Head Start’s Impact Evanescent — HHS Study
HHS has finally released the second installment of its series of studies on the persistence of Head Start effects. Its finding (see page xiv): virtually all academic effects disappear by the end of 1st grade. There is only one positive statistically significant finding out of eleven academic outcomes measured, the size of that effect is minuscule by recognized standards (it’s half way between zero and what most social scientists consider “small”), and the confidence in the finding is low by recognized standards. (Many authors would categorize it as “insignificant” rather than “significant” — it’s only significant at a 90% confidence interval, not the more common 95% confidence interval).
We have spent more than $100 billion on the program to date (ballpark estimate from Table 375 here) and HHS’s own research shows that its results diminish to essentially nothing by the end of the first grade.
There are other government education programs whose effects actually grow substantially over time, and that are comparatively economical. Consider the federal DC voucher program. Just a year or two after switching from public to private schools, the effect of the private schooling was not big enough to rise to the level of statistical significance. But by their third year in private schools, the evidence was clear that voucher-receiving students were reading more than two grade levels above a randomized control group that stayed in public schools. This program, as I’ve previously documented, costs 1/4 as much per pupil as DC spends on public education: about $6,600 vs. $28,000.
But Congress, and particularly Democrats, have defunded the DC voucher program while raising spending on Head Start. President Obama is at the forefront of this travesty. If you weren’t already jaded and disgusted by education politics and its domination by employee unions opposed to educational choice, start now.
National Standardizers Just Can’t Win
I’ve been fretting for some time over the growing push for national curricular standards, standards that would be de facto federal and, whether adopted voluntarily by states or imposed by Washington, end up being worthless mush with yet more billions of dollars sunk into them. The primary thing that has kept me optimistic is that, in the end, few people can ever agree on what standards should include, which has defeated national standards thrusts in the past.
So far, the Common Core State Standards Initiative – a joint National Governors Association/Council of Chief State School Officers venture that is all-but-officially backed by Washington — has avoided being ripped apart by educationists and plain ol’ citizens angry about who’s writing the standards and what they include. But that’s largely because the CCSSI hasn’t actually produced any standards yet. Other, that is, than general, end of K-12, “college and career readiness” standards that say very little.
Use Your Law Deferment to Work for Liberty!
Many law firms are asking their incoming first-year associates to defer their start dates (from a few months to a full year) and are offering stipends to these deferred associates to work at public interest organizations. Cato has been running a deferred associates program for the last few months and we are now extending it for as long as top-notch candidates want to ride out the economy with us.
The Cato Institute invites third-year law students and others facing firm deferrals to apply to work at our Center for Constitutional Studies. This is an opportunity to assist projects ranging from Supreme Court amicus briefs to policy papers to the Cato Supreme Court Review. Start and end dates are flexible. Interested students and graduates should email a cover letter, resume, transcript, and writing sample, along with any specific details of their deferment (timing, availability of stipend, etc.) to Jonathan Blanks at jblanks@cato.org.
Please feel free to pass the above information to your friends and colleagues. For information on Cato’s programs for non-graduating students, contact Joey Coon at jcoon@cato.org.
College Students to Taxpayers: ‘Rent Now, Oppressors!’
Inside Higher Ed reports today on growing college student acitivism. And what are the young scholars suddenly so active about? Not unjust wars, racism, or anything else so high-minded. No, today the “no justice, no peace!” chants are all about the injustice of students being asked to pay for more of their hugely taxpayer-subsidized educations.
There’s a word for this kind of activism, and it’s not “idealism” or anything else so complimentary. It’s “rent seeking.” Or, if you want to put it more bluntly, “freeloading.”
A Pledge Worthy of a Free People
I’ve long criticized having state school officials lead students in a pledge of allegiance to the state. It runs precisely counter to our nation’s founding principles. Michael Lind has gone beyond criticism and proposed an alternative pledge, more fitting to a free people. It’s definitely worth reading.
Of course a free people deserve a free intellectual and education marketplace, in which parents choose their children’s schools without state interference. Those schools, acting in loco parentis, could decide what, if any, pledges their students recite. They could even chose the current one, if that strikes their fancy. That’s what freedom’s all about.
More on ‘Race to the Top’
Andrew Coulson has already touched on this, but I thought I’d throw in my two cents. “Race to the Top Fund” guidelines were released today and they should please no reformers. They are simultaneously too weak, and way too much.
