Jumat, Juli 30, 2010

Harga Minyak di Asia Melemah

Harga Minyak di Asia Melemah
Beberapa analis memprediksi bahwa ekonomi global akan melambat pada paruh kedua tahun ini
JUM'AT, 30 JULI 2010, 17:18 WIB
Renne R.A Kawilarang, Harriska Farida Adiati

VIVAnews - Harga minyak mentah untuk perdagangan Asia di bursa New York melemah hingga mendekati ambang bawah US$78 per barel. Penurunan ini menyusul pelemahan indeks di pasar-pasar saham Asia.

Bursa-bursa saham utama di Asia melemah karena kabar mengecewakan dari Jepang menjelang laporan pertumbuhan ekonomi triwulan kedua Amerika Serikat (AS) tahun ini.

Berdasarkan transaksi elektronik, yang dipantau pada Jumat sore waktu Singapura, harga minyak mentah untuk pengiriman September turun 35 sen menjadi US$78,01 per barel. Pada transaksi langsung di bursa New York dini hari tadi, harga minyak sempat menguat US$1,37 menjadi US$78,36 per barel.

Sebagian besar indeks utama Asia ditutup melemah setelah indeks saham industri Dow Jones turun 0,3 persen pada perdagangan Kamis. Sejumlah kabar buruk juga datang dari Jepang. Pemerintah Negeri Matahari Terbit itu melaporkan tingkat pengangguran yang meningkat, merosotnya harga-harga konsumen, serta turunnya produksi manufaktur.

Investor juga merasa was-was menantikan angka pertumbuhan ekonomi AS untuk triwulan kedua tahun 2010 yang akan dirilis Jumat ini. Analis memperkirakan, Produk Domestik Bruto (PDB) akan mencapai 2,5 persen dalam triwulan April hingga Juni, turun dari 2,7 persen pada triwulan pertama.

Beberapa analis memprediksi bahwa ekonomi global akan melambat pada paruh kedua tahun ini. Kondisi ini akan membebani permintaan minyak mentah. "Pemulihan global mengarah ke gerak lambat sehingga akan membuat pasokan minyak untuk pasar sangat mencukupi, yang pada akhirnya makin menekan harga minyak," kata Saxo Capital dalam sebuah laporan.

Saxo memperkirakan harga minyak akan turun mencapai US$60 pada akhir tahun ini. Sementara itu, harga minyak Brent turun 64 sen menjadi US$76,95 per barel di bursa London. (Associated Press)

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Manufaktur Jepang Merosot, Saham Asia Melemah

Manufaktur Jepang Merosot, Saham Asia Melemah
Penurunan indeks di sejumlah bursa saham Asia mengikuti kemerosotan kurs yen atas dolar
JUM'AT, 30 JULI 2010, 15:48 WIB
Renne R.A Kawilarang

VIVAnews - Para trader di sejumlah bursa saham utama di Asia menutup perdagangan pekan ini dengan hasil yang mengecewakan. Penurunan terjadi saat kurs yen atas dolar menguat dan munculnya data yang tidak menggembirakan di kawasan regional maupun di AS jelang pengumuman tingkat pertumbuhan ekonomi Negeri Paman Sam selama triwulan kedua tahun ini.

Pada perdagangan Jumat sore, 30 Juli 2010, indeks Nikkei 225 di Jepang turun 164,94 poin (1,7 persen) menjadi 9.531,44. Penurunan di bursa Jepang terjadi setelah pemerintah Jepang mengungkapkan bahwa produksi di sektor industri Juni lalu turun 1,5 persen dari bulan sebelumnya, sedangkan harga konsumen turun untuk 16 bulan berturut-turut.

Para eksportir Jepang pun terpukul setelah melihat kurs dolar atas yen pada transaksi Kamis malam waktu New York (Jumat pagi WIB), turun dari 86,72 yen menjadi 86,38 yen.

