Coyote Blog

Scene 1, History AP:  My son asked me how WWII ended the Depression.  I said that the draft soaked up a lot of excess workers, which reduced unemployment, and British buying for the war helped our economy but that the war generally destroyed rather than created wealth.  He said, "Dad, you can't tell it to me that way.  The guy grading the AP is going to be a Keynesian."  So we talked multipliers and aggregate demand.

Scene 2, Spanish AP:  My son hands me a list of Spanish words he is trying to learn.  They are the Spanish words for things like "social justice,"  "poverty", "exploitation", etc.  I told him it was an odd selection of words.  He said that nearly every Spanish essay in every Spanish textbook he had ever had were about revolution and stopping the rich from exploiting the poor and fighting global warming.  So he wanted to be prepared for a similar topic on the AP.    After the test, I remembered this conversation and asked him what the essay was.  He said the topic was "show why the government of poor countries should give free bicycles to the poor to fight global warming."

Via Mark Perry

From yesterday's Census report on educational attainment, the chart above shows the college degree gap in favor of women for all levels of higher education for age group between 25-29.  More than 60% of advanced degrees are now held by women for that age group, up by more than three percentage points from the 58.2% reported by Census for 2009.  For African-Americans ages 25-29,  there are 239 women holding advanced degrees for every 100 men with graduate degrees (70.5% female vs. 29.5% male).

See his original for a good chart.

By the way, the answer to the question in the title is probably "no."  Advocacy groups never go away -- they just seek new problems.  Too much money to be gained in achieving victim status.

One of the things I struggle with in arguing for ending the government schools monopoly is a lack of imagination.  In most people's lifetimes, there has never been a robust network of private school options to fit all needs and budgets, so folks assume that that such choices can't exist -- that there is some structural failure of capitalism that would prevent these choices from existing rather than structural government factors that have prevented them from existing.

Don Boudreaux has a nice analogy that helps make the logic of school choice clearer.

As much as I enjoy seeing Yale circling the drain of self-destruction, I am simply flabbergasted by the most recent discrimination suit it faces from a group of current and former female students.

The Yale group's confidential Title IX complaint to the Department of Education's Office for Civil Rights (OCR) reportedly includes testimony about sexual assaults, but the hostile-environment charge against the university rests as well on a litany of complaints about offensive exercises of First Amendment freedoms. A December 2010 draft complaint letter, obtained by the Foundation for Individual Rights in Education (FIRE), focuses on these "incidents": In 2006, a group of frat boys chant "No means yes, yes means anal" outside the Yale Women's Center. In 2010, a group of fraternity pledges repeat this obnoxious chant outside a first-year women's dorm. In 2008, pledges surround the Women's Center holding signs saying, "We love Yale sluts." In 2009, Yale students publish a report listing the names and addresses of first-year women and estimating the number of beers "it would take to have sex with them."

There are few adults who would not recognize these incidents as stupid, boorish frat-boy behavior not to be emulated.  But taking Yale to court, in effect seeking to force the University to punish such speech, takes the current college trend of protection the right not to be offended to absurd extremes.

Consider for a moment that there are radical women's organizations on most college campuses that take it as an article of faith that all men are rapists and all men are complicit in violence against women.   How is this speech any less aggressive, though it is treated with complete respect by universities.  In fact, many integrate this point of view into required Freshman sensitivity training.   Women on compuses routinely engage in speech saying that every man is a guilty felon complicit in awful crimes, and I don't see any men whining and running to Uncle Sugar to protect their delicate ears from offense.  At least the frat boys were probably drunk and joking -- the women are sober and dead serious.

Don't not be mistaken -- this is not about rights or freedom, but about a bid for totalitarian control of campuses by a niche group.  From Wendy Kaminer

Sad to say, but feminism helped lead the assault on civil liberty and now seems practically subsumed by it. Decades ago, when Catherine MacKinnon, Andrea Dworkin, and their followers began equating pornography with rape (literally) and calling it a civil-rights violation, groups of free-speech feminists fought back, in print, at conferences, and in state legislatures, with some success. We won some battles (and free speech advocates in general can take solace in the Supreme Court's recent decision upholding the right to engage in offensive speech on public property and public affairs). But all things considered (notably the generations of students unlearning liberty) we seem to be losing the war, especially among progressives.

