Paul Krugman is Dead Wrong about Education Spending
Posted by Josh McGee | Education, Politics | November 18, 2009
In a recent post Stuart referenced a NY Times column by Nobel winning economist Paul Krugman. In his column Professor Krugman asserted that the reason for our nations mediocre education performance over the past 30 years is a lack of resources. He claims that as a nation we have given in to our anti-tax tendencies and allowed our children to suffer. He further argues that in order to bring our great nation back from the brink, Congress must pass another big stimulus package. This time around the stimulus dollars should be aimed directly at state and local governments to make sure our education system survives the financial crisis.
Professor Krugman’s final sentence claims:
“…we need to wake up and realize that one of the keys to our nation’s historic success is now a wasting asset. Education made America great; neglect of education can reverse the process.”
And I agree with this statement wholeheartedly. However, there is no evidence we have neglected to adequately fund our education system (equity is a completely different issue). Not to mention Professor Krugman completely ignores the fact that Department of Education is about to dole out $4.3 billion in Race to the Top funds most of which will go to the big states facing the largest budget problems. But the myth of inadequate funding has legs. Just last week the Ford Foundation announced it was giving $100 million to the teachers unions to “shake up the conversations surrounding school reform”. In its press release the foundation stated, “Many state finance systems fail to allocate enough resources to provide quality schooling for all students.” Its time we stopped tilting at windmills and dealt with the real problems with our education system.
To convince yourself that money is not the problem take a look at (and listen to) this presentation . It was put together by leading education economists Caroline Hoxby and Eric Hanushek. The first seven slides do a beautiful job illustrating that money is most definitely NOT the problem. Here is a brief rundown of the highlights:
- Student achievement has been flat since 1970
- The U.S. is below the mean in education attainment for OECD countries
- U.S. students perform poorly on exams that allow comparison of achievement between countries
- Education spending per pupil has increased dramatically (more than doubled) in real terms since 1970
- Only Luxembourg spends more per pupil than the U.S.
If you have the time and inclination, the remainder of the presentation is also very good. It details what the evidence does tell us about our education system. I would recommend this presentation if you are an education researcher or just a citizen interested in education who has difficulty sorting through all the conflicting claims we often hear.
UPDATE: Edited to remove the embedded presentation that annoyingly played automatically on page-load.
Yesterday’s Northwest Arkansas Times had a story about Fayetteville Mayor Lioneld Jordan’s economic development team. The so-called “Fayetteville Forward Economic Accountability Council” was launched six months ago. You can tell this council is doing good work because acts that are accompanied by alliteration are always awesome. Now, I think the mayor’s done a fine job of running the city so far. Still, the to-do list of the Fayetteville Forward Economic Development Summit’s Priorities that was reprinted in the paper was pretty amusing. It lists all of the projects underway with the mayor bragging that “We’ve completed five of the eighteen projects.” But most of the accomplishments are little more than forming committees and declarations about future actions as opposed to any real accomplishments. Here’s the list for those of you who missed it:


Although I may not like that a bevy of school officials from Springdale and Fayetteville took time out from the instruction of our children to head to Little Rock to oppose the openings of 2 charter schools in the region, I understand their reasoning. I am sure that the school officials sincerely believe that the charters would lead to some reduced funding and thus hamper their ability to provide a quality education to the remaining students. Further, I believe these school officials are genuinely concerned that the would-be charters in Springdale (aimed at serving English Language Learners) and in Fayetteville (aimed at serving economically disadvantaged students) would not necessarily do a better job with the students.

Donald Harington died over the weekend. Harington was an amazing novelist and a professor of art at the University of Arkansas. He was also a really cool guy, as many of his students at the U of A will attest to. If I had to recommend one of his books to those unfamiliar with his work, I’d urge you to start with The Architecture of the Arkansas Ozarks. You won’t be disappointed.