Archive for the ‘Education and Child Policy’ Category

The Other Side Plays Dirty

On the day that we honor veterans for defending our freedom, I read this:

Community groups and Los Angeles Unified officials on Tuesday condemned an anonymous flyer handed to Latino parents that threatened them with deportation if they supported plans to convert their neighborhood school to a charter.

Calling it an escalation in a series of “scare tactics,” district officials and community advocates said distribution of the flyer was timed to weaken one of LAUSD’s boldest efforts to reform public education in Los Angeles.

A generation or two from now, when children are studying how school choice began to spread throughout America, they will read of such incidents and marvel at the depths to which opponents sunk.

If you’re a policymaker or opinion leader, on which side of that history will you want your name to appear?

Andrew J. Coulson • November 11, 2009 @ 10:33 am
Filed under: Education and Child Policy; General

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How to Flunk the Taliban

An interesting story in the San Francisco Chronicle highlighting how private schools are outcompeting both radical madrasas and government schools in the hearts and minds of a great many Pakistanis. Sounds a little bit like this.

Andrew J. Coulson • November 9, 2009 @ 8:44 am
Filed under: Education and Child Policy; Foreign Policy and National Security

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Degree Disaster Behind The Great Wall

Based on my regular reading on education, but not China specifically, I know that the world’s most populous nation has had a lot of trouble finding jobs for its throngs of recent college graduates. I wrote a bit about that yesterday, pointing out that the important higher education lesson from China is that pumping out more college grads is meaningless if they don’t have skills that are in demand. Well, thanks to a very helpful Cato@Liberty reader who actually lives in China (and wishes to remain anonymous) I now have a much better idea just how important that lesson is. He directed me to this Asia Times article that includes, among many fascinating tidbits, this startling revelation:

An explosive report released by the Chinese Academy of Social Sciences (CASS) in September said earnings of graduates were now at par and even lower than those of migrant laborers [italics added].

Wow! If this report is accurate, until now I have had no idea how truly ridiculous Washington’s obsession with pumping out more degrees to keep up with the Chinese has been — and I’ve been pretty sure it’s ridiculous! Much more troubling, if I’ve had little clue about the true extent of the absurdity, imagine how far from grasping it our government-loving federal politicians have been! Of course, as I wrote yesterday, even if they did know it, they probably wouldn’t let on.

Neal McCluskey • November 3, 2009 @ 4:21 pm
Filed under: Education and Child Policy; Tax and Budget Policy

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History Fun Fact: Ayn Rand Liked Ed Tax Credits

Many thanks to Lisa Snell at Reason for bringing this interesting historical fun fact from 1973 to light: Ayn Rand was a fan of education tax credits:

In the face of such evidence, one would expect the government’s performance in the field of education to be questioned, at the least, [but] the growing failures of the educational establishment are followed by the appropriation of larger and larger sums. There is, however, a practical alternative: tax credits for education.

The essentials of the idea (in my version) are as follows: an individual citizen would be given tax credits for the money he spends on education, whether his own education, his children’s, or any person’s he wants to put through a bona fide school of his own choice (including primary, secondary, and higher education).

Rand’s support for credits is interesting for a number of reasons, not least the fact that she explicitly endorses credits, not vouchers. I’ve had numerous and largely fruitless arguments over which policy is most “free-market” or least distorting. To me it is obvious that credits are the most “free-market” education reform. Now I can skip the arguments and yell, “Ayn Rand!”

Rand’s essay also highlights the fact that education tax credits were, throughout the 1970s and 1980s, the most prominent private school policy on the scene. Federal tax credits were a live issue under Nixon and Carter. Ronald Reagan and the Republican Party gave strong and explicit support for education tax credits throughout the 1980’s – with tax credits, but not vouchers, mentioned specifically in the Republican Party platforms of 1980, 1984, and 1988.

The largely forgotten history of education tax credits . . . interesting . . .

Adam Schaeffer • November 3, 2009 @ 3:20 pm
Filed under: Education and Child Policy

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Way To Go (Almost All the Way), Jay!

This morning Washington Post education columnist — and terrific Cato forum panelist – Jay Mathews called for abolition of the office of the U.S. Secretary of Education! Why? Because it has proven itself worthless, that’s why:

The president, I suspect, thought that Duncan, the former chief of the Chicago public schools, could use all he had learned there to raise achievement for students across the country.