This is not simply a loss for liberty on campus and the right to indulge in what's condemned as verbal harassment or bullying, broadly defined. It's a loss of political freedom: the theories of censoring offensive or hurtful speech that are used to prosecute alleged student harassers are used to foment opposition to the right to burn a flag or a copy of the Quran or build a Muslim community center near Ground Zero. The disregard for liberty that the Obama administration displays in its approach to sexual harassment and bullying is consistent with its disregard for  liberty, and the presumption of innocence, in the Bush/Obama war on terror. Of course, the restriction of puerile, sexist speech on campus is an inconvenience compared to the indefinite detention or show trials of people suspected of terrorism, sometimes on the basis of un-reviewed or un-reviewable evidence. But underlying trivial and tragic deprivations of liberty, the authoritarian impulse is the same.

PS-  The last part in the first quote about rating women as related to sex is ironic, as, if memory serves, Yale was the location around 1980 when a group of female students created a guide rating male students on their sexual talents.  When women do it, it is a brave act of liberation.  When men do it, it is sexual harassment.

PPS-  My son is going through the college admissions process.  All these schools stress how much they are looking for future leaders.  How can Yale be so selective that it has an admissions rate around 7% of applicants but still end up with so many people who cannot function in the world as an adult?  The women are begging to have a daddy to protect them and the men seem to need a daddy to kick their ass until they act like adults.

I was struck by this article about a kid who was bullied for years finally fighting back against his tormentors, and being suspended for his efforts.   I was physically bullied for years in elementary school and it was not until middle school I woke up one day and realized I was now a lot bigger than the perpetrators and I beat the sh*t out of one of them in a library study room.  Problem over.

I am probably the most passive, least violent person in the libertarian blogosphere (half the sites I really like sound like Burt Reynolds in Deliverance).  For God sakes, I am a libertarian that does not even own a freaking gun.  But at some point there are people who only understand violence.  I figure five years of failed attempted dialog on my part constituted sufficient due diligence before I activated the ground troups.  Afterwards, I was absolutely embarrassed that that the problem turned out so easy to end.

PS-  This is NOT a plea for some stupid government anti-bullying program.  It sucks to be bullied, but it would suck worse to have the government try to aggressively administer justice among 13 year olds.

Glen Reynolds has a great observation on government social engineering.  I hadn't thought about it this way before, but in many ways government drives for things like home ownership are like a cargo cult

The government decides to try to increase the middle class by subsidizing things that middle class people have: If middle-class people go to college and own homes, then surely if more people go to college and own homes, we’ll have more middle-class people. But homeownership and college aren’t causes of middle-class status, they’re markers for possessing the kinds of traits — self-discipline, the ability to defer gratification, etc. — that let you enter, and stay, in the middle class. Subsidizing the markers doesn’t produce the traits; if anything, it undermines them

I generally hesitate to publish links to such stories without having heard the other side or seen any objective reporting, but none-the-less, if true, this is a pretty amazing story.  In it, Oregon State University is being accused of seeking retribution against a Republican Congressional candidate by harassing and expelling his kids.  (via Green Hell Blog)

You often hear people say that one of the main reasons for health care inflation is the cost of all the new technology.  But can you name any other industries that compete in free markets where technology introductions have caused inflation rates to run at double the general rate of inflation?  In fact, don't we generally associate the introduction of technology with reduced costs and increased productivity?

Compare a McDonald's kitchen today with one thirty years ago -- there is a ton of technology in there.  Does anyone think that given the price-sensitive markets McDonald's competes in, this technology was introduced to increase prices?

Or look at medical fields like cosmetic surgery or laser eye surgery.  Both these fields have seen substantial introductions of new technology, but have seen inflation rates not only below the general health care inflation rate but below the CPI, meaning they have seen declining real prices for decades.

The difference is not technology, but the pricing and incentive system.  Cosmetic surgery and laser eye surgery are exceptions in the health care field -- they are generally paid out of pocket rather than by third parties (Overall, third party payers pay about 88% of all health care bills in the US).

The problem with health care is not technology -- the problem is that people don't shop for care with their own money.

