PolicyGuy

Monday, November 27, 2006


Public Education, Yes. Government-run schools? Not for all.
In the wake of Milton Friedman's death, I decided to look at his 1956 essay, which started him down the path of advocating for school choice.

The essay is The Role of Government in Education. There are two major components, K-12 education, followed by higher education.

For higher education, Friedman proposed a contract by which college students would get funding in exchange for a portion of their post-college income. He admits that it has a funny smell to it: "There seems no legal obstacle to private contracts of this kind, even though they are economically equivalent to the purchase of a share in an individual's earning capacity and thus to partial slavery."

On K-12 education, he says that we have three questions to ask.

Should government compel minor children to be educated? Yes, he concludes, as an educated citizenry is vital to a stable democracy.

Should the cost of that education be borne only by parents and the child, or by society at large? Friedman comes down on the side of compulsory payment of others (taxation), on the grounds that primary and secondary education carries substantial "neighborhood effects," or what your Econ 101 class may have called "externalities."

Who should administer that education? Through a series of events, we have ended up with giving a monopoly, based on geographic scope, to government bodies known as local school districts, the directors of which (school board members) are selected by political means (that is, school board elections).

Yet as Friedman points out, government financing need not mean government operation of schools, let alone government schools being the only place at which taxpayer funds would be spent. (Think of food stamps; they are not bought at "public grocery stores.")

Governments could require a minimum level of education which they could finance by giving parents vouchers redeemable for a specified maximum sum per child per year if spent on "approved" educational services. Parents would then be free to spend this sum and any additional sum on purchasing educational services from an "approved" institution of their own choice. The educational services could be rendered by private enterprises operated for profit, or by non-profit institutions of various kinds. The role of the government would be limited to assuring that the schools met certain minimum standards such as the inclusion of a minimum common content in their programs, much as it now inspects restaurants to assure that they maintain minimum sanitary standards. An excellent example of a program of this sort is the United States educational program for veterans after World War II.

Fifty years after Friedman's initial essay, school choice has but a toehold in American education. It works more or less at the university level, with privately and publicly owned colleges.

At the K-12 level, school choice is expanding, with tax credits, tax deductions, voucher programs, and other means operating in about a dozen states. Here's hoping that it doesn't take another 50 years for the idea to get to fruition.

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"Justice Louis D. Brandeis'?s metaphor of the states as "laboratories" for policy experiments ... had almost nothing to do with federalism and everything to do with his commitment to scientific socialism. .... To this day, it continues to inhibit a truly experimental, federalist politics." -- Michael S. Greve

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