Vouching for Choice

In the past several years a wave of education reform has swept across the United States. Charter schools are on the rise, vouchers programs are springing up in various parts of the country, and parents have more control over their child’s education than at any time in our country’s recent past. This commendable progress, although far from finished, owes much to the efforts of Milton Friedman. Friedman consistently and forcefully espoused the virtues of educational choice and flexibility.

Perhaps the most well known of Friedman’s educational reform proposals was the school voucher system. In his seminal book “Free to Choose,” Friedman diagnosed the problem with the nation’s education system: “For schooling, the sickness has taken the form of denying many parents control over the kind of schooling their children receive. … Power has instead gravitated to professional educators.” Friedman recognized that the solution was to give parents more flexibility as to where their kids could go to school.

Friedman’s voucher plan, originally proposed in the 1955 essay “The Role of Government in Education,” was remarkably straightforward. Friedman noted that when a child is withdrawn from a public school and sent to a private school, taxpayers are spared the expense and liability of educating that child. There remains a disconnect, however, as the family that withdrew the child receives “no part of that saving except as it is passed on to all taxpayers.” Therefore, Friedman advocated giving such families a voucher in exchange for relieving the state of their child’s educational costs. If the family saves the state $4,000 in costs and receives a $2,000 voucher in return, the state still saves money while the family simultaneously receives assistance for private school tuition. This financial aid, in turn, would make private schooling financially feasible for a greater number of families.

In May of this year, Indiana passed comprehensive education reform legislation that the Wall Street Journal editorial board called “the most ambitious voucher program in memory.” The law provides over 7,000 vouchers in its first year of enactment, eventually uncapping the number of available vouchers in three years (but still limiting availability through means-testing). The vouchers award up to $4,500 for students who are in public schools and want to switch to another public or private school. The legislation also includes other mechanisms that enhance school choice, such as a $1,000 tax deduction for families that spend money on private school expenses. Other places where Friedman-inspired educational choice legislation has been proposed or enacted include Texas, New Orleans, Florida and Washington, D.C.

Although this wave of education reform is welcome, the gains achieved are tenuous and reversible. Entrenched interests — most notably public-sector teacher unions — are determined to stymie reform efforts. Given their organizational advantages and significant financial war chest, such entities are a constant threat to school choice.

It is also important recognize that vouchers are not the be-all-end-all of the educational reform movement. As Friedman himself wrote, “[My wife Rose and I] regard the voucher plan as a partial solution because it affects neither the financing of schooling nor the compulsory attendance laws. We favor going much farther.”

Friedman’s own intellectual contributions to education have made “going much farther” a greater possibility than ever before.

Milton Friedman and Historical Landmarks

Time flies, and with it the memory of the late economist Milton Friedman, who would have been 99 years old this year. However, we at the Mackinac Center and the Foundation for Educational Choice hope to revive Friedman’s legacy by hosting some lectures this Friday on his monetary policy. It is also the 15oth anniversary of the American Civil War, an issue encompassing a context for economic analysis.

Friedman’s free-market principles are vital to comprehending monetary supply during the Civil War. An entire generation of brothers hammered their plowshares into swords. As Northern factories shaped rifles and Southern farmers smelt bullets, the strain on local economies was enormous. Like a plague of locusts, the “terrible swift sword” burned through the Virginian Shenandoah Valley and across Georgia, destroying Southern crops and vegetation. Along the Western front, raiders on both sides wreaked havoc on the civilian populace. In the words of a song, “not now for songs of a nation’s wrongs,
not the groans of starving labor; Let the rifle ring and the bullet sing to the clash of the flashing sabre!” The elephant in the room was big government, as usual. Both North and South inflated their money supplies, causing a rise in prices. Southern currency especially suffered a significant decrease in value due to the printing of excess Confederate money. As was apparent to Friedman, inflation is most often the fault of central banks, like those during the Civil War, that print more money than reflects actual market demand.

As a historian, I have always found Friedman’s work to be historically pertinent. His view of the late 19th and early 20th centuries as an era of prosperity deserves more academic acceptance than it gets. I agree with Friedman’s impression that America during the Victorian era was a beacon to all those persecuted peoples throughout the earth who wished simply for the freedom to work hard for their existence. It was not a “gilded age” as historians want to paint it but a golden one. Friedman’s love for America’s heritage and his presumption of good will to all people, even his enemies, are his two qualities I admire most.

This Friday will be a day of both celebration and solemn reflection, as we remember Friedman’s legacy and the many thousands of lives lost during the Civil War. History often repeats itself in various forms. If we do not apply absolute principles to past events, we will be subject to repeating the same mistakes that history contains. We must remember those who are important in the history of our freedom, and reclaim our historical landmarks of liberty.

