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ECONOMIZATION OF EDUCATION
“Excellent. Needed. The arguments made for education in our times require a book like this
to understand what has been happening. People have uncritically accepted the new educational
goals. Joel Spring lifts the veil hiding dangerous educational trends. His cogent analysis points
out the powerful forces shaping educational policy today and which endanger both our system
of education and our democratic government. The book is timely.”
—David C. Berliner, Regents’ Professor Emeritus, Arizona State University, USA
“Spring’s work has been very valuable on globalization and education and this volume offers a
unique perspective relative to his prior work on the subject. I don’t know of another text that
focuses on the supranational organizations like this one does. A great introduction and overview,
and counterpoint to dominant economics of education texts.”
—Kenneth Saltman, University of Massachusetts Dartmouth, USA
In this timely, cogent analysis of trends and powerful forces shaping global educational policy
today, Joel Spring focuses on how economization is making economic growth and increased
productivity the main goals of schools, and the ways these goals are achieved—including
measuring educational policies by their costs and economic benefits, shaping family life to ensure
productive workers and high-achieving students, introducing entrepreneurship education
into curricula from preschool through higher education, and increasing the involvement of
economists in educational policy analysis. Close attention is given to the Organization for
Economic Cooperation and Development (OECD), the World Bank, the World Economic
Forum, and multinational corporations, which, as advocates of economization, want schools to
focus on teaching hard and soft skills needed by the global labor market.
Economization raises questions about the effects of economically driven agendas for schools:
Will education policies advocated by global organizations and multinational businesses
corporatize and standardize human personalities and families? What type of global worker
is being sought by global organizations and multinational corporations? What education
programs are supported to educate the ideal global worker? What is the ideal family life for
economic growth and development? Detailing and analyzing the politics and motivations
driving economization, the book concludes with an assessment of the impacts of the
confluence of business interests, economic theories, governments, and educators.
Joel Spring is Professor at Queens College/City University of New York and the Gradu-
ate Center of the City University of New York, USA.
Sociocultural, Political, and Historical Studies in Education
Joel Spring, Editor
Joel Spring
First published 2015
by Routledge
711 Third Avenue, New York, NY 10017
and by Routledge
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2015 Taylor & Francis
The right of Joel Spring to be identified as author of this work has been
asserted by him in accordance with sections 77 and 78 of the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced
or utilized in any form or by any electronic, mechanical, or other
means, now known or hereafter invented, including photocopying and
recording, or in any information storage or retrieval system, without
permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks
or registered trademarks, and are used only for identification and
explanation without intent to infringe.
Library of Congress Cataloging in Publication Data
Spring, Joel H.
Economization of education : human capital, global corporations,
skills-based schooling/by Joel Spring.
pages cm
Includes bibliographical references and index.
1. Education—Economic aspects. 2. Corporatization—United States.
3. Human capital. 4. Educational sociology. 5. Education and globalization.
I. Title.
LC65.S66 2015
338.4c7374013—dc23
2014041455
Typeset in Bembo
by Swales & Willis Ltd, Exeter, Devon, UK
CONTENTS
1SFGBDF xi
1 Economization and Corporatization of Education 1
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2 OECD: The Economization of Test Scores 30
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viii Contents
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3 Skills: The New Global Currency 55
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4 World Bank: “Our Dream Is a World Free of Poverty” 82
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Contents ix
*OEFY 150
This page intentionally left blank
PREFACE
I began this book wondering why there are so many economists involved in
educational research and policy. I was startled by claims that test scores could
predict a country’s future economic growth and that skills were the new currency
of the global economy. In the US many schools had already adopted a skills-
based curriculum called the Common Core State Standards and globally schools
were being ranked by student performance on the Organization for Economic
Cooperation’s international test PISA. It didn’t make sense to me that policy-
makers would declare that investment in education would grow and improve an
economy when the up-and-down swings in the global economy are caused by
events other than the quality of schools.
