Milton Friedman – Public Schools / Voucher System
Published on May 9, 2012 by BasicEconomics
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Op-Ed: Milton Friedman’s role of government in education
“It’s a disgrace that there is more illiteracy today than there was 100 years ago.” – Milton Friedman
For decades after the American Revolution, our parents were the drivers of how and where their children were educated. Parents chose from home schools and private schools to educate their children. The first state public-funded schools appeared in the 1840s. But it was not until the 1900s during the Progressive Era that government gained control of funding and regulating education.
As government took more control of education, parents became subordinate to central education manipulation. Government dictated everything in every classroom. When Jimmy Carter married the National Teachers Union with the Department of Education in 1979, government and unions took ownership of education. If parents did not like local education, they had to pay for private schools.
Milton Friedman was an economist that rejected Keynesianism, the theory that government could control the economy better than free markets. Friedman’s view was based on the concept of free markets and “rational expectations.” Friedman theorized that free market competition is the most powerful tool in our nation to surpass any and all expectations we can expect from government.
Following the second Great War in the 1950s, Communists in Eastern Europe proved what a dangerous tool education was in the hands of government. A young economist, Milton Friedman did not want to see that in America and penned his thesis, defining “The Role of Government in Education.”
“A student’s education should not be determined by government but their parents.” – Milton Friedman
Friedman felt it was necessary for government to fund education, but it had no right to administer it. He believed monopolized government control of public education empowered the government to indoctrinate young minds into thinking the way politicians want students to think, not their parents. He blamed federal and union control of education for stagnant and declining student test scores.
Pointing to the economic success of market consumer choice and competition, Friedman blamed the lack of consumer choice on our inferior education system.
“It is unjustified for any government to have absolute monopolistic control over any commodity in the free markets.” – Milton Friedman
Milton Friedman said lack of competition in a nation built and dependent on free market principles produces inferior products. If we apply these economic principles to a non-responsive government-administered education program, competition for education dollars would vastly improve education.
According to Friedman, to improve education we must find better methods to administer it and to finance it. He insisted, instead of government making the decisions how and where children are educated, they should provide education vouchers to parents to use for schools of their choice.
Friedman believed giving parents education vouchers would empower them to “improve education” though free market competition, which in turn would force the government’s inferior public school system to improve. As more and more parents choose private and chartered schools over failing public schools, the public-school systems would be responsive to parental concerns and improve.
“Most arguments against the free market is a lack of belief in freedom itself.” – Milton Friedman
Six decades later, we have living proof that Friedman’s “The Role of Government in Education” is the logical foundation of the modern American school-choice movement. People isolated from the academic world are seldom exposed to innovative ideas and concepts. So Friedman’s article went largely unnoticed in the public. But once those seeds were planted, over time they have blossomed.
In 1989, Wisconsin put Friedman’s ideas into practice when it approved the first voucher program allowing students to use vouchers to pay tuition at private schools. Shortly after, 18 states passed similar voucher programs. Vouchers remain the most attractive private school choice programs.
“Do-it-yourself education beats factory production education anytime anyplace.” – Milton Friedman
In 2003 during an education symposium, Friedman suggested there are many alternatives to public education. He cited education savings accounts would allow parents to use taxpayer funds to pay for tuition and other education expenses. In 2011, Arizona implemented the nation’s first education savings account option. Florida, Tennessee, Mississippi and North Carolina soon followed them.
A charter school is a tuition-free contract school, publicly funded, but independent from the public system. Friedman believed parents would support such a system. And this has come to fruition in over 40 states. According to the National Alliance for Public Charter Schools, many of the best-known charter school networks are run by nonprofit charter management organizations, or CMOs.
Private religious school choice was ruled constitutional when the Supreme Court ruled it was legal for Ohio’s Pilot Project Scholarship Program to provide vouchers for students to attend nonreligious and religious schools. The court held that the program neither advances nor inhibits religion at any school and that publicly funded school vouchers go to the parents rather than the private schools.
Milton Friedman and wife Rose founded the Friedman Foundation for Educational Choice in 1996 to promote freedom of choice in education. Today, it is simply called EdChoice. Although the name has changed, the mission lives on. There were only five education choice programs when it opened. Twenty years later, more than 400,000 students participate in 61 programs in 30 states.
Milton Friedman said, “Our mistake is to judge programs by their intentions not their results.” Our founders promised a quality education for every youth in the nation. But by the time this system was in place it was run by politicians not parents. A century later the system was in such disrepair Milton Friedman realized that the only way to repair it was to make it competitive in the free market.
The discussion of school choice stimulated by Friedman’s “The Role of Government in Education” has grown and has penetrated the broad public. Most parents and citizens now believe that more choice is needed and less government and union control. Giving parents the information about the deficiencies in public education and other education choices will result in better educated students.
The greatest flaw in public education is union run government schools. Proposed federal education reforms are the same as those that failed. They propose doing more of what we’ve already done: More money, smaller classes, increased teacher pay and benefits, more schools and expanded central control. “To the public union school system, school choice is a threat, not an improvement.”
