Milton Friedman – Public Schools / Voucher System
Published on May 9, 2012 by BasicEconomics
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Why Milton Friedman Saw School Choice as a First Step, Not a Final One
Libertarians and others are often torn about school choice. They may wish to see the government schooling monopoly weakened, but they may resist supporting choice mechanisms, like vouchers and education savings accounts, because they don’t go far enough. Indeed, most current choice programs continue to rely on taxpayer funding of education and don’t address the underlying compulsory nature of elementary and secondary schooling.
Skeptics may also have legitimate fears that taxpayer-funded education choice programs will lead to over-regulation of previously independent and parochial schooling options, making all schooling mirror compulsory mass schooling, with no substantive variation.
Friedman Challenged Compulsory Schooling Laws
Milton Friedman had these same concerns. The Nobel prize-winning economist is widely considered to be the one to popularize the idea of vouchers and school choice beginning with his 1955 paper, “The Role of Government in Education.” His vision continues to be realized through the important work of EdChoice, formerly the Friedman Foundation for Education Choice, that Friedman and his economist wife, Rose, founded in 1996.
July 31 is Milton Friedman’s birthday. He died in 2006 at the age of 94, but his ideas continue to have an impact, particularly in education policy.
Friedman saw vouchers and other choice programs as half-measures. He recognized the larger problems of taxpayer funding and compulsion, but saw vouchers as an important starting point in allowing parents to regain control of their children’s education. In their popular book, Free To Choose, first published in 1980, the Friedmans wrote:
We 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. (p.161)
They continued:
The compulsory attendance laws are the justification for government control over the standards of private schools. But it is far from clear that there is any justification for the compulsory attendance laws themselves. (p. 162)
The Friedmans admitted that their “own views on this have changed over time,” as they realized that “compulsory attendance at schools is not necessary to achieve that minimum standard of literacy and knowledge,” and that “schooling was well-nigh universal in the United States before either compulsory attendance or government financing of schooling existed. Like most laws, compulsory attendance laws have costs as well as benefits. We no longer believe the benefits justify the costs.” (pp. 162-3)
Still, they felt that vouchers would be the essential starting point toward chipping away at monopoly mass schooling by putting parents back in charge. School choice, in other words, would be a necessary but not sufficient policy approach toward addressing the underlying issue of government control of education.
Vouchers as a First Step
In their book, the Friedmans presented the potential outcomes of their proposed voucher plan, which would give parents access to some or all of the average per-pupil expenditures of a child enrolled in public school. They believed that vouchers would help create a more competitive education market, encouraging education entrepreneurship. They felt that parents would be more empowered with greater control over their children’s education and have a stronger desire to contribute some of their own money toward education. They asserted that in many places “the public school has fostered residential stratification, by tying the kind and cost of schooling to residential location” and suggested that voucher programs would lead to increased integration and heterogeneity. (pp. 166-7)
To the critics who said, and still say, that school choice programs would destroy the public schools, the Friedmans replied that these critics fail to
explain why, if the public school system is doing such a splendid job, it needs to fear competition from nongovernmental, competitive schools or, if it isn’t, why anyone should object to its “destruction.” (p. 170)
What I appreciate most about the Friedmans discussion of vouchers and the promise of school choice is their unrelenting support of parents. They believed that parents, not government bureaucrats and intellectuals, know what is best for their children’s education and well-being and are fully capable of choosing wisely for their children—when they have the opportunity to do so.
They wrote:
Parents generally have both greater interest in their children’s schooling and more intimate knowledge of their capacities and needs than anyone else. Social reformers, and educational reformers in particular, often self-righteously take for granted that parents, especially those who are poor and have little education themselves, have little interest in their children’s education and no competence to choose for them. That is a gratuitous insult. Such parents have frequently had limited opportunity to choose. However, U.S. history has demonstrated that, given the opportunity, they have often been willing to sacrifice a great deal, and have done so wisely, for their children’s welfare. (p. 160).