I trace the influence of economic theories on education back to the 1940s and
1950s and the Chicago School of Economics. As I explain in Chapter 1, it was
this school of economic thought that promulgated theories about the economic
importance of human capital and the idea that education could grow the economy.
Using rational choice theory, some of these Chicago economists applied economic
theories to every aspect of human life. The ideas of the Chicago School of Eco-
nomics appeared in the early work of the Organization for Economic Cooperation
and Development (OECD), the World Bank and the World Economic Forum.
As explained in Chapter 2, the OECD was the first global organization to use
human capital economics to develop education policies and to call on nations
to invest in skills-based curricula. Their policy statements claim that investing in
education causes economic growth and reduces inequalities in income. However,
human capital economists don’t think school credentials and years-of-schooling
are accurate measurements of education’s economic impact. Consequently,
economists wanted to identify the skills learned in schools that contribute to
worker performance and economic growth. By the 1990s, OECD developed
xii Preface
PISA to measure skills related to employment and the world began to jump on
the skills-based education bandwagon.
As detailed in Chapter 3, surveys of global businesses indicated the hard and
soft skills wanted by employers. Hard skills refer primarily to literacy and math-
ematics along with specific skills for a particular occupation. Soft skills refer to
workers’ behaviors, such as conscientiousness, team work, and a work ethic.
Consequently, OECD initiated a survey of adult skills (PIAAC) and the World
Bank developed the Step Skills Measurement Program. These tests, combined
with PISA and the math and science test TIMSS, were to measure the quality of
a country’s human capital. This initiated a world Olympiad of test scores with
national schools ranked on a comparative scale.
As explained in Chapter 4, the World Bank adopted the human capital ideas
of the Chicago School of Economics and lent money to developing nations to
improve their schools as a means of stimulating the economy. The World Bank’s
policies also pressed for improved education to eliminate world poverty.
The World Economic Forum, discussed in Chapter 5, representing the world’s
richest corporations, readily pushed for a skills-based education. The previously
discussed tests were used in determining its Human Capital Report and Human
Capital Index as measures of the quality of a nation’s workforce. The World Eco-
nomic Forum advocated closer ties between businesses in formulating education
policies and introduced entrepreneurship education as another economic solu-
tion for poverty and income inequality while repeating the mantra that education
could grow the economy, end poverty, and reduce income inequalities.
Worried about families teaching the “right” soft skills for school success and
employment, some economists and sociologists turned their attention to fam-
ily interactions. Consequently, as described in Chapter 6, these economists and
sociologists advocated particular family structures to ensure the passing on of the
“right” soft skills. Their position is that if the family fails in this endeavor, then
preschool is to compensate. James Heckman, a Chicago School of Econom-
ics member, argued that preschools should be organized to teach the soft skills
needed for success in further schooling and employment.
Missing from work-oriented soft skills are those that might lead to struggles for
social justice and a pushing back against corporate control; soft skills such as com-
passion, altruism, and empathy. Reflecting the corporate-serving nature of their
arguments, Chicago economist Gary Becker argued that altruism makes fami-
lies efficient while selfishness makes markets efficient. The result is corporatized
schools and the economization of the behavior and attitudes of corporate workers.
Finally, in Chapter 7 I argue that these trends have resulted in an economization
of schools, families, and character development in which the ideal social interac-
tions within the family are to support the work of the breadwinners and prepare
children for success in school and later employment. This economization and cor-
poratization of families and schools is not a conspiracy but a confluence of interests
between global businesses, politicians, governments, and education policymakers.
1
ECONOMIZATION AND
CORPORATIZATION OF
EDUCATION
In his 1992 Nobel Prize acceptance lecture, economist Gary Becker said, “My
research uses the economic approach to analyze social issues that range beyond
those usually considered by economists.”1 The title of the lecture, “The Eco-
nomic Way of Looking at Life,” captured Becker’s pioneering work in applying
economic models to a host of social issues, including the family, crime, dis-
crimination, and, most importantly for this book, education. Becker’s 1964 book
Human Capital continues to influence governments and global policymaking
organizations with its message to invest in education to grow the economy.2
Becker was a member of what became known as the Chicago School of
Economics,i which included other Nobel Prize winners who applied economics
to education, such as Milton Friedman, Theodore Schultz, and James Heckman.
