A Harsh Climate for Trade
Although it has very much taken a back-seat to health care, and a press report [$] today say it could be bumped down yet another notch on the administration’s hierarchy of goals, climate change is shaping up to be a major battle if the others don’t prove to be prohibitively exhausting. So today I am weighing in on the debate by releasing my new paper on the dangers of using trade measures as a tool of climate policy.
The Democrats were keen to pass a climate change bill in advance of the December meeting in Copenhagen designed to agree on a successor regime to the Kyoto protocol, which expires in 2012. However, opposition from a number of quarters and the fear of health-care-town-halls-mark-II has cooled their heels. Senate leaders have pushed back the deadline for passing bills out of committees a number of times.
The reason why climate change legislation has become so controversial is that businesses and consumers are, quite understandably, fearful about any policies that threaten to increase their costs. I’ll leave it to others to blog about the effect of emissions-reductions policies on jobs and profits, but even the fear of losses has led to calls for special deals for “vulnerable industries”, in the form of free emission permits and/or protection from imports that are sourced from countries that purportedly take insufficient steps to limit emissions.
H.R. 2454, the so called Waxman-Markey bill passed by the House in June, contains both free permits and provisions for carbon tariffs. I’ve blogged before about the efforts of trade-skeptic senators to introduce the same kinds of protections in the senate bill. To that end, Sen. Sherrod Brown (D, OH) is reportedly meeting with Sen. Barbara Boxer, Chairwoman of the Senate Environment and Public Works Committee next week about trade protections for manufacturing industries. As my paper makes clear, I think these efforts are misguidedly ineffective at best, and harmful at worst.
I’m looking forward to discussing these issues in more detail tomorrow at a Hill briefing in Washington DC. Registration for the event was closed very early because of overwhelming demand, but you can watch the event when the video becomes available on the Cato website.
Filed under: Energy and Environment; Trade and Immigration
Rally to Save DC Vouchers Tomorrow. Why?
Tomorrow afternoon at 1pm, supporters of Washington DC Opportunity Scholarships will be rallying in Freedom Plaza to save the school voucher program. Why? That’s easy: Because a federal Department of Education study shows that parents are overwhelmingly more satisfied with it than they are with DC’s public schools. Because the same study shows that the program is raising student achievement above the level in the public schools. Because the children participating in it feel it is giving them a chance to realize their full potential in life — a chance that will disappear if the program is allowed to die, as they have attested in numerous YouTube videos.
The harder question is why Congress — particularly congressional Democrats led by Sen. Richard Durbin (D., Ill.) — want to kill the vouchers. Their stated reason is that it robs money from needy public schools and gives it to private schools that are already flush from lavish tuition fees.
But the voucher program not only does not take money away from DC public schools, the language of the law actually includes an extra $13 million annually for DC public schools, above their normal funding stream. As for lavish vs. needy schools, it’s true that there’s a huge gap between what is spent per pupil on public education in DC and the average tuition charged at the voucher-accepting private schools: a yawning $20,000 gap. The current year budget for the District of Columbia allocates $26,555 per pupil for k-12 education — up from $24,600 last year. Meanwhile, the Department of Education study linked to above puts the average tuition at voucher schools at $6,620. So vouchers are getting better results at one quarter the cost.
Clearly, Democrats have other reasons for opposing the voucher program, and this letter from the NEA might have a little something to do with it.
Making Sure the Job Gets Done
If you’ve been reading this blog over the last week or so, you’ll have noticed that the big story in education has been the highly suspicious handling of an evaluation of Washington, DC’s, voucher program by the supposedly politics-out-of-policymaking Obama administration. The evaluation shows voucher students making clearly superior readings gains to students who applied for but did not receive vouchers, while math results were equal. In other words, vouchers seem to work. But it doesn’t matter: For all intents and purposes Congress killed DC choice last month, and throughout that murderous process this study was being held under wraps – for numerous possible, but all unacceptable, reasons – in the United States Department of Education.
Well, on Saturday the Washington Post editorialized about the whole stinkin’ mess, and in so doing revealed something new: Secretary of Education Arne Duncan decided not to allow any new students to enroll in the program for the 2009-2010 school year, despite the program not being scheduled to end until 2010-2011. And, though it is close to unthinkable politically that both Congress and the DC City Council will reauthorize the program — just as Congressional enemies of educational freedom planned when they wrote those stipulations into law – it is not absolutely impossible. But in good hitman style, Duncan is making sure the job gets done, holding the pillow over the victim’s face as long and tightly as possible to make sure there won’t be any unforeseen and inconvenient coming back to life.
Oh, and irony of ironies? According to the Post, Duncan is doing this extra bit of dirty work because [italics added] “it is not in the best interest of students and their parents to enroll them in a program that may end a year from now.”
Where Are the Muckrakers?
In the mythology of journalism, investigative reporters fall somewhere between archangels and demigods. They protect the public by exposing political deceit and corruption, burrowing relentlessly into the words and deeds of those in power, in search of the truth. And in the field of education, they are as numerous as leprechauns and unicorns.
