Showing posts with label vouchers. Show all posts
Showing posts with label vouchers. Show all posts

Tuesday, June 4, 2024

Whose Money Follows The Child?

"Let the money follow the child," say choicers repeatedly, but the more honest plea would be "Let your money follow my child."

But that's not how they present it. Take this quote from today's Washington Post piece:
“It’s the parents’ money to use as they see is best,” said Brian Hickey, executive director of the Catholic Conference of Ohio. “We don’t necessarily see it as taxpayer money.”

Or the other framing one encounters on the interwebs-- the "I just want to use my money to educate my child as I see fit" version. Corey DeAngelis, choice evangelist, argued in a speech that all families should be able to take "their dollars" to the school they choose. 

Except this is bunk. Let's take me as an example. I have two children in school. I pay roughly $1,000 a year in real estate tax. If you give me my $1,000 back, can I educate my boys with that money? Nope. There is no voucher state in which my money would not have to be supplemented with the tax dollars of my neighbors.

I've heard the counterargument-- the voucher represents a return on my real estate tax dollars over my entire lifetime. Let's check that math. I have a grand total of four children, and in my younger years I lived in places that carried a far lower tax burden, but let's pretend it has always been about $1,000. So let's assume that I pay $1,000/year for 55 years, for a grand total of $55,000. Would that cover 13 years of annual vouchers for 4 children? No, that would be about a little over $1,000/year. 

But hey-- I'm a guy living in a small town area that is technically part of Appalachia, where we have the kind of housing prices that the rest of you only dream of (seriously--if you have a small town bone in your body, you should move here). What if we checked other parts of the country?

Well, in North Carolina the average real estate ballpark tax bill is about $1,663. So that's not going to work much better.

In Texas the average property tax rate is 1.80%, so if you have a $350K house, you'd pay $6,300. That gets us closer to voucher money-- as long as you don't have too many kids. Of course that's an average, so some folks in less pricey housing would be paying way less. In Bandera County, a $150K house would yield $1,755 in real estate tax money. 

We could run numbers for a variety of locations, or we could make a common sense observation-- if the real estate tax money from parents was sufficient to fund the public school system, we wouldn't need to tax any non-parents, which is a point I fully expect non-parental taxpayers to bring up in voucher states in the not-too-distant future.

If this is just giving the parents back their own tax payments, then do non-parents get a real estate tax exemption? Once my kid graduates from high school, do I get to stop paying taxes? Are tax-paying parents given a limit to the number of children they actually get credit for? Where do the taxes paid on business real estate go in all this? 

The suggestion that vouchers are simply a means of giving parents back their own money to spend on education as they see fit--that's absurd. Our entire public education system is funded on the theory that everyone in the country benefits from sharing space with educated co-workers, neighbors, and pretty much everyone else we have to deal with. Everyone shares the cost. 

It's odd that so much of the voucher crowd is also the "taxation is theft" crowd, because voucher funding requires the voucher holders to take tax dollars from their neighbors while stripping those neighbors of any say in the kind of education those dollars will be spent on. That includes spending my neighbor's tax dollars on a school that would forbit, bar, eject, and demonize those neighbors and their children.

Your money should follow my child.

"Just give us back our tax money, and I'll get my kids the education I want and everyone else can get the kind of education they want," is top-grade bullshit. The only people who it even sort of works for is the folks living in very expensive houses. For everyone else, the end result is some kind of lower tier cheap crappy school--or getting your neighbors to chip in.

Your money should follow my child. 

Or maybe we could pool all our money and set up a system to take care of all the children.

Friday, May 31, 2024

Universal Vouchers and Privatization

A shift in Florida is being covered, but I'm not sure many folks really understand what's happening. 

Politico reported that Florida school choice programs have been "wildly successful," and both of those words are doing a megacrane's worth of lifting. More to the point, they are accepting the DeSantis definition of success, which is the replacement of a public school system with a privatized one.
“We need some big changes throughout the country,” DeSantis said Thursday evening at the Florida Homeschool Convention in Kissimmee. “Florida has shown a blueprint, and we really can be an engine for that as other states work to adopt a lot of the policies that we’ve done.”

