Internet providers are not going to extend broadband down every little dirt road in every little hamlet unless the state helps pay for it, directly by appropriation or indirectly by giving the companies a tax break.

Either way, that means less money in the ol’ fisc.

(It should be noted here that by and large Racine is the most straightforward candidate when it comes to acknowledging fiscal realities. During the Legislative session, he even suggested a temporary tax increase).

The Democrats also like to talk about “investing.” “In our institutions of higher learning” (Dunne), in “energy efficiency” (Markowitz), in “smart grid and smart metering technology” (Racine), in health care (Racine and Shumlin).

Another word for “investing” is “spending.” It isn’t that the Democrats are being disingenuous here. Those spending proposals are real investments, which may pay benefits in the future. First, though, they cost money.

Even Republican Dubie, who wants to cut taxes and spending, calls for a “strong push to help Vermont students lead the nation in science, math, engineering and technology,” which sounds very much like an investment, or cost as it is sometimes known.

But isn’t it unreasonable to ask these candidates to tell Vermonters just – or at least roughly – what all these proposals will cost and how they will pay for them?

No. Au contraire, as they say just north of here, it’s irresponsible not to ask them. Certainly after August 24 when the Democratic nominee is known, it would be irresponsible not to insist on specifics from that nominee and from Dubie.

In fact — and this is specifically for the political journalists, including this one – it is irresponsible not to ask them for their paperwork. Let’s not take their word for it. When Candidate A says his/her broadband or higher education plan will cost X million bucks, let’s ask how they know. Who’s the high tech or higher ed economist who ran their numbers? Let’s see those numbers (this is especially for news organizations with lots of resources; are you listening Channel 3? The Free Press?) so we can run them past our own experts.

There is here a difference between Dubie and the Dems. Though the Republican, should he win, will propose spending money – every governor does –his campaign centers on his pledge to cut both spending and taxes.

OK, Mr. Lieutenant Governor: Just which programs would you cut or eliminate? Which taxes will you reduce? How much would that cost the state treasury? And precisely how would you offset the revenue loss?

And don’t say, “by reducing waste, fraud, and inefficiency.” As the late Sen. Daniel Patrick Moynihan used to note, there is no line item in any government agency budget reading, “waste, fraud and inefficiency.”

Then let’s hope Dubie does not succumb to that national Republican deception of claiming that taxes can be cut without loss to the treasury, that lower taxes will so spur the economy that tax revenue will stay level, maybe even go up.

This is unadulterated garbage, and should be described as such. Lower taxes did not lead to higher revenue under George W. Bush, under Ronald Reagan, or under John F. Kennedy in the 1960s.

Yes, in raw terms, revenues did rise after those presidents cut taxes. But only because the economy grew. Yes, it grew somewhat faster because taxes were cut. But in all those cases, the government would have ended up with more money in the till under the older, higher, rates. The authority here ought to be Gregory Mankiw, the highly regarded economically conservative economist and loyal Republican who was the head of Bush’s Council of Economic Advisors: “Lower tax rates might encourage people to work harder and this extra effort would offset the direct effects of lower tax rates to some extent, but there was no credible evidence that work effort would rise by enough to cause tax revenues to rise in the face of lower tax rates.”

The Reagan tax cuts, Mankiw wrote, “did not cause tax revenues to rise,” and he called those who predicted that they would “charlatans and cranks.”

Or, in this context, unqualified to be governor.