Colorado Dems flunk basic econ

As Obama pledges to use taxpayer money to hand out cash and prizes in the name of jump-starting the economy, Colorado Democrats seem to be taking notes. But perhaps they should start taking a basic college economics course. Their chosen model just won't work. A quick read through the daily papers and opening day remarks by the state's leading Democrat lawmakers revealed their plans to increase government regulation and taxation, two actions all but guaranteed to worsen the state’s economic prospects.

Here’s just a quick sample of their plans. Democrats want to mandate new business regulations. Rep. Mark Ferrandino, a Denver Democrat, is introducing legislation to force banks to give loan defaulters a “temporary timeout” to renegotiate their loans. Rep. Andy Kerr of Lakewood hopes to force businesses to grant a week of unpaid leave so parents can go to school events.

The trouble with these nice sounding ideas is that they will increase government intrusion into private businesses and increase costs that are in turn be passed on to consumers.

Democrats also want to increase the size of government. Only the state’s projected $604 million budget shortfall restrains their ambitions. According to the Rocky Mountain News, a $13 billion price tag for start-up costs is the only thing stopping some Democrats from moving forward with a socialized medicine scheme.

Even so, Rep. Mary Hodge of Adams County thinks a smaller version is doable. Never mind that government takeover of healthcare is a prescription for long lines, escalating costs, deficit spending, and loss of personal freedom.

To improve education, Rep. Karen Middleton of Aurora suggests that we should increase government bureaucracy by creating an "Office of Dropout Prevention and Student Reengagement." State Rep. Debbie Benefield of Arvada wants the government to guarantee every student has access to a high-quality teacher. I’m guessing parental choice isn’t what she has in mind rather the creation of yet another government teacher training program or teacher salary initiative. On the welfare front, legislation is poised to create an “Economic Opportunity Task Force” (at least it’s not a blue ribbon panel) to develop a “strategic, integrated and comprehensive plan to help lift families out of poverty.”

Bear in mind that every dollar spent on state bureaucracy is one not spent by entrepreneurs to create jobs, charitable organizations to provide real help, or individuals to invest in their own future.

Democrats think they can create jobs, stimulate growth, and generate prosperity through the creation of more government programs, hand-outs, and regulations. Unfortunately, they missed the lessons of the 20th Century, subtle as they were, like the Great Depression, 70's stagflation, and the collapse of centrally planned economies.

“There are severe limits to the good that the government can do for the economy, but there are almost no limits to the harm it can do,” observed Nobel laureate economist Milton Friedman. The direction sought by the majority party this legislative session points to darker days ahead.

Krista Kafer is a Denver-based education consultant, frequent cohost on Backbone Radio, and regular columnist for Face the State.com, from which this is reprinted by permission.

Beware the preschool bandwagon

Common sense tells you the world is flat. Science says otherwise, of course, but it was only after two centuries and a whole lot of scientists that the world's leaders were finally convinced. Truth is sometimes counterintuitive. We’d like to think we're more enlightened in 2008, but many of our leaders today are just as likely to dismiss scientific evidence as those six centuries ago. Consider the case for government preschool programs. Such programs seem to be the solution to the problem of low academic achievement among poor children. Since these kids typically enter school behind their more advantaged peers, it seems reasonable to enroll them in school a year or two earlier to give them a head start. Unfortunately, what seems to be a perfectly sensible solution is not one at all.

The vast majority of research over the past four decades shows that the benefits children gain from preschool fade out by the end of elementary school. Taxpayers are spending $6.8 billion a year on the federal Head Start program, more than $3 billion on state-based prekindergarten programs, and billions more on various other federal daycare programs, subsidies and tax credits on the false premise that children are somehow benefiting.

In Colorado, taxpayers spend $29 million a year on state preschool programs. Denver voters passed a sales tax in 2006 to subsidize preschool. According to a Denver Post article by Jeremy P. Meyer, 3,650 students receive subsidies. James Mejia, director of the Denver Preschool Program, told Meyer that “Studies show that for every dollar you spend on early childhood education, you will get back $10 to $12 in services you would otherwise be spending on social services, incarceration, remediation.”