Politico reported on this "success" in the context of many public school districts in Florida shuttering buildings due to dropping enrollment.

Let's acknowledge a couple of complexities here. First, the under-18 population is dropping everywhere in the country. Second, Florida's choice programs are exceptionally opaque, making it hard to know what, exactly, is happening, though there are indicators that, as in other states, a large number of voucher students never set foot in public school to begin with.

Florida's supremely underqualified choice-loving education commissioner Manny Diaz, Jr., says that all these closings are motivation for public schools. "But what they need to do is continue to innovate and provide programming that is attractive to parents so, on that open competition, they have the best option for those parents to choose."

Florida has long pursued the technique of draining resources and support from public schools, along with imposing a terrible testing system, doing their best to make charters and private schools look better by comparison. And in all fairness, it should be said that some Florida districts have shot themselves in the foot

The general trend in Florida has been to pursue Milton Friedman's dream of getting government out of the education business. And in that respect, Florida has been wildly successful.

But here's the important part.

Privatization is not just about privatizing the folks who get to provide education (or education-flavored products). It is about privatizing the responsibility for getting children an education.

Getting government out of education means ending the promise that every child in this country is entitled to a decent education. Regardless of zip code. Regardless of their parents' ability to support them. Regardless of whatever challenges they bring to the process. 

End that promise. Replace it with a free(ish) market. End the community responsibility for educating future citizens. Put the whole weight of that on their parents. End the oversight and accountability to the elected representatives of the taxpayers. Replace it with a "Well, the parents will sort that out. And if they don't, that's their own fault and their own problem."

This is billed as "freedom," and it is freedom of a sort, just like every citizen is "free" to get whatever means of transportation they can afford. You didn't want to depend on a badly used bicycle? You should have thought of that before you decided to be poor.

Except that it's not even that. To make the analogy more accurate, we'd need to imagine a country in which car dealers and bus companies could refuse to sell to you because you don't go to the right church or love the right people or because they just don't want to. 

Parents are free to pursue whatever education options they want for their children. Except that if the voucher won't cover the ever-increasing cost of that private school, and that other private school won't accept your child, and the neighborhood school that would have accepted your child no matter what is now closed. You could always start your own microschool, with a computer connection (hope you have internet) and some adult to hang out as a "coach." 

This is where universal vouchers fall right in line with other modern reform classics-- they propose to solve a problem that they absolutely do not solve.

Part of the pitch has been that poor families should have the same choices as wealthy families. Universal vouchers absolutely do not do that. Like any other sector of the free market, a privatized system provides plenty of great (and over-inflated, shiny) options for the wealthy, and lousy options for the not-so-wealthy. And it does it while chipping away at the one good option that the not-so-wealthy were promised-- a well-resourced public school.

Has the US public school system always lived up to the promise? Absolutely not. But canceling that promise and replacing it with the "freedom" at accept whatever lousy options the market deigns to deliver is not a step forward.

Reformsters have had a lot of success in convincing folks that education is a consumer good provided to families and not a human service provided for the benefit of the entire country. But the other undiscussed feature of the Florida plan is that it disenfranchises the community. It doesn't just say that educating children is no longer your responsibility; the Florida plan says that if you are a taxpayer with no children, you have no say, no power. And if anyone thinks that this won't eventually lead to shrinking voucher amounts, I have a bridge over some Florida swamplands to sell them.

We already know what this mostly looks like. It looks like our privatized health care system, where the people at the top get everything they need, and the people at the bottom skip medication and treatment and, periodically, die. But the health system just kind of grew that way, so nobody had to convince people to give up access to health care. Just periodically holler "No socialism! Freedom! Murica!" every time someone brings up single payer universal coverage. 