Bursa di Korea Selatan mengalami penurunan indeks sebesar 0,8 persen menjadi 1.756,70. Penurunan indeks saham di Jepang dan Korsel menandakan bahwa investor kali ini tidak begitu terpengaruh atas sejumlah laporan positif di sektor korporat masing-masing. Padahal perusahaan besar seperti Samsung dari Korsel dan sejumlah produsen elektronik dan otomotif asal Jepang mencatat pendapatan yang besar dalam tiga bulan terakhir.

Penurunan indeks juga melanda bursa saham di Australia (0,7 persen), China (1,2 persen), Taiwan, Singapura, dan India. Sebaliknya, bursa di Malaysia dan Selandia Baru, dan Vietnam mengalami kenaikan.

Seperti di Wall Street dini hari tadi, para investor di bursa-bursa Asia kecewa dengan laporan dari Departemen Tenaga Kerja AS. Jumlah pemohon baru tunjangan pengangguran per pekan lalu hanya turun 11.000 orang menjadi 457.000 pendaftar. Bagi pelaku pasar saham, penurunan itu masih terasa kecil.

Kini, menurut pengamat, perhatian para investor tertuju pada laporan pertumbuhan ekonomi di AS selama tiga bulan terakhir, yang akan diumumkan pada Jumat pagi waktu setempat.

Bila angka produk domestik bruto (GDP) yang akan diumumkan nanti memperkuat laporan The Fed - bahwa pemulihan ekonomi di AS tengah berjalan lemah - maka bukan tidak mungkin indeks harga saham di Wall Street dan tempat-tempat lain kembali turun. (Associated Press)

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Kamis, Juli 29, 2010

Gubernur Segel dan Batalkan Proyek Taman Ria

Gubernur Segel dan Batalkan Proyek Taman Ria
DPR menginginkan kawasan Taman Ria menjadi satu kesatuan dengan kawasan gedung parlemen.
KAMIS, 29 JULI 2010, 07:07 WIB
Maryadie

VIVAnews - Kisruh keberadaan pusat belanja di kawasan Senayan santer lagi. Setelah sebelumnya ramai dipersoalkan izin mendirikan bangunan (IMB) untuk mal Senayan City, kini pembangunan mal dan tempat hiburan Taman Ria Senayan menjadi polemik.

Polemik sepekan itu pun diakhiri dengan penyegelan pembangunan Taman Ria Senayan. Kemarin, Gubernur DKI Jakarta Fauzi Bowo telah memerintahkan pihak pengembang, PT Ario Bimo, menghentikan pembangunan.

"Tadi pagi (Rabu, 28 Juli 2010), kami sudah memerintahkan penyegelan," kata Fauzi Bowo saat rapat kerja dengan Komisi VII DPR, kemarin.

Penyegelan ini merupakan hasil kesepakatan antara Pemerintah Provinsi DKI Jakarta dengan pimpinan MPR, DPR dan DPD RI. "Kawasan dikembalikan seperti semula,” kata Foke, panggilan akrab Fauzi Bowo.

Gubernur mengatakan Taman Ria Senayan akan kembali difungsikan sebagai ruang terbuka hijau di ibukota.

Langkah Fauzi Bowo ini diapresiasi para anggota DPR, yang sejak awal meminta pembangunan Taman Ria Senayan dihentikan.

Ketua Komisi II DPR RI yang membidangi masalah pemerintahan, Teguh Juwarno, menilai langkah itu tepat. Kata dia, ada tekad yang sama bahwa Taman Ria Senayan tidak akan dijadikan pusat perbelanjaan.

Masalah bermula ketika sejumlah wakil rakyat Senayan mempertanyakan soal ini saat rapat kerja dengan Menteri Sekretaris Negara Sudi Silalahi. DPR menginginkan kawasan Taman Ria menjadi satu kesatuan dengan kawasan gedung parlemen; sejalan dengan gagasan Bung Karno.

