Greece: Central Government Bloat

It’s hard to find anything written or spoken about Greece that doesn’t contain a great deal of hand wringing about the alleged austerity – brutal fiscal austerity – that the Greek government has been forced to endure at the hands of the so-called troika. This is Alice in Wonderland economics. It supports my 95% rule: 95% of what you read about economics and finance is either wrong or irrelevant.

Addressing the Critics of This Purportedly No Good, Very Bad Chart

For the past few years I have charted the trends in American education spending and performance (see below). The goal is to see what the national data suggest about the productivity of our education system over time. Clearly, these data suggest that our educational productivity has collapsed: the inflation-adjusted cost of sending a student all the way through the K-12 system has almost tripled while test scores near the end of high-school remain largely unchanged. Put another way, per-pupil spending and achievement are not obviously correlated.

Not everyone is happy with these charts, and in this post I’ll respond to the critics, starting with the most recent: Matt DiCarlo of the Albert Shanker Institute, an organization that honors the life and legacy of the late president of the American Federation of Teachers. DiCarlo finds the chart “misleading,” “exasperating,” and seemingly designed to “start a conversation by ending it.” Since we’re actually having a conversation about the chart and what it shows, and since I’ve had countless such conversations over the years, perhaps we can agree that the last of those accusations is more of a rhetorical flourish than a serious argument.

Survey Says: Public Wants to Know the Total Per Pupil Cost of Public Schooling

A new public opinion survey commssioned in Rhode Island by the Friedman Foundation reveals that people want to know the honest-to-goodness total per-pupil cost of public schooling.

Unfortunately, the full cost is regularly omitted from state education department websites, as revealed in a recent Cato study by Jason Bedrick. What’s more, the full figure is seldom reported by the media. Instead, newspapers and local TV news outfits usually report just a portion of the cost that excludes things like construction spending, interest on debt, and pensions. Education officials obviously have an incentive to make their operations look as frugal as possible, so it’s no surprise that they would offer reporters these partial spending figures (known as “operating” or “current” spending).

On Government Spending and Job Creation

The standard Keynesian policy proposal for a weak economy is to have the government spend more money, and run deficits to do so.  Clearly much of current government spending is being financed by borrowing.  So current conditions are not subject to the New Deal critique that it was mostly paid for by taxes, as during the Great Depression. Current federal expenditures have increased about 41% since the housing market peaked in 2006.  Has all this government spending generated many jobs?  While keeping in mind that correlation is not the same as causality, it is i

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