tag:blogger.com,1999:blog-25541994.post9149895361607728012..comments2024-03-02T15:23:18.091-05:00Comments on D-Ed Reckoning: Economics for Edu-pundits IV: The Steamship IndustryKDeRosahttp://www.blogger.com/profile/06853211164976890091noreply@blogger.comBlogger111125tag:blogger.com,1999:blog-25541994.post-41686613455164796972010-11-18T10:29:48.994-05:002010-11-18T10:29:48.994-05:00I am struck by the work involved in trying to brin...<i>I am struck by the work involved in trying to bring a new reform model into an existing school</i><br /><br />Welcome to the club. <br /><br />The fatal flaw is with the notion of "reform model," It's in the eye of the reformer. Each of the "ed reforms" you list has been subjected to large scale, long term randomized control investigation conducted by the US Institute of Education Sciences. The results in each case was "no impact"--only wide variability.<br /><br />When a furniture manufacturer switches to making clothing, it's no longer a furniture manufacturer.<br /><br />If a school could say, "Our reading instruction isn't working. We're going to drop that and teach sewing; we'll replace all our teachers with sewing instructors." That would reform the school.<br /><br />To improve instruction, you have too focus on the instruction you want to improve. That's the last thing "reformers" or anyone else are interested in getting into.<br /><br />Any instructional failure is attributed to teachers, kids, parents, and/or "society."Dick Schutzhttps://www.blogger.com/profile/09815175767173164494noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-16494132201351574662010-11-17T22:04:07.720-05:002010-11-17T22:04:07.720-05:00I’m reading student papers for a graduate class I ...I’m reading student papers for a graduate class I teach on school reform and improvement, and a thought struck me. For the assignment, the students had to research a school reform initiative (for example, Response to Intervention, Success for All, Reading Recovery), write a paper that summarizes the initiative, and present an analysis of the initiative’s impact on student achievement, teachers, and school leaders.<br /><br />As I read through the papers, I am struck by the work involved in trying to bring a new reform model into an existing school. I used to work for a comprehensive school reform company, so I have some personal experience with the process, but reading through the papers reminded me of the challenge and complexity involved in trying to make fundamental changes to an existing school, especially one that is under-performing. <br /><br />A for-profit analog might be trying to come into a failing furniture company and telling everyone, “Okay, making furniture isn’t working, so now we’re going to become a clothes manufacturer.” You keep all the same employees, you have to gradually sub-out old machinery as new stuff is purchased, and you need to be showing a profit within 12 months. <br /><br />Trying to make substantive changes to an existing organization, especially one that is as highly regulated as K-12 education and is as publicly conspicuous, is really difficult. I think the difficulty is part of the argument for entrepreneurship in education: starting over from scratch, as challenging as it can be, at least lets you be a clothes manufacturer from Day 1, rather than trying to convert over from being a furniture company. There are lots of issues with educational entrepreneurship, and I am not arguing for a wide-open K-12 education market, but the challenge of trying to achieve radical improvements within an existing structure really hit me as I read through the papers.<br /><br />ParryParry Grahamhttps://www.blogger.com/profile/01109638345554364909noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-40382844255309647022010-11-07T10:15:56.569-05:002010-11-07T10:15:56.569-05:00It was kind of amazing how excited ed people got o...<i>It was kind of amazing how excited ed people got over the relatively small amount of money given out in the Race to the Top competition.</i><br /><br /><i>It was absolutely astounding.<br />Not only ed people. States changed their laws to be eligible to enter the pseudo-competition for a mythical "Race to the Top."</i><br /><br /><i>If ever we needed proof that public schools are not a market this one example should do the trick. Those who lost didn't lose anything personally and those who won just got stuck doing more work...</i><br /><br />Really? I suspect that the people who worked on successful grant proposals are now worth more in their boss's eyes, and may be in line for a promotion or a transfer to the new agency that will be administering RTT funds. Some may form their own consulting firms to help clients score some of the RTT money for themselves.<br /><br />Most of these people will tell themselves, and sincerely believe, that they aren't doing it for the money.<br /><br />I, on the other hand, believe that everybody has mixed motives, and sometimes money flips you one way or the other.Roger Sweenyhttps://www.blogger.com/profile/12734128265493099062noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-43207179494951335942010-11-07T06:12:52.584-05:002010-11-07T06:12:52.584-05:00(Schutz): "Private tutors don't compete o...(Schutz): "<i>Private tutors don't compete on the basis of profit and loss. They are as out of control (variable) as other elements of the El-Hi apparatus.