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Voucher Programs Today
Today, school voucher programs exist in 15 states plus the District of Columbia. These programs have consistently shown that when parents are given the choice to opt-out of an assigned district school, many will take advantage of the opportunity. In Washington, D.C., low-income parents who win a voucher lottery send their children to private schools.
The most recent three-year federal evaluation of voucher program participants found that while student academic achievement was comparable to achievement for non-voucher students remaining in public schools, there were statistically significant improvements in other important areas. For instance, voucher participants had lower rates of chronic absenteeism than the control groups, as well as higher student satisfaction scores. There were also tremendous cost-savings.
In Wisconsin, the Milwaukee Parental Choice Program has served over 28,000 low-income students attending 129 participating private schools.
According to Corey DeAngelis, Director of School Choice at the Reason Foundation and a prolific researcher on the topic, the recent analysis of the D.C. voucher program “reveals that private schools produce the same academic outcomes for only a third of the cost of the public schools. In other words, school choice is a great investment.”
In Wisconsin, the Milwaukee Parental Choice Program was created in 1990 and is the nation’s oldest voucher program. It currently serves over 28,000 low-income students attending 129 participating private schools. Like the D.C. voucher program, data on test scores of Milwaukee voucher students show similar results to public school students, but non-academic results are promising.
Increased Access and Decreased Crime
Recent research found voucher recipients had lower crime rates and lower incidences of unplanned pregnancies in young adulthood. On his birthday, let’s celebrate Milton Friedman’s vision of enabling parents, not government, to be in control of a child’s education.According to Howard Fuller, an education professor at Marquette University, founder of the Black Alliance for Educational Options, and one of the developers of the Milwaukee voucher program, the key is parent empowerment—particularly for low-income minority families.
In an interview with NPR, Fuller said: “What I’m saying to you is that there are thousands of black children whose lives are much better today because of the Milwaukee parental choice program,” he says.
“They were able to access better schools than they would have without a voucher.”
Putting parents back in charge of their child’s education through school choice measures was Milton Friedman’s goal. It was not his ultimate goal, as it would not fully address the funding and compulsion components of government schooling; but it was, and remains, an important first step. As the Friedmans wrote in Free To Choose:
The strong American tradition of voluntary action has provided many excellent examples that demonstrate what can be done when parents have greater choice. (p. 159).
On his birthday, let’s celebrate Milton Friedman’s vision of enabling parents, not government, to be in control of a child’s education.
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Celebrating School Choice? Thank Milton Friedman, too
- In the 1950s, a young Milton Friedman argued that free market principles of consumer choice and competition were needed to remedy the nonresponsive and monopolistic system that controlled and delivered public education
- Friedman’s work provided the intellectual foundations of the modern school-choice movement
- If Friedman were alive today and came to North Carolina, he’d see school choice flourishing
In the decades after the American Revolution, parents were the drivers of how and where their children were educated. Parents could choose from private schools, tutors, and home schools as ways to educate children. In the mid-1840s, Massachusetts became the first state to lead a push for state-controlled and -funded public education. A century later, the rise of the Progressive Era saw government gain control over how schools were financed, administered, and regulated.
Along with these changes came a weakening in the ability of parents to control their child’s education. Of course, if parents didn’t like their child’s school or didn’t think it was a good fit, they could choose a private school — if they could afford it. If not, children were forced to attend the local public school, whether parents liked it or not.
In the mid-1950s, a young economist at the University of Chicago laid out a case for the role of government in education for its citizens in an article given the unassuming title of The Role of Government in Education. In it Milton Friedman acknowledged there is a case for government subsidizing public education, but not for government administering the schools. Friedman believed increased centralization and government control of public schools had led to less freedom and efficiency in education and a decline in quality. For government not only to finance education, but also largely to deliver education services was an arrangement Friedman considered unnatural as well as unjustified.
In his article Friedman argued that free market principles of consumer choice and competition were needed to remedy the nonresponsive and monopolistic system that controlled and delivered public education.