Universal vouchers, ironically, do not promise universal education for all students. The traditional public school system does. State by state we are being pu8shed to give up that system without ever having an honest conversation about what's really being proposed. 

Monday, May 27, 2024

KY: A Constitutional Voucher Amendment

School privatizers wanted school vouchers for Kentucky. But they ran into two problems:

1) A constitution

2) Judges who can read the constitution

Lawmakers had passed a tax credit scholarship program, the kind of program where rich folks can send money to a private school instead of paying their taxes. 




Tax credit scholarships are popular with voucherphiles because they allow folks to argue, "Hey, this isn't giving public dollars to a religious school, because the state never touches the dollars in the first place." 

This is not a good faith serious argument. I often explain it this way:

You love a certain brand of pickle. Your spouse says that the family already has some perfectly good pickles, and under no circumstances will they allow you to spend household budget money on your brand of pickles. So you make a deal with your employer; when it’s time to pay you, they will spend $50 of what they would have paid you to buy pickles instead, the give you the pickles and a check that is $50 lighter. Go ahead and tell your spouse that there's no reason to get upset because you didn't spend any money on pickles. Your spouse is still fully aware that the household budget is $50 short.

Section 184 of the Kentucky constitution has some straightforward language about funding education, including:
No sum shall be raised or collected for education other than in common schools until the question of taxation is submitted to the legal voters, and the majority of the votes cast at said election shall be in favor of such taxation
Kentucky’s Attorney General, arguing for the voucher plan, tried to assert a reading of the law that allowed for tax credit scholarships. The court replied, “We respectfully decline to construe the Constitution in a way that would avoid its plain meaning.”

“[T]he funds at issue are sums legally owed to the Commonwealth of Kentucky and subject to collection for public use including allocation to the Department of Education for primary and secondary education” and reallocating them to private school tuition is unconstitutional.

Deputy Chief Justice Lisabeth T. Hughes wrote “Simply stated, it puts the Commonwealth in the business of raising sum(s) . . . for education other than in common schools.”

Put another way by the court, “The money at issue cannot be characterized as simply private funds, rather it represents the tax liability that the taxpayer would otherwise owe.”

In short, the Kentucky constitution says "No taxpayer dollars for anything other than public schools. And that includes those tax liabilities y'all are trying to sneak behind your backs there."

That was back at the end of 2022. Then, another setback for choicers. A year later, Franklin County Circuit Court Judge Phillip Shepherd ruled against the funding law set up to promote charter schools in the state.

Wrote Shepherd in his ruling, “Whether the charter schools envisioned by HB 9 are good or bad, they are outside the scope and definition of the ‘common schools’ defined by our Ky. Constitution.” Citing the many ways in which the charter law allows charter schools to operate outside of the laws governing public schools, Shepherd concluded
This charter school legislation is effectively an attempt to bypass the system of common schools, and establish a separate class of publicly funded but privately controlled schools that have unique autonomy in management and operation of schools... This “separate and unequal” system of charter schools is inconsistent with the constitutional requirements for a common school system.
Shepherd also pointed to Section 186 of the state constitution, which he quoted in its entirety:
The violation of Section 186 of the Ky. Constitution is even more clear. That provision requires that “All funds accruing to the school fund shall be used for the maintenance of the public schools of the Commonwealth, and for no other purpose, and the General Assembly shall by general law prescribe the manner of the distribution of the public school fund among the school districts and its use for public school purposes.” (Emphasis supplied). To take tax dollars to support these privately owned and operated charter schools is flatly inconsistent with the mandate of Section 186 of the Ky. Constitution.

Frustrated Kentucky privatizers only had one real option, and that option was proposed in January of this year. HB 2 proposes a constitutional amendment that would fix all that restrictive public school language and make it okee dokee for taxpayer dollars to be spent on charter and voucher schools. It's not complicated; the new language says

The General Assembly may provide financial support for the education of students outside the system of common schools. The General Assembly may exercise this authority by law, Sections 59, 60, 171, 183, 184, 186, and 189 of this Constitution notwithstanding.