Postscript:   Thinking some more after I wrote this, I can think of one other industry where introduction of technology has coincided with price inflation well above the CPI -- education.  It is interesting, but not surprising to me, that this is the other industry, along with health care, most dominated by third party payer systems and public subsidies of consumers.

Quick bleg here -- if you have any contacts with organizations of homeschoolers in AZ, could you drop me an email?  Our small high school is, due to some random factors, short of baseball players.  We have a well-coached program on a nice field and play in the Arizona (AIA) 2A league against public and private schools.  Homeschoolers are eligible to play for us and we would love to find some dedicated players looking for this kind of experience.   Many of our kids make the starting lineup as Freshmen, so there is a lot better chance of getting good playing time here vs. other larger high school programs.  All positions are welcome but from a personal standpoint, since my son is first in the rotation, we could really use some pitchers so he doesn't need Tommy John surgery by the end of the year ;=)

From the Chronicle of Higher Education via TaxProf Blog

If you want to get a job at the very best law firm, investment bank, or consultancy, here’s what you do:

1. Go to Harvard, Yale, Princeton, or (maybe) Stanford. If you’re a business student, attending the Wharton School at the University of Pennsylvania will work, too, but don’t show up with a diploma from Dartmouth or MIT. No one cares about those places. ... That’s the upshot of an enlightening/depressing study about the ridiculously narrow-minded people who make hiring decisions at the aforementioned elite companies. ... These firms pour resources into recruiting students from “target schools” (i.e., Harvard, Yale, Princeton) and then more or less ignore everybody else. Here’s a manager from a top investment bank describing what happens to the resume of someone who went to, say, Rutgers: “I’m just being really honest, it pretty much goes into a black hole.”

Being, I suppose, an insider to this process (Princeton - Harvard Business School - McKinsey & Company) I'd like to make a few comments

• First and foremost, this problem cuts both ways.  I can imagine outsiders are frustrated with the lack of access.  But as an insider I can tell you  (cue Admiral Akbar) It's a Trap!  You go to Princeton, think, wow, I did well at Princeton, it would be a waste not to do something with that.   You are a competitive sole, so getting into a top grad school is an honor to be pursued just like good grades.   So you go to Harvard Business School (it could have been Harvard Law) and do well.  And what is the mark of achievement there? -- getting a job at a top consultancy or top investment bank.  So you take the McKinsey job, have your first kid, and what do you find out?  Wow, I hate this job!  In fact, the only thing I would have hated more is if I had taken that Wall Street job.   Eventually you find happiness running your own company, only to discover your Ivy League degrees are a liability since they intimidate your employees from sharing their ideas and most of the other guys you know successfully running businesses went to Kansas State or Rutgers.
• My only data point inside this hiring process is from McKinsey about 15-20 years ago, so it may be out of date.    But at that time, the above statement would be BS.  Certainly hiring was heavily tilted to the top Ivies and a few top business schools.  But we had people with undergrad degrees from all over - in fact most of our office in Texas had undergrad degrees from the Texas state schools  (at lot from BYU too -- McKinsey loved the Mormons).  At the time, McKinsey was hiring hundreds of people out of business school around the world each year.  No way this could have come from only a few schools.
• My hypothesis is that this may be more a regional than an industry bias, limited to Boston/New York/East Coast.  Since many top law firms and consultancies and investment banks are in NYC, they reflect this local bias.  But I would bet these same firms and industries hire differently outside of the East Coast.
• There is some rationality in this approach - it is not all mindless snobbism.   Take Princeton.  It screens something like 25,000 already exceptional applicants down to just 1500, and then further carefully monitors their performance through intensive contact over a four year period.  This is WAY more work and resources than a private firm could ever apply to the hiring process.  In effect, by limiting their hiring to just a few top schools, they are outsourcing a lot of their performance evaluation work to those schools.

Two great takes on the Amy Chua article on the superiority of Chinese moms.  I will begin by saying that I went to an Ivy League school and would love to see my kids go there as well.  But the be-all end-all drive to get into such a school, combined with 6% admissions rates, seems to be a recipe for a lot of unhappiness.  Especially since the vast, vast  (did I say vast?) majority of the most successful people I have met in my life went to non-name-branded schools.

