by Ray Keating
Last week was National School Choice Week (January 24-30,
2016). Setting aside a week or month to gain attention for a cause is fine, but
educational choice warrants ongoing attention for those concerned about the
quality of education, and, yes, those worried about the state of our economy.
It’s not unusual to hear politicians, along with all sorts
of education officials, talking about the relationship between education and
the economy. That link does exist, but it doesn’t work the way politicians
usually say it does.
After all, the politicians who are in bed with the teachers’
unions lead the way in asserting that throwing more money at public schools
will generate better student results, and that eventually feeds into a better
economy. We’ve heard this for a very long time, but it has little basis in
economic reality.
I penned a study for The Friedman Foundation for Educational
Choice titled School Choice and Economic Growth that was published early last year. That study
looked at the true link between education and the economy, and made clear that
the only sure path to boost the economy via education is to shift from an
effective government-monopoly system coupled with extensive government
regulation, to a true free market in primary and secondary education.
Let’s keep in mind that the U.S. became and largely remains
the world’s leading economy because it is a free market system allowing
entrepreneurs, businesses, investors and workers to compete, take risks and
work to better serve consumers. The foundation for such a system includes
private property rights, the rule of law, open trade and competition, and
minimal governmental burdens.
Our education system, however, is starkly different. The
public school system, by definition, is owned, operated and regulated by
government. It is a system guided by political decisions, geared toward meeting
the desires of special interests, and designed to subsidize failure by throwing
even more dollars at schools that fail.
Such a government-based system seems designed to fail, and
to the degree that it successfully educates students, that’s something of a
miracle. In fact, whether it be international comparisons or assorted trends in
test scores, etc., it’s quite clear that public education – especially when
considering how much is being spent – has largely failed in the U.S.
The remedy is true educational choice, competition and
deregulation to incentivize education entrepreneurs and providers to supply
real value to the consumers or customers, that is, to students and parents.
Universal school choice must replace a government monopoly
and extensive government regulation. In the study, I identified 10 ways by
which such choice would aid the economy.
1. Productivity.
Research shows improved education via vastly expanded school choice would boost
worker productivity, enhancing worker contributions to business performance and
economic output.
2. Educational
Attainment. The evidence also is clear that, on average, improved
educational attainment means greater labor force participation, higher
employment levels, reduced unemployment, and increased earnings.
3. Improved Quality.
The economics literature confirms the common sense notion that improved
productivity is not just about accumulating more years of education and
degrees, but about educational quality. Given the improvements in education experienced
even in cases of limited school choice and competition, it’s clear that robust
educational choice would improve educational quality.
4. Entrepreneurial
Success. Evidence points to a link between years of schooling and
entrepreneurial success, including higher earnings, improved growth, and
increased chances for business survival. Entrepreneurship, of course, is
central to economic growth.
5. Expanded
Innovation Capacity. Innovation also is critical to economic growth, and
improved education expands the economic potential and impact of innovation.
6. Technology and
Capital. Improved education makes investments in technology and other
capital tools more valuable, that is, more productive.
7. Improved Business
Performance. Better-educated workers boost business performance by being
better able to, for example, work with technology, adapt to new and changing
tasks, and communicate with others.
8. International
Competitiveness. Enhanced educational attainment and quality mean that the
U.S. could maintain, or even extend, its global edge in productivity.
9. Lower Taxpayer
Costs. Studies have shown that expanded school choice and competition would
contribute to reduced taxpayer costs.
10. Education
Efficiency. Transforming the massive education sector of our economy from a
government-dominated and regulated system to a dynamic, competitive,
consumer-focused industry also would be a clear positive for economic growth.
Of course, questions exist as to the size and timing of
education’s contribution to economic growth. And it is critical to understand
that quality math and science education, for example, will mean very little to
the well-being of an economy if the overall system is not conducive to or does
not provide a foundation for economic opportunity and growth. In the end, economic
freedom remains essential to such opportunity and growth, and within a free
economy, universal school choice will enhance educational quality, and in turn,
further boost the economy.
For much more
information and analysis, read Keating’s study for The Friedman Foundation for
Educational Choice titled SchoolChoice and Economic Growth.
______________
Mr. Keating is an
economist and novelist who writes on a wide range of topics. His Pastor Stephen
Grant novels have received considerable acclaim, including The River: A Pastor
Stephen Grant Novel being a finalist for KFUO radio’s Book of the Year 2014,
and Murderer’s Row: A Pastor Stephen Grant Novel nominated for Book of the Year
2015.
The Pastor Stephen
Grant Novels are available at Amazon…
No comments:
Post a Comment