Tag: Arne Duncan

Arne Duncan Embraces False Friedman

In a shocking development, U.S. Secretary of Arne Duncan embraced the ideas of Milton Friedman today, championing the funding of students instead of schools! Unfortunately, it was in the context of higher education – Duncan and his boss have done all they can to destroy school choice elsewhere – and he completely misrepresented what Friedman said about higher ed, suggesting that the Nobel Laureate somehow endorsed the federal Direct Loan Program:

We will end the loans under the Federal Family Education Program and make them directly to students – just as economist Milton Friedman proposed 50 years ago, and just as the Department of Education has been doing since 1993 through the Direct Loan Program.

Were Milton Friedman still with us, I think he would be pretty miffed with Duncan. For one thing, 50 years ago there was no Federal Family Education Loan Program. Moreover, assuming Duncan is referring to Friedman’s “The Role of Government in Education,” Friedman was clearly stating that if there is going to be any higher education aid it should go to students, not schools. And then there’s this:

The resulting system would follow in its broad outlines the arrangements adopted in the United States after World War II for financing the education of veterans, except that the funds would presumably come from the States rather than the Federal government [italics added].

It’s bad enough that Duncan and his boss reject Friedman’s very wise and proven counsel when it comes to elementary and secondary education. It’s even worse that Duncan then has the gall to blatantly lie about what Friedman wrote in an effort to sell a rotten and costly piece of federal legislation, the laughably titled Student Aid and Fiscal Repsonsibility Act.

Dr. Frankenstein on His Creation: It’s All The Monster’s Fault

As I have explained on numerous occasions, supporters of the Student Aid and Fiscal Responsibility Act (SAFRA) – which would end federal guaranteed student loans, turn everything into lending direct from Uncle Sam, and spend the resulting savings and way much more – have often shamelessly promoted the bill as a boon to taxpayers when it will almost certainly cost them tens-of-billions.  Where they have generally been right is in rebutting criticisms that SAFRA would be a federal takeover of a private industry. With lender profits all but assured under federal guaranteed lending, the vast majority of student loans haven’t been truly private for decades.

Unfortunately, SAFRA advocates are just as clueless – or, more likely, rhetorically unbridled – about what constitutes a private entity as are status-quo supporters. Case in point, an article in today’s Huffington Post that, along with U.S. Secretary of Education Arne Duncan, attempts to portray the suddenly rocky road ahead for SAFRA as a result of evil lender lobbyists dropping boulders in the selfless legislation’s way:

Taking aim at Sallie Mae, the largest student lender in the country and a driving force behind the lobbying effort, Education Secretary Arne Duncan on Tuesday accused the company of using taxpayer funds to lobby and advertise, and cast its executives as white-collar millionaires uninterested in serious education reform.

“Sallie Mae executives have paid themselves hundreds of millions of dollars in the last decade while teachers, nurses, and scientists – the backbone of the new economy – face crushing debt because of runaway college tuition costs,” Duncan said.

Here Sallie Mae is painted in the same ugly hues as Lehman Brothers, AIG, and all the other supposedly rapacious, unscrupulous companies whose unchecked greed, we’re told, brought the American economy to its knees. (We also get the baseless but obligatory pronouncement about “crushing debt” for teachers and other toilers for the “public good.”)

But wait! Doesn’t  “Sallie Mae” sound a lot like”Fannie Mae” and “Freddie Mac”? Of course! That’s because just like Fannie and Freddie, Sallie was created by the federal government,  only with Sallie’s job being to furnish lots of cheap college loans. And guess what? Just like Fannie and Freddie, Sallie became by far the biggest kid on her block because her huge federal creator fed her and protected her for decades, not setting her off on her own until 1996. But that part of her story doesn’t fit anywhere into the evil corporation narrative, so it’s just not mentioned.  All we need to know is Sallie is private, her owners and employees make a lot of money, and that is why she is evil and dangerous.

And so the politics of demonization and denial, a staple of the recession blame game, continues. Private institutions are portrayed as malevolent predators and government as a warm, pure, protective father-figure. But there is much more accurate imagery possible when it comes to Sallie Mae: Egomaniacal Dr. Frankenstein furiously blaming the monster he created for doing exactly what he built it to do.

