Tag: charter

Will Republicans Make a Principled Stand Against Ex-Im Reauthorization in 2014?

Jobs are good. Exports create jobs. We create exports. Renew our charter.

Such is the essence of the marketing pitch of the U.S. Export-Import Bank, whose officials have begun ramping up their lobbying efforts ahead of a 2014 vote concerning reauthorization of the Bank’s charter, which expires in September.  Last go around, in 2012, Ex-Im ran into some unexpected turbulence when free-market think tanks, government watchdog groups, and limited government Republicans in Congress raised some compelling – but ultimately ignored – objections to reauthorization.

The ostensible purpose of the Ex-Im Bank is to assist in financing the export of U.S. goods and services to international markets. Even if that were a legitimate role of government, the public must keep a watchful eye on how much and to whom loans are made – especially given the current administration’s tendency to bet big on particular industries and specific firms, and in light of its commitment to seeing U.S. exports reach $3.14 trillion in 2014.

From the U.S. Export-Import Bank’s 2013 Annual Report:

The Ex-Im Bank’s mission is to support American jobs by facilitating the export of U.S. goods and services. The Bank provides competitive export financing and ensures a level playing field for U.S. exporters competing for sales in the global marketplace. Ex-Im Bank does not compete with private-sector lenders but provides export financing that fill gaps in trade financing. The Bank assumes credit and country risks that the private sector is unable or unwilling to accept. It also helps to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters. The Bank’s charter requires that the transactions it authorizes demonstrate reasonable assurance of repayment.

The defensive tone of this mission statement anticipates Ex-Im critics’ objections, but it certainly doesn’t answer them. The objectives of filling gaps in trade financing passed over by the private sector and expecting a reasonable assurance of repayment are mutually exclusive – unless the threshold for “reasonable assurance” is more risk-permissive than the private-sector’s most risk-permissive financing entities.  Therefore, Ex-Im is either putting taxpayer resources at risk or it is competing directly with private-sector lenders for customers in need of finance. And if the latter, then as it seeks to create the proverbial “level playing field” for the U.S. companies whose customers it finances, Ex-Im is un-leveling the playing field for the finance industry, as well as for the U.S. firms in industries that compete globally with these U.S-taxpayer financed foreign companies.

The Other Side Plays Dirty

On the day that we honor veterans for defending our freedom, I read this:

Community groups and Los Angeles Unified officials on Tuesday condemned an anonymous flyer handed to Latino parents that threatened them with deportation if they supported plans to convert their neighborhood school to a charter.

Calling it an escalation in a series of “scare tactics,” district officials and community advocates said distribution of the flyer was timed to weaken one of LAUSD’s boldest efforts to reform public education in Los Angeles.

A generation or two from now, when children are studying how school choice began to spread throughout America, they will read of such incidents and marvel at the depths to which opponents sunk.

If you’re a policymaker or opinion leader, on which side of that history will you want your name to appear?

Why Is For-Profit Education So Difficult in the U.S.?

Matt Yglesias has a post up looking at the PISA scores, and he seems to imply that for-profit schooling has been tried and found wanting in Sweden and the U.S.:

The big difference is that many Swedish charters are run by for-profit firms. We’ve had some experiments with that in the U.S. and it hasn’t worked very well. Nobody’s really found a great way of making consistent profits running K-12 schools in America.

Of course even he notes that Sweden’s schools are highly regulated by the state.

And in the U.S., the difficulty of succeeding in for-profit education just might have something to do with that government monopoly on k-12 education and the $560 billion or so in tax revenues that fund it. Maybe.

We Are not Seeing the Bell Curve’s Toll

Ben ChavisLast 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.

The New Puritanism

H. L. Mencken described puritanism as “the haunting fear that someone, somewhere, may be happy.”

The new puritanism is the fear that someone, somewhere, may be learning.

The Minneapolis Star Tribune has a story today in which public school educationalists wring their hands over the fear that suburban whites may be getting a good education in charter schools. This, somehow, is perceived to be a bad thing for urban minority kids.

Um. No.

What is bad for any child is a paucity of high quality education options from which to choose. The focus of policymakers should be on ensuring that more and better education options are constantly coming within reach of all children, regardless of the contents of their parents’ wallets, the pigmentation of their skin, or their ethnic background. This, the research shows, can most reliably be achieved by harnessing the freedoms and incentives of a competitive education marketplace.

Can the charter school system create such a marketplace? Can it relentlessly spawn new excellent schools and scale up the established ones to reach a mass audience? For a discussion of those questions, drop by Cato on October 2nd.

From MSNBC to Cato — America’s Top Models

Next Sunday, MSNBC will feature a sort of townhall meeting on how great schools can pull kids out of poverty. Though headlined by Bill Cosby, perhaps the most electrifying panelist will be charter school principal Ben Chavis. On October 2nd at noon, you can come to Cato to see Ben live, and ask him how we can replicate his stunning success. Also joining us will be Washington Post columnist Jay Mathews, who’ll talk about the growing KIPP network of (now 82!) charter schools. Other than perhaps KIPP’s founders, nobody knows more about them than Jay. I’ll be simultaneously acting as cheerleader (I love these schools) and devil’s advocate (I’m skeptical that they can be brought to the masses within the charter sector).

To register, just visit the event page here:  “America’s Top Models: Can the Nation’s Best Charter Schools Be Brought to Scale?”

Incidentally, Ben has been called the most politically incorrect man in America, so Cato disavows all responsibility for any heads that explode during the course of his presentation.