</i>"<br /><br />"Profit" is a bookkeeping term, the difference between total revenues and total costs. An organization which has no line in its balance sheet for profit must attribute all its revenues to costs. This says nothing about the motives of people in the organization, and not much about the structure of an organization. <br /><br />Whether a tutoring service is a profit-making entity or some other type will depend on whether the people who operate it find that category of business convenient, compared to a sole proprietorship or partnership. A one-man operation might declare all revenue as personal income, or might incorporate. <br /><br />One reason to incorporate is to run up costs (drive the company car, eat lunch on the company dime, hire relatives on consulting contracts, etc.) that would be taxed if taken as personal income.<br /><br />Organizations compete on the basis of <i>cost to customers</i>. I doubt it matters to most customers of most goods and services how businesses account to government auditors for their revenues.Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-36777957434289096472010-11-06T13:56:50.806-04:002010-11-06T13:56:50.806-04:00(Malcolm): "I have worked for parochial schoo...(Malcolm): "<i>I have worked for parochial schools, government schools, a private tutoring agency, and as an independent tutor. I do not recall experiencing any spiritual transformation when I moved from one job to the next.</i>" <br />Schutz): "<i>The job changes had little to do with market forces...</i>"<br /><br />That hardly follows. "Market forces" includes opportunities which entrepreneuers see to open new facilities. "Demand" includes population growth (more children to instruct) and aging (fewer children), which both entrepreneuers and politicians see. Institutional structure strongly influences how people respond to the observed opportunities. <br /><br />(Schutz): "<i>...and education production functions would not account for the differences in the working conditions you experienced.</i>"<br /><br />Please explain. What do you mean by "education production functions"?Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-41348821473925882132010-11-06T10:28:37.835-04:002010-11-06T10:28:37.835-04:00I have worked for parochial schools, government sc...<i>I have worked for parochial schools, government schools, a private tutoring agency, and as an independent tutor. I do not recall experiencing any spiritual transformation when I moved from one job to the next.</i><br /><br />Precisely. The job changes had little to do with market forces and education production functions would not account for the differences in the working conditions you experienced.<br /><br />Private tutors don't compete on the basis of profit and loss. They are as out of control (variable) as other elements of the El-Hi apparatus.Dick Schutzhttps://www.blogger.com/profile/09815175767173164494noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-10462905706863537612010-11-06T09:39:27.715-04:002010-11-06T09:39:27.715-04:00It was kind of amazing how excited ed people got o...<i>It was kind of amazing how excited ed people got over the relatively small amount of money given out in the Race to the Top competition.</i><br /><br />It was absolutely <b>astounding</b>.<br />Not only ed people. States changed their laws to be eligible to enter the pseudo-competition for a mythical "Race to the Top."<br /><br />If ever we needed proof that public schools are not a market this one example should do the trick. Those who lost didn't lose anything personally and those who won just got stuck doing more work and assuming accountability for doing things that have no scientific or technical foundation. All this for chump change.<br /><br />The Corporatists who have the economy on the ropes are using their tax-free profits to try to buy the public schools.Dick Schutzhttps://www.blogger.com/profile/09815175767173164494noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-45691712973858340282010-11-06T06:29:28.941-04:002010-11-06T06:29:28.941-04:00(Schutz): "People are not drawn into educatio...(Schutz): "<i>People are not drawn into education and do not remain there for the financial competition involved. A different set of incentives are operative.</i>"<br /><br />Here is why I repeat "The government of a locality is the largest dealer in a given locality". "The government" is a human organization. I see no evidence that government employment transforms people spiritually. People do not become more intelligent, more altruistic, better-informed, or more capable (except in their access to the tools of State coercion) when they enter the government's employment rolls. Quite the contrary; the power to coerce attracts thugs. <br /><br />I like Math, I like kids, I like explaining Math, and I would much prefer to buy my groceries than to steal them or to forage in a dumpster. I have worked for parochial schools, government schools, a private tutoring agency, and as an independent tutor. I do not recall experiencing any spiritual transformation when I moved from one job to the next. <br /><br />Engineers like puzzles. Surgeons like to heal. Musicians like to entertain. Every occupation selects people for something other than money. The education industry is hardly unique in this respect and is not exempt it from economic analysis.Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-17117359957015665422010-11-05T23:03:26.326-04:002010-11-05T23:03:26.326-04:00(Schultz): "(Variation across districts) does...(Schultz): "<i>(Variation across districts) doesn't show that better results are possible because the results are all locale and student/school personnel specific.</i>"<br /><br />Interesting asssertion. How would anyone know unless you test to see if the differences in structure or procedures make a difference to performance? <br /><br />(Parry): "<i>that’s not the same kind of incentive as seeing market share increase, buying out your competitor and growing your customer base, paying out profit-sharing bonuses, etc.</i>"<br /><br />(Schutz): "<i>That's why we call it public schools and not private businesses.</i>"<br /><br />Ummmm...They're called "public" schools in the US because they're government-operated.<br /><br />(Schutz): "<i>They are different systems with different societal functions.</i>"<br /><br />Please explain. For-profit schools operate in the US and elsewhere. Education is a service for which people will pay. <br /><br />(Schutz): "<i>People are not drawn into education and do not remain there for the financial competition involved. A different set of incentives are operative.</i>"<br /><br />Where's the evidence? I don't see government school teachers striking for lower pay. According to NCES, they make more than teachers in parochial schools.Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-29864252204052669332010-11-05T20:18:04.119-04:002010-11-05T20:18:04.119-04:00People are not drawn into education and do not rem...<i>People are not drawn into education and do not remain there for the financial competition involved.</i><br /><br />You've never seen a school official trying to get a grant :)<br /><br />It was kind of amazing how excited ed people got over the relatively small amount of money given out in the Race to the Top competition.Roger Sweenyhttps://www.blogger.com/profile/12734128265493099062noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-23205150828880218802010-11-05T18:32:08.158-04:002010-11-05T18:32:08.158-04:00I think the variability across school districts is...<i>I think the variability across school districts is interesting because, on the one hand it shows that better results are possible,</i><br /><br />The thing is, it doesn't show that better results are possible because the results are all locale and student/school personnel specific.<br /><br /><i>that’s not the same kind of incentive as seeing market share increase, buying out your competitor and growing your customer base, paying out profit-sharing bonuses, etc.</i><br /><br />Precisely. That's why we call it public schools and not private businesses. They are different systems with different societal functions. People are not drawn into education and do not remain there for the financial competition involved. A different set of incentives are operative.Dick Schutzhttps://www.blogger.com/profile/09815175767173164494noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-12910230577417574052010-11-05T18:17:39.450-04:002010-11-05T18:17:39.450-04:00(Parry): "...the variability across school di...(Parry): "<i>...the variability across school districts is interesting because, on the one hand it shows that better results are possible, but on the other hand, there is a “so what” quality to it, from an incentives standpoint. Creating a highly successful, public school system reaps rewards for kids and families, and it likely creates a sense of accomplishment among staff members, but that’s not the same kind of incentive as seeing market share increase, buying out your competitor and growing your customer base, paying out profit-sharing bonuses, etc.</i>"<br /><br />True. <br /><br />(Parry): "<i>How would an alternative, choice-based system look, from a nuts-and-bolts perspective?</i>"<br /><br />I don't know how the education industry would look if your legislature made government schools and tax exempt schools compete for tax support on an equal footing with for-profit organizations, which can accumulate capital from year to year, sell debt, and fire incompetent staff. I expect the disadvantages under which unionized government schools, and tax-exempt organizations, labor would doom them if everyone got the same level of support. <br /><br />(Parry): "<i> What would the rules be, especially in terms of financing and regulating non-public schools?</i>"<br /><br />You've seen my suggestion, <a href="http://harriettubmanagenda.blogspot.com/2005/12/proposal.html" rel="nofollow">Parent Performance Contracting</a>. One way to soften the impact of competition would be to phase it in, starting with early grades at the lowest performing schools, an at a fracion of the State's mean per-pupil substantially less than 1 (say, 1/2). <br /><br />By the way, has anyone attempted my thought experiment: <br />(Malcolm): "<i>From State operation of what industries does society as a whole benefit? You may suppose either a dichotomous classification (A=unlikely candidate for State operation, B=likely candidate for State operation) or a continuum (highly unlikely -1____.____+1 (highly likely). Now consider the further question: What criteria determine an industry's categorical assignment or position on the continuum?