In education, “muckrakers,” as Teddy Roosevelt called them, are few and far between. There are, however, legions of mucksailors — reporters who glide over the surface of a story, seldom probing beneath the public statements of those in power to determine their truth or falsehood. Through my web browser window I can watch the sails of a vast muck navy.
Consider the coverage of the battle over DC’s school voucher program. Democrats inserted language into the $410 billion omnibus spending bill that would sunset funding for the program after next year, instead of simply reauthorizing it for another full five-year term. The vouchers could still be reauthorized when they come up again, but since House Appropriations Committee chairman David Obey ( D-Wis.) has already told DC public schools to prepare for the return of voucher students, that seems highly unlikely.
So here we have Democrats working to shut down a program serving 1,700 poor kids in the nation’s capital — kids who are so desperate to stay in their chosen private schools that they’ve made YouTube videos beseeching Congress and president Obama to save it. Given that most people are not inherently so cruel, why would Democrats want to kill this program? They say it’s because it robs money from needy public schools and gives it to private schools that are already flush from lavish tuition fees. But. Is. That. TRUE?
Is DC’s government-run k-12 system financially needy? Are the independent schools serving voucher students making a Madoff-style killing?
No. And… No.
These claims are rubbish. They are, in fact, MUCK. I have run the numbers on DC government k-12 education spending for the current school year and it is $26,555 per pupil. According to the government’s own published study of the voucher program, the average tuition charged by participating schools is $5,928. Furthermore, the voucher program actually added an extra $13 million a year to the DC public school budget, as a “sweetener” to elicit local and Democratic support.
But most Americans will never learn any of that. Because we have no muckrakers in the mainstream education media. We have mucksailors.
This is not entirely the journalists’ fault. Media businesses have been hit very hard in recent years, and are understaffed compared to earlier generations. Reporters are stretched very thin. But I ask the editorial establishment, what is more valuable to your readers: A dozen stories that merely regurgitate the official muck, or a single top notch investigative piece that demonstrates how our political leaders are flagrantly misleading the American people and exposes their real motives?
Speak truth to power? Anyone?
Anyone?
Week in Review: A Health Care Summit, School Choice and Ayn Rand
Obama Holds White House Health Care Summit
President Obama hosted almost 150 elected officials, doctors, patients, business owners, and insurers on Thursday for a White House forum on health care reform. The Washington Post reports Obama “reiterated his intention to press for legislation this year that dramatically expands insurance coverage, improves health care quality and reins in skyrocketing medical costs.”
Cato senior fellow Michael D. Tanner responds:
The Obama administration and its allies mainly seek greater government control over one-seventh of the U.S. economy and some of our most important, personal, and private decisions. They favor individual and employer mandates, increased insurance regulation, middle-class subsidies, and a government-run system in competition with private insurance. On the other side are those who seek free market reforms and more consumer-centered health care.
These differences are profound and important. They cannot and should not be papered over by easy talk of bipartisanship.
In a new article, Tanner explains why universal health care is not the best option for Americans seeking a better system:
If there is a lesson which U.S. policymakers can take from national health care systems around the world, it is not to follow the road to government-run national health care, but to increase consumer incentives and control.
To find out how the free market system can increase health care security, read University of Chicago professor John H. Cochrane’s new policy analysis, which explains how markets can “provide life-long, portable health security, while enhancing consumer choice and competition.”
Battle Over Washington DC School Choice Program Continues
Congressional Democrats are considering cutting the funding for a pilot education program that sends low-income children in Washington, D.C., to private schools through vouchers. The program serves as an example of how helpful school choice programs can be to children who are born into families that cannot afford to send them to good schools.
Adam Schaeffer, policy analyst at Cato’s Center for Educational Freedom, says even the mainstream media is on the side of school choice this time.
In a recent study, Andrew J. Coulson, director of Cato’s Center for Educational Freedom, demonstrates the superiority of market-based education over monopolies.
For comprehensive research on the effectiveness of charter schools, private schools, and voucher programs, read Herbert J. Walberg’s book, School Choice: The Findings.
Cato Celebrates Women’s History Month
The Cato Institute pays homage to three women during Women’s History Month who unabashedly defended individualism and free-market capitalism early in the 1940s — an age that widely considered American capitalism dead and socialism the future.
In 1943, Isabel Paterson, Rose Wilder Lane and Ayn Rand published three groundbreaking books, The God of the Machine, The Discovery of Freedom and The Fountainhead, that laid the foundations of the modern libertarian movement.
On Rand’s centennial, Cato executive vice president David Boaz highlighted the many contributions she made to liberty:
Although she did not like to acknowledge debts to other thinkers, Rand’s work rests squarely within the libertarian tradition, with roots going back to Aristotle, Aquinas, Locke, Jefferson, Paine, Bastiat, Spencer, Mill, and Mises. She infused her novels with the ideas of individualism, liberty, and limited government in ways that often changed the lives of her readers. The cultural values she championed — reason, science, individualism, achievement, and happiness — are spreading across the world.

