Tag: obama

Can Arne Duncan Fix All the Schools?

Education Secretary Arne Duncan, responding to a new study showing that District of Columbia students using vouchers to attend private schools outperformed their peers in public schools – a study that he has been accused of keeping under wraps until after Congress voted to end the D.C. voucher program – told the Washington Post of his concerns:

“Big picture, I don’t see vouchers as being the answer,” Duncan said in a recent meeting with Washington Post editors and reporters. “You can pull two kids out, you can pull three kids out, and you’re leaving 97, 98 percent behind. You need to help all those kids. The way you help them is by challenging the status quo where it’s not working and coming back with dramatically better schools and doing it systemically.”

But why would vouchers only serve two or three percent of the kids? Only because Congress limited the size of the voucher program. Thousands more families have applied for public or private vouchers than there were vouchers available. If the District of Columbia took its mammoth school budget and divided it into equal vouchers or scholarships for each child in the city, Arne Duncan could bet his bottom dollar that a lot more than two percent of the families would head for private or parochial schools. His fear is not that vouchers only serve two percent of the kids, it’s that a full-scale choice program would reveal just how much demand for alternatives there is.

But note also: Duncan says that he wants to “help all those kids … by … coming back with dramatically better schools.” But he ran the Chicago schools for seven years, and he was not able to make a single school good enough for Barack and Michelle Obama to send their own children there.

Wouldn’t the 97 or 98 percent of the kids in Chicago whose parents couldn’t afford the University of Chicago Laboratory Schools have benefited from having a choice?

New at Cato

Here are a few highlights from Cato Today, a daily email from the Cato Institute. You can subscribe, here

  • The new edition of Regulation examines the Employee Free Choice Act (EFCA), the legal drinking age and climate change policies.
  • In The Week, Will Wilkinson argues that the Obama administration should rethink its drug policy and that prominent marijuana users should “come out of the closet.”
  • Gene Healy points out in the Washington Examiner why the Serve America Act (SAA) is no friend to freedom.
  • The Cato Weekly Video features Rep. Paul Ryan discussing the Obama administration’s budget.
  • In Wednesday’s Cato Daily Podcast, Patri Friedman discusses seasteading and the prospects for liberty on the high seas.

Week in Review: ‘Saving’ the World, Government Control and Drug Decriminalization

G-20 Summit Agrees to International Spending Plan

g-2The Washington Post reports, “Leaders from more than 20 major nations including the United States decided Thursday to make available an additional $1 trillion for the world economy through the International Monetary Fund and other institutions as part of a broad package of measures to overcome the global financial crisis.”

Cato scholars Richard W. Rahn, Daniel J. Ikenson and Ian Vásquez commented on the London-based meeting:

Rahn: “President Obama of the U.S. and Prime Minister Brown of the U.K. will be pressing for more so-called stimulus spending by other nations, despite the fact that the historical evidence shows that big increases in government spending are more likely to be damaging and slow down recovery than they are to promote vigorous economic expansion and job creation.”

Vásquez: “The push by some countries for massive increases in spending to address the global financial crisis smacks of political and bureaucratic opportunism. A prime example is Washington’s call to substantially increase the resources of the International Financial Institutions… There is no reason to think that massive increases of the IFIs’ funds will not worsen, rather than improve, their record or the accountability of the aid agencies and borrower governments.”

Ikenson: “Certainly it is crucial to avoid protectionist policies that clog the arteries of economic recovery and help nobody but politicians. But it is also important to keep things in perspective: the world is not on the brink of a global trade war, as some have suggested.”

Ikenson appeared on CNBC this week to push for a reduction of trade barriers in international markets.

With fears mounting over a global shift toward protectionism, Cato senior fellow Tom Palmer and the Atlas Economic Research Foundation are circulating a petition against restrictive trade measures.

Obama Administration Forces Out GM CEO

rick-wagonerPresident Obama took an unprecedented step toward greater control of a private corporation after forcing General Motors CEO  Rick Wagoner to leave the company. The New York Post reports “the administration threatened to withhold bailout money from the company if he didn’t.”

Writing for the Washington Post, trade analyst Dan Ikenson explained why the government is responsible for any GM failure from now on:

President Obama’s newly discovered prudence with taxpayer money and his tough-love approach to GM and Chrysler would both have more credibility if he hadn’t demanded Rick Wagoner’s resignation, as well. By imposing operational conditions normally reserved for boards of directors, the administration is now bound to the infamous “Pottery Barn” rule: you break it, you buy it. If things go further south, the government is now complicit.