Sounds great, but upon closer examination, this just isn't true. The cost-benefit analyses routinely bandied about by advocates come up short. The analysis is laregely based on exaggerated claims from a tiny subset of studies misrepresented as the whole. When the vast majority of research is considered, it becomes clear that preschool does not reap the amazing benefits touted by advocates.

Four decades of legitimate research actually shows that the majority of low-income children experience only short-term positive impacts and there is little long-term impact from preschool participation. Research also shows that preschool participation has no positive impact on children from middle or high income families, another ill-supported claim by advocates. Worse, preschool can have negative effects. Researchers at the National Institutes for Health and various universities have found adverse effects on children’s behavior resulting from early childhood education programs.

So why don’t we ever hear about this research? Why is it kept buried?

In public policy, the real question is not why but who, as in who benefits? That’s the billion dollar question. When government preschool programs are established, public and private preschools acquire taxpayer funding. Advocacy groups reap millions of dollars from foundation donors to continue expanding programs. Politicians feel good about “doing something” to help kids. Families like free or subsidized day care that supposedly helps their children. And the media gets to do puff pieces. Everyone wins, except perhaps the heretic who suggests otherwise. That isn’t to say those who benefit don’t sincerely believe the claims. I’m sure they do.

Common sense and conscience can be fooled. When money and reputations are on the line, it can take centuries to bring the truth to light.

Krista Kafer is a Denver-based education consultant, frequent cohost on Backbone Radio, and regular columnist for Face the State.com, from which this is reprinted by permission.

Glass way more than half full

This Thanksgiving season, no one has more reason to be grateful than us. Though the media, politicians, Hollywood and a growing number of cap-in-hand special interest groups would like you to believe otherwise, Americans enjoy an unrivaled degree of prosperity. Even the 12.5 percent of Americans identified by the census bureau as poor are well off by world standards. Forty-three percent of all poor families own their own homes. The average poor American enjoys more living space than the average Londoner or Parisian. Three quarters of poor families own a car. Ninety-seven percent have a color television (more than half of the families have two or more televisions). A majority have cable TV, a VCR or DVD player, a microwave oven, and air conditioning.

These government statistics, compiled by the Heritage Foundation, paint a different picture of the downtrodden than does the nightly news, but the facts do not tell the whole story. Without a comparison of how other people live around the world, Americans have no real sense of just how grateful they should be.

Unfortunately, Americans don’t get out much. Roughly a quarter of US citizens hold passports. I’m probably safe in assuming that more of my countrymen watch American Idol than BBC World News. American myopia creates a skewed perception of reality. America’s poor families have homes, cars and televisions. The poor in most of the world have little or nothing. Completely destitute in America means finding a shelter where you can have a warm bed, a meal and the help you need to get back on your feet. In Haiti, the poor are baking dirt into cookies to fill their stomachs.

In America, if you lose your job there are “help wanted” signs up and down the street. The jobs may not be optimal but they’ll do until something better comes along. I’ve certainly done my time behind a register and sweeping a broom and I’ll do it again if I have to.

No such option exists for people in Zimbabwe where the unemployment level is 80 percent. There are no jobs. Government corruption and control of the market have reduced this once prosperous nation to abject ruin. Zimbabwe is far from the only country to strangle its economy with government regulation. The world average for unemployment is 30 percent. In the U.S. it is less than 5 percent.

America’s clean air and water may look dirty if you don’t know better. In Cairo, every breath I took was like sucking off a tail pipe. I found myself smoking Egyptian cigarettes just to get the taste of the air out of my mouth. Cairo took 2nd place in the Progressive Policy Institute’s Smokiest Cities contest with 159 micrograms of particulate matter per cubic meter of air. By comparison, Los Angeles, America’s most polluted city has 36 micrograms of particulate matter.

Breathing in the Egyptian capital was tough but drinking the tap water was out of the question. I drank bottled water and ate oranges, a fruit hermitically sealed by its own peal. Cairo was a great place to visit and I’ll go again, once my lungs have healed.

