Tag: college affordability

New SOTU Education Promises Just Like the Old SOTU Education Promises

What should President Obama have said about education policy in this year’s State of the Union address? In a more perfect world, he would have announced his plan to eliminate the U.S. Department of Education in order to restore control of education policy to the state and local governments where it constitutionally belongs.

In that imaginary world, the President also would have called for an expansion of the Washington D.C. school choice program, where the federal government actually has legitimate constitutional authority, and used his bully pulpit to promote state-level educational choice programs across the country as a means of reducing inequality and expanding opportunity. And he would have announced that his administration would no longer seek to keep low-income black kids in failing government schools in Louisiana.

Alas, what President Obama proposed instead were mostly the same tired themes we’ve already heard in previous SOTU addresses. 

Once again, the president called for Congress to enact universal preschool (and threatened to go around them if they did not), claiming that “research shows that one of the best investments we can make in a child’s life is high-quality early education.” The research to which he alludes concerned a very small and high-quality program for disadvantaged children. (It’s notable that the president dramatically scaled down the audacity of his claims since last year’s SOTU.) There’s absolutely no evidence that the government could scale up the program for all children nationwide with the same level of quality.

Indeed, when the federal government has tried to do so, it has failed. The federal government’s own study of Head Start was so negative that the Obama administration released it on the Friday before Christmas, practically guaranteeing that almost no one would ever hear about it. Nearly fifty years and $200 billion later, Head Start produces no measurable, lasting benefits. To argue that “this time will be different” is magical thinking.

And once again, the president claimed that he “[wants] to work with Congress to see how we can help even more Americans who feel trapped by student loan debt.” If so, he should propose phasing out federal student loans and Pell Grants, which are spurring the rapid increases in tuition.

Fortunately, outside the administration’s push for Common Core, few of the administration’s SOTU-promoted education initiatives ever get off the ground.

A Look Inside the Ivory Tower Spiral

With the Obama Administration promising to ramp up all sorts of college-affordability (read: government expenditure) efforts in the coming months, now is a crucial time for Americans to understand why our colleges and universities ingest money as bottomlessly as their students guzzle beer. With that in mind, the release of a new report from the John William Pope Center is perfectly timed. The Revenue-to-Cost Spiral in Higher Education explains how colleges’ internal arrangements render them almost destined to spend every dime they bring in, no matter how wastefully. The basic problem, argues author and economist Robert E. Martin, is that very few colleges and universities are intended to make a profit – which would give “owners” a powerful incentive to maximize efficiency – and no one really seems to be in charge at most schools.

Of course, this is a serious over-simplification of Martin’s argument, so you’ll have to read the report. But don’t just stop there: A few weeks ago the Pope Center held a colloquium right here at Cato to discuss the report, and Pope Senior Writer Jay Schalin just posted an excellent summary of the back-and-forth between participants. I think you’ll find the points about the third-party-payer problem especially powerful, but there are lots of other good arguments highlighted as well.