Associated with this group at the University of Chicago was sociologist James
Coleman who contributed theoretical frameworks on social capital and rational
choice to the economization of education.
Historically, human capital and the application of free market economics to
public education received their greatest support from the Chicago School. In fact,
ideas emanating from the Chicago School still infuse global education policies.
The global importance of the Chicago School is captured in the title of Johan
Van Overtveldt’s The Chicago School: How the University of Chicago Assembled the
Thinkers who Revolutionized Economics and Business.3 The Chicago School and its
followers not only revolutionized thinking about economics, but also global edu-
cation policies.
Economization refers to the increasing involvement of economists in edu-
cation research, the evaluation of the effectiveness of schools and family life
Charter schools operated by EKK use monetary methods to instill corporate dis-
cipline. A newly hired employee is informed that he is expected to enroll his
child in the corporation’s for-profit charter school called the Pinwheel Academy.
The school’s guidance counselor explains to new students that it operates on a
system of disciplinary fines. Each student has an individualized account linked to
their fingerprints. Money deposited in the account by parents is used for lunch
and field trips, and for paying fines, such as $5 for being tardy to school, $25 for
every detention, and $40 a day for unexcused absences.35 Classrooms are tightly
controlled with surveillance cameras whirling overhead, students and teachers
wear uniforms, and students are not allowed to talk to each other during class
and bathroom breaks. For bathroom breaks, students stand next to their desks
and then leave the classroom in orderly lines. Row monitors observe students as
they return and enter the classroom in groups of five. Any talking on reentering
the classroom is, of course, fined. At lunch time, student fingerprints are scanned
and lunch costs are debited to their individual accounts. The lunchroom and play
areas are tightly controlled by security guards wearing hats with EKK’s corpo-
rate logo. When a fight breaks out on the playground, security guards use tasers
to separate students. Classroom lessons are conducted in the same authoritarian
manner.36
The Pinwheel Academy is Patrick Flanery’s vision of a charter school pre-
paring corporate workers through stringent methods of behavioral control. In
contrast, as I will explain later, surveys have found that global corporations want
workers to have soft skills related to teamwork. Teamwork is clearly absent from
Flanery’s dystopian charter school. Of course, the Pinwheel Academy only rep-
resents one novelist’s vision of the future.
If the recent Yale graduate, who exposed himself to Yale economics during
his undergraduate years, exhibits enterprise, self-reliance, and independence,
it is only because he has turned his back upon his teachers and texts. It is
because he has not hearkened to those who assiduously disparage the individ-
ual, glorify the government, enshrine security, and discourage self-reliance.39
Buckley argued that the traditions of the Yale economics department were
leading to a decline of individual power and an increase of government power
“through extended social services, taxation, and regulation.40 The Chicago School
advocated the reduction of government’s role in all three of these government
functions as it took its stand against collectivism and Communism.