Should I need any medical help along the way, I’ll get it here, thank you. Americans have access to the best health care in the world. In developing countries, people die for want of penicillin or routine vaccinations. In socialized European nations and our neighbor to the north, citizens can get decent care if they have the time to wait for it.

According to the Frasier Institute, a Canadian think tank, Canadians wait on average nine weeks between getting a referral from a general practitioner and actually seeing the specialist. They then wait another nine weeks to get treatment. A cancer radiation referral takes five weeks, orthopedic surgery nine months.

My point here isn’t to browbeat readers into gratitude but to give a needed perspective. Ignorance is not bliss. An ungrateful heart is an unhappy one. It leaves people vulnerable to being misled by honey-tongued politicians promising to make them richer, healthier, and happier. In the places where the government tries to give people these things, it inevitably makes them poorer, sicker and less free to seek their own happiness.

This Thursday I gave thanks to God for the many blessings in my life including my beloved country. I joined with those who, in the words of George Washington’s Thanksgiving Proclamation, “unite in rendering unto Him our sincere and humble thanks for His kind care and protection...for the great degree of tranquility, union, and plenty which we have since enjoyed; for the peaceable and rational manner in which we have been enable to establish constitutions of government for our safety and happiness, and particularly the national one now lately instituted for the civil and religious liberty with which we are blessed...”

Krista Kafer is a Denver-based education consultant, frequent cohost on Backbone Radio, and regular columnist for Face the State.com, from which this is reprinted by permission.

Merrifield bedevils parental hopes

Writing from a special place in Hell where I rent a small office, I’d like to congratulate state Rep. Mike Merrifield on his reappointment to chair the House Education Committee. Why the soon-to-be-Speaker of the House, Rep. Terrance Carroll, himself a school choice advocate, would allow Merrifield to remain in this powerful position is a good question. Carroll has been critical of Merrifield’s attempts to weaken the Charter School Institute and his notorious email claiming “There must be a special place in Hell for these Privatizers, Charterizers, and Voucherizers! They deserve it!”

Perhaps Carroll thinks the Manitou Springs Democrat has reformed his ways. After all, he has managed to stay out of the papers. After Face The State exposed the infamous email in March 2007, Merrifield stepped down from the chairmanship. He resumed his leadership position in the 2008 session and the year went by quietly. I guess Merrifield learned a lesson; if you want to condemn your opponents to the fires of Hell, don't do it over email.

Fellow proponents of school choice, us denizens of brimstone acres, have reason to be concerned about Merrifield’s continued leadership. Emboldened by the last election, liberal politicians have no reason to feign moderation. Last year’s attacks on charter schools will be nothing compared to this year’s. As long as Merrifield is at the helm, we can expect anti-school choice legislation to pass through the committee while pro-school choice legislation languishes.

As both a charterizer and a voucherizer (no doubt doomed to the inferno’s ninth circle), I feel compelled to define the terms of parental choice in education for the reader who may not know what’s at stake. When I was a kid, parents had one choice—send their kids to a designated neighborhood school or pony up for a private school. Parents who could not afford a home in a desirable neighborhood or private school tuition simply had no other options. Thanks to untiring grassroots advocates and a courageous bipartisan group of leaders, today’s parents have a few more options than we had growing up.

Colorado parents can choose any public school that has seats available. They can educate their children at home. Families can also choose from over 140 public charter schools. Like other public schools, charter schools are free public schools open to all students. Unlike other public schools, charter schools have their own governing boards and may adopt their own curriculum and personnel procedures. No two charter schools are the same. There are college preparatory schools, schools that emphasize the arts, on-line schools, schools that encourage hands-on learning, and back-to-basics schools, to name but a few. Charter schools can be authorized by school districts or by the Charter School Institute, a statewide public authorizer.

Making a choice has become easier thanks to school report cards and parent-friendly Web sites that provide information about schools. Even so there are still too many families in areas without good public schools either traditional or charter. Even though private schools typically operate at a fraction of the public per-pupil funding level, for some families, even modest tuition is still out of their reach. In 14 states and the District of Columbia, parents can choose from among private schools with the help of a scholarship or tax credit/deduction. In Colorado, parents do not have this option. Tenacious school choice proponents in Colorado have tried to try to expand options for parents but as long as politicians like Merrifield remain in leadership, their efforts will be blocked every time.

