Tag: Washington Post

Patching up the Education Monopoly

The Eli and Edythe Broad and Bill and Melinda Gates foundations have sponsored a report, “Smart Options: Investing the Recovery Funds for Student Success,” on how to spend $100 billion of “stimulus money” on improving America’s schools, according to Jay Mathews in The Washington Post. Ideas include national standards, better teacher evaluations, special help for struggling students, and more.

But let’s try a thought experiment. Bill Gates made his money in software. Eli Broad made his money building houses. Imagine a slightly different universe, say one in which Henry Wallace and Al Gore had become president, and we had monopoly providers of both software and housing. How good do you think the software and the housing would be? And if the U.S. Department of Technology and the U.S. Department of Housing announced that they would be spending another $100 billion, what would happen?

minitelIt seems clear that the way to improve housing and software in that world would be to open the fields up to competition, or even to privatize them. A government monopoly provider of software would be lucky to have given us Minitel by now. And monopoly provision of housing was tried in much of the world during the 20th century, with poor results. So if we were afflicted with these albatrosses, surely we’d recognize that deregulation, competition, and privatization would produce better results by far.

So then why don’t we realize it when we’re afflicted with a virtual government monopoly on the provision of education? Why are zillions of smart people studying and debating how to improve the performance of a sluggish, stagnant, tax-funded government monopoly? Maybe we shouldn’t be so sure that we’d see the failure of the software or housing monopoly either. Whatever enterprise the government chooses to monopolize – and there’s really nothing inherent or inevitable about which enterprises that will be – will most likely become a massive bureaucratic undertaking, and we will find it difficult to imagine how the enterprise could be privately run.

But Bill and Melinda, Eli and Edythe, Jay, Barack – the evidence on monopoly vs. competitive provision of services is out there. To a great extent it’s the history of the 20th century. Check it out.

Bob McDonnell Wants to Scare You and Take Your Money

Though I’m not a Virginia resident or voter, nor a donor to politicians, Virginia gubernatorial candidate Bob McDonnell (whose party affiliation I’m not aware of) has added me to his email list. His name is similar to a past roommate, and that affinity has caused me to open more of his emails than I ordinarily would.

Today’s is worth writing about: It’s a political candidate transparently trying to scare voters and use their fear for fundraising.

Dear Jim,

Terror suspects could be headed to Virginia…

With the closing of the detention center at Guantanamo Bay the federal government must find new locations in which to house and try the roughly 240 terrorist suspects currently held 90 miles from our shores. Recent news reports indicate that the Department of Justice is considering transferring a number of the detainees to the Commonwealth of Virginia. One specific location: Alexandria. And other Virginia locations could be possibilities as well.

There are security details to be worked out when prisoners are transferred out of Guantanamo Bay, but the prisoners themselves are not dangerous as such. They’re prisoners, and they will always be under heavy guard. Terrorists are not radioactive, and they do not have lasers built into their eyes.

The problems with housing prisoners in the past have been over-the-top security precautions that make a great show but don’t necessarily meet actual security problems associated with housing terror suspects.

Bills have been introduced to bar detainees from being transferred to various states.

A precious few Americans have exhibited cool in this fear-of-detainees brouhaha. Alexandria Sheriff Dana A. Lawhorne is quoted in this Washington Post article, at least saying “he would do what he can: ‘You can’t run the other way when your country calls.’”

But McDonnell, the politician seeking a prominent leadership position in the state, would “lead” by pretending that captured terrorists are too big a security risk for Virginia. It’s shameful fear-mongering meant to capitalize on the ignorance and weakness of Virginians who don’t understand terrorism. The only links in the text of the email are to the fundraising page on McDonnell’s Web site.

McDonnell exhibits leadership malpractice with this kind of campaigning.

Why President Obama Won’t Save Urban Catholic Schools

In today’s Washington Post, Checker Finn and Andy Smarick ask President Obama to save the nation’s vanishing urban Catholic schools. Their commentary does a good job of explaining why he might want to do that: Catholic schools are typically bastions of excellence in otherwise educationally blighted inner-city areas. Economist Derek Neal has shown that black children attending these schools are 26 percentage points more likely to finish high school, and twice as likely to graduate from college, than similar students attending urban public schools.

Finn and Smarick also suggest ways that president Obama could bring the option of private schooling, including Catholic schools, within reach of all families – supporting the spread of state tax credit and scholarship programs around the country, for instance.

What Finn and Smarick don’t do is explain why the president will continue to ignore the evidence and their plea, instead letting the educational prospects of inner-city children erode even further. Three possible explanations occur to me:

  • The president is unfamiliar with the evidence on the superiority of private and especially urban Catholic schools
  • He thinks that his administration will succeed in dramatically improving public schools all over the country, despite the failure of all his predecessors’ efforts
  • He thinks that making it easier for poor parents to choose private schools would hurt him politically

Personally, I don’t believe the first explanation. I can believe the second, but wish I couldn’t (wouldn’t it be nice to have a realist in the Oval Office)? And I can certainly believe the third, but if so, the president simply hasn’t done the political math.

