Minor Thoughts from me to you

Archives for New York (page 1 / 1)

Education Before Public Schools

Did you know that before British and U.S. governments created public schools, parents still placed a high value on education? That children got a better education each passing year? That schools were cheaper? That 95% of teenagers were literate? That teenagers were more literate without public schools than they are now, with them? Truth.

I recently discovered a fascinating article on The Spread of Education Before Compulsion: Britain and America in the Nineteenth Century from the Freeman.

A few, choice, excerpts. First, the experience in Britain.

Contrary to popular belief, the supply of schooling in Britain between 1800 and 1840 was relatively substantial prior to any government intervention, although it depended almost completely on private funds. At this time, moreover, the largest contributors to education revenues were working parents and the second largest was the Church. Of course, there was less education per child than today, just as there was less of everything else, because the national income was so much smaller. I have calculated, nevertheless, that the percentage of the net national income spent on day-schooling of children of all ages in England in 1833 was approximately 1 percent. By 1920, when schooling had become "free" and compulsory by special statute, the proportion had fallen to 0.7 percent.

The evidence also shows that working parents were purchasing increasing amounts of education for their children as their incomes were rising from 1818 onwards, and this, to repeat, at a time before education was "free" and compulsory by statute. Compulsion came in 1880, and state schooling did not become free until 1891.

... It is not surprising that with such evidence of literacy growth of young people, the levels had become even more substantial by 1870. On my calculations for 1880, when national compulsion was enacted, over 95 percent of fifteen-year-olds were literate. This should be compared to the fact that over a century later 40 percent of 21-year-olds in the United Kingdom admit to difficulties with writing and spelling.

Second, the experience in the U.S.

Sheldon Richman quotes data showing that from 1650 to 1795, American male literacy climbed from 60 to 90 percent. Between 1800 and 1840 literacy in the North rose from 75 percent to between 91 and 97 percent. In the South the rate grew from about 55 percent to 81 percent. Richman also quotes evidence indicating that literacy in Massachusetts was 98 percent on the eve of legislated compulsion and is about 91 percent today.

Finally, Carl F. Kaestle observes: "The best generalization possible is that New York, like other American towns of the Revolutionary period, had a high literacy rate relative to other places in the world, and that literacy did not depend primarily upon the schools."

And, the conclusion.

If, on the other hand, the term "universal" is intended more loosely to mean something like, "most," "nearly everybody," or "over 90 percent," then we lack firm evidence to show that education was not already universal prior to intervention. The eventual establishment, meanwhile, of laws to provide a schooling that was both compulsory and free, was accompanied by major increases in costs. These included not only unprecedented expenses of growing bureaucracy but also the substantial costs of reduced liberty of families eventually caught in a choice-restricted monopoly system serving the interests not of the demanders but of the rent-seeking suppliers. Both sides of the Atlantic, meanwhile, shared this same fate.

We educated our children before we had universal, "free", public schools. We educated our children before the rise of strong national and state teachers' unions. We could have it again.

Senate Bill Will Increase Healthcare Premiums

At the request of BlueCross BlueShield, Oliver Wyman did a study of the Senate health care bill. Unsurprisingly, this study estimates that the bill will cost consumers quite a bit more than the CBO estimated.

John Goodman summarized the findings this way:

Premiums for individuals and families purchasing coverage on their own will go up 54%. Premiums for small businesses will go up 20%. Both numbers are over 5 years and both numbers exclude the impact of medical inflation.

I skimmed through the study and it looks pretty interesting. The study points out that reform won't work unless everyone is forced to purchase insurance.

The key implication of our analysis is simple: For these types of insurance reforms to be successful and sustainable, it is imperative to get broad participation. Young and healthy people need to be part of the insurance pool, and people cannot defer buying insurance until they are sick or at high risk. This is true no matter who is paying the premiums--individuals, employers, or the government.

The study then goes on to indicate that the current bill likely will allow people to free-ride, with bad results. They're basing their conclusions on several states' experiments with healthcare reform.

  • New York and Vermont: Average premiums in the individual market today are about 60% higher than the national average

  • New Jersey: Reform caused much higher premiums forcing thousands of individuals to drop coverage. The individual market decreased from 157,000 people in 1993 to 88,000 in 2007

  • Maine: Individual market enrollment in Maine dropped from 90,000 to 41,000 between 1993 and 2007 following the state's reforms.

Even in Massachusetts, there is evidence that individuals are selectively jumping in and out of the market when they need healthcare. Data from health insurers in Massachusetts indicate that the number of peopl ein the individual market with coverage of less than 12 months has doubled post reform. These individuals have a significantly higher claims to premium ration when compared to those who had coverage for more than 12 months but let it lapse or those that are active.

Without strong penalties, similar types of behavior are likely to emerge in the reformed individual market--resulting in significantly higher premiums for the insured.

This is one of the reasons why I believe that the "reform" bills will just make American healthcare worse than it already is.