Namun, Sekretariat Negara rupanya terlanjur meneken perjanjian dengan PT Ario Bimo untuk jangka waktu hingga 2035. Lalu ramai-ramailah anggota DPR menolak pembangunan area ini.

Penolakan DPR diperkuat dengan adanya fakta bahwa pengembang belum memiliki izin analisis mengenai dampak lingkungan (Amdal) yang dikeluarkan Badan Pengelola Lingkungan Hidup (BPLHD) DKI Jakarta. Selain itu, Kepala Dinas Tata Ruang DKI Jakarta, Wiriyatmoko menyatakan, pembangunan Taman Ria tidak sesuai dengan tata ruang DKI Jakarta.

Berdasarkan tata ruang yang ada, kawasan seluas 10 hektar ini masuk dalam kawasan utama taman. Tapi anehnya, meski tanpa Amdal dan tak sesuai tata ruang, Dinas Pengawasan dan Penertiban Bangunan (P2B) DKI Jakarta telah mengeluarkan IMB. Pengembang juga telah mendapatkan izin teknis, pondasi, dan struktur bangunan.

Atas beberapa fakta ini, anggota DPRD DKI Jakarta mengikuti jejak anggota Dewan di Senayan menolak pembangunan Taman Ria. Wakil Ketua DPRD DKI Jakarta, Sayogo Hendrosoebroto, menilai pembangunan gedung komersial yang letaknya berdampingan dengan gedung DPR/MPR tidaklah tepat. Di matanya, parlemen merupakan gedung monumental yang kurang etis bila disejajarkan dengan mal.

Pembangunan Taman Ria ini juga menjadi perhatian sejumlah pihak, apalagi mal sudah menjamur di Jakarta. Bahkan, pengamat tata kota dari Universitas Trisakti, Yayat Supriatna, menyebut Jakarta sebagai kota dengan mal terbanyak di dunia.

Pihak pengembang, PT Ariobimo Laguna Perkasa mengatakan di Taman Ria Senayan sebetulnya tidak akan dibangun mal. Mereka akan membangun sarana hiburan dan rekreasi.

"Sesuai perjanjian build, operate and transfer (BOT) bersama Sekretariat Negara Republik Indonesia pada 11 Juli 2008, PT Ariobimo Laguna Perkasa berkomitmen menginvestasikan Rp300 miliar untuk memperbaiki dan membangun kembali fasilitas pusat rekreasi keluarga Taman Ria Senayan," kata Managing Director PT Ariobimo, Kurnia Ahmadi.

Kurnia mengatakan pembangunan sarana itu membantu memaksimalkan nilai aset negara. Selain itu, juga akan membuka lapangan kerja baru dan mendukung pembangunan taman kota.

Kurnia boleh berencana, tapi Gubernur Fauzi Bowo menentukan lain. (kd)

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Ten Stock-Market Myths That Just Won't Die

Ten Stock-Market Myths That Just Won't Die

by Brett Arends
Monday, July 26, 2010

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The Dow Jones Industrial Average last week ended up pretty much where it had been a little more than a week earlier. A rousing 200-point rally on Wednesday mostly made up for the distressing 200-point selloff of the previous Friday.

The Dow plummeted nearly 800 points a few weeks ago — and then just as dramatically rocketed back up again. The widely watched market indicator is down 7% from where it stood in April and up 59% from where it was at its 2009 nadir.

These kinds of stomach-churning swings are testing investors' nerves once again. You may already feel shattered from the events of 2008-2009. Since the Greek debt crisis in the spring, turmoil has been back in the markets.

At times like this, your broker or financial adviser may offer words of wisdom or advice. There are standard calming phrases you will hear over and over again. But how true are they? Here are 10 that need extra scrutiny.

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1 "This is a good time to invest in the stock market."