It sounds great, but it was the same thought that led previous presidents to appoint those previous fine education secretaries to their posts. How much good did that do? Test scores for elementary and middle school students have come up a bit in the last couple of decades, but not enough to get excited about. High school scores are still flat. If national education policy had made a big jump forward, I would say we should continue to fill this job, but that hasn’t happened either. I think the No Child Left Behind law, supported by both parties, was an improvement over previous federal policies, but it was only copying what several states had already done to make schools accountable and identify schools that needed extra help.

Other than the “fine” secretaries part and the (sorta) nice words for NCLB, that sounds like something we at Cato’s Center for Educational Freedom might have written. Bottom line: Washington doesn’t add any value to education, and at best just picks up on things states are already doing.

Unfortunately, after dropping the “ed sec must go” bombshell and furnishing ironclad evidence why the position is worthless, Mathews retreats from the obvious, ultimate implication of his argument: We should abolish the department the secretary leads!

The evidence screams this and, from a technical standpoint, you can’t keep a cabinet-level department and not have a secretary to head it. But in what smells a lot like a cop out, Mathews asserts that the department should stay (though in a smaller form). After all, someone has to be in charge of doling out all of the taxpayer cash that isn’t doing a damn bit of good:

Keep in mind I am NOT saying we should abolish the education department. That old Reagan campaign platform died a natural death long ago. We need the department to intelligently distribute federal money to the most promising schools in our cities and states. Cut back the number of people rumbling around that big building on Maryland Avenue—many of them are going crazy from boredom anyway—and put it under the control of a savvy civil service administrator who knows how to keep the checks and the useful data rolling out.

Too bad Mathews wasn’t willing to go all the way on this. But just for proposing that we put the position of U.S. Secretary of Education out to pasture, he deserves some hearty applause.

Neal McCluskey • November 3, 2009 @ 11:05 am
Filed under: Education and Child Policy; Government and Politics

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If China Jumped Off A Bridge, Would We Do It Too?

Everyone has heard that China is leaving us in its dust when it comes to producing college graduates, and if we don’t do something drastic to catch up they’ll crush us economically as well. Indeed, it’s a driving force behind efforts to ramp up federal higher education intervention.

As President Obama proclaimed when introducing his American Graduation Initiative, which is now part of the ironically titled Student Aid and Fiscal Responsibility Act:

By 2020, this nation will once again have the highest proportion of college graduates in the world….Already we’ve increased Pell grants by $500. We’ve created a $2,500 tax credit for four years of college tuition. We’ve simplified student aid applications….A new GI Bill of Rights…is beginning to help soldiers coming home from Iraq and Afghanistan to begin a new life — in a new economy.  And the recovery plan has helped close state budget shortfalls…at the same time making historic investments in school libraries and classrooms and facilities all across America.  So we’ve already taken some steps that are building the foundation for a 21st century education system…one that will allow us to compete with China and India and everybody else all around the world. 

Now, while a college education could furnish important learning that helps drive innovation and economic development, it could also be as worthless as conferring a bachelor’s degree on a dog. What’s important is that people actually learn things of value, not simply that they get degrees. But a funny thing happened in China…

Yesterday, news broke that China’s top education official has been sacked. Reports the New York Times:

Facing rising criticism over the quality of schools and a crush of jobless college graduates, China’s legislature announced Monday that it had removed the minister of education after six years on the job and replaced him with a deputy.

China has been cranking out college graduates at a breakneak pace, but the quality of the education has become highly suspect and, perhaps more importantly, there haven’t been nearly enough jobs to employ all the newly credentialed. In other words, simply producing more graduates — no matter how much it has frightened some people in America – has largely been a waste.

The obvious lesson from this should be that it’s foolish to simply make massively expanding the ranks of degree holders a national goal. But that doesn’t compute for many U.S. politicians, despite abundant evidence that we don’t need heaps more graduates anymore than China does. It’s getting elected that matters most to politicians, and as long as voters keep believing that government is opening the door to the middle class simply by pushing more and more people to college, politicians will keep wasting taxpayer dollars on unnecessary degrees.