HB 2 will put the new language on the November ballot in Kentucky. The debate is the same old same old-- the GOP says "we need to give poor kids a chance" and the Dems say "So, give more support to the schools that most of them already attend."

Kentucky is way behind the curve on these issues, so much so that journalists include lines like "Advocates of government support for private and charter schools refer to such efforts as 'school choice' initiatives." just in case readers don't know what "school choice" refers to.

Protect Our Schools KY has been launched by public education supporters, including teachers, administrators, and other supporters. Louisville Puiblic Media reported from Perry County.

Sawyer Noe, a recent graduate of Knott County Schools, said the constitutional change would divert funding from public schools.

“Not only are we being asked to allow our tax dollars to subsidize a private education for the select few, but we are being asked to do so at a time when public schools are having to cut critical services,” Noe said.

The actual question on the ballot will be

To give parents choices in educational opportunities for their children, are you in favor of enabling the General Assembly to provide financial support for the education costs of students in kindergarten through 12th grade who are outside the system of common (public) schools by amending the Constitution of Kentucky as stated below?

Here's hoping that public school supporters are able to muster a hefty heap of "no" in November. 





Thursday, May 23, 2024

OH: Vouchers for Jesus

I can vaguely remember a time when the Heritage Foundation didn't wear its conservative christianist heart on its sleeve, but those days seem gone.





Witness this latest award from Heritage. Their 2024 Innovation Prize winers include Their 2024 Innovation Prize winers include outfits like the American Association of Pro-Life Obstetricians and Gynecologists, The Claremont Institute, Feds for Freedom, Immigration Accountability Project, and the Center for Christian Virtue.

CCV is an Ohio organization that started out in 1983 as the Citizens for Community Values. 
The First Amendment ensures that people of all faiths are free to exercise their beliefs in their day-to-day lives. For Christians, this freedom is essential because our faith compels us to act – to seek the good of our neighbors and follow God’s word daily.

Yet throughout the country, laws are in place to restrict religious freedom, and to punish people of faith because of their beliefs. For this reason, protecting religious freedom is our top priority at CCV. 

I often think that ancient Christians would be baffled by what modern christianists consider "punishment" for their beliefs. The modern definition of punishment seems to be stuck on things like "not allowed to discriminate freely against people of whom we disapprove" and "not allowed to grab as much taxpayer money as we wish." 

As punishment goes historically, it seems like tame stuff. But CCV is there to stand up against it by pushing "lifesaving legislation, including bills to prohibit abortion at the moment a heartbeat is detected in an unborn child, expand Ohio’s school choice programs, and protect religious freedom."

CCV leadership include president Aaron Baer, a comms professional (Ohio University '09) from Arizona, where he was a policy advisor for the attorney general's office. He helped launch the Ohio Christian Education Network, most noted for successfully suing the Ohio health department for closing Christian schools during the pandemic. OCEN has its own executive director, Troy McIntosh, a private Christian school vet. 

CCV isn't particularly coy about where they stand on the whole public education thing, as they explain in their release about winning the Heritage award:
CCV will receive a $100,000 award to support its Education Restoration Initiative, addressing Ohio's academically broken and morally corrupt government-run education system. The award will expand CCV's Ohio Christian Education Network (OCEN) model, which helps churches operate full-time, in-person Christian schools Monday through Friday. CCV plans on leveraging Ohio's EdChoice program to offer a moral and quality education to students at little to no cost, especially to those below the federal poverty line. CCV intends to launch dozens of schools across Ohio and export this model to other states to serve and save children across the country.

 I'm not sure exactly when we shifted gears from simply alleging that public schools didn't educate very well to also accusing them of being morally corrupt. But Baer is sure that we have an "educational crisis" because "agenda-driven bureaucrats are pushing political ideologies in the classroom."

And Heritage is right there with him. Upon delivering the award, Heritage president Kevin Roberts declared:

So much of our nation's societal decay stems from our education system, and institutions like CCV are spearheading the effort to save our children and restore morality and sanity in our schools.