They are too weak because they don’t require states to actually do anything of substance. Have plans for reform? Sure. Break down a few barriers that could stand in the way of decent changes? That’s in there, too. But that’s about it. And the money is supposed to be a one-shot deal – once paper promises are accepted and the dough delivered, the race is supposed to be over.
In light of those things, how is this more appropriately labeled the Over the Top Fund than the Race to the Top Fund? Because while not requiring anything, it tries to push unprecedented centralization of education power.It calls for state data systems to track students from preschool to college graduation. It calls for states to sign onto “common” – meaning, ultimately, federal – standards. It tries to influence state budgeting.
In other words, it attempts to further centralize power in the hands of ever-more distant, unaccountable bureaucrats rather than leaving it with the communities, and especially parents, the schools are supposed to serve — exactly what’s plagued American education for decades. And, of course, it does this with huge gobs of federal money taxpayers have no choice but to supply.
Arne Duncan, Secretary of Wheel Reinvention
The final guidelines for the Administration’s “Race to the Top” education reform program have now been released. It’s a system that stimulates competition between the states to produce results that the customer (Secretary Duncan) wants, using financial incentives. Déjà vu, anyone?
It’s as though Arne Duncan recognizes the merits of free market forces, but rather than faithfully reproducing them in the field of education, he’s decided to give us his own reimagining of them.
Here’s the problem. There are already 25 years of scientific research comparing real free education markets to traditional public school systems. It overwhelmingly finds that markets do a better job of serving families. But we have no evidence at all that Secretary Duncan’s newly invented system will do anyone any good.
So why go to all this trouble to reinvent the wheel, when the Secretary’s own Department of Education has found that an on-going federal private school choice program—which gets much closer to a genuine education marketplace—is raising students’ reading ability by two grade levels after just 3 years of participation?
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.
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.
Filed under: Education and Child Policy; General; Law and Civil Liberties
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.
Filed under: Education and Child Policy; Finance, Banking & Monetary Policy; Health, Welfare & Entitlements; Tax and Budget Policy
Sound Money Essay Contest
Our friends at the Atlas Economic Research Foundation are offering prizes for the best essays on sound money by students and young faculty and policy analysts:
The Atlas Economic Research Foundation invites you to participate in its Sound Money Essay Contest, which has a deadline of November 24th, 2009.
The contest is open to students, young faculty, and policy writers who are interested in the cause of sound money. It aims to engage you in thinking about sound money principles with relevance to today’s economic challenges.
The overall winner will receive a cash prize of $5000. Two additional prizes of $1000 each will be given to outstanding essays written by junior faculty, graduate students, or policy writers. And three additional prizes of $500 each will be given to outstanding essays written by undergraduate students.
Essay topics include:
· “Money and the Free Society: Can Money Exist Outside of the State?”
· “The Ethical Implications of Monetary Manipulation”
· “Monetary Policy and the Rule of Law in the United States”
To be eligible, you must be a legal resident of the U.S. or engaged as a full-time student or faculty in the U.S. You must also be no more than 35 years old on the date of the contest deadline (November 24, 2009). Atlas welcomes involvement of older and non-U.S. scholars in its discussions and ongoing work on sound money, but this essay contest is targeted to the audience described above.
For a list of reference materials and writing guidelines, please visit the Atlas website.
And for Cato research on sound money, check here.
Zero Tolerance for Difference
When both the New York Times and Fox News poke fun at a school district it’s a good guess that district has done something pretty silly. That seems to be the case in Newark, Delaware, where the Christina School District just suspended a 6-year-old boy for 45 days because he brought a dreaded knife-fork-spoon combo tool to school. District officials, in their defense, say they had no choice — the state’s “zero tolerance” law demanded the punishment.
Now, the first thing I’ll say is that I was very fortunate there were no zero-tolerance laws — at least that I knew of — when I was a kid. Like most boys, I took a pocket knife to school from time to time, and like most boys I never hurt a soul with it. (I’m pretty sure, though, that I was stabbed by a pencil at least once.) I also played a lot of games involving tackling, delivered and received countless “dead arm” punches in the shoulder, and brought in Star Wars figures armed with…brace yourself!…laser guns! I can only imagine how many suspension days I’d have received had current disciplinary regimes been in place back then.