And some wonder why there’s such widespread outrage – the real reason SAFRA is in trouble – about ever-expanding federal power?

Arne Duncan’s Chicago Schools

The Washington Post reports on what new data reveal about the Chicago public schools run for the past seven years by Arne Duncan, now President Obama’s secretary of education:

This month, the mathematics report card was delivered: Chicago trailed several cities in performance and progress made over six years.

Miami, Houston and New York had higher scores than Chicago on the National Assessment of Educational Progress. Boston, San Diego and Atlanta had bigger gains. Even fourth-graders in the much-maligned D.C. schools improved nearly twice as much since 2003.

As I’ve said before, what always struck me about Obama’s appointment of Duncan to run the nation’s schools – and he is actually moving to do just that, more so than any previous federal administration – is that Arne Duncan ran the Chicago schools for seven years, and in that time he didn’t manage to produce a single school that the Obamas chose to send their own children to. Valerie Schwartz of the Post reminds us that Duncan is not the first Cabinet secretary to be appointed on the basis of great results in a previous job, that then turned out to be not so great.

Of course, you could have read much of the data about Duncan’s results right here at Cato @ Liberty back in July.

Duncan Dunked in WSJ

Last week, U.S. Secretary of Education Arne Duncan had an op-ed in the Wall Street Journal declaring that it’s time to end the Federal Family Education Loan program (FFEL) which subsidizes banks and insulates them against almost all lending risk.  Duncan wants to eliminate the “middle man” and have the vast majority of student loans come directly from Uncle Sam, a goal central to the Student Aid and Fiscal Responsibility Act (SAFRA).

Incongruously, after ripping the poor middle people, Duncan explains that they should actually stay firmly attached to federal funds as loan servicers. He then goes on to applaud as an incredible money-saver going to all direct lending.

Fortunately, several astute readers – as well as yours truly – saw right through Duncan’s heap of contradictions and dissembling, and the WSJ has printed numerous letters speaking the truth about student lending and SAFRA.

The Pope Center’s George Leef – who has done great higher-education work with Cato – leads things off with a letter pointing out all the perverse incentives and painful unintended consequences emanating from federal student aid. I bookend that by attacking the most aggravating of all SAFRA-related lies: that the bill would provide $10 billion for deficit reduction. Read any CBO estimate for SAFRA and you’ll see that that is just a bald-faced lie.

Of course, if they didn’t have lies, our student-lending overlords wouldn’t have much to say at all. Which is one of many reasons that the feds should get out of education – including student aid – altogether.

Sorry to Keep Interrupting Your Folly with the Constitution, But…

…the Constitution!

ROUNDEDpocketConst_150Andy Smarick at the Fordham Foundation continues to simultaneously cajole and sympathize with U.S. Secretary of Education Arne Duncan as Duncan tries to formulate some sort of discernible parameters for what the federal government should and  should not do in education. Clearly, Smarick feels Duncan’s pain:

I have sympathy … because figuring out the right role for the federal government in education policy is no easy task. But I’ve been pointed and nagging because the Department needs to come up with a coherent position if it’s to sell an NCLB reauthorization plan.

Given his apparently long-standing suffering over this issue, it turns out that today is Smarick’s lucky day — I have an elixir that defines the only unshifting and unmuddled parameters of federal education policy possible: outside of Washington, DC, and federal properties like military installations, the federal government has no authority whatsoever to be involved in education! Article I, Section 8 of the Constitution makes this clear, including nothing about education among the specific powers it gives to the federal government.

And if that medicine isn’t strong enough,  the 10th Amendment doubles it, reiterating that the Constitution gives the feds only specific, enumerated powers:

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

Unfortunately, I’ve offered this potent treatment for Smarick (and Duncan’s) painful problem before and Smarick pretty much just flushed it down the toilet.  Last time, he simply ignored the overwhelming evidence I offered that federal involvement in education has been and will continue to be a bankrupting failure; declared it unrealistic to think that the feds would get out of education; and wondered aloud whether I might also want to get rid of federal entities like NASA. In other words, he completely dodged the critical question at hand: What is the proper federal role in education?