It's all a reminder that Ohio's voucher program is about replacing a public non-sectarian school system with one that is explicitly Christian, and to do it in a way that circumvents any actual national discussion about whether this is a good idea or not. But I guess a conversation like that would be punishment.

Monday, May 13, 2024

Failing Charters Go Private

Last month, Amelia Pak-Harvey at Chalkbeat Indiana ran a story about a failing charter school that had been approved for a new lease on life--as a private school.

Ignite Achievement Academy was supposed to improve its "checkered academic record," but instead the State Board of Education gave it a unanimous thumbs up to become a private school. Specifically, a private school that can cash in on Indiana's school voucher program.

This is not a new dodge. Annie Waldman wrote a piece for ProPublica way back in 2017 that found 16 troubled charters converting to private schools that could grab taxpayer-funded vouchers. 

As Waldman pointed out, this was a bit of as shift. There was a time when private schools converted to charter, because charters could collect taxpayer money, and private schools couldn't--yet.

There has always been some tension between charters and vouchers, because they represent two different stances. First, the funding.  Let's say that the funding is an actual stream that leads to an actual pond. Traditionally, that pond was used strictly for thirsty public school systems. The charter approach has been to insist that they be allowed to drink from that pond, too. The voucher approach is to interrupt the stream itself, redirecting it away from the pond and off to a hundred other little locations.

Second, the overall goal. Real charter fans see charters as a sort of supplement or enhancement of the public system, while voucher fans would be just as happy to burn the whole public system down. And of course, a whole lot of charter supporters have been the foot-in-the-door crowd, seeing charters as a way station or halfway house to sort of while away the hours until vouchers could finally stomp freely over the landscape. 

Andy Rotherman (of reformy Bellwether) offered a quick visual analysis that hits the mark. As more and more voucher bills pass, charters will feel the pinch. After all, why run a charter that has to keep some authorizer happy when you can collect taxpayer-funded vouchers that come with no regulation, oversight, or accountability?

It's one more way that magical market forces do not make a good substitute for actual oversight, accountability, and regulation. Ignite is a perfect example. About to be held accountable for your failure? Change your name and move to another sub-sector of the ed biz. It's a trick the private sector already knows, like the drilling company in my neck of the woods that was sued repeatedly for ruining well water, so they declared bankruptcy, escaped the consequences of their failure, and soon formed a new business with the same folks.

Charter and private schools have additional advantages. First, the market for their business is constantly turning over. Second, they only need a small sliver of the total market to be viable. So just keep marketing enough to keep pulling in fresh customers, and it's unlikely that any of your previous failures will catch up with you any time soon.

In the meantime, watch for more and more failed charters, or charters that just want to operate in an accountability-free sector, to jump into the unregulated world of private schooling. 


Friday, February 19, 2016

WI: Trying To Hide Charter Truth

One of the great lies of the charter-choice movement is that you can run multiple school districts for the price of one.

A school district of, say, 2,000 students can lose 75 students and with them about $750,000 dollars of revenue, and somehow that district of 1,925 students can operate for three quarter of a million dollars less. And how does the district deal with that loss of revenue? By closing a building-- because the more school buildings you operate, the more it costs.

The other common response of a school district to the loss of revenue to charters is to raise local taxes. If charters want to look at where some of their bad press is coming from, they might consider school boards like mine that regularly explain to the public, "Your local elementary is closing and your taxes are going up because we have to give money to the cyber charters."

We can run examples a dozen different ways. What is cheaper in the aggregate-- to house your ten person family in one house, or to house each family member is a separate building? Is it cheaper and more efficient to educate 2,000 students in one district with one set of administrators and special areas teachers, or in five school districts with five sets of administrators and special area teachers?

The inefficient, multiple provider model of charter schools creates greater expense, and the difference can only be made up one of two ways-- either taxpayers must fork over more money for education, or schools must cut services. If you are going to add charter-choice schools to a system, those are the only two options.