So let’s hope that both voters and politicians will learn China’s clear college lesson: Fixating on degrees is not very smart. Failing that, let’s hope that we at least don’t have any rioting… 

Neal McCluskey • November 2, 2009 @ 2:58 pm
Filed under: Education and Child Policy; International Economics and Development

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The Bell Curve Mean Business

Over the past month, Charles Murray and I have been debating the proposition that better schools can significantly improve educational outcomes – can shift the “Bell Curve” substantially to the right. Charles finds this “touchingly naïve,” while I argue that it is empirically inescapable.

Ben Chavis, founding principal of Oakland’s extremely high scoring American Indian Public Charter Schools, has invited Charles to put his skepticism to the test, and perform research to validate or refute the achievements of Ben’s inner-city students. But Charles believes he’d find only a modest (< 0.25 std. dev.) test score effect to AIPCS attendance, that would, moreover, be evanescent. Charles grants that Ben has created a very good school, he’s just convinced that even very good schools cannot have large or lasting academic effects.

The evidence simply does not support Charles’ skepticism.

I’ve already noted that there are average effect sizes for market education systems that are much greater than Charles’ threshold. Just a few months ago, it was reported that three years in private schools under DC’s voucher program raises reading achievement by two grade levels (0.42 std. dev.), and effect sizes of even 2/3ds of a std. dev. are not unheard of.

Those are average effect sizes of competitive education markets over public school monopolies. Since we agree that Ben’s school is quite special, there is every reason to expect his school’s effect size to be on the high end of the range already identified in the research.

And what of Charles’ assumption that school effects are necessarily evanescent, fading to insignificance within a few years after students leave the school? This, too, is contradicted by the evidence. Numerous studies have looked at long term effects of consuming market schooling instead of monopoly schooling – particularly on students’ eventual success in college and their earnings once they’ve entered the labor market. Economist Derek Neal has found that urban blacks attending Catholic schools are twice as likely to graduate from college as similar students attending public schools. That is a large effect several years out, and it, in turn, will have an enduring positive effect on students earnings. In fact, of 17 research findings comparing the eventual educational attainment and earnings of market school graduates to public school graduates, 11 find statistically significant positive effects, and none find significant negative effects (see Table 3 in the previously linked paper).

The evidence is clear that competitive education markets have significant, lasting, and often quite substantial positive effects over government school monopolies. So I can see no empirical basis for Charles’ skepticism.

What’s more, this should be intuitively obvious. The current mean of the bell curve of educational achievement is not some inescapable fact of nature, like the value of pi. It is a symptom of the monopoly school systems that have stifled educational efficiency and innovation for more than a century. Just as establishing the rule of law and liberating economies from the thrall of central planning have led to dramatic economic growth around the world, so would liberating education from the thrall of government school monopolies shift the bell curve to the right.

Andrew J. Coulson • November 2, 2009 @ 1:36 pm
Filed under: Education and Child Policy

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The Eternal Battle to Reform the D.C. Schools

“When Kathy Patterson learned about Thursday’s D.C. Council hearing, during which Chairman Vincent C. Gray and Schools Chancellor Michelle A. Rhee pelted each other with accusations of law-breaking and secret meetings, she had one immediate reaction,” reports the Washington Post.

“Here we go again,” said Patterson, a former council member and chairwoman of its education committee. It looked as if another attempt at public school reform was disintegrating in a hail of recriminations and rhetoric.

Casey Lartigue wrote about the decades-long efforts to improve the D.C. schools for Cato back in 2002.

David Boaz • November 1, 2009 @ 2:31 pm
Filed under: Education and Child Policy

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We Should All Pay for Cal Athletics!

You might recall that a  few weeks ago University of California at Berkeley Chancellor Robert Birgeneau co-authored a Washington Post op-ed calling on the federal government to provide direct support — meaning taxpayer dollars — to select public universities. Birgeneau decried decades of “material and progressive disinvestment by states in higher education,” despite, as I pointed out, no such disinvestment actually occurring.

Well now we know where much of the precious investment in Cal was going — to subsidize sports. According to Inside Higher Ed, over just the past few years Berkeley has provided tens-of-millions of dollars in subsidies and loan forgiveness to its sports programs, which are supposed to be self-supporting.

Now, the whole college athletics undertaking is one that deserves lots of scrutiny for its subsidies and excesses. Cal is certainly not alone in this. But for Birgeneau to take to the pages of the Washington Post, cry poverty, and call for the nation’s taxpayers to foot his school’s bills while he quietly pushes millions of dollars to water polo, rugby, golf, and sundry other sports? That takes a lot of gall. Of course, rent-seeking gall is not in short supply when it comes to higher education.

