Tag Archives: George Mason University

Money and Federal Regulations Yield No Positive Education Results

Via the Mercatus Center at George Mason University:

Reading, Writing, and Regulations: A Survey of the Expanding Federal Role in Elementary and Secondary Education Policy

Until 1965, the federal government played a fairly limited role in the elementary and secondary education system in the United States. The US Constitution is noticeably silent on matters related to education, and therefore the provision of education is left as a power reserved to the states under the Tenth Amendment. As part of his Great Society programs, President Lyndon Johnson signed the Elementary and Secondary Education Act (ESEA) in 1965 and set in motion an expansion of federal control that would continue into the next century.

The original legislation was relatively specific in its intent; it was meant to provide compensatory educational resources for students from low-income backgrounds. However, after numerous amendments and reauthorizations, the law grew to more than 20 times its original size, and the breadth of federal control it provided grew with it. Hundreds of specific federal programs were added over the years as federal funding of elementary and secondary education increased. Attached to these programs and funds came strings of federal control.

The most recent version of the ESEA is No Child Left Behind (NCLB), which authorizes such a high level of federal oversight that the original legislation is hardly recognizable. Even now, federal influence continues to expand, fueled by such recent programs as Race to the Top and Common Core.

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K-12 total outlays per student MercatusK-12 math and reading performance Mercatus

Obamacare and the New Economics of Part-Time Work

Via the Mercatus Center at George Mason University:

Starting this year, the United States’ working population will face three major employment disincentives resulting from the very benefits the Affordable Care Act (ACA) provides: (1) an explicit tax on full-time work, (2) an implicit tax on full-time work for those who are ineligible for the ACA’s health insurance subsidies, and (3) an implicit tax that links the amount of available subsidies to workers’ incomes.

A new study published by the Mercatus Center at George Mason University advances the understanding of how much these ACA taxes will reduce overall employment, and why. It concludes that the reduction will be nearly double that projected by previous analyses. Labor markets ultimately will reduce weekly employment per person by about 3 percent—translating to roughly 4 million fewer full-time-equivalent workers.

Below is a brief summary of this important update. Please see “The Affordable Care Act and the New Economics of Part-Time Work” to read the entire study and to learn more about author Casey B. Mulligan, a professor of economics at the University of Chicago.

__________ Key Findings  __________

Much of the ACA’s tax effect resembles unemployment insurance: both encourage layoffs and discourage people from returning to work. The ACA’s overall impact on employment, however, will arguably be larger than that of any single piece of legislation since World War II.

  • The ACA’s employment taxes create strong incentives to work less. The health subsidies’ structure will put millions in a position in which working part time (29 hours or fewer, as defined by the ACA) will yield more disposable income than working their normal full-time schedule.
  • The reduction in weekly employment due to these ACA disincentives is estimated to be about 3 percent, or about 4 million fewer full-time-equivalent workers. This is the aggregate result of the law’s employment disincentives, and is nearly double the impact most recently estimated by the Congressional Budget Office.
  • Nearly half of American workers will be affected by at least one of the ACA’s employment taxes—and this does not account for the indirect effect on others as the labor market adjusts.
  • The ACA will push more women than men into part-time work. Because a greater percentage of women work just above 30 hours per week, it is women who will be more likely to drop to part-time work as defined by the ACA.

Continue reading for the details.

Mercatus Mulligan-ACA-Employment-infographic