The first take is from the Last Psychiatrist:

I'll explain what's wrong with her thinking by asking you one simple question, and when I ask it you will know the answer immediately.  Then, if you are a parent, in the very next instant  your mind will rebel against this answer, it will defend itself against it-- "well, no, it's not so simple--" but I want to you to ignore this counterattack and focus on how readily, reflexively, instinctively you knew the answer to my question.  Are you ready to test your soul?  Here's the question: what is the point of all this? Making the kids play violin, of being an A student, all the discipline, all of this?  Why is she working her kids so hard?  You know the answer: college.

She is raising future college students.

Oh, I know that these things will make them better people in the long run, but silently agree that her singular purpose is to get the kids into college.  Afterwards she'll want other things for them, sure, but for 18 years she has exactly one goal for them: early decision.

The second take is from TJIC:

Professor Amy Chua is part of two broken credentialist mindsets: the Chinese Confucian admissions-to-the-imperial bureacracy memset, and the American academic admissions-to-the-Ivy-League memeset. (But perhaps I repeat myself).

Heck, she’s risen to a top spot in the American conformist system – she’s a PhD and a professor at a top university. Of course she buys into the implied social hierarchy.

I climbed much of the way up that particular hierarchy, and then decided towards the end of the process to bag on a PhD. Why? Because I looked around and realized that PhDs, even professors at Ivy League schools, weren’t really accomplishing much, and weren’t really happy.

I do interviews for Princeton as part of the admissions process.  I am not sure that the admissions office would agree with my approach, but I spend time in the interviews trying to figure out if a high achieving student has succeeded by grimly jumping through hoops under his or her parents' lash, or if they have real passion and interest in the things they do.  I tend not to be impressed by the former.

Seriously, are we really celebrating the creation of a whole generation of our brightest kids who get all their motivation externally?  What happens when the motivation prosthetic they have been using goes away?

Postscript: From the first article

That's why it's in the WSJ.  The Journal has no place for, "How a Fender Strat Changed My Life."  It wants piano and violin, it wants Chua's college-resume worldview.

Oh how I wish my parents had forced me to play electric guitar rather than piano.

Its hard to believe these kids at top schools can be so credulous, except that I attended an Ivy League school and saw many such dopes in action.  But even given that preparation, I still can't get over the feeling that this is some kind of elaborate performance art rather than an real effort.  If it's real, it does reinforce all my stereotypes about Brown, however.

University of Arizona President Robert Shelton absolutely berates the state legislature as a bunch of Neanderthals for slashing his budget:

During this period, we have seen our state appropriation cut by nearly one-quarter, going from approximately $440 million to $340 million. The impact of these cuts has been amplified because they have come at a time when we have been asked to grow our enrollment substantially, and indeed we have done just that, setting records for enrollment in each of the past four years.

So the sound bite for this year is that we are being asked by the state to do much, much more, while being given much, much less....

The sad thing, though, with some of these legislators is that they have no idea how much they risk our state's future (and the quality of life for people who live here) when they try to lay waste to the single greatest engine of economic mobility that has ever been created. Because that's what public higher education in this country is.

Here he gets over the top -- look at the words he uses for the state legislature

When malevolent people talk about wanting to dismantle and destroy great universities, all they achieve is dire consequences for the human condition.

I am sure for the children shows up in there somewhere.  But is he right.  Well, technically, the legislature did cut his general fund appropriation.  But then they gave it back to him, and more, in different budget categories.  As it turns out, Shelton is being unbelievably disingenuous about this, and only the fact that most of his students went to public high schools and therefore can't do math lets him get away with such an address.  Greg Patterson tracks down the facts:

I contacted the Joint Legislative Budget Committee and asked for UA's total funding.Here's the response:

Mr. Patterson

UA's originally enacted FY 2008 General Fund appropriation was $362.4 million, and their current year (FY 2011) General Fund appropriation is $271.3 million, which is a decrease of $(91.1) million.

UA was appropriated $117.7 million in Other Appropriated Funds in FY 2008 and $219.3 million in the current year, which is an increase of $101.6 million.

UA's Non-Appropriated and Federal Funds budget was $786.7 million in FY 2008 and $911.3 million in FY 2011, which is an increase of $124.6 million.