“If we are really concerned that our children receive a quality education, we must empower parents and their children to have equal access to appropriate educational opportunities.” – Milton Friedman
Milton Friedman, School Choice Pioneer
As our new School Choice Timeline shows, calls for public funding to follow students to a variety of educational options date back centuries. However, Nobel Prize‐winning economist Milton Friedman is often considered the father of the modern school choice movement.
In a 1955 essay, The Role of Government in Education, Friedman acknowledged some justifications for government mandates and funding when it comes to education. However, he said it’s difficult to justify government administration of education. He suggested governments could provide parents with vouchers worth a specified maximum sum per child per year to be spent on “approved” educational services.
Friedman would return to this idea repeatedly over the years in his writings and his popular Free to Choose television series. But he did more than just write and talk about his idea. In 1996, he and his wife Rose, who was also a noted economist, started the Milton and Rose D. Friedman Foundation for Educational Choice. Their original plan included the eventual removal of their name from the foundation, which happened in 2016; the organization is now known as EdChoice and is the go‐to source for up‐to‐date information on school choice in America.
Milton Friedman had a remarkable life. He was born in Brooklyn in 1912 to parents who emigrated to the U.S. from eastern Europe. His father died during his senior year in high school, leaving his mother and older sisters to support the family. He managed to attend Rutgers University through a combination of scholarships and various jobs. After earning a degree in economics, he was awarded a scholarship to pursue a graduate degree at the University of Chicago, where he met his future wife, Rose. The Friedmans had two children, a son and a daughter.
Friedman’s list of accomplishments is astonishingly long. In addition to his 1976 Nobel Prize for Economic Science, he was awarded the Presidential Medal of Freedom and the National Medal of Science in 1988. He was a Senior Research Fellow at Stanford University’s Hoover Institution from 1977 to 2006, a distinguished economics professor at the University of Chicago from 1946 to 1976, and a researcher at the National Bureau of Economic Research from 1937 to 1981. He was a prolific writer of newspaper and magazine columns, essays, and books.
Milton Friedman’s focus on education choice made perfect sense in light of his other work. He had a consistent focus on preserving and expanding individual freedom. He saw parental control and the ability to choose the environment that worked best for individual children as essential to a quality education. His 1962 book Capitalism and Freedom included chapters on economic and political freedom, trade, fiscal policy, occupational licenses, and poverty, along with his earlier essay on the role of government in education.
In 1980, Milton and Rose released Free to Choose, a discussion of economics and freedom, as a book and a television series. One segment/chapter asked, “What’s Wrong with Our Schools?” and then explained the importance of parents being able to choose what works for their individual children.
When the Friedman Foundation was launched, there were five education choice programs in the U.S. with fewer than 10,000 students participating. Today, according to EdChoice, there are 74 programs in 32 states, Washington, D.C., and Puerto Rico, with 670,000 students participating.
While there is a long and deep history of individuals and organizations calling for various forms of school choice, it is clear that Milton Friedman played an enormous role in its advance in the U.S. He helped lay the intellectual groundwork for the programs in place today, and his relatable writings and videos helped explain his ideas to parents, policymakers, and thought leaders. As we celebrate National School Choice Week—and Cato’s new School Choice Timeline—it’s a great time to commemorate Milton Friedman’s important contributions to the movement.
The School Choice Revolution
It’s time to celebrate another victory for school choice.
In 2021, West Virginia adopted statewide school choice.- In 2022, Arizona adopted statewide school choice.
- In 2023, Iowa adopted statewide school choice.
Now Utah has joined the club, with Governor Spencer Cox approving a new law that will give families greater freedom to choose the best educational options for their children.
Here are some details from , reporting for the Deseret News.
The Utah Senate gave final passage to legislation that will provide $8,000 scholarships to qualifying families for private schools and other private education options…
The bill passed by a two-thirds margin in each legislative house, which means it cannot be challenged by referendum. …The bill creates the Utah Fits All Scholarship, which can then be used for education expenses like curriculum, textbooks, education, software, tutoring services, micro-school teacher salaries and private school tuition.
As you might expect, teacher unions and their allies are very disappointed – which is a very positive sign.
…the Utah Education Association…opposed HB215… The bill was also opposed by the Utah State Board of Education, Utah PTA, school superintendents, business administrators and school boards. The Alliance for a Better Utah was pointed in its reaction… “Conservative lawmakers just robbed our neighborhood schools of $42 million. Private school vouchers have been and continue to be opposed by Utahns but these lawmakers are instead pursuing a national agenda to ‘destroy public education.’
The Wall Street Journal opined on this great development.
School choice is gaining momentum across the country, and this week Utah joined Iowa in advancing the education reform cause. …Utah’s bill,
which the Senate passed Thursday, 20-8, makes ESAs of $8,000 available to every student. There’s no income cap on families who can apply, though lower-income families receive preference and the program is capped at $42 million. The funds can be used for private school tuition, home-schooling expenses, tutoring, and more.
But the best part of the editorial is the look at other states that may be poised to expand educational freedom.