Really? Ask your broker when he warned clients that it was a bad time to invest. October 2007? February 2000? A broken watch tells the right time twice a day, but that's no reason to wear one. Or as someone once said, asking a broker if this is a good time to invest in the stock market is like asking a barber if you need a haircut. "Certainly, sir — step this way!"

2 "Stocks on average make you about 10% a year."

Stop right there. This is based on some past history — stretching back to the 1800s — and it's full of holes.

About three of those percentage points were only from inflation. The other 7% may not be reliable either. The data from the 19th century are suspect; the global picture from the 20th century is complex. Experts suggest 5% may be more typical. And stocks only produce average returns if you buy them at average valuations. If you buy them when they're expensive, you do a lot worse.

3 "Our economists are forecasting..."

Hold it. Ask your broker if the firm's economist predicted the most recent recession — and if so, when.

The record for economic forecasts is not impressive. Even into 2008 many economists were still denying that a recession was on the way. The usual shtick is to predict "a slowdown, but not a recession." That way they have an escape clause, no matter what happens. Warren Buffett once said forecasters made fortune tellers look good.

4 "Investing in the stock market lets you participate in the growth of the economy."

Tell that to the Japanese. Since 1989 their economy has grown by more than a quarter, but the stock market is down more than three quarters. Or tell that to anyone who invested in Wall Street a decade ago. And such instances aren't as rare as you've been told. In 1969, the U.S. gross domestic product was about $1 trillion, and the Dow Jones Industrial Average was at about 1000. Thirteen years later, the U.S. economy had grown to $3.3 trillion. The Dow? About 1000.

5 "If you want to earn higher returns, you have to take more risk."

This must come as a surprise to Mr. Buffett, who prefers investing in boring companies and boring industries. Over the last quarter century, the FactSet Research utilities index has even outperformed the exciting, "risky" Nasdaq Composite index. The only way to earn higher returns is to buy stocks cheap in relation to their future cash flows. As for "risk," your broker probably thinks that's "volatility," which typically just means price ups and downs. But you and your Aunt Sally know that risk is really the possibility of losing principal.

6 "The market's really cheap right now. The P/E is only about 13."

The widely quoted price/earnings (PE) ratio, which compares share prices to annual after-tax earnings, can be misleading. That's because earnings are so volatile — they're elevated in a boom, and depressed in a bust.

Ask your broker about other valuation metrics, like the dividend yield, which looks at the dividends you get for each dollar of investment; or the cyclically adjusted PE ratio, which compares share prices to earnings over the past 10 years; or "Tobin's q," which compares share prices to the actual replacement cost of company assets. No metric is perfect, but these three have good track records. Right now all three say the stock market's pretty expensive, not cheap.

7 "You can't time the market."

This hoary old chestnut keeps the clients fully invested. Certainly it's a fool's errand to try to catch the market's twists and turns. But that doesn't mean you have to suspend judgment about overall valuations.

If you invest in shares when they're cheap compared to cash flows and assets — typically this happens when everyone else is gloomy — you will usually do very well.

If you invest when shares are very expensive — such as when everyone else is absurdly bullish — you will probably do badly.

8 "We recommend a diversified portfolio of mutual funds."

If your broker means you should diversify across things like cash, bonds, stocks, alternative strategies, commodities and precious metals, then that's good advice.

But too many brokers mean mutual funds with different names and "styles" like large-cap value, small-cap growth, midcap blend, international small-cap value, and so on. These are marketing gimmicks. There is, for example, no such thing as "midcap blend." These funds are typically 100% invested all the time, and all in stocks. In this global economy even "international" offers less diversification than it did, because everything's getting tied together.

9 "This is a stock picker's market."

What? Every market seems to be defined as a "stock picker's market," yet for most people the lion's share of investment returns — for good or ill — has typically come from the asset classes (see No. 8, above) they've chosen rather than the individual investments. And even if this does turn out to be a stock picker's market, what makes you think your broker is the stock picker in question?

10 "Stocks outperform over the long term."

