Milton Friedman’s Voucher Plan

More than 30 years ago – in 1979 – Milton Friedman and his wise Rose Friedman published the book Free to Choose, in which they made a (compelling) claim in favor of handing over authority to the free market, and taking it away from the government. The arguments they come up are profoundly grounded in empirical evidence, pointing at the inefficient and unequal spending of tax payers’ money on the ‘big issues’ of society (healthcare, Social Security, public assistance etc.). I want to focus at the expenditures on public education, about which the Friedmans say a lot, and in particular on the immoral and degrading effect this can have on citizens.

We humans are intelligent creatures. Some are – without a doubt – better equipped (mentally) for dealing with the whims of the free market than others, but still almost all of us are reasonably capable of fulfilling our needs in life. We can go the supermarket by ourselves, decide for ourselves what we want to eat for breakfast and dinner, and much more. The government doesn’t have to do this for us. We can decide for ourselves how we want to spend our leisure time: whether we want to go the movies or not. We don’t need the government to decide this for us. Not only because the government cannot know what each one of us wants – therefore inevitably being inefficient in the spending of its – or our – resources – but also because we know that we are intelligent beings, very much capable of making our own decisions in life.

And this intelligence of ours doesn’t have to confine itself to mundane decisions like how to spend our free time. We are equally competent in deciding for ourselves how we want to spend our money on more pressing issues in life: what hospital we want to attend, whether to assist our loved ones financially whenever the need might arise, and what school our children should attend. These issues are of such importance to our well-being – and our children’s – that, instead of putting the government in charge of these decisions, we should be the ones choosing what we consider to be best for our, and our children’s, future.

In 1979, the Friedmans noticed an upward trend in the government taking control of many of these decisions – decisions that, by the way, have a relatively big impact upon our financial resources. The most striking example of this might be the public financing of (elementary, secondary and higher) education. In 1979, the average US citizen paid 2.000 dollars per child that attended public education, even though not everyone’s child – assuming that you even have children – made use of public educational resources. The Friedmans found this state of affairs harming to the right of each individual to decide where to spend his money at, including the option to put one’s child at a privately financed educational institution.

Therefore they came up with a ‘voucher plan’: a plan in which every US citizen would – per child they have – get a voucher exchangeable for a certain amount of money – let’s say 2.000 dollars. They could cash in this voucher only if their child would attend an appropriate educational institution. This voucher plan would come in the place of the tax each US citizen is obliged to pay, irrespective of them having children and irrespective of their children attending a public educational institution. This plan would make sure that only the ones making use of pubic educational services would be charged, thereby excluding the non-using part of society.

The Friedmans made – primarily – financial arguments in favor of their voucher plan, saying that – on the whole – public educational costs would remain the same, and that parents would use their increase in autonomy to find the school that best suited the needs of their children. The relatively free market that would be created on the basis of the voucher plan, would improve the quality of both public and private education. I believe, however, that one argument in favor of the voucher plan, and the free market in general, has not received the attention it deserved – at least not in the Friedmans’ Free to Choose. And that argument has to do with human intelligence.

As pointed at above, humans are – for the biggest part – perfectly capable of deciding for themselves where to spend their money at. We wouldn’t want anyone else to do our groceries or schedule our leisure time for us – at least not for (our) money. But that is exactly what the government does when it comes down to public education. The government proclaims that – as the Friedmans explain – it is the only actor possessing the professional knowledge required for deciding what is best for our children – thereby implying that they are indispensable in order for our children to receive a qualitatively good education.

What this claim comes down to is the government saying – or not saying – that we (‘the crowd’) don’t understand what is important and what is not in regard to our children’s education, and that – because of that – they should step in and release us of this impossible duty of ours. We don’t understand what to do, but luckily they do. They are the father looking out for us, protecting us from doing harm to our children and to the rest of society.

I find this an insult to the basic level of intelligence the majority of the people has. We very well believe to know what is important in our children’s education – probably much better than the government, since, in contrast to the government, we know our children. Thus besides all the financial benefits of the voucher plan, by returning autonomy to the Average Joe, a voucher plan is required for respecting people’s intelligence. After all, we are no fools, are we?

What do you think?