In total, UA's FY 2008 budget was $1,266.8 million and their FY 2011 budget was $1,401.9 million, which is a total increase of $135.1 million.

So the University of Arizona's total budget has increased by $135.1 million--over 10%--during the period in which the "malevolent" state leaders have been "slashing" the funding.

Unbelievable.  I am so sick of statists crying budget cut when in fact their budgets are increasing.  Mr. Shelton goes on for thousands of words of drivel about the poor state of public discourse in Arizona while simultaneously dropping this turd in the punch bowl.  How is public discourse supposed to improve when the president of one of our two state universities is spewing out what he must know are outright fabrications and misrepresentations.  Pathetic.

Onion News Network:  Are Standardized Tests Biased Against Kids Who Don't Give a Shit? Via Carpe Diem.  The Onion is brilliant because in some ways, this is absurd and some ways it cuts way too close to reality.

Congress is cracking down on for-profit universities that market relatively fast degrees (< 2 years) in certain vocational programs like auto mechanics.  Apparently, Congress is concerned about "vocational programs in which a large share of students don't earn enough to pay back their loans."

So Congress is worried about students paying several thousand dollars and investing 18 months of their lives for a degree that may not repay their student debts.  No word yet on whether they are looking into students who spend four years and $160,000 for Ivy League gender studies degrees, which we all know have simply enormous income-generation potential.

From David Bernstein

The president went to Harvard, and barely defeated a primary opponent who went to Yale. His predecessor went to Yale and Harvard, and defeated opponents who went to Yale and Harvard, and Harvard, respectively. The previous two presidents also went to Yale, with Bush I defeating another Harvard grad for the presidency. And once Elena Kagan gets confirmed, every Supreme Court Justice will have attended Harvard or Yale law schools.

I know that Harvard and Yale attract a disproportionate percentage of America's talented youth, but still, isn't this a bit much? Are there no similarly talented individuals who attended other Ivy League schools, other private universities or (gasp!) even state law schools?

For what its worth, I have a Princeton undergrad degree and an MBA from Harvard and the number of Harvard-Yale-Princeton employees working for me in our 420-employee firm is ... zero.

Time to short those shares of the Teaching Company.  Yale is offering free videos of many of its introductory courses. HT:  Carpe Diem

From Ed Morrissey:

Chicago Breaking News reported late last night that former Chicago schools chief and current Secretary of Education Arne Duncan manipulated a system to favor powerful political allies by placing their children in the schools of their choice.  The discovery of a  list, the existence of which had been long denied by the city, and its composition of mainly high-powered political figures calls into question the appeals system used to reconsider applications that had been denied by the top Chicago-area schools:

This is going to be even more fun when this game is applied to jumping the hospital waiting list.

For years I have argued that the killer app that may someday actually lead to school choice will not be individual liberty (because no one in government gives a rip about that any more) and not education quality (because again, its clear no one really cares) but speech and religion.  If the right messes up schools enough, the left might finally be willing to shed their alliance with the teachers unions and consider school choice.  From a live-blog of a Texas Board of Education meeting (via Radley Balko)

9:27 - The board is taking up remaining amendments on the high school world history course.9:30 - Board member Cynthia Dunbar wants to change a standard having students study the impact of Enlightenment ideas on political revolutions from 1750 to the present. She wants to drop the reference to Enlightenment ideas (replacing with "the writings of") and to Thomas Jefferson. She adds Thomas Aquinas and others. Jefferson's ideas, she argues, were based on other political philosophers listed in the standards. We don't buy her argument at all. Board member Bob Craig of Lubbock points out that the curriculum writers clearly wanted to students to study Enlightenment ideas and Jefferson. Could Dunbar's problem be that Jefferson was a Deist? The board approves the amendment, taking Thomas Jefferson OUT of the world history standards.

9:40 - We're just picking ourselves up off the floor. The board's far-right faction has spent months now proclaiming the importance of emphasizing America's exceptionalism in social studies classrooms. But today they voted to remove one of the greatest of America's Founders, Thomas Jefferson, from a standard about the influence of great political philosophers on political revolutions from 1750 to today.