</i>"Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-72416830898122364462010-11-05T16:08:01.462-04:002010-11-05T16:08:01.462-04:00I think the variability across school districts is...I think the variability across school districts is interesting because, on the one hand it shows that better results are possible, but on the other hand, there is a “so what” quality to it, from an incentives standpoint. Creating a highly successful, public school system reaps rewards for kids and families, and it likely creates a sense of accomplishment among staff members, but that’s not the same kind of incentive as seeing market share increase, buying out your competitor and growing your customer base, paying out profit-sharing bonuses, etc.<br /><br />How would an alternative, choice-based system look, from a nuts-and-bolts perspective? What would the rules be, especially in terms of financing and regulating non-public schools?<br /><br />I would be interested to hear what people think about specific plans to increase school choice for families.<br /><br />ParryParry Grahamhttps://www.blogger.com/profile/01109638345554364909noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-53016278257648585072010-11-05T14:01:57.327-04:002010-11-05T14:01:57.327-04:00(Schutz): "(this)...variability--within class...(Schutz): "<i>(this)...variability--within classes, within and between school, within and between districts, and within and between states...doesn't constitute an experiment because who haven't the foggiest notion of what the 'treatments' are. When the classroom door is closed a teacher can do just about what he or she cares to do. Teachers have to be careful about what they say they are doing, but what teachers say they are doing and what they are doing are two different things.</i>"<br /><br />Teachers, schools, school districts, and States vary widely in performance, as measured by standardized test scores, graduation rates, college acceptance rates, and (I expect) juvenile arrest rates. Institutional variables (teacher credentials, school size, length of instructional periods, ability grouping, vocational tracking, etc.) relate with statistical significance to performance measures.<br /><br />State-level credential requirements and class-size mandates relate to the labor pool available to principals. While "<i>what teachers say they are doing and what they are doing are two different things</i>" what teachers <i>can</i> do is determined, in part, on their competence, which credential requirements strongly influence. College of Education credits should count against teacher applicants.Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-84834201381913176852010-11-04T22:50:13.938-04:002010-11-04T22:50:13.938-04:00(Roger): "I suspect Malcolm would largely dis...(Roger): "<i>I suspect Malcolm would largely dismiss this variation for at least two reasons.</i>" <br /><br />Mostly your second, although the first matters. People see performance differences between school districts. Most critically, they see differences in safety. Few people comprehend how vast are the differences between State-level aggregates. One US State (North Dakota, mean district enrollment <600) has a level of performance to match top-performing Singapore. On the 1996 TIMSS 8th grade Math, the Singapore 5th percentile score was higher than the US 50th percentile score. <br /><br />One reason people do not respond to the inter-government "market" in education services in the US is the high cost of taking that option: quitting a job and looking for work, selling one house and buying another, leaving friends. Per-pupil costs are lower where districts are small and parents can exercise choice at low cost. Caroline Hoxby has studied the relation between school district size and performance while holding urbanization/density issues at bay by comparing districts in urban polities that remained independent to districts that unified. Costs are lower and performance is higher where districts are smaller.Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-41731932470694907212010-11-04T18:29:12.983-04:002010-11-04T18:29:12.983-04:00are we really talking about a monolithic enterpris...<i>are we really talking about a monolithic enterprise?</i><br /><br />To view 15,000 independent school districts which vary widely in size as a monolith requires the mind of a Mickey marketeer. But quite obviously there are a lot of people who hold this view.<br /><br /><i>We do see variability between schools and districts: isn't that an experiment with lots of different treatments?</i><br /><br />We certainly do see variability--within classes, within and between school, within and between districts, and within and between states. With this variability one can find support for any statement one cares to make about "schools."<br /><br />However this doesn't constitute an experiment because who haven't the foggiest notion of what the "treatments" are. When the classroom door is closed a teacher can do just about what he or she cares to do.<br /><br />Teachers have to be careful about what they <i>say</i> they are doing, but what teachers say they are doing and what they are doing are two different things.Dick Schutzhttps://www.blogger.com/profile/09815175767173164494noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-20212607751837030812010-11-04T18:05:20.100-04:002010-11-04T18:05:20.100-04:00Parry,
