Tag: brookings institution

School Choice Advocates: Beware Washington

The Brookings Institution will release a new school choice policy guide on February 2nd, and from the sound of it, children, parents, taxpayers, and the authors themselves should be concerned.  The guide will provide:

a series of practical and novel recommendations for reauthorization of the Elementary and Secondary Education Act, including national chartering of virtual education providers; expanding the types of information collected on school performance; providing incentives for low-performing school districts to increase choice and competition; and creating independent school choice portals to aid parents in choosing between schools.

The goals these recommendations are meant to achieve are entirely laudable, but there are three reasons for serious concern:

1)  The Constitution delegates to the federal government no power to provide or regulate education services, except in the execution of its explicitly enumerated powers. So the Supreme Court can ensure that state education programs abide by the Fourteenth Amendment, for example, but Congress cannot “charter virtual education providers.” Of course the federal government has been transgressing the limits on its education powers for more than half a century, but no one who supports the rule of law can condone that transgression, much less its expansion.

2)  From a regulatory standpoint, Washington is the worst level of government at which to implement an education program. National education programs impose a single set of rules on every participating provider in the country. Get those rules wrong – either up front or down the road – and you not only hobble the effectiveness of every single provider, but you eliminate the possibility of comparing outcomes between providers operating under different sets of rules. In essence you lose the ability to distinguish between different “treatments” – to determine what helps and what is harmful to the service’s overall success.

3)  We have ample evidence about the quality of education programs implemented by the federal government. For example, after 45 years and $166 billion, Head Start has just been proven entirely ineffective. (See also the NCLB paper linked to in “1)”, above). Once again, this problem is exacerbated by the all-encompassing nature of federal programs. Get them wrong and you get them wrong for every participating student, everywhere in the country. With variation in programs among states, by contrast, we not only have the ability to compare the merits of alternative approaches, we have powerful incentives for states to get their programs right. Just as tax competition drives businesses from one state or nation to another, so, too, can education policy competition. States with better policies will attract businesses and more mobile residents from states with worse ones, eventually compelling the inferior policy states to redress their errors.  We’re just beginning to see the prospects for this now, as school choice programs proliferate and grow at the state level, and introducing national programs that might well interfere with this process would be a disastrous mistake.

I hope that school choice advocates, including those who have contributed to the forthcoming Brookings report, will weigh these concerns.

Is Keynesian Stimulus Working?

In his Brookings Institution speech yesterday, President Obama called for more Keynesian-style spending stimulus for the economy, including increased investment on government projects and expanded subsidy payments to the unemployed and state governments. The package might cost $150 billion or more.

The president said that we’ve had to “spend our way out of this recession.” We’ve certainly had massive spending, but it doesn’t seem to have helped the economy, as the 10 percent unemployment rate attests to.

It’s not just that the Obama “stimulus” package from February has apparently failed. The total Keynesian stimulus is not measured by the spending in that bill only, but by the total size of federal government deficits.

The chart shows that while the federal deficit (the total “stimulus” amount) has skyrocketed over the last three years, the unemployment rate has more than doubled. (The unemployment rate is the fiscal year average. Two months are included for FY2010.)

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The total Keynesian stimulus of recent years has included the Bush stimulus bill in early 2008, TARP, large increases in regular appropriations, soaring entitlement spending, the Obama stimulus package from February, rising unemployment benefits, and falling revenues, which are “automatic stabilizers” according to Keynesian theory.

The deficit-fueled Keynesian approach to recovery is not working. The time is long overdue for the Democrats in Congress and advisers in the White House to reconsider their Keynesian beliefs and to start entertaining some market-oriented policies to get the economy moving again.

GOP 99% Socialist

As I note in my New York Post op-ed today, Republicans are fond of implying that President Obama is a big-spending socialist. But the House GOP recently offered a spending cut plan that was able to find savings worth less than one percent of Obama’s budget.

As Tad DeHaven and Brian Riedl have also pointed out, the GOP spending reform effort is rather pathetic. It proposed specific annual budget cuts of about $14 billion per year.

Consider that the center-left budget wonks at the Brookings Institution put their heads together a few years ago and came up with a “smaller government plan” that proposed about $342 billion in annual spending cuts (by 2014). The Brookings authors note:  

These cuts are achieved by reducing government subsidies to commercial activities ($138 billion); by returning responsibility for education, housing, training, environmental, and law enforcement programs to the states ($123 billion) … by cutting entitlements such as Medicaid, Social Security, and Medicare ($74 billion); and by eliminating some wasteful spending in these entitlement programs ($7 billion).

Thus, the Brooking’s scholars found cuts more than twenty times larger than the House GOP leadership cuts, and Brookings proposed its plan back when the deficit was about one-fifth of the size it is today. (Note that both the Brookings and GOP plans would also put a cap on overall nondefense discretionary spending, in addition to these specific cuts).

My point in the New York Post piece is that the GOP needs to challenge Obama’s big spending agenda at a more fundamental level. They need to do some careful research, pick out some big spending targets, and go on the offense.  Why not propose to eliminate the Departments of Education and Housing and Urban Development? Why not sell off federal assets, such as the Tennessee Valley Authority, in order to help pay down the federal debt? Why not open up the U.S. Postal Service to competition?

Obama won’t agree to these reforms at this point, but they would hopefully open a serious national debate about reforming our massive and sprawling federal government. Ronald Reagan in 1980 and the congressional Republicans in 1994 didn’t win by splitting hairs with the Democrats over 1% of spending. They offered a more fundamental critique.

At least, GOP leaders need to offer up spending reforms as bold as those of the Brookings Institution.