Thankfully, at least this time it looks like the arrogant aggressiveness is going to backfire. Birgeneau is scrambling, and seems doomed to be thrown for a loss.

Neal McCluskey • October 30, 2009 @ 11:59 am
Filed under: Education and Child Policy; Tax and Budget Policy

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Another Education Road Sign Screaming “Stop!”

This morning the National Center for Education Statistics released a new report, Mapping State Proficiency Standards Onto NAEP Scores: 2005-2007.  What the results make clear (for about the billionth time) is that government control of education has put us on a road straight to failure. Still, many of those who insist on living in denial about constant government failure in education will yet again refuse to acknowledge reality, and will actually point to this report as a reason to go down many more miles of bad road.

According to the report, almost no state has set its “proficiency” levels on par with those of the National Assessment of Educational Progress (NAEP), the so-called “Nation’s Report Card.” (Recall that under No Child Left Behind all children are supposed to be “proficient” in reading and math by 2014.) Most, in fact, have set “proficiency” at or below NAEP’s “basic” level. Moreover, while some states that changed their standards between 2005 and 2007 appeared to make them a bit tougher, most did the opposite. Indeed, in eighth grade all seven states that changed their reading assessments lowered their expectations, as did nine of the twelve states that changed their math assessments.

Many education wonks will almost certainly argue that these results demonstrate clearly why we need national curricular standards, such as those being drafted by the Common Core State Standards Initiative. If there were a national definition of “proficiency,” they’ll argue, states couldn’t call donkeys stallions. But not only does the existence of this new report refute their most basic assumption – obviously, we already have a national metric — the report once again screams what we already know:  Politicians and bureaucrats will always do what’s in their best interest — keep standards low and easy to meet – and will do so as long as politics, not parental choice, is how educators are supposed to be held accountable. National standards would only make this root problem worse, centralizing poisonous political control and taking influence even further from the people the schools are supposed to serve. 

Rather than continuing to drive headlong toward national standards — the ultimate destination of the pothole ridden, deadly, government schooling road – we need to exit right now. We need to take education power away from government and give it to parents. Only if we do that will we end hopeless political control of schooling and get on a highway that actually takes us toward excellent education.

Neal McCluskey • October 29, 2009 @ 4:59 pm
Filed under: Education and Child Policy; General; Government and Politics

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Why National Democrats are Like Wile E. Coyote

Illinois state senator James Meeks, an African American Democrat and long-time opponent of school choice, just switched sides.

In doing so, he swells the small but growing ranks of Democrats in Florida, New Jersey, and the nation’s capital, among others, who support giving parents an easy choice between public and private schools.

Like Wile E. Coyote, national Democrats have run off a political cliff in their reflexive opposition to educational freedom.  And like Wile,  they’re experiencing a temporary suspension of the law of gravity — not yet suffering for their mistake.

But we all know that the cloud at Wile’s feet eventually dissipates, and he realizes that he’s no longer on solid ground. By then, it’s too late.

As someone much happier under divided government than one party rule, I hope national Democratic leaders get a clue, and notice that the’ve left solid ground on education. There is still time for Obama and company to make it back to the cliff’s edge, calling for the expansion rather than the termination of DC’s K-12 scholarship program, and voicing support for education tax credits at the state level, as many of the party’s state leaders have already done. 

States are going to continue passing and expanding private school choice programs with or without the support of national Democrats. If president Obama and friends continue clinging to the anvil of government schooling while that happens, we all know how it’s going to turn out.

Beep. Beep.

(HT: Alexander Russo)

Andrew J. Coulson • October 29, 2009 @ 3:42 pm
Filed under: Education and Child Policy; General

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Ben Chavis to Charles Murray: “Bring it”

In an exchange I had with Charles Murray earlier this month, he complained that there was no bulletproof scientific research documenting miraculous improvement in student achievement attributable to great schools like those of Ben Chavis.

At the time, that objection was beside my point, which is that there is copious evidence that competitive market education systems yield very substantial (if not “miraculuous”) improvements over the status quo government monopoly. We don’t need miracles to prove that there is a much better way of organizing and funding schools.

But that wasn’t enough for Ben Chavis. He called yesterday to pass along a proposition to Charles: come perform the research yourself. In fact, Ben offered to put Charles up in his own house.