The rational choice paradigm appeared ideologically neutral and emphasized
individualism, consequently it escaped accusations of being Communist. Gary
Becker’s A Treatise on the Family provides an example of how economists used the
rational choice paradigm to evaluate education programs.41 Published in 1981,
Becker chided University of California psychologist Arthur Jensen for claiming
that compensatory education programs for so-called disadvantaged children fail
because of the low intelligence scores of African Americans. Becker didn’t disa-
gree with Jensen that compensatory education fails to achieve its objective but he
offered an alternative interpretation using rational choice paradigm with families
treated as individuals who weigh costs and benefits. Public expenditures on com-
pensatory education redistribute resources to some low-income children which,
Becker reasoned, “induces parents concerned with equity to redistribute time
and other expenditures away from these children toward other children or them-
selves.”42 In other words, families supposedly make a rational choice to decrease
money and attention spent on their children who are participating in compensa-
tory education because these children are having extra resources spent on them
by the government. In Becker’s words, “the main effect of the programs [com-
pensatory education] is probably a redistribution of family expenditures away
Economization and Corporatization of Education 9
from their children [that are] participating . . . . What Jensen and others failed
to realize is that family time and other resources would be allocated away from
participating children to siblings and parents.”43
A reliance on the rational choice paradigm can obscure other factors that
might affect outcomes and create a myopic view of social phenomena. In the
case of the failure of compensatory education, Becker does qualify his conclusion
with the words “is probably.” However, Becker offers no data to show that, in
fact, families shift their resources to children not participating in compensatory
education programs. It often happens, as I will explain in later examples, that
those arguing from the rational choice paradigm interpret data without provid-
ing any evidence that their conclusions are true. A good example is my later
discussion of the use of income data to conclude that education and economic
growth will reduce inequalities in income. In the case of Becker’s interpretation
of the supposed failure of compensatory education, the focus is on family choices
without consideration of other possible issues, such as the government adminis-
tration of compensatory education programs, the social and economic conditions
of families being served, the quality of teachers and administrators, the condition
of schools offering the programs, etc.
The rational choice paradigm was criticized at a 1985 University of Chicago
conference bringing together economists and psychologists, with papers being
published in Rational Choice: The Contrast between Economics and Psychology.44 As
the reader can imagine, defining “rational” and “rationality” was an area of con-
tention with multiple interpretations being given. The editors of the volume
claim that the rational choice paradigm provides economics with a unified the-
ory lacking in psychology and that economists think about market level behav-
ior while psychologists are concerned with mental processes. Also, the editors
argued, economists focus on data and price-benefit relations, while psychologists
focus on the mental processing of data.45
To exemplify the differences between an economist using the rational choice
paradigm and psychologists, the editors of the 1985 Chicago conference papers
examined the statement, “There cannot be any money lying in the street, because
someone else would have picked it up already.” The editors write about this
statement,
For the economist operating within the rational choice paradigm this
statement can be taken to mean that, for all practical purposes, the world
behaves as if there were no money lying in the street. The psychologist,
however, has no reasons to accept this statement as a working hypothesis.
Instead, he or she would accept the possibility that some money may be
lying in the street and would consider it worth learning who finds it and
how.46
At the Chicago conference the most vocal critic of Gary Becker’s use of the
rational choice paradigm to evaluate the supposed failure of compensatory
10 Economization and Corporatization of Education
education was fellow economist Herbert Simon. In his original analysis, Becker
had compared family reaction to compensatory education to public health pro-
grams. When public health programs are made available to families, families
spend less of their money on health matters. Becker used the findings on public
health programs to assert that families would do the same thing if public funds
were used for compensatory education. Herbert Simon criticized Becker’s lack of
evidence that families actually acted in this manner regarding compensatory edu-
cation programs. One should not apply the rational choice paradigm to predict
outcomes, Simon asserted, without having any actual proof that the prediction
is true.47
In another example, Simon criticized Becker for stating that “the major
cause of these changes [in family organization between the 1940s and 1980s] is
the growth in the earning power of women as the American economy devel-
oped.”48 Applying the rational choice paradigm, Becker argued that women
made a rational economic choice to enter the workforce because of rising wages
after WWII. As a result, women had fewer children (staying at home and not
earning money increases the cost of children) and divorce rates increased as
women became more economically independent. Becker concluded, “Greater
labor force participation of women would itself raise the earning power of
women and thereby reinforce the effects of economic development. Women
invest more in market skills [for instance improving their human capital through
education] and experiences when they spend a larger fraction of their time in
market activities.”49
Simon criticized Becker for relying only on income data to explain the increased
participation of women in the labor force. Simon contended that the reductionist
quality and narrowness of the rational choice paradigm results in not exploring
other possible causes rooted in changes in American history, culture, and industrial
organization. He argues that the true explanation for increased participation of
women in the labor force “will be obtained not by raising the sophistication of the
economic reasoning but only by painstaking examination of occupations in manu-
facturing and service industries and an even more difficult empirical examination
of changes in women’s attitudes about where they prefer to work.”50
Simon’s criticisms go to the heart of problems with the rational choice para-
digm, namely neglecting social, political, and historical contexts. As I explain
later, human capital studies of changes in income and education are interpreted
as resulting from individual calculations made over time. The lack of concern
about context in the rational choice paradigm is extremely important since early
human capital arguments relied on income data from the early twentieth century
to after WWII, which encompasses a period of two world wars and a major
world depression. Surely these events affected changes in income and education.