Wagoner’s replacement, Fritz Henderson, said Tuesday that after receiving billions of taxpayer dollars, the company is considering bankruptcy as an option. Cato scholars recommended bankruptcy months ago:

Dan Ikenson, November 21, 2008: “Bailing out Detroit is unnecessary. After all, this is why we have the bankruptcy process. If companies in Chapter 11 can be salvaged, a bankruptcy judge will help them find the way. In the case of the Big Three, a bankruptcy process would almost certainly require them to dissolve their current union contracts. Revamping their labor structures is the single most important change that GM, Ford, and Chrysler could make — and yet it is the one change that many pro-bailout Democrats wish to ignore.”

Daniel J. Mitchell, November 13, 2008:  “Advocates oftentimes admit that bailouts are not good policy, but they invariably argue that short-term considerations should trump long-term sensible policy. Their biggest assertion is that a bailout is necessary to prevent bankruptcy, and that avoiding this result is critical to prevent catastrophe. But Chapter 11 protection may be precisely what is needed to put American auto companies back on the path to profitability. Bankruptcy laws specifically are designed to give companies an opportunity — under court supervision — to reduce costs and streamline operations.”

Dan Ikenson, December 5, 2008: “The best solution is to allow the bankruptcy process to work. It will be needed. There are going to be jobs lost, but there is really nothing policymakers can do about that without exacerbating problems elsewhere. The numbers won’t be as dire as the Big Three have been projecting.”

Cato Links

  • As the North Atlantic Treaty Organization celebrates its 60th birthday, there are signs of mounting trouble within the alliance and increasing reasons to doubt the organization’s relevance regarding the foreign policy challenges of the 21st century. In a new study, Cato scholar Ted Galen Carpenter argues that NATO’s time is up.
  • Should immigration agents target businesses knowingly hiring illegal immigrants? Cato scholar Jim Harper weighs in on a Fox News debate.
Topics:

Wednesday Podcast: ‘Turning a Corner on the War Metaphor’

Since President Bush’s “War on Terror” began in 2001, the use of a war metaphor has come with assertions of broader powers by the president. But the U.S. may be turning a corner on how terms like “war” are used, says Cato scholar David Rittgers.

In Wednesday’s Cato Daily Podcast,  Rittgers argues that President Obama’s choice to do away with the war metaphor is a step in the right direction.

Government Motors

Washingtonpost.com collected and posted sundry opinions about Rick Wagoner’s dismissal as GM CEO yesterday. Those opinions, including mine, are posted here. But to spare you the click, here’s what I wrote:

President Obama’s newly discovered prudence with taxpayer money and his tough-love approach to GM and Chrysler would both have more credibility if he hadn’t demanded Rick Wagoner’s resignation, as well. By imposing operational conditions normally reserved for boards of directors, the administration is now bound to the infamous “Pottery Barn” rule: you break it, you buy it. If things go further south, the government is now complicit.

It also means that Wagoner was perceived as an obstacle to whatever plans the administration has for GM. And that’s the real source of concern. If getting these companies back on their feet is the objective, a bankruptcy judge can make a determination pretty quickly about the viability of the firms and the steps necessary to get there. But if the objective is something more grandiose, such as transforming the industry into a model of green production, government oversight and close scrutiny of operations will be necessary. CEOs must be compliant and pliant. It is worth noting that a return to profitability and the metamorphosis of the industry according to a government script work at cross purposes.

Obama’s First Tax Hike Hits the Poor

It is curious that President Obama keeps claiming that he is not raising taxes on lower-income Americans, yet a tax hike that will impose a disproportionately large burden on the poor goes into effect Wednesday

In February, Obama signed into law a large tax hike on cigarette consumers. The federal tax on cigarette consumers is jumping from 39 cents per pack to $1.01 per pack – a huge 159 percent increase. If you smoke two packs per day, President Obama has raised your taxes by a $453 annually.

Next on the Obama low-income tax hike agenda: global warming taxes of about $80 billion per year, as revealed in the Obama budget, which equals an annual tax boost of $700 for every household in the United States.

Friday Podcast: ‘Obama’s Afghanistan Strategy’

President Obama has unveiled his plan for the war in Afghanistan, taking a more regional approach than the U.S. has in the past.

In Friday’s Cato Daily Podcast, foreign policy analyst Malou Innocent says it’s a critical step in the right direction, but stabilizing Afghanistan and fighting an insurgency can’t be accomplished while killing the livelihoods of so many Afghan farmers by destroying opium poppy.

In the future we should take Afghanistan as it is, rather than what we want it to be. So not only does that mean having a decreased reliance on a central state government from Kabul, but also understanding that many of the farms from these rural areas rely on the opium poppy crop for their own livelihood. So we should focus our efforts to targeting those who are in cahoots with   insurgent groups and not simply those who are depending on it for their livelihood.

Her forthcoming paper, “Pakistan and the Future of U.S. Policy” will be released next month.