Enlow: Friedman Economics and the Year of School Choice

In 1995, Milton Friedman wrote that we were on the verge of a breakthrough in school choice reforms. Robert Enlow writes that 2011 is finally the year.

Robert Enlow, President and CEO of the Friedman Foundation for Educational Choice

Friedman Economics and the Year of School Choice

By Robert Enlow

Sixteen years ago as students were enjoying their summer break, Nobel laureate Milton Friedman issued his own report card on the American education system. In a guest commentary in the Washington Post, he described it as a “backward,” often producing “dismal results.”

Not much has changed in 16 years.

Friedman noted that education had been stuck in a 19th Century model for decades, producing results that hadn’t kept up with our fast-paced world. That’s why he offered his vision of privatizing a portion of the educational establishment with school choice, to provide a variety of learning opportunities for students and to offer competition to public schools.

In 2011, we may have finally launched Friedman’s Year of School Choice.

No less than 18 voucher, tax credit and education savings account programs have been adopted since January by state legislatures, Congress and one local school board.

While students are home relaxing, states and cities are implementing new programs that allow parents to choose freely the schools most appropriate for their children. No longer will they be assigned to schools based on their address.

Thanks to support from groups the political spectrum, proposals that met resistance for years are now becoming law – even in states with strong unions such as Ohio and Wisconsin. It’s because many now appreciate what Friedman began saying years ago – it costs less to educate a child with a voucher or privately-funded tax credit scholarship than to send him or her to a public school.

Among the new or expanded programs are:

  • Vouchers: Indiana passed the nation’s most extensive voucher program this spring, offering vouchers to middle-class families earning up to $61,000 with no cap on the number awarded after three years. Wisconsin Gov. Scott Walker signed an expansion of the Milwaukee voucher program this summer. That program, the nation’s oldest, now will include vouchers for middle class families earning up to $67,000; a similar program was enacted for Racine, Wisconsin. Ohio quadrupled the number of vouchers available to students stuck in failing schools by 2013. Arizona adopted Education Savings Accounts, a voucher-type program to cover education costs for special needs children. And Congress reinstated a popular voucher program for low-income families in the District of Columbia.
  • Tax Credits: Corporations or individuals may donate to scholarship-granting organizations to gain a credit on taxes due in their state. These scholarships help children attend private schools. This year a new tax credit program was enacted in Oklahoma while existing ones were expanded in Florida, Georgia, Pennsylvania, Indiana and Iowa. The amount of money that can be raised for scholarship organizations and donated by individuals and companies varies by state.
  • Other private choice: In Louisiana, parents who send their children to private schools will be able to write up to $5,000 of tuition per child off their state income taxes, thanks to legislation passed this summer. In Indiana, parents who do the same or spend money home schooling their children will be able to write off up to $1,000 of any educational expenses off their taxes. North Carolina parents of special needs students will earn a tax credit up to $6,000 for educational expenses for their children. All this to encourage more educational options for families.

Remarkably in this year of school choice, even the education bureaucracy has started to drop its resistance or put its toe in the water – choosing in some states not to challenge voucher or tax credit programs, especially those for disadvantaged children.

Throughout the country, a smattering of school board members have been elected who aren’t afraid to embrace school choice whether it be charter schools, tax credit or voucher programs. In Douglas County, Colorado, for example, the locally-elected school board enacted a voucher program offering 500 vouchers worth up to $4,575. Some elected officials say they believe only competition will prompt the education establishment to work to improve public schools.

The explosion of new and expanded school choice programs shows that Friedman got it right when it comes to mounting frustration with monopolies.

“Support for free choice of schools has been growing rapidly and cannot be held back indefinitely by the vested interests of the unions and educational bureaucracy,” Friedman wrote in the Post in 1995. “I sense that we are on the verge of a breakthrough in one state or another, which will then sweep like a wildfire through the rest of the country as it demonstrates its effectiveness.”

That wildfire just broke out in 2011.

Enlow is President and CEO of the Friedman Foundation for Educational Choice, the legacy foundation of Nobel laureate Milton Friedman and his wife Rose. Friedman’s 99th birthday is being celebrated worldwide on July 29th.