States have tried to fudge their way around with various systems of reimbursements to school districts for the students they lose to choice-charter. IOW, when that district loses the $750K, some states help make up the shortfall, either partially or completely. This is solidly in the Taxpayers Must Pay More category, but by funneling the money through the state, taxpayers might be kept unaware that they are paying more tax dollars so that a handful of students can go to a private school at public expense.

Which brings us to the morning  news from Wisconsin. 

Wisconsin is a happy land for school choice fans, with vouchers in play through three separate programs, robust choice advocacy groups, and a governor who tries to expand school choice every time the sun shines. So they have had plenty of opportunity to feel the effects of voucher prorgams sucking the life blood from public schools. Choice advocates have tried combating the bad PR with bad arguments ("it all just kind of evens out over time, somehow"). But now the legislature is trying to patch, or at least hide, the bleeding.

The 2015-2017 let local school districts draw on additional tax dollars, through state aid and through property taxes, to cover the money lost to vouchers, but Assembly Speaker Robin Vos didn't like that plan, feeling that local school districts could "pocket" the difference (schools would probably have squandered those tax dollars on books and programs and education stuff, and we can't have that). Vos's proposal would have dramatically reduced the amount of revenue that districts could call on to plug the gap, actually leaving districts in the hole.

Thursday the legislature passed a break-even compromise. If a school loses $750K in voucher money, they are authorized to gather some combination of additional state aid and local tax increases to raise exactly that $750K.

Which means that having vouchers in a Wisconsin school district raises the cost of educating students in that district by exactly the cost of the vouchers. The vouchers represent not a backpack of student money following students from school to school, but additional taxpayer dollars injected into the education system. The taxpayers will pay extra so that some students can go to a private school.

This is not necessarily a bad thing in and of itself. If you want to stand up in front of the taxpayers and sell the idea that they should pay higher taxes so that some students can go to a private school at public expense, go ahead and try to sell that idea. But if you are going to insist on lying about it and insist, for instance, that people's taxes are NOT going up to finance vouchers-- well, that sort of dishonesty doesn't benefit anybody.

Wisconsin is a fine example of a state that has successfully avoided having an honest discussion about what they are actually doing, which is increasing taxes in order to fund a new entitlement-- the entitlement of a handful of students to attend a private school at pubic expense. Such an entitlement may or may not be a good idea-- that's a separate discussion, but step one in having that discussion is to be honest about what you want to do.

Friday, March 27, 2015

Voucher Party

One of the foundational assertions of the charter movement is that public school tax dollars, once collected, should be attached to the child, maybe in a backpack, or perhaps surgically. "This public money... belongs to the student, not the failing school" wrote a commenter on one of my HuffPost pieces today. And I've heard variations on that over and over from charter advocates.

The money belongs to the student.

I've resisted this notion for a long time. The money, I liked to say, belongs to the taxpayers, who have used it to create a school system that serves the entire community by filling that community with well-educated adults who make better employees, customers, voters, neighbors, parents, and citizens. But hey-- maybe I've been wrong. Maybe that money, once collected really does belong to the student. In which case, let's really do this.

Let's let the student spend his voucher money (and let's stop pussyfooting around this-- when we talk about the money following the students, we're talking about vouchers) on the education of his dreams.

Does she want to go to the shiny new charter school? Let her go (as long as they'll take her, of course). But why stop there? Travel has long been considered a broadening experience-- what if she wants to take the voucher and spend it on a world cruise? Why not? It's her money. Perhaps she wants to become a champion basketball player-- would her time not be well spent hiring a coach and shooting hoops all day? Maybe she would like to develop her skills playing PS4 games, pursuant to a career in video-game tournaments. That's educational. In fact, as I recall the misspent youth of many of my cohort, I seem to recall that many found smoking weed and contemplating the universe to be highly educational. I bet a voucher would buy a lot of weed.

