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Posts Tagged ‘Education’

No other nation in the world spends as much on education as the United States.

According to our leftist friends, who prefer to measure inputs rather than outputs, this is a cause for celebration. I guess it shows we have the best intentions. Or maybe we love our kids the most.

For those who prefer to focus on outputs, however, it’s very difficult to be happy about the results we’re getting compared to all the money that’s being spent. Heck, in some cases it’s almost as if we’re getting negative results when you compare inputs and outputs.

To paraphrase what Winston Churchill said about the Royal Air Force in World War II, never have so many paid so much to achieve so little.

Now we have more evidence that American taxpayers are paying a lot and getting a little (though I have to admit that non-teaching education bureaucrats have been big winners).

The Washington Post reports on some new research to see how America’s young adults rank compared to their peers in other nations.

The results aren’t encouraging.

This exam, given in 23 countries, assessed the thinking abilities and workplace skills of adults. It focused on literacy, math and technological problem-solving. The goal was to figure out how prepared people are to work in a complex, modern society. And U.S. millennials performed horribly. That might even be an understatement… No matter how you sliced the data – by class, by race, by education – young Americans were laggards compared to their international peers. In every subject, U.S. millennials ranked at the bottom or very close to it, according to a new study by testing company ETS.

There were three testing categories and Americans didn’t do well in any of them.

…in literacy, U.S. millennials scored higher than only three countries. In math, Americans ranked last. In technical problem-saving, they were second from the bottom. “Abysmal,” noted ETS researcher Madeline Goodman. “There was just no place where we performed well.”

Here’s the comparative data on literacy.

Here’s how Americans did on numeracy (which may explain why there’s considerable support for the minimum wage).

Last but not least, millennials didn’t exactly do well in problem solving, either (which may explain their bizarre answers to polling questions).

By the way, the researchers also sliced and diced the data to get apples-to-apples comparisons.

Yet even on this basis, there’s no good news for America.

U.S. millennials with master’s degrees and doctorates did better than their peers in only three countries, Ireland, Poland and Spain. …Top-scoring U.S. millennials – the 90th percentile on the PIAAC test – were at the bottom internationally, ranking higher only than their peers in Spain.  …ETS researchers tried looking for signs of promise – especially in math skills, which they considered a good sign of labor market success. They singled out native-born Americans. Nope.

At some point, we need to realize that decades of additional spending and decades of further centralization have not worked.

Maybe, just maybe, it’s time to shut down the Department of Education on the federal level and to encourage school choice on the state and local level.

After all, we already have good evidence that decentralization and competition produces better test scores. There’s also strong evidence for school choice from nations such as Sweden, Chile, and the Netherlands.

P.S. We’re never going to solve this problem by tinkering with the status quo. That’s like rearranging the deck chairs on the Titanic. This is why Bush’s no-bureaucrat-left-behind scheme didn’t work. And it explains why Obama’s Common Core is flopping as well.

P.P.S. Moreover, it will probably require big reform to deal with the brainless types of political correctness that exist in government schools.

P.P.P.S. If you want more evidence that the problem isn’t money, check out this research on educational outcomes in various cities. Or look at this data from New York City and Washington, DC, both of which spend record amounts of money on education.

P.P.P.P.S. I can’t resist sharing this correction of some very shoddy education reporting by the New York Times.

P.P.P.P.P.S. On the bright side, the inadequacies of government-run schools helped give birth to the home-schooling movement, which then led to this humorous video. And the political correctness that infects government schools results in a bizarre infatuation with gender performance, which helped lead to this funny video. And this bit of satire on the evolution of math training in government schools also is quite amusing.

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To save the nation from a future Greek-style fiscal meltdown, we should reform entitlements.

But as part of the effort to restore limited, constitutional government, we also should shut down various departments that deal with issues that shouldn’t be handled by the central government.

I’ve already identified some low-hanging fruit.

Get rid of the Department of Housing and Urban Development.

Shut down the Department of Agriculture.

Eliminate the Department of Transportation.

We need to add the Department of Education to the list. And maybe even make it one of the first targets.

Increasing federal involvement and intervention, after all, is associated with more spending and more bureaucracy, but NOT better educational outcomes.

Politicians in Washington periodically try to “reform” the status quo, but rearranging the deck chairs on the Titanic never works. And that’s true whether you look at the results of GOP plans, like Bush’s no-bureaucrat-left-behind scheme, or Democratic plans, like Obama’s Common Core.