Yes, there is variability between schools ...Parry,<br /><br />Yes, there is variability between schools and districts. Indeed, there is something in the economics literature called the Tiebout thesis that says governments compete with other governments by offering different tax/service packages to potential residents.<br /><br />I suspect Malcolm would largely dismiss this variation for at least two reasons. <br /><br />One, people don't have good information on what school is better than another so the existing variability doesn't matter much. You yourself said you couldn't say what school would be best to send your daughter to.<br /><br />Two, the variability is highly constrained. Laws, regulations, accrediting agencies force all schools into the same basic structure. It is a world where seat time means more than anything else. Of course, if a primary function of a school system is day care, that's a feature, not a bug.Roger Sweenyhttps://www.blogger.com/profile/12734128265493099062noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-34510331531544011722010-11-04T17:48:51.554-04:002010-11-04T17:48:51.554-04:00(Parry): "We do see variability between schoo...(Parry): "<i>We do see variability between schools and districts: isn't that an experiment with lots of different treatments?</i>"<br /><br />Yes. Around 1900, when most of the the US population lived on farms or in small towns, and children walked to school, the US had about 160,000 school districts. Today it has fewer than 16,000. State-wide collective bargaining laws, teacher credential requirements, statutory curriculum requirements and age of compulsory attendance reduce within-State variation between school districts.<br /><br />I have used this variation in relation to State-level NAEP scores. <br /><br />Across the US the correlation between % of districts which use Praxis to screen applicants and NAEP scores is negative. I suppose that "Praxis" is a proxy for "College of Ed degree". The correlation between % of districts which use a test of basic skills to screen applicants for teaching jobs and State-level NAEP scores is positive. <br /><br />College of Education coursework should count against applicants. <br /><br />As predicted by the "aggregation destroys information" model, the correlation between three measures of district size (State-level mean, % of total enrollment in districts over 15,000 or 20,000, % of total enrollment assigned to one or another of the top 130 largest districts in the US), on the one hand, and NAEP Reading Math (composite, Numbers and Operation, Algebra and Functions) mean, percentile, and proficiency scores is NEGATIVE. Smaller is better. The correlation between district size and the White-Black test score gap is positive. Large districts exacerbate inequality. <br /><br />The correlation between age-start and NAEP 4th and 8th grade Reading and Math scores is positive. Later is better. Early compulsory attendance is counter-indicated.Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-89677496372857776692010-11-04T17:18:36.992-04:002010-11-04T17:18:36.992-04:00Roger: I found the WSJ article informative, partic...<i>Roger: I found the WSJ article informative, particularly</i> <b>the difference between "political entrepreneurs" and "market entrepreneurs"</b><br /><br />That's one of the themes of Burton Folsom's <i>The Myth of the Robber Barons</i>: that some people make money providing a better or cheaper service and some people make money by getting special treatment from the government. Providing a better good or service often requires finding a way around existing privilege. (The first edition of the book was titled <i>Entrepreneurs vs. the State</i>.)<br /><br />It's an interesting book: short (about 135 pages) and without jargon, a book of stories with (economic) moral lessons.Roger Sweenyhttps://www.blogger.com/profile/12734128265493099062noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-78357482191168913492010-11-04T17:10:59.008-04:002010-11-04T17:10:59.008-04:00Throughout this thread, we're speaking of Stat...Throughout this thread, we're speaking of State schools in mostly monolithic terms; for example, when Malcolm says that "the State must deal with children in aggregate and operate without the close knowledge of each individual child's interests and aptitudes that parents possess" or "a State-monopoly enterprise is like an experiment with one treatment and no controls".<br /><br />But are we really talking about a monolithic enterprise? Most school districts are small. While there are clearly commonalities across school districts, is it wrong to think of each school district as its own, potentially entrepreneurial entity? When Malcolm says that public schools must operate in the aggregate, I partially agree -- from the central office level, policies are created that apply to all students, and there are federal and state mandates (such as standards and standardized testing) that apply to all public schools -- but individual schools and teachers deal with students primarily as individuals. Some schools and teachers are better at appropriately differentiating educational opportunities, but I am not certain that a monolithic description of K-12 education is entirely accurate. We do see variability between schools and districts: isn't that an experiment with lots of different treatments?<br /><br />ParryParry Grahamhttps://www.blogger.com/profile/01109638345554364909noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-12566620016433765982010-11-04T15:00:15.771-04:002010-11-04T15:00:15.771-04:00(Schutz): "Malcolm: I'd respond, but it w...