Tag Archives: taxpayers

Subsidizing Bigotry

As the country’s diversity and tribalism have grown, America’s public schools have become more necessary than ever. The public school is one of the last “street corners” where children of different backgrounds and beliefs come together to learn–ideally–not just “reading, writing and arithmetic” but the history and philosophy of the country they share.

Today’s Americans read different books and magazines, visit different websites, listen to different music, watch different television programs, and occupy different social media bubbles. In most communities, we’ve lost a shared daily newspaper. The experiences we do share continue to diminish.

Given this fragmentation, the assaults on public education are assaults on a shared America.

Nevertheless, politicians and (especially) religious adherents who feel threatened by diversity and modernity have worked tirelessly to support voucher programs that allow parents to remove their children from public school systems and send them to private–almost always religious–schools, where they study with “their own kind.” The rhetoric around these programs typically defends them as “allowing children to escape failing schools”–although those “failing” schools are hardly helped by sending their already inadequate resources to private schools–despite consistent research showing that vouchers virtually never lead to academic improvement. (They do, however, lead to increased racial segregation.)

As an added indignity, voucher programs send tax dollars to schools that discriminate against LGBTQ children and children with LGBTQ parents. Here in Indiana, Cathedral High School, which received over a million dollars in 2018, fired a gay teacher;  Roncalli High School, which also has accepted vouchers worth millions fired a much-loved gay counselor who was in a same-sex marriage.

Recently, in a welcome announcement, two major contributors to Florida’s voucher program announced that they would no longer be contributing to that state’s program, which also allowed recipient schools to deny admission to gay students.

Two of the largest banks in the U.S. say they will stop donating millions of dollars to Florida’s private school voucher program after a newspaper investigation found that some of the program’s beneficiaries discriminate against LGBTQ students.

In a statement to NBC News and CNBC on Wednesday evening, Wells Fargo confirmed that it would no longer participate.

“We have reviewed this matter carefully and have decided to no longer support Step Up for Students,” the San Francisco-based bank said of the voucher program. “All of us at Wells Fargo highly value diversity and inclusion, and we oppose discrimination of any kind.”

In a tweet to a Florida lawmaker Tuesday, Fifth Third Bank, based in Cincinnati, said it has told officials with the voucher program that it will also stop participating.

An investigation by the Orlando Sentinel found 156 private Christian schools with anti-gay views that participated in Florida’s program. Those schools educated more than 20,000 students whose tuition was paid by Florida taxpayers–including, obviously, LGBTQ taxpayers.

The investigation found that 83 of the 156 schools with anti-gay views refuse to enroll LGBTQ students, and that some number of those schools also exclude students whose parents are gay.

“Florida’s scholarship programs, often referred to as school vouchers, sent more than $129 million to these religious institutions,” the Sentinel reported on Jan. 23. “That means at least 14 percent of Florida’s nearly 147,000 scholarship students last year attended private schools where homosexuality was condemned or, at a minimum, unwelcome.”

So much for the American “street corner” and our commitment to civic equality.

We taxpayers are subsidizing segregation and bigotry–without realizing the promised improvement in academic outcomes.


No Free Burgers…

If there’s one thing that conservative and liberal economists agree about, it’s that old bromide about there being no free lunch.

That widget you are manufacturing contains raw materials, its construction takes labor, and its distribution and marketing must be paid for. Your facility and utilities cost money.  Those costs–plus some profit–have to be reflected in the price, or you’ll go broke.

You may be able to gain a market advantage by shifting some of your costs to others–we all know of cases where pollution created during production is discharged into the air or water to be paid for by the community at large, rather than by being properly disposed of and the cost of that disposal factored into the product’s sales price–but if it’s a cost of doing business, someone has to pay it.

Market theory assumes that the widget manufacturer will pay all the costs of production,  and then pass those costs on to the ultimate consumer, as part of the price.

Increasingly, however, taxpayers are assuming those costs.

Case in point: we are subsidizing the wages of a quarter of the people who have jobs today. A recent study from UC Berkeley and the University of Illinois found that fully 52% of fast-food workers receive public assistance–mostly Medicaid and food stamps–to the tune of $7 billion dollars a year. (McDonald’s workers alone got $1.2 billion of that.) One Wisconsin Wal-Mart costs taxpayers over a million dollars a year.

The United States now has the highest proportion of low-wage workers in the developed world. And as the report noted, every dollar taxpayers spend subsidizing corporations so they can continue paying their workers poverty wages is a dollar not spent on early childhood programs, or schools, or roads, or any other social good.

We need to have a national conversation about who is paying for that burger.

State Workers Pay Taxes Too

During a discussion the other day, a SPEA staff member made a point that seems to be lost in the contending, highly ideological arguments about the standoff in Wisconsin. She noted that public employees are also taxpayers, and that the Governor’s insistence that he is acting in the “interests of the taxpayers” didn’t seem to include the interests of that particular subset of taxpayers.

Her observation has just been quantified and amplified by Robert Russell, a Wisconsin state economic analyst, who pointed out that state workers are not only taxpayers, but consumers.

According to Russell, if public employee salaries are cut through increased withholdings as Walker is proposing, by an amount large enough to fill the $137 million budget gap, the resulting drop in consumer spending will lead to: 1) a loss of over 1,200 nongovernment jobs; 2) a loss of about $100 million in business sales statewide; 3) a loss of nearly $35 million in personal incomes of nongovernment employee households; and 4)  a loss of nearly $10 million in state tax revenues.

This is not about economics. (Indeed,  Governor Walker seems blissfully ignorant of basic economics.) It’s about ideology, hubris, and political payback.