The good news, as explained by the Washington Examiner, is that Congress is finally considering legislation that would reduce the federal government’s footprint.

There are some good things about this bill, which will serve as the reauthorization of former President George W. Bush’s No Child Left Behind law. Importantly, the bill removes the Education Department’s ability to bludgeon states into adopting the controversial Common Core standards. The legislative language specifically forbids both direct and indirect attempts “to influence, incentivize, or coerce” states’ decisions. …The Student Success Act is therefore a step in the right direction, because it returns educational decisions to their rightful place — the state (or local) level. It is also positive in that it eliminates nearly 70 Department of Education programs, replacing them with more flexible grants to the states.

But the bad news is that the legislation doesn’t go nearly far enough. Federal involvement is a gaping wound caused by a compound fracture, while the so-called Student Success Act is a band-aid.

…as a vehicle for moving the federal government away from micromanaging schools that should fall entirely under state and local control, the bill is disappointing. …the recent explosion of federal spending and federal control in education over the last few decades has failed to produce any significant improvement in outcomes. Reading and math proficiency have hardly budged. …the federal government’s still-modest financial contribution to primary and secondary education has come with strings that give Washington an inordinate say over state education policy. …The Student Success Act…leaves federal spending on primary and secondary education at the elevated levels of the Bush era. It also fails to provide states with an opt-out.

To be sure, there’s no realistic way of making significant progress with Obama in the White House.

But the long-run battle will never be won unless reform-minded lawmakers make the principled case. Here’s the bottom line.

Education is one area where the federal government has long resisted accepting the evidence or heeding its constitutional limitations. …Republicans should be looking forward to a post-Obama opportunity to do it for real — to end federal experimentation and meddling in primary and secondary education and letting states set their own policies.

Amen.

But now let’s acknowledge that ending federal involvement and intervention should be just the first step on a long journey.

State governments are capable of wasting money and getting poor results.

Local governments also have shown that they can be similarly profligate and ineffective.

Indeed, when you add together total federal/state/local spending and then look at the actual results (whether kids are getting educated), the United States does an embarrassingly bad job.

The ultimate answer is to end the government education monopoly and shift to a system based on choice and competition.

Fortunately, we already have strong evidence that such an approach yields superior outcomes.

To be sure, school choice doesn’t automatically mean every child will be an educational success, but evidence from SwedenChile, and the Netherlands shows good results after breaking up state-run education monopolies.

P.S. Let’s close with a bit of humor showing the evolution of math lessons in government schools.

P.P.S. If you want some unintentional humor, the New York Times thinks that government education spending has been reduced.

P.P.P.S. And you’ll also be amused (and outraged and disgusted) by the truly bizarre examples of political correctness in government schools.

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I like to think that I occasionally put together interesting and persuasive charts on fiscal policy.

For instance, I think it’s virtually impossible to make a credible argument for tax hikes after looking at my chart showing how easy it is to balance the budget with modest spending restraint.

But I’ll freely confess that no chart of mine can compare to this powerful image created by my Cato colleague, Andrew Coulson, which shows how spending and staffing for the government school monopoly have exploded while enrollment and performance have been stagnant.

As far as I’m concerned, no honest person can look at his chart and defend the current system.

But some folks may need some more evidence about the failure of government schools, so let’s look at stories from both ends of America.

We’ll start on the east coast. Writing for the Daily Caller, Eric Owens reports that bureaucrats in a New Jersey town are being handsomely rewarded for not educating students.

Only 19 students in the public school system in Paterson, N.J. who have taken the SAT scored high enough to be considered college ready, local Fox affiliate WWOR-TV reports. At the same time, 66 employees in the Paterson school district each soak taxpayers for salaries of at least $125,000 per year, the Paterson Press reports. …Paterson is no tiny town. It is, in fact, the third-largest city in New Jersey. The population is roughly 146,000 people. …The city boasts some 50 public schools altogether. There are over 24,000 total students in all grades.

But the folks in Paterson can be proud of their government schools. After all, they’re doing much better than Camden.

In December 2013, Camden’s then-new superintendent of public schools announced that only three — THREE! — students in the entire district who took the SAT during the 2011-12 academic year scored high enough to qualify as college-ready.

Last but not least, the story notes that the school district has concocted a clever strategy to avoid any more embarrassing stories.

You’re probably wondering whether this means school choice? Rigorous standards? Better discipline?