Before completely trashing little ol’ Delaware and all the other places without tolerance, however, there is a flip side to this story: Some kids really are immediate threats to their teachers and fellow students. And as the recent stomach-wrenching violence in Chicago has vividly illustrated, there are some schools where no one is safe. In other words, there are cases and situations where zero tolerance is warranted.
So how do you balance these things? How do you have zero-tolerance for those who need it, while letting discretion and reason reign for everyone else? And how do you do that when there is no clear line dividing what is too dangerous to tolerate and what is not?
The answer is educational freedom, as it is with all of the things that diverse people are forced to fight over because they all have to support a single system of government schools! Let parents who are not especially concerned about danger, or who value freedom even if it engenders a little more risk, choose schools with discipline policies that give them what they want. Likewise, let parents who want their kids in a zero-tolerance institution do the same.
Ultimately, let parents and schools make their own decisions, and no child will be subjected to disciplinary codes with which his parents disagree; strictness will be much better correlated with the needs of individual children; and perhaps most importantly, discipline policies will make a lot more sense for everyone involved.
Filed under: Education and Child Policy; Law and Civil Liberties
Throwdown with Charles Murray
In a response to my post this morning, Charles Murray remains unconvinced that changes to our school system could result in dramatic improvements in educational outcomes.
He asks to see the scholarly study showing that a school has miraculously boosted achievement above the norm. In one way, this hurdle is too low, and in another it’s too high.
If we could only point to a single study of a single school, it wouldn’t instill much confidence in the generalizability of the phenomenon. A consistent pattern of scholarly results is necessary for that. On the other hand, asking for “miraculous” improvement is a needlessly high standard. My disagreement is with Murray’s earlier, lower threshold claim that: ”reforms of the schools can never do more than produce score improvements at the margin.”
Let’s call a marginal improvement an increase of less than .15 standard deviations above the current mean (typically considered a “small” effect in the social sciences). Taking that as our litmus test, is there a consistent pattern of scholarly evidence that better school system design can boost achievement by more than .15 standard deviations? Yes.

That pattern is presented in the figure above, drawn from my recent review of the global econometric literature comparing educational outcomes across different types of school systems. The figure relates the number of statistically significant findings favoring free education markets over state school monopolies (in white), significant findings of the reverse (in light grey), and insignificant findings (in dark grey). Markets beat monopolies by a ratio of 15 significant findings to 1, across the seven educational measures for which data are available.
We Are not Seeing the Bell Curve’s Toll
Last week, I posted a chart on this blog showing the percent change in federal education spending and student achievement since 1970 (achievement has been flat while federal education spending has nearly tripled).
After laughing out loud when he saw it, IQ expert and Bell Curve author Charles Murray mused that “such a huge proportion of a child’s educational prospects are determined by things other than school (genes and the non-school environment) that reforms of the schools can never do more than produce score improvements at the margin.”
But consider the accomplishments of Ben Chavis, who spoke at Cato last Friday. When he took over the American Indian Public Charter School in Oakland in 2001, it was the worst school in the district. Under his leadership (imagine a hybrid of Socrates and Dirty Harry), the school’s scores rose dramatically year after year. Within seven years, it had become the fifth highest-scoring middle school in the state — though continuing to enroll a student population that is overwhelmingly poor and minority.
It was not a freak occurrence. Chavis did it again, and again: creating a second AIPCS middle school as well as a high school, both of which are also among the top schools in the state, and both of which also enroll chiefly low income minority students.
Murray has made a compelling case over the years that IQ is real, strongly tied to academic achievement, and determined in significant measure by nature and home environment. But academic achievement is also powerfully determined by schooling. Typical U.S. test score data camouflage the significance of schooling because so many schools are so amazingly bad at maximizing academic achievement — especially for poor minority students.
But Chavis — and others before him and alongside him today — have shown how to do it: instill in the school environment those cultural characteristics necessary for academic success that are missing in the home.
In a free enterprise school system that would automatically disseminate and perpetuate great schools like Ben’s, average test scores would rise dramatically above their current levels. The Bell Curve would be shifted dramatically to the right.
Chart of the Day — Federal Ed Spending
The debate over No Child Left Behind re-authorization is upon us.
Except it isn’t.
