| The rich are getting richer and the poor are getting | | | | nation in the rich world in all measures of success. |
| poorer in America, and nowhere else. | | | | Despite this, a quality American education is still, in |
| This reality is popular in the news these days, as it | | | | many ways, the golden ticket to success: it is the |
| both provokes maximum interest and also opens itself | | | | greatest opportunity for advancement available to |
| to be manipulated by all sorts of political spinmasters, | | | | every American. Despite several shortfalls, a degree |
| which in turn creates more news. The Left savors | | | | remains a peerless tool to guarantee future earnings. |
| every glimpse of middle-class struggles during | | | | Those who pursue a CPA, a J.D., an MBA, or a |
| economic expansion, which they tout as the golden | | | | medical degree, among many others from a |
| nugget of proof finally adjudicating the free market as | | | | prestigious university, are nearly all swiftly placed in a |
| inherently bad for workers. Europeans lead this chorus, | | | | six-digit position immediately upon graduation, assuring |
| where they are already aghast at America's | | | | themselves of a lucrative career and commodious |
| assumptions of the free market's social value. | | | | lifestyle. |
| But the data is welcomed on the Right, too, to the | | | | Whether the argument is dressed in populism or |
| extent that it "proves" the economically-injurious impact | | | | otherwise, the best and only way to compete against |
| of immigration. Rich business owners hire illegals, | | | | the competition from technology, globalization or |
| lowering costs and getting richer, so goes the | | | | immigration is education. The American worker has the |
| argument, while poor white Americans are left without | | | | best system in the world to learn how to do something |
| jobs. | | | | a computer, Indian or Mexican can't. Unemployment |
| Independent of ideology, the fact remains that despite | | | | among college graduates in the US is a Lilliputian 2%, |
| low unemployment and high growth, the prosperity of | | | | simply because neither Jose nor a machine can |
| the current economic boom is noticeably bypassing the | | | | replace an MBA. |
| have-nots. It is too rarely noted, however, that there | | | | Education, as the best method of advancement, |
| are legitimate and positive reasons for this that neither | | | | becomes a necessity for the workers facing new |
| side of the current debate mentions. | | | | competition. These workers face a strong economic |
| 1. The Problem of Poverty: Some Americans are on | | | | incentive (socialists call it being "forced by the system") |
| the losing end of progress | | | | to get educated and become a more competitive, |
| The core causes of widening inequality, observed | | | | productive worker. If they don't, they risk losing their |
| correctly by both the Right and Left, are technology, | | | | jobs to the machines and/or foreigners. Despite their |
| globalization and immigration. However, they are both | | | | grievances, a more educated workforce and society |
| wrong about the lasting impact of all three. | | | | sounds like a good idea. And it would most certainly |
| Technology displaces workers who do tasks that can | | | | reverse the current inequalities of wealth - it would |
| be replicated by machines, computers and robots. Not | | | | allow the poor and middle class to join the rich in their |
| surprisingly, those whose jobs can be performed by | | | | upward mobility. |
| machines, computers and robots are neither the most | | | | 4. American education is the solution, but has its |
| educated nor the wealthiest. Thus, technology's impact | | | | problems. Vouchers help |
| makes them worse-off, even while it helps many more | | | | America's universities are the gold standard of |
| (see point 2). | | | | educational institutions. They dominate the world of |
| Globalization transfers positions to where they can be | | | | academia in all measures of quality. The Institute of |
| performed for cheaper than in the United States. | | | | Higher Education at Shanghai's Jiao Tong University |
| These jobs, in contrast to those affected by | | | | ranks the world's universities on a series of objective |
| technology, tend to be white-collar, middle class jobs. | | | | criteria such as the number of Nobel prizes and articles |
| Countering this effect, however, the savings from | | | | in prestigious journals. Seventeen of the top 20 |
| outsourcing positions are passed on to the consumer | | | | universities in that list are American, as are 35 of the |
| in the form of lower prices or invested in future | | | | top 50. American universities employ 70% of the |
| production. | | | | world's living Nobel prize-winners, produce about 30% |