Define the long term? If you can be down for 10 or more years, exactly how much help is that? As John Maynard Keynes, the economist, once said: "In the long run we are all dead."

Write to Brett Arends at brett.arends@wsj.com

http://finance.yahoo.com/banking-budgeting/article/110154/ten-stock-market-myths-that-just-wont-die?mod=bb-budgeting

Unemployment rises in 75 pct of metro areas

Unemployment rises in 75 pct of metro areas

Unemployment rises in three-quarters of largest metro areas as many students seek summer work


, On Wednesday July 28, 2010, 4:49 pm EDT

WASHINGTON (AP) -- The unemployment rate in about three-quarters of the nation's largest metro areas rose last month as nearly one million teenagers entered the work force looking for summer jobs.

The Labor Department said Wednesday that the unemployment rate rose in 291 of 374 areas in June from May. It fell in 55 areas and was flat in 28. That reverses the trend of the previous three months, when joblessness fell in most metro areas.

But the report does not adjust the figures to take into account seasonal trends, such as high school or college students looking for work during the summer. As a result the figures tend to be volatile from month to month.

The economic recovery has spurred some hiring, with private employers adding an average of 100,000 jobs each month this year. But the pace of hiring slowed in May and June and isn't nearly fast enough to bring down the unemployment rate.

Earlier this month, the government said the nation's unemployment rate fell to a seasonally adjusted 9.5 percent in June from 9.7 percent in May. But before adjusting for seasonal factors, the rate actually rose to 9.6 percent from 9.3 percent.

The government seasonally adjusts most of its economic indicators to reflect broader economic trends.

Most of the cities with the largest increases in unemployment last month are college and university towns. Tuscaloosa, Ala., home to the University of Alabama, reported the second-largest jump in unemployment in the country, from 9 percent to 11.3 percent.

Bismarck, N.D., where Bismarck State College and several other institutions are located, had the largest proportional increase in unemployment, from 3 percent to 3.8 percent. Still, the city remained the metro area with the lowest unemployment rate in the country.

The unemployment rate in Ames, Iowa, home to Iowa State University, rose to 5.8 percent from 4.8 percent, the sixth-largest rise. Grand Forks, N.D.; Fargo, N.D.; Champaign-Urbana, Ill.; Columbia, Mo.; and College Station-Bryan, Texas, all have major universities and all were among the areas with the 10 largest increases in unemployment.

Among cities with more than 1 million residents, Las Vegas reported the highest jobless rate, at 14.5 percent. That was up from 14.1 percent in May.

The Washington metro area, bolstered by widespread federal government hiring, reported the lowest unemployment rate among large metro areas, with 6.4 percent. It was followed by Oklahoma City, Okla., which has benefited from the oil and gas industry, at 6.7 percent.

El Centro, Calif. and Yuma, Ariz. posted the highest unemployment rates in the country, 27.6 percent and 26.4 percent respectively. The two areas have large populations of seasonal agricultural workers.

Twelve areas recorded unemployment rates of 15 percent or higher, the government said, with 10 of them in California.

http://finance.yahoo.com/news/Unemployment-rises-in-75-pct-apf-922210995.html?x=0

Fed survey: Recovery slows in some places

Fed survey: Recovery slows in some places

Fed survey: Recovery stays afloat, but growth slows or holds steady in parts of the country , On Wednesday July 28, 2010, 4:35 pm EDT

WASHINGTON (AP) -- The pace of economic activity has slowed or held steady in parts of the country, revealing a choppy path back to health.

A new survey released by the Federal Reserve Wednesday found the U.S. economy growing this summer, even as risks mount.

Of the 12 regions tracked by the Fed, the survey said that growth held steady in Cleveland and Kansas City, but slowed in Atlanta and Chicago. Economic activity elsewhere was described as modest.

High unemployment, cautious consumers and businesses, an ailing housing market and an edgy Wall Street have kept the recovery from gaining strength.