  1. Enlow: Friedman Economics and the Year of School Choice | moregoodstuff.info

    [...] In 1995, Milton Friedman wrote that we were on the verge of a breakthrough in school choice reforms. Robert Enlow writes that 2011 is finally the year. Read More [...]

  2. Enlow: Friedman Economics and the Year of School Choice | International Education News | Renascence School International | Panama City | private preschool, elementary school, middle school

    [...] to public schools. In 2011, we may have finally launched Friedman’s Year of School Choice.” (more)    Comments (0) Go to main news [...]

  3. Laura Ringer

    I am very excited to see the effect these changes have on education and our students. Students deserve the best education possible and this is definitely a positive step to get them there.

    As the government takes steps to ensure quality education, it is equally important that teachers take those steps as well. Going back to school to get a master’s degree or take professional development classes will help educators provide better lessons to the students that choose their school.

    Here’s to a better future for education!

  4. Doug

    Ya that Freidman-Hayak idiocy gave us the Wall Street meltdown because the economy is a vast self-regulating invisible hand. What a joke. Every time we even approach free market economics the economy goes straight into the ditch.

    The idiots behind the education reform movement have the same blind faith in vouchers, charters, merit pay and testing.

    NCLB is totally discredited, vouchers and charters do not produce academic improvement, merit pay is being abandoned in NYC, it has never worked.

    The same is true of top down Mayoral and Chancellor control. Klein, Black and Rhee are totally discredited, Christie a buffoon, Walker a disaster, be careful what you wish for, it can blow up in your face.

  5. Robert

    It is true that we need reform. It is better to adopt reforms than to keep the status quo, even though these reforms are not tested. Looking foward to seeing the results of new reforms.

    • Jack Donachy

      So you’re saying, “Ready, fire, Aim.” Hmmph.

  6. Jack Donachy

    The fundamental problem with Mr. Enlow’s cheerleading for vouchers (and Friedman’s assertion that this is a less expensive way to do education) is that MOUNTAINS of data show that, by and large, charter schools simply do not as well with the same students as the public schools they replace. But, I’ve learned that debating this with folks like Enlow is about as productive as debating with a fence post.

  7. Doug

    Agreed, these ‘market fundamentalists’ are as rigid as the Taliban. “The schools MUST be better because the market was involved” ya like the market for hedge funds and derivatives and tulip bulbs.

    Google “Charter School Scandals” I hope you have lots of time.

  8. Joseph Furguson

    Even though you are pushing for vouchers and charter schools, the problem is that they are not better alternatives than public education. They tend to do just as poorly as public schools.

    American education has not been failing our kids and this generation is worse for it. According to the international Mathematics and Science test, the United States has always fallen behind the rest of the world. The very first test we’ve taken back in 1964 has us ranking at 11 out of 12 countries. The most recent test has us in the middle of all countries, so Education has improved overall since then.

    What is often overlooked in this educational crisis is the actual future of these kids. Kind of ironic considering all of this b.s. is for the children. The countries that do better on the IMS test do not have nearly as many self motivated people willing to take gambles and risk a lot. Singapore, for example, does not start as many businesses as the U.S. does.

    I know that you are going to overlook this because it does not fit into the free market fundamentalism that you wrap yourself into, but the sad reality is that the education system is doing something right despite you blustering to the contrary.

    • Jack Donachy

      Most charters don’t do just as poorly as public schools; most of the time they do worse.

      The bizarre aspect of Enlow’s empty-headed thinking is this: if free-market principles are to be applied, we should be putting MORE money into school personnel. When the free market wants better people–better engineers, better CEO’s and so forth, they offer more–better salary, better benefits. This is why religious schools–even the ones that do well–are not scalable. Most teachers and administrators won’t work for wages lower than they can make elsewhere (the public schools) for the same work. When we look at our best schools, the correlation with how well they are funded and how well they pay their employees is undeniable. To further illustrate this, look at what the best private k-12 schools charge for tuition–way, way more than the per-student cost in public schools.

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