| Immigrants work for less and compete for the jobs of | | | | of the world's output of articles on science and |
| natives. Like technology, they tend to threaten the | | | | engineering and 44% of the most frequently cited |
| poorest and least educated native workers. Yet there | | | | articles. |
| are several well-documented advantages to effective | | | | But it is not only the elite who benefit. A community |
| immigration. American Latinos, for one, are three times | | | | college system without equal in the world offers all |
| more likely to start their own businesses than the | | | | adults the opportunity to transfer into more prestigious |
| national average, spurring economic growth. Anecdotal | | | | institutions or attain smaller degrees. Many states give |
| tales abound of immigrants, such as Arnold | | | | high achieving or underrepresented students |
| Schwarzenegger, who rose from penury to incredible | | | | nearly-free schooling, guaranteed. A staggering |
| success through the same economic system currently | | | | plethora of institutions gives every student the |
| derided as anti-poor. | | | | unequalled opportunity to find the "perfect" school. |
| These three factors increase the competition for jobs. | | | | Why are American universities so good? The answer |
| These are unique challenges. For how those | | | | is because they are free to compete. |
| threatened by these factors can win the competition, | | | | Administration is not state-controlled, as in many |
| see point 3. | | | | European countries. Independent universities receive |
| 2. The rich are on the winning end, for better or for | | | | private funding from many different sources, widening |
| worse | | | | the landscape of influence and ballooning the number |
| The rich are getting richer because they, by contrast, | | | | of institutions available. Individual schools can pursue |
| successfully harness and exploit the advantages and | | | | individual subjects, goals and methods without the |
| opportunities inherent in technology, globalization and | | | | approval of the lumbering state. |
| immigration. | | | | Universities also compete for resources, most |
| They use technology, as it was intended, for greater | | | | importantly, professors and students. Their existence is |
| productivity. Advancements in telecommunications, for | | | | dependent upon their ability to offer something of value |
| example, allow business to be conducted with more | | | | over their fellow academies. They also freely accept |
| flexibility and efficiency. Those who can translate this | | | | and reject students, allowing them to enhance the |
| potential into value for a company are duly rewarded. | | | | quality and value of their teaching and scholarship. |
| They successfully use globalization to efficiently offer | | | | European universities, not surprisingly, often resemble |
| their resources and services to a worldwide audience. | | | | American K-12 institutions in their operations, and their |
| It is profitable, not only because successful globalization | | | | results are similarly dismal. They are nationalized, |
| create value-added efficiency and cost savings for an | | | | egalitarian, and inefficient. America, for obvious reasons, |
| organization, but also because a global market | | | | is by large margins the first-choice destination for |
| exponentially multiplies the size of the market for your | | | | foreign college students. It's the competition, stupid. |
| product or service. | | | | Most importantly to their success, American universities |
| This is not to say that all rich exhibit these | | | | are supported with private funds. From tuition and |
| characteristics. As will always be the case, America's | | | | voluntary donations from alumni, they secure their |
| elite is full of lazy, ineffectual snobs. Such is inevitable - | | | | budgets by providing valuable service, not effective |
| but it is worth noting two facts. First, the point of this | | | | lobbying. As a result, their responsiveness and quality is |
| article is to show that the present polarization of | | | | without equal. They serve as yet another shining |
| wealth (i.e. why lately only the rich have substantially | | | | example of the wisdom of privatization and |
| seen their fortunes increase) is the result of those who | | | | deregulation. By terrible contrast, America's K-12 |
| are hard-working and successful. Trust fund babies | | | | institutions are free at the point of consumption, publicly |
| blow their money on Ferraris - they don't grow richer | | | | funded, nationalized, and homogenized. |
| through market capitalization and entrepreneurship. | | | | Unfortunately, there are still numerous careers lacking |
| Second, the modern globally competitive market has | | | | an educational support structure. College athletes, for |