Manufacturing expanded in most regions. However, half of them -- New York, Cleveland, Kansas City, Chicago, Atlanta and Richmond -- reported that activity had "slowed" or "leveled off." Steel production declined in both Chicago and Cleveland.

Retailers reported sales gains, although merchants in some places said shoppers focused on buying "necessities." Sales of big-ticket goods were slower. In fact, reports across most regions found that auto sales had declined.

The housing market turned more sluggish after homebuyer tax credits expired in April. Commercial real estate businesses continued to "struggle" across all 12 regions, the survey said.

Jennifer Lee, economist at BMO Capital Markets, said "it was a relief" that the Fed's survey didn't point to a "re-emergence of another recession" given the adverse conditions. "Activity is picking up but unfortunately the pace remains sluggish," she said. "Still no solid evidence that a `double dip' is going to happen."

The findings will figure into deliberations when Fed Chairman Ben Bernanke and his colleagues meet next on Aug. 10. The Fed has signaled that it will hold rates at record lows at that time and probably well into next year to help energize the recovery.

And Bernanke told Congress last week that the Fed is prepared to take new steps to stimulate economic growth if the recovery were to flash signs of sliding back into recession. At the same time, Bernanke downplayed the odds that the economy would slide back into a "double dip" recession.

The survey also found that prices of many goods and services held steady in most regions, more evidence that inflation isn't a problem because the economy is still weak. Companies are hesitant to jack up prices when shoppers are so cautious, and employers aren't handing out hefty pay raises, either.

Some improvements were reported in employment conditions. However, companies are still relying heavily on temporary workers, rather than hiring full-time employees.

The Fed's region-by-region survey, traditionally known as the Beige Book, provides a unique snapshot of the nation.

The central bank's 12 regional arms have their people fan out to gather information from businesses and talk to local economists and experts on the markets. The result is a more intimate look at the overall economy than broad statistics provide.

The Fed survey is based on information collected from the Fed's 12 regional banks on or before July 19. The picture painted by the survey is consistent with the assessment Bernanke gave Congress last week.

http://finance.yahoo.com/news/Fed-survey-Recovery-slows-in-apf-687909328.html?x=0

The Case for $320,000 Kindergarten Teachers

The Case for $320,000 Kindergarten Teachers

Kindergarten teacher (Corbis)
nytimes

On Wednesday July 28, 2010, 1:25 am EDT

How much do your kindergarten teacher and classmates affect the rest of your life?

Economists have generally thought that the answer was not much. Great teachers and early childhood programs can have a big short-term effect. But the impact tends to fade. By junior high and high school, children who had excellent early schooling do little better on tests than similar children who did not — which raises the demoralizing question of how much of a difference schools and teachers can make.

There has always been one major caveat, however, to the research on the fade-out effect. It was based mainly on test scores, not on a broader set of measures, like a child’s health or eventual earnings. As Raj Chetty, a Harvard economist, says: “We don’t really care about test scores. We care about adult outcomes.”

Early this year, Mr. Chetty and five other researchers set out to fill this void. They examined the life paths of almost 12,000 children who had been part of a well-known education experiment in Tennessee in the 1980s. The children are now about 30, well started on their adult lives.

On Tuesday, Mr. Chetty presented the findings — not yet peer-reviewed — at an academic conference in Cambridge, Mass. They’re fairly explosive.

Just as in other studies, the Tennessee experiment found that some teachers were able to help students learn vastly more than other teachers. And just as in other studies, the effect largely disappeared by junior high, based on test scores. Yet when Mr. Chetty and his colleagues took another look at the students in adulthood, they discovered that the legacy of kindergarten had re-emerged.

Students who had learned much more in kindergarten were more likely to go to college than students with otherwise similar backgrounds. Students who learned more were also less likely to become single parents. As adults, they were more likely to be saving for retirement. Perhaps most striking, they were earning more.