How can the Speaker-to-Be believe Merrifield will act any differently in 2009? How likely is it that we’ll see a kinder, gentler chairman? About a snowball’s chance, I’d say. According to Colorado Capitol Watch, Merrifield received thousands of dollars from unions and other anti-school choice advocacy groups this past election. He isn’t likely to bite the hand that feeds. This is bad news for families seeking new school options and even those trying to hold on to the ones they have. It is difficult to predict exactly where the school choice movement will go next session, but I’m certain Merrifield has a special place in mind.

Everybody wants some

Nearly five decades after John F. Kennedy inspired Americans to ask what they could do for their country, the new national sentiment seems to be, “Ask what your country can do for you.” In fact, it could have been an ’08 election slogan. How many times did we hear jubilant Obama supporters exclaim how the government was going to pay their mortgage and buy them gas? Unfortunately, they aren’t the only ones hoping to get a pocket full of newly minted change.

Unexpected voices have joined the entitlement choir. It isn’t just the grievance industry who wants politicians to redistribute the wealth from those who have earned it to those who have not. Middle class families and businesses of all stripes have come to feel entitled to other people’s money. They may criticize big government in the abstract but fiercely defend their government loan, farm subsidy, business incentive or government program. To borrow a line from Van Halen, “everybody wants some/ I want some too/ Everybody wants some!/ Baby, how 'bout you?”

The real legacy of the bipartisan accord between liberals and big government Republicans is not the $10 trillion national debt levied on the next generation, but the spread of government dependency to the formerly self-reliant.

Even the once tough pioneer-spirited state of Colorado has been seduced by Washington largesse. Only days after the election, several Colorado business leaders told the Rocky Mountain News how they would like the new president to spread the wealth around. Their Christmas list includes funding for individual homebuyers, money for the state, health care for their employees and, of course, subsidies for their industries. It reads like a conversation between Orren Boyle and Wesley Mouch of Atlas Shrugged.

They are not the only ones. After a $1 trillion bank and Wall Street bailout, Congress is talking about bailing out automakers and sending cash to the states. In the new state stimulus package, Congressman Ed Perlmutter is hoping for energy sector giveaways. Congresswoman Diana DeGette and Congressman-Elect Mike Coffman want cash for infrastructure. Of those interviewed by the Rocky Mountain News, only Rep. Doug Lamborn seems to understand that “giving aid to states and their taxpayers at the expense of placing an equal burden upon federal taxpayers” is a bad choice.

“There are severe limits to the good that the government can do for the economy, but there are almost no limits to the harm it can do,” observed Nobel laureate economist Milton Friedman. The government cannot produce jobs or wealth out of a hat. To give to some through handouts, bailouts, subsidies, and grants, it must take from others. The government burdens entrepreneurs, investors, and consumers, the true engines of a vibrant, free economy, through taxation and regulation and further weakens the dollar through debt spending.

Anyone who lived through the 1970's saw firsthand what government intervention can do. Nevertheless, a new poll shows 72 percent of Americans are looking to the new president to revive the economy. Some 44 percent of Republicans joined nearly all Democrats in this false hope. I’d be willing to bet that a significant percentage of these Americans expect to get a check, a program, a subsidy, or an incentive for themselves, their business or organization.

Proponents of limited government should be worried. We’re counting on the predictable failure of liberal government policies to pave the way for a conservative comeback like they did in 1980 with Ronald Reagan. There is a worrisome difference between then and now, however. Americans nodded when Reagan said, “In this present crisis, government is not the solution to our problem; government is the problem.”

Since then too many people have come to see government as their source of hope and have no qualms with being its object of charity. Is America already so far down the road to serfdom that we're forgetting what it was like to be free?

Krista Kafer is a Denver-based education consultant, frequent cohost on Backbone Radio, and regular columnist for Face the State.com, from which this is reprinted by permission.