As I explain later, neglecting these historical changes human capital economists
distorted their conclusions, resulting in convincing others that investing in edu-
cation will create economic growth and reduce income inequalities.
Economization and Corporatization of Education 11
A major reason for this kind of use of public money is the present system
of combining the administration of schools with their financing. The par-
ent who would prefer to see money used for better teachers and texts
rather than coaches and corridors has no way of expressing their prefer-
ence except by persuading a majority to change the mixture for all. This is
a special case of the general principle that a market permits each to satisfy his own
taste—effective proportional representation; whereas the political process imposes con-
formity [author’s emphasis].62
Important for Friedman’s argument was that vouchers could be used at for-profit
schools. Government vouchers for use at for-profit schools fit his model of an
educational marketplace and provided lasting justification for for-profit school-
ing. Friedman explained it this way:
ii. Friedman’s 1962 book Capitalism and Freedom contains the same arguments for school choice, in
some cases almost word for word, as his 1955 essay. As I will explain, missing from the 1962 volume
is Friedman’s justification for Southerners to choose segregation academies after the 1954 Supreme
Court decision making school segregation unconstitutional.
14 Economization and Corporatization of Education
Alluding to the existence of summer camps that were all Jewish, all Christian,
and some of mixed religions, Friedman asked, “Is it an appropriate function of
the state to prohibit the unmixed camps?”69 He argued that one could propagate
views that favored mixed camps while allowing for the existence of religiously
segregated summer camps. In this framework, he argued the government could
make funds available to parents to use “solely in segregated schools” or “solely
in nonsegregated schools.”70 He concluded, “The proposed plan is not there-
fore inconsistent with either forced segregation or forced nonsegregation. The
point is that it makes available a third alternative.”71 The third alternative to
requiring schools to be racially segregated or nonsegregated, as reflected in his
discussion of summer camps, was giving parents the choice of racially segregated
or racially mixed schools, while propagating views against racial segregation. In
other words, he proposed that government subsidies would allow parents, either
black or white, to choose a racially segregated school as long as the government
did not require segregation.
Gary Becker, Milton Friedman’s colleague at the University of Chicago and
former student, echoed Friedman’s call for education vouchers in his columns
in Business Week that appeared from the late 1980s into the late 1990s. Becker
would complain that public schools were making education too expensive: “The
average public school . . . spends over $5,000 per student per year. Yet many
parochial and other private schools provide better education with smaller expen-
ditures . . . A generous voucher system could cost only half of what is spent by
public schools.”72 In writing about a proposed voucher plan for California, Becker
stated, “this competition [between public and private schools] for students would
force public schools to become better.”73 Becker also echoed Friedman’s argu-
ment that vouchers would allow students to escape low-quality schools in low-
income neighborhoods: “Disadvantaged families cannot afford private-school
tuition and can seldom move to communities with better public schools. Usu-
ally they must accept whatever public schools are available, no matter how bad.
A voucher system would give these families some of the schooling alternatives
now open only to middle-class and rich families.”74 Reflecting on the goal of
his mentor to give parents an education that they valued, Becker wrote, “Some
30 years ago, Milton Friedman proposed a voucher system for schooling. Many
critics considered his proposal wild and impractical . . . Education vouchers now
seem rather tame compared with privatization of the postal system, prisons . . . A
voucher system for education is an idea whose time has finally come.”75
Fig. 18.—
Euglena.
Fig. 17.—Vorticella
(or bell animalcule),
two extended, one
withdrawn.