In his recent speech kicking off the discussion, education secretary Arne Duncan asked not whether the central federal education law should be reauthorized, he merely asked how.
Let’s step back a bit, and examine why we should end federal intervention in (and spending on) our nation’s schools… in one thousand words or less:

While the flat trend lines for overall achievement at the end of high school mask slight upticks for minority students (black students’ scores, for instance, rose by 3-5 percent of the 500 point NAEP score scale), even those modest gains aren’t attributable to federal spending. Almost that entire gain happened between 1980 and 1988, when federal spending per pupil declined.
And, in the twenty years since, the scores of African American students have drifted downard while federal spending has risen stratospherically.
NYT Nonsense on SAFRA
With the Student Aid and Fiscal Responsibility Act (SAFRA) likely to be voted on by the full House or Representatives today, the media is finally giving some space to debate over the bill. Unfortunately, the New York Times only pays attention to the parts it likes, writing in an editorial today that:
The private lenders and those who do their bidding in Congress have recently taken issue with a Congressional Budget Office analysis that showed that the bill would save about $87 billion over the next 10 years.
They argue, absurdly, for example, that the savings would be smaller if the system were analyzed under accounting rules other than the ones that the federal government is required to use. The aim is to mislead taxpayers and members of Congress into believing that the C.B.O. estimate is dishonest.
Um, excuse me New York Times, but the CBO has never said the bill — not just going from subsidized to direct lending, but the whole bill — would save $87 billion over ten years. Moreover, it has been a series of analyses from the CBO — albeit driven by requests from members of Congress – that have continually increased the cost estimates for SAFRA. (I have linked to all the CBO analyses here.) CBO’s very first estimate of the bill’s likely net cost put it at around $6 billion over ten years, and it only went up from there after incorporating such things as lending risk and potentially higher Pell grant costs.
Of course, the Times isn’t alone in its refusal to talk honestly about SAFRA. Despite all of the CBO estimates, yesterday U.S. Secretary of Education Arne Duncan said SAFRA would give college students and numerous other interests the world without costing taxpayers a dime. “We’re not asking the taxpayers for one single dollar,” he said. And SAFRA’s sponsor, Rep. George Miller (D-CA), has been touting his bill as a revolutionary money saver since day one.
The truth on this thing is out there, but it’s definitely not in the New York Times.
Filed under: Education and Child Policy; Tax and Budget Policy
Actually, Big Mistakes Are to Be Expected…
Cognitive scientist Dan Willingham has a helpful column on the WaPo’s “Answer Sheet” blog. In it, he notes that DC Public Schools advises its employees to teach to students’ ”diverse learning styles” (e.g. “auditory learners,” “visual learners,” etc.) despite the fact that research shows these categories are pedagogically meaningless.
But what really grabbed my attention was this comment: “a misunderstanding of a pretty basic issue of cognition is a mistake that one does not expect from a major school system. It indicates that the people running the show at DCPS are getting bad advice about the science on which to base policy.”
As cognitive scientists have been collecting and analyzing evidence on “learning styles” for generations, social scientists and education historians been doing the same for school systems. What these latter groups find is that it is perfectly normal for public school districts to be unaware of or even indifferent to relevant research and to make major pedagogical errors as a result. Furthermore, there is no evidence that large districts are any better at avoiding these pitfalls than smaller ones. If anything, the reverse is true.
Not only are such errors to be expected of public school systems, we can actually say why that is the case with a good degree of confidence: public schooling lacks the freedoms and incentives that, in other fields, both allow and encourage institutions to acquire and effectively exploit expert knowledge.
Districts such as Washington DC can persist year after year with abysmal test scores, abysmal graduation rates, and astronomical costs. That is because they have a monopoly on a vast trove of government k-12 spending. In the free enterprise system, behavior like that usually results in the failure of a business and its disappearance from the marketplace. So, in the free enterprise sector, it is indeed rare to see large institutions behaving in such a dysfunctional manner, because it would be difficult if not impossible for them to grow that big in the first place. Long before they could scale up on that level, they would lose their customers to more efficient, higher quality competitors.
So if we want to see the adoption and effective implementation of the best research become the norm in education, we have to organize schooling the same way we organize other fields: as a parent-driven competitive marketplace.