Friedman sought nothing less than to upend how American education was financed and administered. Instead of government deciding how and where children are educated, government would provide vouchers to parents for education or educational services at approved schools.
Friedman believed giving parents the power to “vote with their feet” would force monopolistic public-school systems to be responsive to parental concerns. He also was convinced that the use of vouchers would infuse competition among schools and encourage them to innovate and be more effective, qualities conspicuously absent from most public-school systems. Moreover, Friedman also thought it critical to separate the funding of education from the delivery of education services.
Six and a half decades later, it’s not difficult to see how “The Role of Government in Education” provided the intellectual foundations of the modern school-choice movement. People don’t always hear what they need to hear, so Friedman’s article went largely unnoticed outside the policy world. Those seeds took time to grow.
In 1989, Wisconsin become the first state to put Friedman’s ideas into practice when it approved a statewide voucher program that allowed low-income students to use vouchers to pay tuition at a private school. In 2013, North Carolina approved the Opportunity Scholarship Program, a similar program that today provides over 14,000 students with scholarships of up to $4,200 to help pay tuition at a local private school.
School choice today
If Milton Friedman were alive today and came to North Carolina, he’d see school choice flourishing. Today parents can choose from a variety of public and private school-choice programs. They include public options such as charter or magnet schools as well as private options such as the Opportunity Scholarship Program or the Special Education Scholarship Grants for Children with Disabilities.
Regarding charter schools, the table below shows that the number of students enrolled in charter schools has increased dramatically from over 38,000 in 2010 to over 117,000 today. Enrollment in private schools in the Tar Heel state saw modest growth over the last 10 years, while the number of home schoolers increased by 83 percent.
Over the past decade, while the average daily membership (ADM) enrollment in traditional public schools increased by just one half of one percent, the school-choice population in North Carolina expanded by 71 percent. Today over 370,000 students attend charter, private, and home schools and have access to a better education. Ten years ago, only 13 percent of students were enrolled in choice schools. Today nearly 80 percent of students still attend traditional public schools, but the number of students enrolled in choice schools has increased to almost 21 percent, up significantly from ten years ago.
K-12 Enrollment in North Carolina, by Type of School, 2010 and 2020
Schools | 2010 Enrollment | 2020 Enrollment | Change, 2010–20 |
Traditional Public Schools (ADM) | 1,402,269 | 1,409,391 | 0.5% |
Charter Schools | 38,449 | 117,264 | 204.9% |
Home Schools | 81,509 | 149,173 | 83.0% |
Private Schools | 96,421 | 103,959 | 7.8% |
Total, Choice Schools | 216,379 | 370,396 | 71.2% |
Schools | 2010 Enrollment | 2020 Enrollment | Percentage Point Change |
Percentage of Students in Traditional Public Schools | 86.7% | 79.2% | –7.5 |
Percentage of Students in Choice Schools |
13.3% | 20.8% | +7.5 |
Source: Highlights of the North Carolina Public School Budget, Statistical Profile of North Carolina Public Schools, and North Carolina Office of Non-Public Education (for specific years).
Friedman’s legacy
Friedman’s ideas have helped to fuel an education revolution in North Carolina and across the country. Choice empowers parents to make educational decisions, challenges monopolies, and calls out bureaucracies. Choice expands personal freedom but also highlights that accountability comes in different forms. In so doing, choice has helped to shift the public discussion of education from a focus on how much money is spent to how well money is spent.
Let’s be clear: Milton Friedman got it right. Choice benefits students, families, schools, and our communities. Today school choice continues to thrive because it empowers parents and students and enriches our communities. That’s not to say there haven’t been mistakes and growing pains. Nevertheless, having choices in education is far preferable. Choice recognizes what too many of our public schools ignore: children are different and learn differently.
If we are really concerned that our children receive a quality education, we must allow parents and children to access appropriate educational opportunities. As more and more families are empowered to make these choices, we should thank Milton Friedman for laying the intellectual groundwork for many of the school choice programs we enjoy today.
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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