Nope, nope, and nope. Remember, we’re dealing with government bureaucracy.

Back in Paterson, school officials say they have cleverly dealt with their nearly complete failure to prepare students for college entrance exams by no longer using the SAT to assess student achievement.

I actually hope this is a joke, though there’s no indication in the story to suggest the reporter is being satirical.

So we have bureaucrats getting vastly overpaid in exchange for not educating kids.

Now let’s travel to the west coast, where Los Angeles schools also have overpaid officials who do a crummy job of educating students, but they have figured out very novel ways of squandering tax dollars.

As Robby Soave reports in Reason, the LA school district first tried a failed scheme to give every student an iPad, which led to predictable fraud and misuse with no accompanying educational benefit. Now they want to double down on failure with a new proposal that gives various schools the option of which bit of high-tech gadgetry to mis-utilize.

Who could be against choice? That’s the argument Los Angeles school district administrators are now employing to push their latest round of expensive technology upgrades. Schools will be given the choice to receive Chromebooks instead of iPads—and some schools will get laptops, the most expensive option of all.  …The idea is to eventually place such a device in the hands of every child in the district.

Needless to say, there’s no strategy for avoiding the mistakes that plagued the earlier scheme.

The problem administrators encountered when rolling out the iPad plan, however, was that kids kept losing or breaking the devices. What happens then? Do parents pay, or does the district? Do kids get a replacement? Teachers also struggled mightily to incorporate the technology into their lesson plans, and concerns about kids using iPads for unsanctioned purposes caused headaches. The initial iPad deal unravelled after allegations of an improper relationship between then District Superintendent John Deasy, Apple, and curriculum company Pearson.

The reporter is understandably skeptical about what will happen next.

I have little reason to believe that the individual schools will be more responsible stewards of the taxpayer’s money than the district was. Indeed, 21 schools decided to go with an even more expensive option: laptops. Steve Lopez of the LA Times argued persuasively in October that the iPad fiasco was a costly diversion from the district’s real problems. Schools can’t even find the money for math textbooks, but administrators want to force unneeded technology on them and impose computerized tests. The district should prioritize basic instruction before deciding to purchase thousands of fancy gadgets.

Gee, it’s almost enough to make you think that government schools don’t work very well and that we should instead allow parents to have real choice over how to best educate their children.

P.S. You won’t be surprised to learn that Obama’s silly common core proposal appears to be driving some of these bad results.

P.P.S. Though remember that Bush’s no-bureaucrat-left-behind scheme was also a flop.

P.P.P.S. School choice doesn’t automatically mean every child will be an educational success, but evidence from SwedenChile, and the Netherlands shows good results after breaking up state-run education monopolies.

And there’s growing evidence that it also works in the limited cases where it exists in the United States.

P.P.P.P.S. Or we can just stick with the status quo, which involves spending more money, per student, than any other nation while getting dismal results.

P.P.P.P.P.S. This is a depressing post, so let’s close with a bit of humor showing the evolution of math lessons in government schools.

P.P.P.P.P.P.S. If you want some unintentional humor, the New York Times thinks that education spending has been reduced.

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I don’t like coerced redistribution. When the government uses the threat of force to take from Person A to give to Person B, it simultaneously reduces Person A’s incentives to produce while also luring Person B into dependency.

But not all coerced redistribution and government intervention is created equal.

I don’t like welfare programs, for instance, in part because taxpayers are writing huge checks to support a plethora of programs, but also because there is very strong evidence that the modern welfare state has caused more poverty.

Nonetheless, I understand that there are well-meaning people who support these programs. Their motives are pure in that they simply want to alleviate perceived suffering. And since they’ve never learned about the adverse indirect effects of government intervention and presumably haven’t given any thought to the ethics of government coercion, I don’t think of these people as being bad or immoral. Just uninformed.

But there are some forms of redistribution and intervention that are so self-evidently odious and corrupt that you can’t give supporters the benefit of the doubt. Simply stated, there’s no justifiable argument for using government coercion to hurt poor people in order to benefit rich people.

Let’s look at two examples.

First, the Export-Import Bank is a quintessential example of corporate welfare. The program forces taxpayers to guarantee the contracts of big corporations and foreign buyers, and there’s now a fight over whether it should be extended.

Needless to say, ordinary voters don’t want their money being used enrich big companies.