I don’t know if Charles will go for this, but I wish he would (or find a grad student who will). And here’s why: I think Charles is so skeptical of the results of great schools and teachers because he has not come across any mechanism in his studies that could adequately explain those results. But I contend that there is such a mechanism: a school culture so strong and conducive to academic effort that it can overcome the absence of an academically supportive culture in the home.

If you read Jay Mathews’ wonderful book Escalante, or Ben’s Crazy Like a Fox, this becomes immediately clear. The school environment in these rare cases becomes a much more powerful influence on students’ willingness to work and expectations of success than is normally the case. These great schools tap into a fundamental human desire to belong to a team that offers them support and to which they feel an obligation to be supportive in return. It’s the same impulse that leads soldiers to put their lives on the line for their buddies in combat, and that sustains the insane work ethic in high tech startups.

This is one reason why free enterprise education systems excel all others: they offer the greatest freedom and most powerful incentives for excellent schools to replicate their cultures on a grand scale.

Andrew J. Coulson • October 29, 2009 @ 1:51 pm
Filed under: Education and Child Policy; General

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Federal Education Results Prove the Framers Right

Yesterday, I offered the Fordham Foundation’s Andy Smarick an answer to a burning question: What is the proper federal role in education? It was a question prompted by repeatedly mixed signals coming from U.S. Secretary of Education Arne Duncan about whether Washington will be a tough guy, coddler, or something in between when it comes to dealing with states and school districts.  And what was my answer? The proper federal role is no role, because the Constitution gives the feds no authority over American education.

Not surprisingly, Smarick isn’t going for that. Unfortunately, his reasoning confirms my suspicions: Rather than offering a defense based even slightly on what the Constitution says, Smarick essentially asserts that the supreme law of the land is irrelevant because it would lead to tough reforms and, I infer, the elimination of some federal efforts he might like.

While acknowledging that mine is a ”defensible argument,” Smarick writes that he disagrees with it because it “would presumably require immediately getting rid of IDEA, Title I, IES, NAEP, and much more.” He goes on to assert that I might ”argue that doing so is necessary and proper because it’s the only path that squares with our founding document, but policy-wise it is certainly implausible any time soon.” Not far after that, Smarick pushes my argument aside and addresses a question to ”those who believe that it’s within the federal government’s authority to do something in the realm of schools.”

OK. Let’s play on Smarick’s grounds. Let’s ignore what the Constitution says and see what, realistically, we could expect to do about federal intervention in education, as well as what we can realistically expect from continued federal involvement.

First off, I fully admit that getting Washington back within constitutional bounds will be tough. That said, I mapped out a path for doing so in the last chapter of Feds In The Classroom, a path that doesn’t, unlike what Smarick suggests, require immediate cessation of all federal education activities. Washington obviously couldn’t be pulled completely out of the schools overnight.

Perhaps more to Smarick’s point, cutting the feds back down to size has hardly been a legislatively dead issue. Indeed, as recently as 2007 two pieces of legislation that would have considerably withdrawn federal tentacles from education — the A-PLUS and LEARN acts – were introduced in Congress. They weren’t enacted, but they show that getting the feds out of education is hardly a pipe dream. And with tea parties, the summer of townhall discontent, and other recent signs of revolt against big government, it’s hardly out of the question that people will eventually demand that the feds get out of their schools.

Of course, there is the other side of the realism argument: How realistic is it to think that the federal government can be made into a force for good in education? It certainly hasn’t been one so far. Just look at the following chart plotting federal education spending against achievement, a chart that should be very familiar by now.

Education Spending

Read the rest of this post »

Neal McCluskey • October 28, 2009 @ 3:35 pm
Filed under: Education and Child Policy; General; Law and Civil Liberties

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The Constitution? Not That Old Thing!

ConstitutionOver at Flypaper, Andy Smarick can’t figure out what the Obama administration thinks is the proper federal role in education.

A couple of weeks ago, commenting on a speech by U.S. Secretary of Education Arne Duncan, Smarick couldn’t tell whether Duncan was advocating that the feds be friendly Helpy Helpertons, no-excuses disciplinarians, or something in between. Yesterday, Smarick revisited the whither-the-feds theme, pointing out the frustrating contradiction when Duncan both praises local and state education control and blasts states for doing stuff he doesn’t like.

But Duncan isn’t alone in his fuzziness, according to Smarick, who says he’s ”yet to come across anyone with a comprehensive, water-tight argument for what the feds should and should not do.”

