Bad Economic Lessons – It Must Be Budget Time in Maryland

The state of Maryland has just passed a $37 billion budget, chock full of the expected tax hikes and wasteful spending.  Wicomico County Executive Rick Pollitt will unveil his proposed budget on Thursday during his annual dog and pony show at the Wicomico Youth and Civic Center.  We can expect a proposed $0.07 rate hike.  In a lead up to this, Wicomico School’s superintendent John Fredericksen provides an op-ed in today’s Daily Times which again proves that someone with so little understanding of basic economic principles should not be in charge of so much money.

Public schools are important to a community on multiple levels.  The perception of high quality schools impacts whether or not a county or city is a desirable place to call home.  That same perception can even impact whether or not businesses choose to locate in an area.  It is a widely held belief that quality public schools impact an area’s crime rate.  There is also the moral argument, which is probably the strongest of all, that we owe our next generation a decent education.

Yet, Fredericksen makes none of these arguments.  Instead he tells us that Wicomico County’s public schools are an “economic engine” which grows our local economy.  While I realize that none of Fredericksen’s degrees are in something as practical as finance or economics, that does not excuse ignorance about something so basic.  I would be happy to suggest several easy reads which might get him up to speed.

Fredericksen’s argument is equivalent to Nancy Pelosi’s laughable statement that unemployment benefits are an economic development tool.  Government spending, whether on education, unemployment benefit, or food stamps is a transfer of wealth – NOT a creator of wealth.  In the case of state or local spending, where the government cannot run a deficit, this is even more so.  Money taken from individuals and businesses for government spending could be put to better use by those individuals or businesses.  It could be invested in new plant or equipment.  It can create jobs through the CREATION of wealth rather than through its transfer.

Does this mean that public schools are bad?  No.  We, as a civilized society, have decided that funding public education is something we need to do.  Unfortunately, people like Fredericksen attempt to equate spending ON education with quality OF education.  Unfortunately people like Fredericksen want you to believe that the spending, in and of itself, is the net benefit to our community.

It’s little wonder that Wicomico taxpayers have such little respect for Fredericksen or the system he is charged with running.  That’s the real shame.

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