From Andrew Coulson.  Math and reading scores probably underestimate changes in learning (e.g. doesn't account for increased need to teach computer skills in this timeframe).  But discourse on education often seems to assume the blue line is flat to down.    It is interesting that among the left, this chart is proof that we need to spend more money while the exact same chart in health care (say with scores replaced by life expectancy) is proof we need to spend less money.  In fact, the health care chart would look better, because at least there the key metric of quality has increased over time.

Update: Here are the life expectancy stats, showing much more progress than education (despite being suppressed by an increasing murder rate in the period -- to really make it a metric of health care you need to pull out accidents and homicides).  So both health care and education spending go up a lot.  Education results show no improvement.  Health care results show strong improvement.  But education needs more money and health care less?  You'd almost think people's opinions on this were based more on feeding government run institutions and starving private ones, irregardless of results.

For years, I have suspected that a lot of increased per pupil spending in public schools has gone to increasing numbers of administrators rather than teachers or facilities.  I just have to compare the administration numbers at my kids private school and those at the local public school and the contrast is just amazing.

Mark Perry demonstrates a similar effect in state-run college education:

This decade has been good for associate vice chancellors at UNC-Chapel Hill. Their numbers have nearly doubled, from 10 to 19, and the money paid to them has more than tripled, to a total of nearly $4 million a year. The university now admits that some of these people were in jobs that were not vital. They represent the rapid management growth in the 16-campus UNC system that has added tens of millions of dollars to annual payrolls.

Now, with a tough economy and sinking tax revenues, UNC officials and state lawmakers say these jobs need cutting first.

Systemwide over the past five years, the administrative ranks have grown by 28%, from 1,269 administrative jobs to 1,623 last year, UNC-system data show. That's faster than the growth of faculty and other teaching positions -- 24% -- and faster than student enrollment at 14%. The number of people with provost or chancellor in their titles alone has increased by 34% the past five years, from 312 in 2004 to 418 last year. The cost was $61.1 million, up $25 million from five years before.

Perry also show similar numbers in his own university in Michigan.

Kudos to the UNC system for at least considering cuts in these bloated administrator positions.  You never see public grade schools systems ever suggest such cuts - when forced to economize, they always suggest cutting something inflammatory like textbooks for high school or crayons for kindergarteners.  One difference is that UNC faces competition from a myriad of other public and private colleges, while most local grade school districts do not.

I would still like to find similar staffing numbers for our local public school district, breaking out teachers from principals, assistant principals, and administrators, but they seem loath to share such detail.

Via TJIC:

It took decades and, at times, antagonistic battles, but Harvard's gay community says it has finally cemented its academic legitimacy at the nation's oldest university. College officials will announce today that they will establish an endowed chair in lesbian, gay, bisexual, and transgender studies, in what is believed to be the first professorship of its kind in the country.

Can the adults among us agree that a degree in LGBT studies has about zero economic value?  Even a history degree has more economic value, as history studies tend to still be accompanied by some academic rigor.  But the pathetic scholarship standards and non-existant statistical rigor with which most social sciences, and various [fill in the blank with oppressed group] studies departments in particular, are taught make the economic value of such a degree at best zero and at worst a negative.

I have no problem with anyone studying whatever they wish using their own resources.  This is one place I diverge with Ayn Rand -- she might say that pursuing non-productive activity is inherently immoral.  I would say that pursuing your own goals, whatever they be and however valuable or valueless they might be to others, is just fine as long as you don't demand that everyone else to support you.

The problem is that a degree at Harvard probably requires a $200,000 investment to complete.  Given that, beyond a few career spots in academia, a LGBT studies degree is unlikely to ever recover enough (versus having no degree)  to pay for such an investment, problems are inevitable.  Either someone (read: taxpayers) will likely foot the bill, or else some student is going to find herself with tens of thousands of dollars of student debt and no realistic way to pay it back.

In fact, this latter situation is a common leitmotif of recent media stories, the college grad unable to handle his or her shocking debt load.  Somehow, stories all seem to blame the capitalist system as a failure point.  Michelle Obama, who similarly pursued [historically oppressed group] studies at Princeton, has expressed just this point of view.

Despite their Ivy League pedigrees and good salaries, Michelle Obama often says the fact that she and her husband are out of debt is due to sheer luck, because they could not have predicted that his two books would become bestsellers. "It was like, 'Let's put all our money on red!' " she told a crowd at Ohio State University on Friday. "It wasn't a financial plan! We were lucky! And it shouldn't have been based on luck, because we worked hard."