I’m sure this is not the case, but from reading that you’d think Smarick had never run across a little thing called “the Constitution,” which furnishes just the “water-tight argument for what the feds should and should not do” that he seeks.  It also appears that he’s never encountered numerous things that I’ve written pointing this out. For instance, in Feds in the Classroom I wrote:

Because two of the sundry words that do not appear among the few legitimate federal functions enumerated in the Constitution are “education” and “school,” the federal government may have no role in schooling.

Ah, but what of the “general welfare” clause that comes before the enumerated powers in the Constitution’s Article I, Section 8? Doesn’t that give the feds authority to do anything that is in the nation’s best interest? At the very least, doesn’t it break the water-tight seal against federal education intervention?

Nope. I give you James Madison on the general welfare clause in Federalist no. 41:

For what purpose could the enumeration of particular powers be inserted, if these and all others were meant to be included in the preceding general power? Nothing is more natural nor common than first to use a general phrase, and then to explain and qualify it by a recital of particulars.

The general welfare clause confers no authority on the federal government, it just introduces the specific, enumerated powers that follow it. Among them, you’ll find not a peep about education.

Many educationists will think me hopelessly retrograde for bringing up the Constitution, although Duncan at least mentioned the dusty old document in his recent federalism speech. Unfortunately, he engaged it with all the courage and gusto of Sir Robin. But at least he acknowledged its existence — too many policymakers and wonks ignore the Constitution completely because it forbids Washington from doing the sundry things they want it to do.

But why shouldn’t the Constitution be treated like an ancient grandfather, a nice old guy whose utterances, in a half-hearted effort to be respectful, we acknowledge in the same tone we’d use with a toddler and then promptly ignore?

Because it is the Constitution that clearly establishes the bounds of what the federal government can and cannot do, that’s why! And because when we ignore the Constitution we get exactly the sort of government that is confounding Smarick: government that is capricious, often incoherent, and is ultimately an existential threat to freedom because government officials can claim power without bounds. See TARPcampaign finance, and executive pay for just a few examples of this last threat coming to fruition.

Which leaves all of the people who want Washington to have some role in education, but are frustrated by not knowing what else the feds might do, with only one choice. They can either continue to face inscrutable and ultimately unlimited federal power in hopes of getting what they want, or they can acknowledge what they keep choosing to ignore: That the Constitution is the supreme law of the land, and it gives the federal government no authority to govern American education.

Neal McCluskey • October 27, 2009 @ 2:30 pm
Filed under: Education and Child Policy; General; Government and Politics; Law and Civil Liberties

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Attorney General Tries to Silence School Choice Ad

This, finally, is too much: Eric Holder, Attorney General of the United States, walked up to former DC Councilman Kevin Chavous at an event and told him to pull an ad criticizing the administration for its opposition to the DC school voucher program. The Attorney General of the United States!

This is as outrageous and shameful as it is consistent with other administration hostilities toward free speech (see also here) and freedom of the press.

There is a deep revulsion to such behavior in this country. It is not a Republican or a Democratic revulsion, it is an American one. Obama administration officials seem not to understand that, but voters will help them get the message the next time they go to the polls.

Andrew J. Coulson • October 27, 2009 @ 2:29 pm
Filed under: Education and Child Policy; General

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Nothing Good about The Higher Ed Pricing Game

On Tuesday I noted that the College Board had released its annual reports on college prices and student aid. At the time I wrote the post I hadn’t yet been able to download the reports, but was planning to provide a rundown of their major findings once I’d read them. I’ve now done the latter, but it turns out that Ben Miller over at the Quick and the ED has already posted a pretty good summary of the most important findings. Go there if you want the highlights. Don’t go there, though, if you want to know what the highlights mean, at least for anyone other than students. For that, you’ll have to read on here….

The big news is that net college prices — what students pay after aid– have actually decreased over the last 15 years. While sticker prices were rising much faster than incomes and inflation, what students were actually paying dropped. The implication of this is so obvious that Mr. Magoo couldn’t mistake it: Student aid, much of which comes through taxpayers, enables schools to charge ever-higher prices with near impunity.