So if you were one of the beltway insiders who benefited from this corrupt institution, how would you try to get the program extended? Would you be upfront and argue that big companies like Boeing deserve tax dollars? Would you argue that politicians are really smart and wise and that they should interfere with the free market?

That would be the honest way of supporting the Ex-Im Bank. But you won’t be surprised to learn that advocates instead have resorted to lies. Here are some excerpts from a Reuters story.

The U.S. Export-Import Bank has mischaracterized potentially hundreds of large companies and units of multinational conglomerates as small businesses, a flaw in its record keeping that could undermine the export lender’s survival strategy. …A comparison of some 6,000 businesses characterized by Ex-Im as “small” with information supplied by corporate data collector Dun & Bradstreet, which Ex-Im also uses to vet applicants, and other sources turns up some 200 companies that appear to be mislabeled and many more whose classification is uncertain.

Um… I would say they lied rather than characterize it as a “flaw in its record keeping.” But let’s set that aside and look at some of the “small businesses” that had their snouts in the Ex-Im trough.

…analysis showed companies owned by billionaires such as Warren Buffet and Mexico’s Carlos Slim, as well by Japanese and European conglomerates, were listed as small businesses and Ex-Im acknowledged errors in its data in response to those findings.  …A division of Austria’s Swarovski jewelers shows up, as does North Carolina’s Global Nuclear Fuels, which is owned by General Electric and Japan’s Toshiba and Hitachi. …The list of small businesses in Texas, for example, includes engineering and construction company Bechtel, which has 53,000 employees.

Gee, Warren Buffet and foreign conglomerates don’t exactly sound like my idea of small businesses.

Hopefully this will provide more ammunition of those fighting to wean big companies from the public teat.

Bank officials and supporters have used the Ex-Im’s support for American small business as a first line of defense against a campaign by conservatives to shut it down as an exponent of “crony capitalism.” …“Rarely does Ex-Im miss a (public relations) opportunity to claim that it primarily helps small business, but Ex-Im is again playing fast and loose with the facts,” said Representative Jeb Hensarling, a Texas Republican who chairs the House Financial Services Committee. “The bulk of Ex-Im’s help indisputably goes to large corporations that can finance their own operations without putting it on the taxpayer balance sheet.”

For our second example, we have the absolutely horrifying spectacle of the Obama Administration trying to shut down Wisconsin’s school choice system.

Why? Well, because currying favor with union bosses is more important than improving educational opportunities for students from disadvantaged communities.

George Will explains what’s happening in his Washington Post column.

It is as remarkable as it is repulsive… Eager to sacrifice low-income children to please teachers unions, the Justice Department wants to destroy Wisconsin’s school choice program. Feigning concern about access for disabled children, the department aims to handicap all disadvantaged children by denying their parents access to school choices of the sort affluent government lawyers enjoy. …Wisconsin’s school choice program was pioneered by an American hero, Mississippi-born Annette Polly Williams, who died Nov. 9 at age 77. During her three decades in Wisconsin’s legislature, she overcame the opposition of fellow Democrats to offering education choices to low-income parents. At the end of her life, however, she saw an African American attorney general, serving an African American president, employing tortured legal reasoning in an attempt to bankrupt private schools that enlarge the education options of disadvantaged children. …Closing the voucher program is the obvious objective of the teachers unions and hence of the Obama administration. Herding children from the choice schools back into government schools would swell the ranks of unionized teachers, whose union dues fund the Democratic Party as it professes devotion to “diversity” and the downtrodden.

By the way, you probably won’t be surprised (given the White House’s cavalier approach to the rule of law) to learn that the Obama Administration is using is utterly nonsensical legal theory.

…federal lawyers argue that because public funds, in the form of tuition vouchers empowering parents to make choices, flow to private schools, the schools become “public entities.” …this is like arguing that when food stamps are used for purchases at Wal-Mart, America’s largest private employer ceases to be private — it becomes an extension of the government. Inconveniently for the Justice Department, the U.S. Supreme Court has said the fact that a “private entity performs a function which serves the public does not make its acts state action.”

The preposterous legal reasoning is a farce, but that doesn’t get me overly upset.

What does bother me is the way the White House is acting like the modern-day equivalent of George Wallace, standing in the schoolhouse door to prevent low-income (and largely minority) students from getting an opportunity for better education.

