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June 11, 2009
On substitutes c. 1909
The June 11, 1909 NYT reports on concerns similar to those voiced today by some social conservatives: Speaking yesterday before the National Conference of Charities and Correction at Buffalo, Mr. [Joseph] Lee had this to say about the plan urged by some philanthropists to feed school children at public expense:The question of public schools providing meals for "less advantaged" children is evidently not new and opponents voiced the same concerns 100 years ago as they do today. It is likely true that an undernourished child is less capable of learning, all else equal. To the extent that the public education system is intended to help create productive individuals who provide positive externalities, or fewer negative externalities, and to the extent that proper nutrition helps that process along, there might be justification for public schools feeding children. However, as the quote points out, there are few areas of a child's life that doesn't indirectly or directly impact the ability to learn. Once the education bureaucracy has taken it upon itself to ensure "quality of learning" then all areas of a child's life become fair game, including medical situations, home life, and, today, stretching to anti-bullying legislation and the like. In one sense the mission creep seems to be a direct assault on the freedoms of both the child and the parents. To many there is no compensation for these lost freedoms that justify the mission creep of the education system. For others, the mission creep is worth the expenditure so that no child is left behind. Whether the increased expenditures provide net social benefits would seem to be an empirical question but one that might be impossible to accurately assess. However, Coasian firm theory would suggest that there are limits to what the education establishment (as a quasi-firm) can internalize efficiently. It might not be practical, efficient, or even desirable for the schools to be teaching the three R's, while simultaneously discussing homosexuality with kindergartners (as they propose to do in NC), making sure everyone is healthy, fit, prepared to remain morally uncompromised, prepared to be morally compromised, to make sure that no child is bullied, and on and on. It is not in the nature of the bureaucrat, perhaps, to recognize the limits of efficient internalization. Thus it is incumbent upon parents and tax payers to at least suggest some limits. Alas, appealing to efficient firm theory is not likely to stir the emotions of the masses. The story goes on to suggest, much as people do today, that once schools start feeding students and providing medical inspections the country is on the slippery slope toward Socialism, not because of the teachers union but because the state starts to offer cost-effective (if not child-effective) substitutes to the family unit. I have bounced this hypothesis off my colleagues during more than one lunch. If parents are rational economic agents, and it is dangerous to assume they are not, then they are likely to substitute into relatively cheaper inputs to their household production function. Whether this constitutes State Socialism is a matter of opinion, perhaps, but it seems clear that the politicians and bureaucrats have figured out that some (most?) people demand, implicitly or explicitly, cheaper inputs to their household production function and the politicians/bureaucrats are all too happy to provide them. Unfortunately, when it comes to the care of children, the state's provision of care is what economists would characterize as a credence good - that is one where quality cannot be accurately assessed even after consumption. For example, how much better would Johnny have done in college if he had attended private high school? He can't repeat high-school so we will never know. Producers of credence goods get a little more scrutiny by industrial organization economists and policy (e.g., past limitations on lawyers advertising) but surprisingly not so much when it comes to education (and ostensibly health care in the future). The NYT story continues on with a kernel of economic intuition coated in the spectre of Socialism: My understanding of Socialist theory is that the claims of the story are generally correct. The family unit was destroyed under most (all?) of the implementations of State Socialism of which I am aware. Children were turned against their parents and other relatives and as a parent of three youngsters I am not sure there would be anything worse than such an event being caused by pure politics (rather than true criminal behavior). It is an interesting thought experiment whether the State can survive without the Family. This has me thinking about an Econ Talk podcast from a couple of years ago (to which I recently re-listened) of Bruce Bueno de Mesquita on how politicians stay in power, and how his hypotheses mesh with the concerns of those who see the State achieving an agenda through the children. Posted by Craig Depken at 10:58 AM in Culture
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The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith
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