(Schutz): "<i>Malcolm: I'd respond, but it would just encourage you to re-re-repeat yourself.</i>"<br />Some students get it quickly and some require several iterations. I'm used to working with both types. A self-paced curriculum allows the quicker students to move ahead while the slow ones review the lesson.Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-76902398530958492252010-11-03T19:27:30.438-04:002010-11-03T19:27:30.438-04:00Roger: I found the WSJ article informative, parti...Roger: I found the WSJ article informative, particularly <i>the difference between "political entrepreneurs" and "market entrepreneurs"</i><br /><br />Malcolm: I'd respond, but it would just encourage you to re-re-repeat yourself.Dick Schutzhttps://www.blogger.com/profile/09815175767173164494noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-50307174822107447452010-11-03T18:46:35.079-04:002010-11-03T18:46:35.079-04:00(Parry): "First, there isn’t good, transparen...(Parry): "<i>First, there isn’t good, transparent data available about school quality...Second, schools are complex places. It’s not like buying a bag of chips where I can eat the bag, decide “I didn’t really like that”, and then decide not to buy those chips again. Deciding whether or not your child is getting a good education is difficult, and depends on a whole host of factors.<br /></i>"<br /><br />Don't State (government, generally) actors face the same difficulty? If so, how does State assumption of responsibility for education improve the performance of the industry. State assumption of responsibility for the delivery of education services, and the policy which restricts parents' options for the use of the taxpayers' K-12 eduation subsidy to institutions operated by dues-paying members of the NEA/AFT/AFSCME cartel, make the problems worse. <br /><br />First, and most important, the State must deal with children in aggregate and operate without the close knowledge of each individual child's interests and aptitudes that parents possess. By analogy, it's as though the State must prescribe one shoe size and design for all 6-year-olds, one size and design for all 7-year-olds, etc., while parents in a competitive market in education services would have their choice of stores, sizes, styles, and prices. <br /><br />As an aside, a competitive market might generate boutique providers of instruction in one subject only: Berlitz language schools, Kumon Math schools, Fred Astaire Dance schools, etc. Disaggregation would make analysis easier. <br /> <br />Second, and somewhat related, State actors must avoid policies which create legal liability through "disparate impact", as when the AP Calculus classes in Eastern seaboard schools contain disproportionalely many Jews and East Asians and disproprtionately few WASPs, Blacks and Hispanics. In a voucher-subsidized competitive market in education services, schools sell what parents demand (within limits determined by the State's definition of "education"). If Vietnamese parents like pho and Black parents like ribs and collard greens, that's their business. <br /><br />Third, competitive markets generate information, while a State-monopoly enterprise is like an experiment with one treatment and no controls. This fundamental insight of the Austrian school is a huge topic in itself.Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-71588970471154732432010-11-03T16:35:38.473-04:002010-11-03T16:35:38.473-04:00(Parry): "...aren’t informed consumers one of...(Parry): "<i>...aren’t informed consumers one of the prerequisites for an effectively functioning free market?</i>"<br /><br />"Informed" and "effectively" are matters of degree. Enterprises and advertising co-evolve in response to competitive pressure. Evolution usually is not about large-scale mutation but about the steady accumulation of incremental advantages. Even when an entrepreneuer imagines a transformative technology, it is usually a few courageous investors (here's where the tax treatment of non-profit organizations makes a big difference) and a few exceptionally informed customers who support the innovation. <br /><br />Many parents, just from habit, will prefer traditional schools when given the choice of credit-by-exam from a mail-order school. Credit-by-exam could save taxpayers tens or hundreds of billions per year, but the system insiders into whose bank accounts the $700+ billion K-PhD revenue stream flows will oppose change. <br /><br />According to Neal McClusky at the Cato Institute, the likely Republican chair of the House Education and Labor Committee inclines toward the preservation of the current system. Apparently the US has to fly off the cliff before politicians challenge the public-sector unions.Malcolm Kirkpatrickhttps://www.blogger.com/profile/01294436437292859972noreply@blogger.comtag:blogger.com,1999:blog-25541994.post-39013551953803365662010-11-03T00:34:53.627-04:002010-11-03T00:34:53.627-04:00Ken,
If you haven't seen it, Folsom (in the c...Ken,<br /><br />If you haven't seen it, Folsom (in the context of Vanderbilt and his steamships and the difference between "political entrepreneurs" and "market entrepreneurs") was mentioned in a book review in the Wall Street Journal on Friday:<br />http://online.wsj.com/article/SB10001424052748704380504575530332139071998.htmlRoger Sweenyhttps://www.blogger.com/profile/12734128265493099062noreply@blogger.com