I guess that a black President (who sends his own kids to private school) consigning black children to the back of the proverbial bus shouldn’t surprise me too much. After all, some divisions of the NAACP also have decided that being politically allied with union bosses is more important that educational opportunity for minority kids.

But that doesn’t make it morally acceptable. Put yourself in the shoes of a low-income parent. Wisconsin’s school choice programs gives you some hope that your kids can break free of poverty. Imagine what it feels like, then, when some of the politicians who claim to be on your side then decide that your children are expendable pawns. How disgusting.

Since we’re talking about things that are disgusting, let’s shift back to the Ex-Im Bank. I’ve actually had some Republican types tell me that corporate welfare is okay because it “helps to offset” some of the redistribution from rich to poor.

I confess that I’m dumbstruck by such arguments. It’s sort of like hearing someone say it’s okay to murder, rape, and steal because other people are doing it.

This is why it’s not easy being a libertarian. Yes, we believe in small government for utilitarian reasons such as faster growth, higher living standards, and more jobs. But we’re also motivated by morality, by the belief that there’s right and wrong and that good people should strive to uphold the former and fight the latter.

That’s not a popular view in Washington, which is best characterized as an incestuous racket for the benefit of interest groups, politicians, cronyists, lobbyists, bureaucrats, contractors, and other insiders.

P.S. On a completely separate (and non-political) issue, I can’t resist seeking some sympathy after what happened to me this morning. I took two of my cats to the vet for their spay and neuter appointments. Some of you pet owners already know that most cats don’t like car rides, so you might have some inkling of what I’m about to report.

In happier times

About five minutes into the drive, one of the cats vomits in the little cat carrier. That obviously wasn’t a happy development, particularly since it left me with an unpleasant choice of enduring a very unpleasant smell or having the window open and enduring a very bitter chill. But then, a few minutes later, the other cat…um, how should I phrase this…loses control of her bowels.

Which means that the next 20 minutes was almost as unbearable as watching a state-of-the-union address. I was running late for the appointment, so I couldn’t stop someplace and try to deal with the mess. And the two cats kept moving around in their carrier, making things worse. Trying to breathe through my mouth, even with the window down, was at best a pitiful attempt to mitigate my suffering.

An utterly miserable situation. Almost 1/10th as bad as an IRS audit.

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It’s time for an updated version of the U.S. vs U.K. government stupidity contest.

This ongoing series has featured amazing feats of inane government, including the world’s most pointless road markings, photo-ID requirements for drain cleaner purchases, and a government so incompetent that it couldn’t give money away.

Today’s contest, though, is going to focus on examples of wimpiness from both sides of the Atlantic.

Here’s an excerpt from a story out of the United Kingdom. Apparently, one neurotic mother thinks her son is some sort of incompetent misfit.

OMG, he’s going to become a serial killer!!

A mother was left horrified after her 10-year-old son returned form Tesco’s supermarket with a pumpkin carving kit which included a sharp serrated blade. Natalie Greaves from Sheffield in South Yorkshire described her reaction to Shay returning home with the one pound kit: ‘I went berserk when he came home with it. ‘I couldn’t believe that he could pick that sort of thing up as a child – there should have been an age restriction on it.’

“Horrified”? “Beserk”? You must be kidding. If there’s someone in that family who shouldn’t be allowed around sharp objects, it’s the mother.

It’s almost enough to make me think the kid would be better off in foster care, notwithstanding my libertarian instincts that even bad homes are oftentimes better than state control.

But I also wonder what this says about the entire nation. Back in 2012, I shared some laughably pathetic examples of anti-gun political correctness from the United Kingdom and wondered how such inane behavior could exist in a country that “once ruled half the world.”

Needless to say, this story doesn’t reflect well on our cousins across the ocean.

But Americans are in no position to make fun of others since there are plenty of examples of brain-dead political correctness in the United States.

After all, you don’t want to throw stones if you live in a glass house. And when it comes to absurd anti-gun hysteria, government schools make Americans look like infantile idiots.

Here are parts of a story from a local news outlet in Alabama.

A Mobile mother is not happy about a controversial Mobile County School contract her daughter signed without her consent. The contract promises that her daughter will not kill or injure herself and others. …She said E R Dickson school officials crossed the line when they had her daughter sign a Mobile County Public Safety Contract without her being present.

This sounds serious. Are we talking about a 16-yr old gang member? A 17-yr old with psychiatric issues? A 15-yr old with a history of violence.

Ummm…not exactly.