So here Smarick remains, floundering around with Duncan to determine what they think the feds should and should not be doing in education. And guess what they’ve come up with? The federal role should be anything and everything! It should be pushing whatever programs or reforms Washington deems “successful,” or anything for kids it declares “underserved,” or that has anything to do with “national” standards.

And what’s the role of states, school districts, schools, parents, and kids? To be ready to jump whenever and in whatever direction Washington tells them to:

Pieced together, a slightly clearer picture starts to emerge. If I’m reading it right, it’s something along the lines of “The feds will embrace national standards and assessments; invest in new ideas and successful practices; and allow states and districts to control most decisions unless underserved kids are getting hurt.”

If this is a faithful rendering of the Secretary’s view, the Department has a solid foundation on which to build. But huge questions remain: How far can the feds go with regard to disadvantaged students? How do you remain loose on means and still hold states accountable for billions of dollars? How does IDEA shift away from compliance? How does ED transition from a regulatory body to the NIH of education?

As I wrote above, developing a comprehensive, coherent philosophy on these matters is terribly hard, and we’re watching ED go through the sausage-making phase. I give them credit.

Let’s hope, when all’s said and done, that we look back on this progress like the Beatles Anthology—which shows how impeccable final products typically evolve from messy drafts — and not like the making of Chinese Democracy — a long, agonizing wait that ultimately leaves you wishing for more.

Now, I have to ask: Why would you ever, ever want to subject the nation and its children to a federal government that has potentially unlimited power in education and could very possibly produce calamitous results for all? And why would you want to force schools and children to sit atop a constantly quaking foundation, one subjected to perpetual and potentially disastrous lurching produced by the ever-changing political desires and needs of secretaries of education, presidential administrations, congresses, and self-serving politicians of all stripes?

Quite simply, there is no acceptable answer to that other than “I absolutely wouldn’t.” And that answer means that the only right answer to the question of what the federal government should do in education is “nothing.”

At some point, if we’re ever going to make any progress, people need to stop ignoring all the evidence and start dealing with reality.

What about K-12, Secretary Duncan?

Speaking to the Association of Public and Land-Grant Universities, education secretary Arne Duncan said that “he would gladly cut federal red tape if institutions, in return, showed greater progress on improving student performance.” So the secretary supports less government intrusion in education if schools show improvement.

Except he doesn’t. Not at the K-12 level, anyway. Because Arne Duncan has advocated a slow death for the DC voucher program that his own Department of Education shows is… wait for it… significantly improving outcomes while getting government out of the business of running schools altogether.

But maybe that’s the problem. Schools work better the smaller the role government plays in them, but that means we don’t really need a secretary of education at all, do we?

Fed Ed Snow Job

When you get to the top of a mountain, what do you find? Other than maybe a mountain goat, or the frozen remains of an ill-fated previous climber, snow, that’s what. That’s why it’s almost appropriate that the Obama administration’s Race to the The Top Fund, as I have written before and write again in this new op-ed, is essentially a snow job.  And it seems to be a particularly blinding one.

To qualify for Fund dollars, states have to make hardly any meaningful changes to their education systems. For the most part they just have to submit plans for how they could conceivably do good stuff. Moreover, the same “stimulus” that furnished the $4.35 billion for Race to The Top supplied roughly 20 times that amount to protect the abysmal, obese education status quo from recessionary pressures. Nonetheless, many conservatives, including former House Speaker Newt Gingrich, are going out of their way to lionize Obama & co. for their reform efforts.

Why the cross-spectrum adulation? One problem is certainly that some conservatives have given up on real reform — universal school choice and getting the feds out of education — in favor of being seen as “doing something” from Washington. Probably more important, though, is that Race to the Top is constantly being festooned in brash, combative rhetoric about pushing what are actually relatively minor — but still disliked by teacher union — improvements such as linking educator pay to student performance and increasing charter schools. (For a taste of the hyperbole, check out Secretary of Education Arne Duncan’s opening commentary from Sunday’s Meet the Press.) That Race to the Top falls far short of actually doing even these very limited things seems not to matter.

That leads to a very familiar, but nonetheless dispiriting, conclusion: in education, a blizzard of rhetoric is all it takes to blind people to reality.