I Find it Offensive that You Find it Offensive

A while ago, I was watching a YouTube video of Hans Teeuwen (a Dutch comedian) having a discussion with three Muslim women. The women invited him to talk about – as they claimed – his discriminatory beliefs about Muslims. Teeuwen is a comedian who intents to provoke, make you think and attack dogma – not only the Islam. At a certain point in the interview, the women asked Teeuwen: ‘Don’t you mind offending people?’ Teeuwen responded: ‘I don’t think I’m offending anyone. Who do you think I’m offending?’ The women said: ‘Well, us for example. We are offended by your claims about Allah.’ Teeuwen said: ‘Really? Well, I’m offended that you’re offended by my claims about Allah.’ ‘I think it’s of great importance to be able to say what you want in a democratic society, without people like you trying to silence me. That’s what I find offending.’

I found this a very accurate observation. Religious groups – but other minorities as well – have a tendency to act like they’re being victimized, like they’re are being attacked just because their beliefs differ from those of the mainstream. This is a trick they’ve taught themselves, and that they use as a shield whenever they’re being ‘attacked’ by non-believers because of whatever it is they happen to believe. They crawl back into their shell of convictions and claim to be offended, thereby hoping that the ‘offending’ party will stop throwing its beliefs at them, and just leave them alone.

But what if the beliefs of the offended party are considered to be offensive by other people? What if non-Muslims find headscarves to be a sign of suppression, a sign – religious or not – that should not be tolerated in a democratic society: a society in which equality of rights is considered to be a great good. What then? Who’s right and who’s wrong? Who is the offender and who is the offended? Or are both parties occupying both roles at the same time?

This is an important question because it points to the heart of democracy. In a democracy – especially through freedom of speech – people should be able to express themselves and, as a logical consequence of that, should lend others this right as well. And since it’s impossible to say what claims are offensive in any absolute way (see the Teeuwen example) we should be tolerant towards all claims, and hope that the ones we find most reasonable will be the ones that become accepted by the majority. And, since democracy is such a widespread institution in this world of ours, it seems that the majority of people has the same set of fundamental beliefs as you and I have, one of which is freedom of speech: whether we find this offensive or not.

But what do you think?

Social Value: Friendship or Fame?

“I am not really supposed to say this, since I promised John I wouldn’t tell anyone, but do you know what he told me? I will tell you if you promise – absolutely promise – that you won’t tell anyone, okay?”

Secrets and insecurity mix like candy and children: those who have got it, think they have got something valuable, something that others might want to have. Something that makes them being appreciated by others. After all, who doesn’t want to hear a big fat rumor about that chick on college that “allegedly” has some kind of affair with the crippled teacher? That’s awesome to know, right? Because, now you know it, you have increased your value, you have increased the number of likes on your Facebook-page, you have got a check that you can cash at any time you want. And why would it even matter that you promised someone that you wouldn’t tell anyone about his or her little secret? I mean: the people you tell the secret to aren’t going to spread it, right? Of course not. Not if they just shut their mouths and stick to their promises. Just like you almost managed to do.

Choices, choices. Considerations, considerations. Friendship or popularity, comfort or fame. Considerations, considerations. What would you do? Would you hear the confession and leave it with that? Or would you use this precious little inside information for increasing your very own social value? Difficult, difficult. A stock broker would cash his inside information, right? Exploit it to the fullest. And so should you, right?

Friendship without trust is like shitting on a broken toilet: it just gets messy. And after a while, you decide to take your shit elsewhere, away from the leaky toilet. Betraying your friends’ confidence is like the buying of derivatives in reverse: instead of you distributing the risk among the many happy buyers, thereby decreasing your own risk, the more happy buyers that buy your pretty little rumors, the bigger the risk you carry will get. And although high risks go hand in hand with high pay-offs, you should have balls of steel in order to cope with it. Because if someone snitches, the pyramid of conspiracy collapses, and it will all come back to the source: the leaky insecure source that is you. The source whose longing for social value was higher than the loyalty to his friends. And now, as the crisis has taken off, you have lost all of your value. You are bankrupt. You not only lost the respect of the periphery of your social circle, whose hypocrisy resides in the fact that they like to spread tasty rumors on the one hand, just to increase their own social value, but – when they get caught – scream that loyalty is the biggest virtue of mankind. No, you lost something far more valuable. You lost the core, the fire that was there to warm your hands and absorb your confessions. Your friend, your trust, your dignity. It’s gone. It’s all gone.

So what do you do? Love your friends or enjoy the fame? Get a steady pay-off or go for the highest of profits? It’s up to you.

What do you think?