economy

Economic Argument for Adult Education Still Has Some Life in Maryland

/ The Old Crank

On Wednesday night, during his annual State of the County address, Montgomery Maryland County Executive Leggett announced something that sort of sounded like a big push to expand adult English literacy services in Montgomery County, which he called “English Language on Demand.” It’s not clear what exactly this initiative will include—in particular, whether there will be significant new funding involved. (One thing for sure, there is excellent umbrella organization—Montgomery Coalition for Adult English Literacy—that does a tremendous job supporting local adult English literacy programs in Montgomery County. They would surely do great things with more funding should it become available.)

But I wanted to highlight a statistic that he cited during this announcement, because it’s a rare example where an old report—you know, those reports that usually just gather dust on a shelf somewhere—actually seems to have resurrected itself (at least one small piece of it). And the fact that the piece in question is an economic return-on-investment argument is encouraging.

The report I’m thinking of is Stepping Up to the Future, a 2005 report by a panel put together by the Maryland Schools Superintendent to make recommendations on improving adult education throughout the state. Leggett cited a nugget of economic data that I’ve only seen in that report—I’ve never been able to get a hold of the original source of the data. Specifically, when he said during the speech that “every dollar we invest in adult English language training… brings us three dollars in higher productivity,” that appears to be derived from an analysis, commissioned by the panel, of adult education and wage data by a group called ORC Macro. They found, among other things, that “every dollar invested in adult education [in Maryland] yields a return of $3.15.” That’s not exactly what Leggett said—he was talking specifically about English language training, and not in the whole state but just in the county—but I’ll bet that’s where that statistic  comes from. And if it’s sort of a sloppy appropriation of it (assuming I’m right), it doesn’t matter. The important thing here is the suggestion that policymakers in Maryland accept the notion that investing in adult education has positive economic returns.

Anyway, it’s always great to hear support for adult education in one of these annual speeches, and credit is due to Leggett for proposing it. It will be interesting to see where it goes.

Here are Leggett’s comments on his “English on Demand” proposal in full:

My second initiative is English Language on Demand. In Montgomery, our residents speak many different languages – and that’s good. But here, and increasingly around the world, mastering English is the ticket to opportunity and success. When you speak English, you not only learn another language, you also improve your chances of getting a good job – and then getting a better one. It is the ticket to growing your business and to building a better future for your family — which increases the County’s overall tax base.

I recommend as a goal that every adult in this County who wants to learn English – no matter where they come from – has the opportunity to do so. For every dollar we invest in adult English language training, it brings us three dollars in higher productivity. So, let’s invest the necessary resources to help shorten and, in time, eliminate the long waiting lists for individuals seeking the opportunity to learn English. And, we should also encourage County residents to become “teaching volunteers” in our County English language learning network.

Quote of the Day

/ The Old Crank

This post today by Ezra Klein about Alan Simpson contains just about the best one-line description of the way a lot establishment D.C. people seem to think that I’ve ever run across:

There’s a widely acknowledged nobility and morality to proposing painful plans that would require lots of sacrifice — though the worst of that sacrifice rarely falls on the kind of people putting together these plans.

Can’t wait until March 1, which we might as well go ahead and designate as Bowles-Simpson Scold’s Christmas.

Everything’s Getting Worse but College Might Make Things Less Worse for Some

/ The Old Crank

Wossamotta U.That’s kind of how I feel after reading Jared Bernstein’s sensible take on the college earnings premium. It’s not that there isn’t one, but, as he puts it, “it doesn’t inoculate you against global wage arbitrage, accelerating labor-saving technology, and high unemployment.”

Bernstein shows that the college earnings premium has been flat for women over at least the past decade, and rising a lot more slowly for men than it was back in the 1980s. But this data includes people my age who started out in better paying jobs after earning their degree. I’d be interested to see the wage differential between those with just a high school degree and those under 30 with a college degree. Considering that average wages for college graduates have been falling steadily since even before the recession, I don’t understand why the wage differential for future generations won’t continue to narrow.

The other point is that not all college degrees are the same. A BA from Harvard presumably has more earnings potential than a BA from lower tier school. But unless I’m mistaken, the college premium argument is based on the average earnings of everyone currently in the workforce with a college degree, young and old.

It seems like we’re asking young people and adults without college degrees to work harder and invest more in education, but settle for less—maybe a lot less, in terms of earnings—than prior generations.

In the comments section to Bernsteins’s post, someone argues that “[E]lectricians, plumbers, carpenters, HVAC, exterminators, all blue collar work etc. is where the future lies… [T]hose trades carry little or no debt, have apprenticeships and pay well from the get-go. AND they carry job security.” It’s kind of old-fashioned now to talk about, but a lot of adult education programs can (and do) help adults move into those kinds of careers. The emphasis in adult education now is to ensure that adults become college and career ready, and I hope the career readiness piece looks at ways to help more adults move into apprenticeships for these kinds of jobs.

Smart Decisions

/ The Old Crank

From a recent Chronicle of Philanthropy profile of the Robert Wood Johnson Foundation’s first vice president for public policy, David C. Colby:

Mr. Colby will split his time between Princeton, N.J., where the fund’s headquarters are located, and Washington, where he’ll work to educate politicians about the foundation’s research and learn how the fund can help lawmakers shape policy. A big focus this year will be on helping the federal government make smart decisions about where it trims spending. (my emphasis)

Interesting that the focus here is on where to cut, not whether to cut. There very well may be some savings to be had in some of the areas that the Robert Wood Johnson Foundation cares about—and I assume they will limit themselves to those things when they make their suggestions as to where to “trim”—but there are still reasonable people who think that any further cuts to federal non-defense discretionary spending is a bad idea, since Congress already cut, in 2012, $1.5 trillion of discretionary spending for fiscal years 2013 through 2022. Three-fifths of that is coming out of non-defense programs, which will shrink non-defense discretionary spending to its lowest level on record as a share of GDP.