All else equal, they were making about an extra $100 a year at age 27 for every percentile they had moved up the test-score distribution over the course of kindergarten. A student who went from average to the 60th percentile — a typical jump for a 5-year-old with a good teacher — could expect to make about $1,000 more a year at age 27 than a student who remained at the average. Over time, the effect seems to grow, too.

The economists don’t pretend to know the exact causes. But it’s not hard to come up with plausible guesses. Good early education can impart skills that last a lifetime — patience, discipline, manners, perseverance. The tests that 5-year-olds take may pick up these skills, even if later multiple-choice tests do not.

Now happens to be a particularly good time for a study like this. With the economy still terribly weak, many people are understandably unsure about the value of education. They see that even college graduates have lost their jobs in the recession.

Barely a week seems to go by without a newspaper or television station running a report suggesting that education is overrated. These stories quote liberal groups, like the Economic Policy Institute, that argue that an education can’t protect workers in today’s global economy. Or they quote conservatives, like Charles Murray and Ramesh Ponnuru, who suggest that people who haven’t graduated from college aren’t smart enough to do so.

But the anti-education case usually relies on a combination of anecdotes and selective facts. In truth, the gap between the pay of college graduates and everyone else grew to a record last year, according to the Labor Department, and unemployment has risen far more for the less educated.

This is not simply because smart people — people who would do well no matter what — tend to graduate from college. Education itself can make a difference. A long line of economic research, by Julie Berry Cullen, James Heckman, Philip Oreopoulos and many others, has found as much. The study by Mr. Chetty and his colleagues is the latest piece of evidence.

The crucial problem the study had to solve was the old causation-correlation problem. Are children who do well on kindergarten tests destined to do better in life, based on who they are? Or are their teacher and classmates changing them?

The Tennessee experiment, known as Project Star, offered a chance to answer these questions because it randomly assigned students to a kindergarten class. As a result, the classes had fairly similar socioeconomic mixes of students and could be expected to perform similarly on the tests given at the end of kindergarten.

Yet they didn’t. Some classes did far better than others. The differences were too big to be explained by randomness. (Similarly, when the researchers looked at entering and exiting test scores in first, second and third grades, they found that some classes made much more progress than others.)

Class size — which was the impetus of Project Star — evidently played some role. Classes with 13 to 17 students did better than classes with 22 to 25. Peers also seem to matter. In classes with a somewhat higher average socioeconomic status, all the students tended to do a little better.

But neither of these factors came close to explaining the variation in class performance. So another cause seemed to be the explanation: teachers.

Some are highly effective. Some are not. And the differences can affect students for years to come.

When I asked Douglas Staiger, a Dartmouth economist who studies education, what he thought of the new paper, he called it fascinating and potentially important. “The worry has been that education didn’t translate into earnings,” Mr. Staiger said. “But this is telling us that it does and that the fade-out effect is misleading in some sense.”

Mr. Chetty and his colleagues — one of whom, Emmanuel Saez, recently won the prize for the top research economist under the age of 40 — estimate that a standout kindergarten teacher is worth about $320,000 a year. That’s the present value of the additional money that a full class of students can expect to earn over their careers. This estimate doesn’t take into account social gains, like better health and less crime.

Obviously, great kindergarten teachers are not going to start making $320,000 anytime soon. Still, school administrators can do more than they’re doing.

They can pay their best teachers more, as Pittsburgh soon will, and give them the support they deserve. Administrators can fire more of their worst teachers, as Michelle Rhee, the Washington schools chancellor, did last week. Schools can also make sure standardized tests are measuring real student skills and teacher quality, as teachers’ unions have urged.

Given today’s budget pressures, finding the money for any new programs will be difficult. But that’s all the more reason to focus our scarce resources on investments whose benefits won’t simply fade away.

E-mail: leonhardt@nytimes.com

http://finance.yahoo.com/news/The-Case-for-320000-nytimes-1374672440.html?x=0&mod=pf-college-education