The student, a 5-yr old girl named Elizabeth, was playing like a normal kid. Here are some of the details.

School officials told Rebecca they had to send Elizabeth home after an incident in class.  “They told me she drew something that resembled a gun,” said Rebecca. “According to them she pointed a crayon at another student and said, ‘pew pew,” said Rebecca. She said her child was given a questionnaire to evaluate her for suicidal thoughts. “[They] Asked her if she was depressed now,” said Rebecca. Without her permission, Rebecca said her child was given the Mobile County Public School Safety Contract to sign stating she wouldn’t kill herself or others. “While I was in the lobby waiting they had my 5-year-old sign a contract about suicide and homicide,” said Rebecca. …Rebecca is pushing to have the incident removed from her child’s record. She said school officials have requested Elizabeth see a psychiatrist.

As I’ve argued before, in cases like this it’s the school bureaucrats who need counseling.

So which nation wins the prize for the worst example of P.C. wimpiness?

I’m ashamed to say that the United States probably deserves that dubious honor. After all, the story from the U.K. involves one weird parent while the U.S. story involves a deliberate decision by an arm of government.

Though I will point out that it’s not just one screwy parent in the United Kingdom. Wimpiness appears to be pervasive.

The mum-of-three checked online and found similar carving kits with restrictions allowing only people over-18 to buy it. A Tesco spokesperson responded to this mother’s anger… ‘We were concerned by this incident and acted immediately to ensure all pumpkin carving knives will trigger an age restriction till prompt.’

So maybe the U.K. story belongs in the U.K. vs. U.S. private sector political correctness contest.

P.S. Let’s shift to a different topic. I recently wrote that the jihad against tobacco at the U.N.’s World Health Organization was a classic (and tragic) case of resources being diverted from something that genuinely matters, such as fighting deadly infectious disease.

A column in the Wall Street Journal makes the same point, only it identifies the silly crusade against sugar as the main example of mission creep.

The WHO’s record of handling epidemics over 30 years reveals a health system that is getting worse, not better. On at least four occasions the U.N. organization has failed to deal with major outbreaks of communicable disease. …The list of internal problems that cause the WHO to fumble when faced with an epidemic is no secret. …an array of disparate programs within the WHO—such as the current crusade against processed sugar and sugar beverages—have diverted time, attention and money from higher priorities, such as tracking and responding to epidemic diseases.

And the Washington Examiner has opined on the same issue.

Years of dramatically overstaffed city agencies, over-generous retirement promises to public employee unions, and white-elephant development projects had left the city unable to police its streets, keep street lamps on, maintain parks, or provide other basic government services, no matter how much the city government raised taxes. The lesson of Detroit is one that governments everywhere can learn: In a world with finite resources, governments that try to do too much end up neglecting even the essential. Detroit’s case is a microcosm of what Americans are now experiencing nationwide in several different areas — the evident inability of public health officials to manage the Ebola scare competently is just one of them. The Centers for Disease Control and Prevention, the agency that instructed a mildly symptomatic patient with known exposure to Ebola to board a commercial flight this week, spends millions annually on bonuses for top employees, bicycle paths, farmers markets, and other luxuries. …Even if they enjoy using the money the nation has for disease control and vaccine research to fund instead research on origami condoms and to appease politically active bicyclists, public health bureaucrats might do better in the future putting their massive budgets toward basic preparedness for precisely the kind of emergency the CDC was created to address.

The link between small government and effective government is something Calvin Coolidge understood. Needless to say, that’s not the attitude of the current occupant of the White House, which is why this bit of humor is worth sharing.

I think the unintentional video on Obama’s new Ebola Czar is even funnier, but whoever put this together gets high marks for cleverness.

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People sometimes think I’m strange for being so focused on the economic harm that results from third-party payer. But bear with me and we’ll see why it’s a very important issue.

If you’re not already familiar with the term, third-party payer exists when someone other than the consumer is paying for something. And it’s a problem because people aren’t careful shoppers when they have (proverbially) someone else’s credit card.

Moreover, sellers have ample incentive to jack up prices, waste resources on featherbedding, and engage in inefficient practices when they know consumers are insensitive to price.

I’ve specifically addressed the problem of third-party payer in both the health-care sector and the higher education market.

But I’ve wondered whether my analysis was compelling. Is the damage of third-party payer sufficiently obvious when you see a chart showing that prices for cosmetic surgery, which generally is paid for directly by consumers, rise slower than the CPI, while other health care expenses, which generally are financed by government or insurance companies, rise faster than inflation?

