While reading Niall Ferguson’s The Ascent of Money, I came across evidence of a pervasive ignorance about economic matters among 2008 high school seniors. It didn’t strike me as surprising. I suspect the economic illiteracy transcends ’08 high school seniors. I don’t recall my parents’ generation showing any dazzling financial acumen either. I wouldn’t be shocked at discovering the paucity of understanding extending to the bulk of today’s college graduates. The only difference between the older generations and our youngsters is the mountains of cash poured into our schools to get the same outcome.
First, the evidence. In 2008, the University of Buffalo’s School of Management surveyed a typical group of high school seniors on basic personal finance and economic matters. They discovered, among other things:
* an average grade of “F” (52%) to a set of basic economic questions.
* only 14% grasped the fact that stocks earn a greater rate of return than a US government bond over an 18-year period.
* 23% knew that the income tax is assessed on interest earned from a savings account if personal income is high enough.
* 59% didn’t know the difference between a company pension, Social Security, and a 401(k).
Another 2008 survey of over-all Americans showed that two-thirds didn’t know how compound interest worked. Good luck in getting these people to invest for the golden years.
The mental disability on financial matters isn’t limited to America. According to Ferguson, similar results are available for the U.K.
Before we rush out to ignite another progressive heaven-on-earth crusade to correct life’s foibles, we need to ask ourselves a simple question: Would it do any good?
Currently, as of 2016, we average $156,000 per child on K-12 schooling. If the 1984-2004 period is any indication, real (inflation adjusted) spending per pupil has increased 49%. Still, by 2008, Ferguson and the University of Buffalo are unmasking massive numbers of economic ignoramuses in spite of the avalanche of cash.
The situation isn’t any better on basic Civics. Civics, you know, is about our government and political traditions. The federal Dept. of Education tries to ascertain the state of things, including basic knowledge of our political institutions, with its National Assessment of Education Progress. As of 2010, the trillions of dollars bought us … nothing. Whatever Civics progress has been made, it quickly disappears by the 12th grade. The 2014 scores showed only a quarter of seniors scored “proficient”. Be careful with man-on-the-street interviews. You could trip up a person with real stumpers like, “What is the supreme law of the land?”
I’ll leave the disappointments in Language Arts, Math, and Science to those more involved in the disciplines; though, I suspect the weather doesn’t get any sunnier.
Could it be that “no child left behind” or “every student succeeds” (the titles of our most recent efforts to “immanentize the eschaton”, as Eric Voegelin would say) violate truth-in-labeling laws? Despite the best efforts of man and woman, and much infusion of money, some kids will be left behind and some won’t succeed. So many dynamics are at work outside the purview of academic bubbles, political demagoguery, and the education Borg. Try chaotic homes; an epidemic of single parenthood; youthful expectations that don’t comport with white-collar aspirations; a decline of civil society; parental and peer influences; and the simple fact that some kids don’t care and you can’t make them care.
What we end up doing is throwing more money and government employees at the problem. Government gets bigger and more expensive … and the kids still don’t know much of anything. Adding preschool and free college to the line of matriculation just stretches out the failure.
All is not lost, though. Here’s some suggestions: return to a classical education, reboot vocational ed with an eye to internships and apprenticeships, and leave open the opportunity for the transition back to formal education for those with a change of heart later in life. And, above all, if you insist on compulsory education for all youngsters, off to boot-camp for the threatening and disruptive.
Mull it over.
RogerG
Sources:
The Ascent of Money: A Financial History of the World, Niall Ferguson
“Does Spending More on Education Improve Academic Achievement?”, Dan Lips and Shanea Watkins, Heritage Foundation, Sept. 8, 2008, http://www.heritage.org/education/report/does-spending-more-education-improve-academic-achievement
“Spolutions 2016: Education”, Heritage Foundation, http://solutions.heritage.org/culture-society/education/
“Fast Facts: Ependitures”, National Center for Education Statistics, https://nces.ed.gov/fastfacts/display.asp?id=66
“The Nation’s Report Card: Civics 2010”, National Center for Education Statistics, https://nces.ed.gov/nationsreportcard/pubs/main2010/2011466.asp#section1
“Why Civics Is About More Than Citizenship”, Alia Wong, The Atlantic, Sept. 7, 2015, https://www.theatlantic.com/education/archive/2015/09/civic-education-citizenship-test/405889/