A Picture Is Worth $300 Billion
I blogged this morning that the research shows higher public school spending slows the economy, and explained that this is because spending more on public schools doesn’t increase students’ academic performance. Some readers no doubt find that hard to accept. With them in mind, I present the following chart:

Spending vs. Achievement
If public schools had merely maintained the level of productivity they exhibited in 1970, Americans would enjoy a permanent $300 billion annual tax cut. Now THAT would stimulate economic growth.
Research Shows $100 Billion Ed. Stimulus Likely Hurting Economy
Tomorrow morning, the president’s Council of Economic Advisers will release a report assessing the short and long-term effects of the stimulus bill on the U.S. economy. As with previous iterations, this report will attempt to forecast overall effects of the stimulus across its many different components and the different economic sectors it targets. In doing so, it ignores the clearest research findings available pertaining to a key portion of the stimulus: k-12 education.
The president has committed $100 billion in new money to the nation’s public school systems, and required that states accepting the funds promise not to reduce their own k-12 spending. The official argument for this measure is that higher school spending will accelerate U.S. economic growth. But a July 2008 study in the Journal of Policy Sciences finds that, to the authors’ own surprise, higher spending on public schooling is associated with lower subsequent economic growth. Spending more on public schools hurts the U.S. economy.
How is that possible? There is little debate in academic circles that raising human capital — improving the skills and knowledge of workers — boosts productivity. So an obvious interpretation of the JPS study is that raising public school spending must not increase human capital. While this possibility surprised study authors Norman Baldwin and Stephen Borrelli, it is consistent with the data on U.S. educational productivity over the past two generations.
Since 1970, inflation adjusted public school spending has more than doubled. Over the same period, achievement of students at the end of high school has stagnated according to the Department of Education’s own long term National Assessment of Educational Progress. Meanwhile, the high school graduation rate has declined by 4 or 5%, according to Nobel laureate economist James Heckman. So the only thing higher public school spending has accomplished is to raise taxes by about $300 billion annually, without improving outcomes.
The fact that more schooling without more learning is not a recipe for economic growth is confirmed by the independent empirical work of economists Eric Hanushek and Ludger Woessmann. Their key finding is that academic achievement, not schooling per se, is what matters to economic growth.
Based on this body of research, the president’s decision to pump $100 billion into existing public school systems is likely slowing the U.S. economic recovery.
Filed under: Education and Child Policy; Government and Politics; Tax and Budget Policy
It’s Not About the Speech to Schoolchildren
The reaction to President Obama’s planned speech to schoolchildren and the lesson plans sent out by the Dept. of Ed have sparked a firestorm of criticism and accusations about indoctrination, etc.
Many, many people just can’t understand what the big deal is. After all, it’s just a pep-talk about doing well in school and working hard. Sure, there was some language promoting Obama and political leaders. But who cares? It’s just a brief speech by the President after all. Just like Bush the Elder gave in gentler times (which got him a Congressional investigation).
Many are asking the same questions about a number of issues these days. Why the outrage over the deficit? Where were the complaints when Bush the Younger ran it up? Why so exercised about the government health option? Don’t we have Medicare and Medicaid?
Of course Cato scholars, libertarians and many conservatives have criticized these things all along. For some, the new sensitivity, the emotion, is the result of the proverbial straw on a camel’s back, the accumulation of dissatisfaction with various aspects of the government over decades. And what has changed for others is the pace and scope of government expansion at the close of the Bush presidency and the dawn of Obama’s.
The furious reaction to the politicized lesson plan and Obama’s speech to schoolchildren cannot be understood without the context of the bailouts, the stimulus, the debt, GM, the attempt to take over health care.
And now, our kids. And not just the speech and lesson plan, but federal expansion into preschool and early childhood initiatives and home visitations (however voluntary and innocuous-seeming in different times).
They . . . the government, the meddlers, the nannies . . . they are coming for our money, our doctors, our guns and our kids. They won’t stop until they control everything.
That’s how it looks to millions of Americans. Fair or not, people are now very sensitive to any actions by the Obama administration.
Just as a lifetime of exposure to an allergen and modest immune reactions can reach some ill-defined tipping point and bloom into full-blown anaphylaxis, many Americans have developed an acute allergy to government intervention and Obama’s grand plans.
In isolation, the reaction to this speech seems wild. Given the context, it’s completely understandable.