Coming out strongly in favor of public and private school choice at the state level would win Barack Obama substantial new support from independent and moderate swing voters who seem to have been drifting away from him, while costing him very little from his base. The NEA might reduce its level of support, but they’re not going to flip and back Republicans. And few if any Democratic voters would switch party allegiance over a Democratic president’s desire to help poor kids with the most effective policies.

Week in Review: Tax Day, Pirates and Cuba

Tax Day: The Nightmare from Which There’s No Waking Up

Cato scholars were busy exposing the burden of the American tax system on Wednesday, the deadline to file 2008 tax returns.

At CNSNews.com, tax analyst Chris Edwards argued that policymakers should give Americans the simple and low-rate tax code they deserve:

The outlook for American taxpayers is pretty grim. The federal tax code is getting more complex, the president is proposing tax hikes on high-earners, businesses, and energy consumers; and huge deficits may create pressure for further increases down the road…

The solution to all these problems is to rip out the income tax and replace it with a low-rate flat tax, as two dozen other nations have done.

At Townhall, Dan Mitchell excoriated the complexity of the current tax code:

Beginning as a simple two-page form in 1913, the Internal Revenue Code has morphed into a complex nightmare that simultaneously hinders compliance by honest people and rewards cheating by Washington insiders and other dishonest people.

But that is just the tip of the iceberg. The tax code also penalizes economic growth, distorts taxpayer behavior, undermines American competitiveness, invites corruption and promotes inefficiency.

Mitchell appeared on MSNBC, arguing that every American will soon see massive tax hikes, despite Washington rhetoric.

Don’t miss the new Cato video that highlights just how troubling the American tax code really is.

U.S. Navy Rescues Captain Held Hostage by Somali Pirates

gallery-somali-pirates-pi-003USA Today reports that the captain of a merchant vessel that was attacked by Somali pirates was freed Monday when Navy SEAL sharpshooters killed the pirates. The episode raises a larger question: How should the United States respond to the growing threat of piracy in the region?

Writing shortly after Capt. Richard Phillips was freed, foreign policy expert Benjamin Friedman explained the reasons behind the increase in piracy:

It’s worth noting the current level of American concern about piracy is overblown. As Peter Van Doren pointed out to me the other day, the right way to think about this problem is that pirates are imposing a tax on shipping in their area. They are a bit like a pseudo-government, as Alexander the Great apparently learned. The tax amounts to $20-40 million a year, which is, as Ken Menkhaus put it in this Washington Post online forum, a “nuisance tax for global shipping.”

The reason ships are being hijacked along the Somali coast is because there are still ships sailing down the Somali coast. Piracy is evidently not a big enough problem to encourage many shippers to use alternative shipping routes. In addition, shippers apparently find it cheaper to pay ransom than to pay insurance for armed guards and deal with the added legal hassle in port. The provision of naval vessels to the region is an attempted subsidy to the shippers, and ultimately consumers of their goods, albeit one governments have traditionally paid. Whether or not that subsidy is cheaper than letting the market actors sort it out remains unclear to me.

Appearing on Russia Today, Friedman discussed the implications of the increased threat and what ships can do to avoid future incidents with Somali pirates.

Since the problems at sea are related to problems on Somali land, what can Western nations do to decrease poverty and lawlessness on the African continent? Dambisa Moyo, author of Dead Aid, argued at a Cato Policy Forum last week that the best way to combat these issues is to halt government-to-government aid, and proposed an “aid-free solution” to development based on the experience of successful African countries.

Obama Lifts Some Travel Bans on Cuba

The Washington Post reports:

President Obama is lifting some restrictions on Cuban Americans’ contact with Cuba and allowing U.S. telecom companies to operate there, opening up the communist island nation to more cellular and satellite service… The decision does not lift the trade embargo on Cuba but eases the prohibitions that have restricted Cuban Americans from visiting their relatives and has limited what they can send back home.

In the new Cato Handbook for Policymakers, Juan Carlos Hidalgo and Ian Vasquez recommend a number of policy initiatives for future relations with Cuba, including ending all trade sanctions on Cuba and allowing U.S. citizens and companies to visit and establish businesses as they see fit; and moving toward the normalization of diplomatic relations with the island nation.

While Obama’s plan is a small step in the right direction, Hidalgo argues in a Cato Daily Podcast that Obama should take further steps to lift the travel ban and open Cuba to all Americans.

Topics:

Oprah Escapes the Long Arm of the Law

oprahThe Washington Post reports on the latest ruling by the Federal Election Commission:

William Lee Stotts of Cordova, Tenn., filed a complaint in October alleging that Obama’s appearance on Winfrey’s popular talk show during the Democratic primaries amounted to an unlawful campaign contribution that gave him an ‘an unfair advantage over the other candidates, both Republican and Democrat, who were deprived such an opportunity.’