Or is it clear that third-party payer leads to bad results when you watch a video exposing how subsidies for higher education simply make it possible for colleges and universities to increase tuition and fees at a very rapid clip?

That should be plenty of evidence, but I ran across a chart that may be even more convincing. It shows how prices have increased in various sectors over the past decade.

So what make this chart compelling and important?

Time for some background. The reason I saw the chart is because David Freddoso of the Washington Examiner shared it on his Twitter feed.

I don’t know if he added the commentary below, or simply passed it along, but I’m very grateful because it’s an excellent opportunity to show that sectors of our economy that are subsidized (mostly by third-party payer) are the ones plagued by rising prices.

It’s amazing to see that TVs, phones, and PCs have dropped dramatically in price at the same time that they’ve become far more advanced.

Yet higher education and health care, both of which are plagued by third-party payer, have become more expensive.

So think about your family budget and think about the quality of PCs, TVs, and phones you had 10 years ago, and the prices you paid, compared with today. You presumably are happy with the results.

Now think about what you’re getting from health care and higher education, particularly compared to the costs.

That’s the high price of third-party payer.

P.S. This video from Reason TV is a great illustration of how market-based prices make the health care sector far more rational.

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I had a very bad lunch today.

But not because of what I ate. My lunch was unpleasant because I moderated a noontime panel on Capitol Hill featuring Senator Ron Johnson of Wisconsin and my Cato colleague Chris Edwards.

And I should hasten to add that they were splendid company. The unpleasant part of the lunch was the information they shared.

The Senator, in particular, looked at budgetary projections over the next 30 years and basically confirmed for the audience that an ever-expanding burden of federal spending is going to lead to a fiscal crisis.

To be blunt, he showed numbers that basically matched up with this Henry Payne cartoon.

Here’s a chart from his presentation. It shows the average burden of spending in past years, compared to various projections of how much bigger government will be – on average – over the next three decades.

The Senator warned that the most unfavorable projection (i.e., “CBO ALT FISC”) was also the most realistic one. In other words, federal spending will consume a much larger share of economic output over the next three decades than it has over the past two decades.

But our fiscal outlook is actually even worse than what you see in his slide.

The Senator’s numbers are based on average spending levels over the 2015-2044 period. That’s very useful – and sobering – data, but if you look at the annual numbers, you’ll see that the trendline gives us additional reasons to worry.

More specifically, spending for the major entitlement programs (Social Security and Medicare, as well as Medicaid) is closely tied to the aging population. So as more and more baby boomers retire over the next couple of decades, spending on these programs will become more burdensome.

In other words, our fiscal problem will be much larger in 2040 than it will be in 2020.

Here are the long-run numbers from the Congressional Budget Office. The blue line is federal spending on various programs and the pink line is total spending (i.e., programmatic spending plus interest payments). And keep in mind that these numbers don’t include state and local government spending, which presumably will chew up another 15 percent of our economic output!

In other words, America will become Greece.

And don’t delude yourself into thinking that CBO must be wrong. I’m not a big fan of the Congressional Budget Office (particularly CBO’s economic analysis), but these numbers are driven by demographics.

Moreover, CBO’s grim outlook is matched by similarly dismal numbers from the IMF, BIS, and OECD.

By the way, CBO doesn’t do projections once federal government debt exceeds 250 percent of GDP, so the gray-colored trendline beginning about 2048 is not an official projections. It’s merely an estimate of the total spending burden assuming that the federal budget is left on autopilot.

Of course, we’ll never reach that level. We will suffer a fiscal crisis before that point. But when it happens to us, the IMF won’t be there to bail us out for the simple reason that the IMF’s credibility is based on the backing of American taxpayers.

And we’ll already have been bled dry!

So unless we find some very rich Martians (who are also stupid enough to bail out profligate governments), it won’t be a pretty situation. I’m not sure we’ll have riots, such as the ones that have taken place in Europe, but there will be plenty of suffering.

Fortunately, there is a solution. All we need is a modest bit of fiscal restraint so that government grows slower than the private sector. That would completely reverse Senator Johnson’s dismal long-run numbers.

And some countries have shown that multi-year periods of fiscal restraint are possible.

The real question, though, is whether politicians in America would be willing to adopt the entitlement reforms that are needed to control the long-run growth of spending.

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