E. Wesley – Mackinac Center Intern

Image of CivilWarFifeandDrum from Wikipedia

Knowing Friedom

John Maynard Keynes famously quipped, “Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.” Free-market economist Milton Friedman, however, actually did manage to capture the minds not only of practical men, but of politicians and even other intellectuals. He understood that the world would change if people understood the meaning of freedom.

Historic social and political movements began with powerful ideas. For instance, the rise of the Roman Empire predicated itself on the idea of Roman citizenship and a sense of personal duty, and America’s founding relied on a distinct knowledge of personal liberty and its implied negative rights. Pivotal events, such as shifts of culture or the rise of a new state, occur in response to the outcomes of various conflicts in an ongoing war of ideas.

Milton Friedman joined this intellectual struggle knowing that education provides the best weapon. Most importantly, he believed education was a personal undertaking. This perception led to his recognition that most current “education” was actually compulsory schooling or training. The government mandated that children attend taxpayer-funded schools where little to no actual education ever occurred. His solution: school vouchers, which enabled parents to choose where they think their children will be best educated, whether it be public schools, private schools, charter schools or even home schools. Vouchers redirect taxpayer dollars from bureaucrats to the families who need them, coupling education and choice to make the greatest impact.

Friedman’s book “Free to Choose” and a subsequent television series highlight the tenets behind the power of ideas and an education’s role in shaping those ideas. Free markets result from a combination of individual choice and scarcity of information. They offer great benefits, but require individuals to trade with each other in order to obtain them. These types of exchanges only result when individuals possess freedom of choice. This idea undergirded America’s economy until progressive promotion of increased centralization eroded individual choice and increased government meddling in the economy. Thanks to their efforts, a large portion of Americans now hold the institution of federal government responsible for their every need, from the cradle to the grave.

Ultimately, Friedman recognized education’s foundational role in changing society’s institutions. Sustainable political change must be preceded by sustainable social change, which can only result from education. The battle of ideas starts in our schools. Friedman knew ideas like individual choice and freedom had lost significant ground there, but he also recognized that the ground could be regained by letting people choose how they want to educate themselves. He, like economist F.A Harper, knew that “men who know freedom will find ways to be free.”

An Ode to the Frie Market

Milton Friedman won a Nobel Memorial Prize in economics
But that isn’t all about this man; a lesson on him isn’t quick

Born in Brooklyn, New York in July of nineteen hundred twelve,
Milton Friedman was a brilliant economist; in this topic he deeply delved

For thirty years, teaching economic theory was his passion
At the University of Chicago he taught the youth of the nation

As “the most influential economist of the second half of the 20th century,”
His ideas spread like wildfire, to almost everyone, and were not elementary

Big government he said to shun,
Instead, free markets should have all the fun

The virtues of a free market system are so clear
Market intervention a nation should never have to bear

The government’s role in the economy should be greatly restricted.
Interference would only bring about poverty, depressions, and an economy constricted

A natural rate of unemployment he believed existed
No government could change this rate; it was healthy and should not be resisted

Though greatly opposed to the Federal Reserve,
Advice he still gives so the economy will be preserved

The advice: A small steady expansion of the money supply is the only way
If the central bank did otherwise, hyperinflation would never be kept at bay

Services offered by the government can be inefficient,
Should be performed by the private sector: that’s where they ought to be sent

One of these services is the production of money,
The private sector should produce it; and a gold base will lead to the highest stability

“Inflation is always and everywhere a monetary phenomenon,” he claimed
The relation between inflation and the money supply is close, he proclaimed

A monetarist at heart: Control of price inflation should be done with monetary deflation
In addition, price deflation is best controlled by only monetary inflation

An economic adviser to Ronald Reagan,
He predicted the policies of Keynes were bad, close to pagan

Not only would they cause high inflation
But minimal growth; later called stagflation

“Capitalism and Freedom,” a book he co-authored in nineteen sixty two
Speaks for policies like volunteer military and education vouchers, just to name a few

“A Monetary History of the United States,” which he published in nineteen sixty three
Investigates the role of money supply and economics in U.S. history

“Free to Choose,” another book that he and his wife did write,
Is where on monetary policy they shed much light

A staunch supporter of libertarian ideas, he took a chance,
When he fought for legalization of drugs and prostitution, not a popular stance

“Nothing is so permanent as a temporary government program” is his quote,
Noting: Once a program is started, participants will do everything to keep it afloat

He coined the phrase, “There’s no such thing as a free lunch.”
Someone always pays in the end, and will feel the punch

Milton Friedman taught many good economic lessons
Which if heeded, may have kept us out of horrid recessions

With a full life behind him and theories not previously in the mix,
Friedman died on November 16 of two thousand and six

Though he is gone, this week we honor the day Friedman was born
Today his advice to us would be, go free the market rather than mourn