The FEC decided that Winfrey was a media entity and thus qualified for the “media exemption” from the campaign finance laws. Without that exemption, Obama’s appearance would have become an electioneering communication and thereby a violation of McCain-Feingold.

The FEC provides a timely reminder that we no longer have a unified First Amendment. Congress shall indeed “make no law” regarding the freedom of the media, including the freedom to publicize a presidential candidacy. That’s a good thing, by the way. The bad thing is the rest of us are expected to make do with Congress making all kinds of laws limiting freedom of speech. Some animals, I suppose, are more equal than other animals.

The Tax-Defying DC Detective

One of the most read articles on today’s Washington Post website tells the story of a DC detective who tried to get away with not paying federal income taxes.  Here’s what caught my eye:

But federal prosecutors said the 18-year law enforcement officer – who earned $180,000 in 2005, most of it in overtime – should have known better.

$180,000?  Wow – that’s a lot of taxpayer money for a single police officer.  In addition, the odds are pretty good this fellow is going to receive extremely generous retirement benefits, which taxpayers will also be on the hook for.  That he apparently earned the bulk of his salary in overtime also made me wince.  I recall from my days in a state budget agency that the state police liked to play the same game.  Thus, I find it irritating when state and local government officials discuss laying off police officers during an economic downturn and the media pay little or no attention to the salaries and benefits these folks are receiving.

Week in Review: Successful Voucher Programs, Immigration Debates and a New Path for Africa

Federal Study Supports School Vouchers

arne_duncanLast week, a U.S. Department of Education study revealed that students participating in a Washington D.C. voucher pilot program outperformed peers attending public schools.

According to The Washington Post, the study found that “students who used the vouchers received reading scores that placed them nearly four months ahead of peers who remained in public school.” In a statement, education secretary Arne Duncan said that the Obama administration “does not want to pull participating students out of the program but does not support its continuation.”

Why then did the Obama administration “let Congress slash the jugular of DC’s school voucher program despite almost certainly having an evaluation in hand showing that students in the program did better than those who tried to get vouchers and failed?”

The answer, says Cato scholar Neal McCluskey, lies in special interests and an unwillingness to embrace change after decades of maintaining the status quo:

It is not just the awesome political power of special interests, however, that keeps the monopoly in place. As Terry Moe has found, many Americans have a deep, emotional attachment to public schooling, one likely rooted in a conviction that public schooling is essential to American unity and success. It is an inaccurate conviction — public schooling is all-too-often divisive where homogeneity does not already exist, and Americans successfully educated themselves long before “public schooling” became widespread or mandatory — but the conviction nonetheless is there. Indeed, most people acknowledge that public schooling is broken, but feel they still must love it.

Susan L. Aud and Leon Michos found the program saved the city nearly $8 million in education costs in a 2006 Cato study that examined the fiscal impact of the voucher program.

To learn more about the positive effect of school choice on poor communities around the world, join the Cato Institute on April 15 to discuss James Tooley’s new book, The Beautiful Tree: A Personal Journey Into How the World’s Poorest People Are Educating Themselves.

Obama Announces New Direction on Immigration

The New York Times reports, “President Obama plans to begin addressing the country’s immigration system this year, including looking for a path for illegal immigrants to become legal, a senior administration official said on Wednesday.”

In the immigration chapter of the Cato Handbook for Policymakers, Cato trade analyst Daniel T. Griswold offered suggestions on immigration policy, which include:

  • Expanding current legal immigration quotas, especially for employment-based visas.
  • Creating a temporary worker program for lower-skilled workers to meet long-term labor demand and reduce incentives for illegal immigration.
  • Refocusing border-control resources to keep criminals and terrorists out of the country.

In a 2002 Cato Policy Analysis, Griswold made the case for allowing Mexican laborers into the United States to work.

For more on the argument for open borders, watch Jason L. Riley of The Wall Street Journal editorial board speak about his book, Let Them In: The Case for Open Borders.

In Case You Couldn’t Join Us
Cato hosted a number of fascinating guests recently to speak about new books, reports and projects.

  • Salon writer Glenn Greenwald discussed a new Cato study that exadead-aidmines the successful drug decriminalization program in Portugal.
  • Patri Friedman of the Seasteading Institute explained his project to build self-sufficient deep-sea platforms that would empower individuals to break free of national governments and start their own societies on the ocean.
  • Dambisa Moyo, author of the book Dead Aid, spoke about her research that shows how government-to-government aid fails. She proposed an “aid-free solution” to development, based on the experience of successful African countries.

Find full-length videos to all Cato events on Cato’s events archive page.

Also, don’t miss Friday’s Cato Daily Podcast with legal policy analyst David Rittgers on Obama’s surge strategy in Afghanistan.