Back to the Quick and the ED. To some degree, Miller sees declining net price as a triumph for federal aid, making college more affordable even as prices explode:

This story should be encouraging for legislators that fought hard to win Pell Grant increases over the last few years. The steepest decreases in net price occur beginning in the 2007-2008 academic year, the same time Congress began passing legislation that boosted the maximum Pell Grant award several times. This at least suggests that the money spent on the program did play some role in lessening the financial burden for students and was not completely eaten up by sticker price increases.

On the flip side, Miller at least acknowledges that:

The net price figure also lessens the pressure on schools to actually take proactive steps to lower their costs. If the price you list isn’t actually what you charge, then why should anyone care what the listed price is and how high it gets? Net price thus serves as a kind of smokescreen that gets colleges at least partially off fo[r] charging an arm and a leg.

So what’s wrong with this analysis? 

Most important is that Miller softpedals the aid effect, suggesting that the main negative consequence of  ever-increasing assistance is that it bleeds off a bit of the pressure for schools to lower costs. But it likely has a much more destructive effect than that, not just curbing efficiency pressures, but enabling schools to constantly charge and spend more.  It’s a likelihood that student-aid defenders try to dispel by citing studies that cover very short periods of time, or that simply pronounce that we don’t know that it happens. That it probably happens, however, has been borne out empirically, and it’s readily ackowledged by prominent higher educators including former Harvard president Derek Bok, former Stanford vice president William F. Massy, and former University of Iowa president Howard Bowen. Indeed, the latter’s “law” couldn’t be more blunt: “Universities will raise all the money they can and spend all the money they raise.”

Miller’s other major failing is that he completely ignores that all this aid has to come from somwhere, and that “somewhere” is largely taxpayers. (OK, first it’s China.) Just to give you a sense of the impact on taxpayers, College Board data show that between the 1998-99 and 2008-09 academic years, total federal aid — including grant money recipients don’t have to pay back, and loans they (sometimes) do — rose from $61.1 billion to $116.8 billion. Add state aid to that, and the total goes from $66.6 billion to $126.2 billion.

And what are some of the major downsides of these forced third-party payments? Miller mentions a few pricing difficulties for students, but makes no mention of the potentially huge negative consequences for the nation: Encouraging lots of people to attend college who simply aren’t prepared for it; cranking out many more degrees than the job market demands; and potentially slowing economic growth by taking funds from productive uses and giving it to efficiency-averse colleges and students. 

The big finding in the latest College Board data, which the Quick and the ED nails, is that net college prices have been going down. The important story, however, is that this is bad news for the country. Unfortunately, the Quick and the Ed misses that almost completely.

Neal McCluskey • October 22, 2009 @ 5:03 pm
Filed under: Education and Child Policy; Finance, Banking & Monetary Policy; Health, Welfare & Entitlements; Tax and Budget Policy

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Arizona Republic Corrects its Tax Credit Savings Estimate in Response to Cato Input

Last Wednesday, the Arizona Republic published a fiscal impact assessment of the state’s education tax credit programs for k-12 private school choice. While the story itself was a good faith effort, there were errors in both its data and assumptions. I wrote an op-ed intended for the Republic correcting those errors and e-mailed a copy to the story’s author, Ron Hansen, the same day his story was published.

While the paper’s editorial page expressed no interest in printing my submission, the Republic published a correction today based on the accurate spending and savings figures I provided. In a phone call, Hansen indicated that the correction was precipitated by my e-mail, though he opted not to mention that in his story, saying that he didn’t think the source of the correction was important.

On the one hand, Hansen and the Republic are to be commended for publishing a correction, and it should be noted that the bad data were provided to them by Arizona Director of School Finance, Yousef Awwad. On the other hand, their correction is incomplete — acknowledging only the bad data and not the mistaken assumption explained in my op-ed.

So while the Republic has now raised its savings estimate from their originally reported $3 million to a corrected $8.3 million, they have yet to explain that this figure could actually understate the total savings.

Still, their response is better than I expected.  Most newspapers, in my experience, do absolutely nothing when factual and reasoning errors in their education stories are brought to their attention, and in fact go on to repeat those same errors in subsequent stories.

And they wonder why two thirds of the public now doubt their credibility….