What's that, charter advocate? Do I hear you saying that's an unfair comparison, that obviously a high quality charter school is way different from smoking a lot of weed. I agree, but that's beside the point.

The money belongs to the student.

You didn't say that the money was the student's to be used on educational experiences that met with the approval of some overseeing government body. You didn't say that the money was the student's on the condition that the student got somebody's permission to use it first.You didn't say that we'd need to put strings on how the money is spent because students and their parents might not always make responsible choices.

You said the money belongs to the student.

Heck, let's really go all in. Why use the odd fiction of a voucher at all-- let's just collect taxes and cut every single student an annual check for $10,000 (or whatever the going rate is in your neighborhood). Let's just hand them the money that we're asserting belongs to them, and let them spend it as they wish. Maybe they'd like a nice couch, or a new iPad, or a sweet skateboard, or a giant voucher party, or food and clothing for themselves and their family.

Unless of course you'd like to suggest that the taxpayers who handed over that money and the community that collected it have an interest in making sure that it's spent well and responsibly in a way that serves the community's greater good. In which case we can go back to discussing how those needs of the stakeholders--ALL the stakeholders-- are best served by an all-inclusive community-based taxpayer-controlled educational system, and stop saying silly things like, "The money belongs to the student."

Wednesday, February 25, 2015

Coke Provides a Marketing Lesson

Proponents of vouchers and choice systems never tire of touting the benefits of the free market. For them, the free market is like a colosseum in which gladiator products battle to become better, until the crown goes to those who are Most Excellent of All. It's a touchingly childlike belief; the free market will deliver excellence to customers just like Santa will deliver presents to good boys and girls.
colosseum_19809_lg.gif
But in our American free-ish market capitalism-lite system, the path to victory often has nothing to do with the pursuit of excellence.

Sometimes the market place just doesn't want excellence enough to pay for it; analysts have suggested that's why the airline travel experience is lousy and getting lousier. Or consider cable television, which promised a cornucopia of varied and quality channels and instead delivered 500 versions of the same bland culture-mulch.

Yesterday, Coca-Cola delivered another lesson in how the free market really works. Coke has been having troubles financially, and it's worth noting that many of these troubles have absolutely nothing to do with the product at all, but with the financial machinations of international exchange rates. Apparently when those aren't tilted in the proper direction, you can magically turn your money into less money. Additionally, Coke has suffered some loss of market share because it has occurred to many people that they could put more healthful substances into their bodies.

So how did Coke handle this? Did they find a way to make their product better? Did they pursue excellence so that they could be rewarded by the free market? Of course not. As reported by the AP, they did this:

To make up for weak volume gains at home, the company has been using a variety of tactics including a focus on "mini-cans" and smaller bottles that are positioned as premium offerings and help push up revenue.

That's right. They looked for a better way to trick the customers into giving them more money. Specifically, they put their flavored fizzy water in smaller cans, essentially raising their price-per-unit and then marketing the increased cost as a Good Thing. They put less of the same old product in new cans. That's it.

This is the free market at its worst. The customer is your adversary-- they have your money and somehow, some way, you have to get it away from them. It's not that you need a product that actually has better quality-- you need a product that can more easily be sold.

I've written this many times. If I'm ever important enough to have a law named after me, this might be my best shot:

The free market does not foster superior quality; the free market fosters superior marketing.

The notion that unleashing these sorts of market forces in education would somehow lead to better schools would be funny if it weren't so destructive in practice. It is particularly problematic because under school choice, the school can't raise the price because that voucher payment is set by the state (I know we rarely call these vouchers any more, but that's only because the term has become a political liability-- school choice programs are still essentially voucher programs). So the only option for schools in a free market system is to cut services, to put less education in a smaller, shinier can.

When a school's guiding principle, its business plan, is to ask, "How much less can we give these students and still keep market share," that school is broken. A system that rewards better marketing of a poorer product is not a system that creates excellence, and we do not need to put education in smaller cans.

Originally posted at View from the Cheap Seats