Is this problem really so hard to diagnose, or have we gotten so politically correct we cannot state a fact out loud that everyone understands -- that is, some degrees have more economic power than others.  LGBT studies degrees likely have very little economic utility.  So it is fine to pursue such a degree, but don't be surprised when you are not offered a six-figure income at graduation, and don't come to me expecting that I pay for your choice.

Government officials have mastered the cost-cutting game, or should I say the cost-non-cutting game.  The trick they have learned is that whenever budget or tax cuts are proposed, they threaten to cut the most critical expenditures.

Now, as I have pointed out, such behavior in a private company would result in one's termination.

When I was in the corporate world, if I wanted extra funds for my projects, I would have to go in and say "Here are all my projects.  I have ranked them from 1-30 from the most to least valuable.  Right now I have enough money for the first 12.  I would like funding for number 13.  Here is my case."

But the government works differently.  When your local government is out of money, and wants a tax increase, what do they threaten to cut?  In Seattle, it was always emergency services.  "Sorry, we are out of money, we have to shut down the fire department and ambulances."  I kid you not "” the city probably has a thirty person massage therapist licensing organization and they cut ambulances first.   In California it is the parks.   "Sorry, we are out of money.  To meet our budget, we are going to have to close down our 10 most popular parks that get the most visitation."  The essence of government budgeting brinkmanship is not to cut project 13 when you only have money for 12 projects, but to cut project #1.

I can just see me going to Chuck Knight at Emerson Electric and saying "Chuck, I don't have enough money.  If you don't give me more, we are going to have to cut the funds for the government-mandated frequency modification on our transmitters, which means we won't have any product to sell next month."  I would be out on my ass in five minutes.  It just floors me that this seems to keep working in the government.  Part of it is that the media is just so credulous when it comes to this kind of thing, in part because scare stories of cut services fit so well into their business model.

Matt Welch has a great 8-point takedown of similar scare story on the current California budget crisis.  You should definitely read it, but I wanted to add a #9 -- this idea that the core, rather than the marginal, expense is always the first to be cut.  From the LA Times:

Gov. Arnold Schwarzenegger has proposed slashing state spending on education by $3 billion to help close the budget gap, and the state would pay dearly for canceling classes, firing instructors, cutting class days and shortening the school year, experts said.

Promising students would go to other states, taking their future skills, earnings and, possibly, Nobel Prizes elsewhere. California companies would then find it harder to attract high-value employees who might be dubious about moving to a state with sub-par schools. [...]

John Sedgwick, co-founder of Santa Clara solar-energy company Solaicx, agreed.

"When you think about the genesis of Silicon Valley, it really started from its superior educational base" at Stanford and UC Berkeley, said Sedgwick, whose company makes the building blocks for photovoltaic cells. "That indicates that you don't want to kill the goose that's laying the golden eggs." [...]

The only way the most "promising" students would be affected is if, when the schools cut back, the best professors (rather than the worst) are fired and the most promising students (rather than the most marginal) are denied admission for limited spots.  Really?  If Berkeley has 10 fewer spots, it's going to start cutting admissions with the Physics wiz kid who had a 2400 on her SAT?

Further, is it really true that California only attracts people to its work force who went to school in California?  A top Michigan or Harvard grad won't do just as well?  I went to college in New Jersey yet have never held a job in that state.

Now, I understand that part of the argument is that workers may not come if the local primary schools for their kids are bad.  And that is true.  But California has had poor performing schools despite years of high and increasing spending.  Matt has much more on this in his piece.

Postscript: Of course, as crazy as it seems, there may be some reality to this threat.  I could easily see the University of California system, when faced with the choice of cutting back on some post-modernist social science program or a physics program that has produced 7 Nobel Laureates, choosing the latter to cut in a fit of outrageous political correctness.

At the primary level, it is very possible that the bloated school administrations filled with rafts of useless assistant principals will choose to fire teachers rather than themselves.  So unfortunately the plans to cut the most useful spending in a crisis and keep the most useless is not just a threat, it is a reality.

Here, via Cato