Andrew J. Coulson • October 20, 2009 @ 3:13 pm
Filed under: Education and Child Policy

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College Prices Aren’t So Bad When Other People Are Paying

Today the College Board — maker of such fine products as the SAT and Advanced Placement exams — released its annual reports on college prices and student aid. College prices, it seems, have gone up significantly over the last year. However, if the following statement from the reports’ author, economist Sandy Baum, is accurate — I haven’t been able to see the reports myself yet — student aid largely offset the price increases. And do you know what that might mean? Colleges were able to charge students more without greatly affecting access by pawning much of the new charges off on donors and taxpayers:

Sandy Baum, the College Board senior policy analyst who wrote both reports, said it was important to focus on the net price students actually paid, after subtracting grants and tax benefits, rather than the published tuition, or sticker price. And in that regard, Ms. Baum said, the situation looks far less dire. “Over all, it could have been worse,” she said.

So could it actually be, as I and others have argued repeatedly, that student aid helps fuel tuition increases by having third parties cover so much of the new costs? Here’s yet more evidence saying that yes, it could.

Neal McCluskey • October 20, 2009 @ 12:42 pm
Filed under: Education and Child Policy

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An Overdue Acknowledgement that Stuff Costs Money

The Institute of Medicine issued a report today calling on whole scale changes to the National School Lunch and National School Breakfast programs (although nowhere does it question why we even have national nutrition programs, which surely properly belong to the states and/or school districts. But I digress). The changes all sound sensible enough: setting calorie limits for meals, increasing the amount of whole grains, fruit and vegetables in school meals, and reducing fat and sodium.

But here’s the clincher: the recommendations would cost money!

The panel acknowledged that its recommendations would increase costs and called for a higher federal reimbursement to school districts, capital investments and money to train cafeteria workers to make the changes. Food costs for breakfasts could rise as much as 9%, and for lunches as much as 25%, if all the recommendations were enacted, the committee said. (source: LA Times)

We should be grateful that the authors at least acknowledge the budgetary impacts of their recommendations. So often it is assumed that school nutrition programs can and should be changed regardless of the costs to taxpayers. Last week I taped a television debate show called Two Way Street (the show is scheduled to air in January, so check your local listings!) with a woman called Ann Cooper, the “Renegade Lunch Lady” (here’s Ann’s website). Ann is on a mission to “change the way our children are eating”. Her intentions are good, and I certainly agree with her that our woeful agriculture policies are skewing incentives towards certain food groups and away from fruit and vegetables.

Having said that, Ann’s experience with school cafeterias was, from what I can gather, gained in East Hampton, NY and Berkeley, CA. Hardly representative samples of consumers across America (although she has reportedly worked in Harlem and New York City, also).  So often “success” in these sorts of places is seen as a scalable blueprint for the rest of the country.  Indeed, Ann used her time on the show to encourage viewers to contact their member of Congress and urge increased Federal funding for nutrition programs.

On the contrary, I would argue that people instead encourage their congresscritters to devolve their ill-gotten power over school nutrition programs back to the local school districts, where they can make the best assessment of the costs and benefits of different plans, given local needs and resources.

Sallie James • October 20, 2009 @ 11:27 am
Filed under: Education and Child Policy; Health, Welfare & Entitlements

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NAEP Math Scores, NCLB, and the Federal Government

I’m surprised anyone was surprised by the recent flat-lining of scores on the NAEP 4th grade math test. The rate of improvement in NAEP scores has been declining since No Child Left Behind was passed, and the recent results are consistent with that trend.

But what really amazes me is that so many people think the solution is just to tweak NCLB! The unstated assumption here is that federal policy is a key determinant of educational achievement. That’s rubbish.

We’ve spent $1.8 trillion on hundreds of different federal education programs since 1965, and guess what: at the end of high school, test scores are flat in both reading and math since 1970, and have actually declined slightly in science. (Charted for your viewing pleasure here).

If we’ve proved anything in the past 40 years, it is that federal involvement in education is a staggering waste of money.

Meanwhile, education economists have spent the last several decades finding out what actually does work in education. They’ve compared different kinds of school systems and it turns out that parent-driven, competitive education markets consistently outperform state monopoly school systems like ours. I tabulated the results in a recent peer-reviewed paper and they favor education markets over monopolies by a margin of 15 to 1.

So policymakers who actually care about improving educational outcomes should be spending their time and resources enacting laws that will bring free and competitive education markets within reach of all families. And they should be ignoring the education technocrats who — like Soviet central planners — just want to keep spending other people’s money tweaking their fruitless five year plans.

Andrew J. Coulson • October 19, 2009 @ 12:17 pm
Filed under: Education and Child Policy

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