About a dozen other state legislatures have introduced bills to create new ESA programs, and several want to expand the ones they have. In Florida a Republican proposal would extend the state’s already robust scholarship programs to any student in the state. The bill would remove income limits that are currently in place for families who want to apply, though lower-income applicants would receive priority. …South Carolina legislators are mulling a new ESA program for lower-income students. In Indiana, a Senate bill would make state ESAs available to more students. An Ohio bill would remove an income cap and other eligibility rules for the state’s school vouchers. Two Oklahoma Senate bills propose new ESA programs… ESA bills are in some stage of moving in Nebraska, New Hampshire, Texas and Virginia.
Let’s hope there is more progress.
School choice is a win-win for both students and taxpayers.
P.S. Here’s a must-see chart showing how more and more money for the government school monopoly has produced zero benefit.
P.P.S. There are very successful school choice systems in Canada, Sweden, Chile, and the Netherlands.
P.P.P.S. Getting rid of the Department of Education would be a good idea, but the battle for school choice is largely going to be won and lost on the state and local level.
The Machine: The Truth Behind Teachers Unions
Published on Sep 4, 2012 by ReasonTV
America’s public education system is failing. We’re spending more money on education but not getting better results for our children.
That’s because the machine that runs the K-12 education system isn’t designed to produce better schools. It’s designed to produce more money for unions and more donations for politicians.
For decades, teachers’ unions have been among our nation’s largest political donors. As Reason Foundation’s Lisa Snell has noted, the National Education Association (NEA) alone spent $40 million on the 2010 election cycle (source: http://reason.org/news/printer/big-education-and-big-labor-electio). As the country’s largest teachers union, the NEA is only one cog in the infernal machine that robs parents of their tax dollars and students of their futures.
Students, teachers, parents, and hardworking Americans are all victims of this political machine–a system that takes money out of taxpayers’ wallets and gives it to union bosses, who put it in the pockets of politicians.
Our kids deserve better.
“The Machine” is 4:17 minutes.
Written and narrated by Evan Coyne Maloney. Produced by the Moving Picture Institute in partnership with Reason TV.
Visit http://www.MovingPictureInstitute.org to learn more.
No one did more to advance the cause of school vouchers than Milton and Rose Friedman. Friedman made it clear in his film series “Free to Choose” how sad he was that young people who live in the inner cities did not have good education opportunities available to them.
I have posted often about the voucher system and how it would solve our education problems. What we are doing now is not working. Milton Friedman’s idea of implementing school vouchers was hatched about 50 years ago.
Poor families are most affected by this lack of choice. As Friedman noted, “There is no respect in which inhabitants of a low-income neighborhood are so disadvantaged as in the kind of schooling they can get for their children.” It is a sad statement quantified by data on low levels of academic achievement and attainment. Take a look at this article below.
September 25, 2012 at 5:46 pm
SAT scores among the nation’s test-takers are at a 40-year low.
As The Washington Post reports:
Reading scores on the SAT for the high school class of 2012 reached a four-decade low, putting a punctuation mark on a gradual decline in the ability of college-bound teens to read passages and answer questions about sentence structure, vocabulary and meaning on the college entrance exam.
The decline over the decades has been significant. The average reading (verbal) score is down 34 points since 1972. Sadly, the historically low SAT scores are only the latest marker of decline. Graduation rates have been stagnant since the 1970s, reading and math achievement has been virtually flat over the same time period, and American students still rank in the middle of the pack compared to their international peers.
On the heels of the news about the SAT score decline, President Obama filmed a segment with NBC’s Education Nation earlier today. The President notably praised the concept of charter schools and pay for performance for teachers.
But those grains of reform were dwarfed by his support of the status quo. During the course of the interview, President Obama suggested hiring 100,000 new math and science teachers and spending more money on preschool. He also stated that No Child Left Behind had good intentions but was “under-resourced.”
Efforts by the federal government to intervene in preschool, most notably through Head Start, have failed—despite a $160 billion in spending on the program since 1965. And No Child Left Behind is far from “under-resourced.” The $25 billion, 600-page law has been on the receiving end of significant new spending every decade since the original law was first passed nearly half a century ago.
President Obama was also pressed on the issue of education unions by host Savannah Guthrie:
Some people think, President Obama gets so much support from the teachers’ unions, he can’t possibly have an honest conversation about what they’re doing right or wrong. Can you really say that teachers’ unions aren’t slowing the pace of reform?
President Obama responded: “You know, I just really get frustrated when I hear teacher-bashing as evidence of reform.”
Criticizing education unions for standing in the way of reform should not be conflated with criticizing teachers, as the President does in the interview. The unions have blocked reforms such as performance pay and charter schools (which the President supports), have opposed alternative teacher certification that would help mid-career professionals enter the classroom, and have consistently fought the implementation of school choice options for children.
If we ever hope to move the needle on student achievement—or see SAT scores turn in the right direction again—we’ll need to implement many of those exact reforms, particularly school choice.
And as he has in the past, President Obama stated that his Administration wants to “use evidenced-based approaches and find out what works.” We know what works: giving families choices when it comes to finding schools that best meet their children’s needs. Instead of continuing to call for more spending and more Washington intervention in education, let’s try something new: choice and freedom.
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