| made the idle rich a scarcer species. In America in | | | | example, are often well-served economically by |
| 1916, only about 20% of the richest 1% made their | | | | leaving school before graduation. Unorthodox career |
| wealth through paid work. Today, it is over 60%. | | | | paths, such as those of rappers, have no mainstream |
| So we see these artifacts of modern progress | | | | educational institution. Will the market adapt? It may, but |
| displace and threaten the poor and middle class and | | | | the only certainty is that the state will not. |
| are mastered and applied by the rich. Is this a good | | | | The best method to develop K-12 education along the |
| thing? Well, that doesn't matter much, as it turns out... | | | | competitive, innovative, and successful model of higher |
| 3. The Way Out: How quality education can alleviate | | | | education is through school vouchers. Such a system |
| inequality, anyway | | | | would ensure both that all children have an opportunity |
| The mere existence of wealth inequality should not be | | | | to attend a quality school and that the schools |
| cause for alarm, despite the frantic noises made by | | | | themselves will be high quality. It would allow every |
| John Edwards, Nancy Pelosi, or other hyperventilating | | | | parent ultimate control to determine the ideal |
| socialists. Successful societies can develop three | | | | educational institution for his or her child, and it would |
| palliatives. | | | | spur the independent, competitive behavior which |
| First is sustained economic growth, which through tax | | | | keeps this country's universities at the top of the global |
| revenue and public spending, achieves gains for the | | | | list. Most importantly, it would force institutions to |
| rich and poor, independent of individual income. John F. | | | | compete for students, the core factor driving the |
| Kennedy stated this well with his famous analogy, "a | | | | world-class quality of American universities. |
| rising tide lifts all boats." American economic growth, at | | | | Private K-12 schools, many of which already exhibit |
| present, is still the envy of the Western world. | | | | the efficient success of universities, will certainly flourish |
| Second is a welfare system that shields all from | | | | under vouchers, attracting students and expanding their |
| destitution. For this, there are several excellent | | | | market to offer the diverse quality private colleges |
| proposals to provide unemployment benefits without | | | | exemplify. |
| unnecessarily discouraging work, including PI's negative | | | | However, all would not be lost for America's public |
| income tax, and targeted subsidies in use in Latin | | | | school system under vouchers, despite the whining |
| America. | | | | protestations of the public school teachers' unions. |
| Third is the constant opportunity for all Americans to | | | | Competition among colleges is fierce, yet state schools |
| freely climb the social ladder through hard work. Called | | | | are often among the greatest performers. It is only |
| the American Dream by us patriotic folk, it is the | | | | from a lack of faith in their own abilities to attract |
| maintenance of a system of unlimited opportunity for | | | | students that public schools should fear vouchers. |
| all who seek it. | | | | They may well successfully compete alongside private |
| Romantic ideals aside, it is here where the bone of | | | | schools. To have a chance, however, control over all |
| contention is found. Socialists distrust the market's | | | | aspects of education must immediately be ceded from |
| ability to provide this meaningful opportunity for upward | | | | Washington to the principals, teachers and parents in |
| mobility, fantasizing instead that firms mostly conspire | | | | individual schools. |
| to enslave and destroy the American worker. | | | | We see that unique challenges of the 21st-century |
| Conservatives, opposing them, tend to oversimplify the | | | | world, technology, globalization and immigration, have |
| issue, assuming always that the American system is | | | | unequal impacts on the rich and poor. However, rather |
| perfectly liquid even in the face of contradictory | | | | than punish the wealthy, America should be concerned |
| evidence. | | | | with helping the poor meet these challenges and |
| Unquestionably the biggest current obstacle to the | | | | become rich themselves. To do so will require |
| American Dream is also its incubator: education. | | | | education. But to ensure the education is up to the |
| America's K-12 educational system is in miserable | | | | task, competition and free choice must triumph over |
| shape, inexcusably falling behind nearly every other | | | | bureaucracy and regulation. |