A $600+ Billion Spending Cut

by: Gary North

This will not be done. It will not be done because Americans do not really want major spending cuts.

To demonstrate my point, let us consider America’s sacred cow, tax-funded education.

According to the Central Intelligence Agency’s Factbook, the United States spends about 5.3% of gross domestic product each year on education. If that estimate is accurate, this means about $750 billion a year.

The United Nations estimate places the figure of 5.7% of GDP.

That would mean expenditures in the range of $800 billion a year. If we assume that about 80% of these expenditures are funded by governments at various levels, we are talking something in the range of $600–$650 billion a year.

There is no economic reason why 100% of the expenditures on education should not be paid for by the parents of students or by the students themselves, when they reach college or graduate school level. There is also nothing that says that a government has the moral authority to coerce parents who hold to one view of education, or one view of how the world works, to subsidize the educations of other families, whose children attend schools that teach a view of the world closer to that approved by the subsidized parents.

To say this is to announce one of the most hated heresies of the modern world. I mean “heresy” in the good old-fashioned way that it was meant in the Middle Ages and in virtually any society prior to the Enlightenment. This heresy involves calling into question the legitimacy of a priesthood, self-appointed and self-policed, which gains its money from the civil government.

The establishment of churches funded by tax money has been common in most societies throughout history. I contend that it is basic to the modern world, too. The modern priesthood is the educational establishment in each nation. Tax funding goes to those institutions that have been certified as reputable by the priesthood.

An educational institution that claims to be legitimate in the modern world is pressured strongly to become accredited by institutions that are run by the priests whose standards are enforced by the state. An institution that sets up a college that is not approved by one of these accrediting associations cannot issue certain kinds of degrees without breaking the law. This system of accreditation extends all the way down to infant care.

The state regulates educational establishments, even including home schools, in order to preserve control over the content and methodology of education. In earlier centuries, a similar oligopoly was run in conjunction with state funding and also state coercion. Churches policed the society, including the morals of society, by means of a monopoly granted to them by the civil government.

The state in seventeenth-century New England could legally compel church attendance by every member of the society. What is not understood is that this law was rarely enforced in Boston. In his book, Winthrop’s Boston (1965), Darrett Rutman concluded that the churches of Boston three centuries earlier could contain only about 25% of the residents of Boston at one time.

The modern educational system is far more compulsory than churches were in New England in 1665. The school bus system is indicative of just how compulsory it is. On this point, read my story of the two buses.

Local governments, state governments, and even the Federal government use tax money and the threat of violence against any parent who does not agree that the state has the right to shape the content of his children’s education. This has been going on for so long that most Americans accept this regime as somehow established by natural law. The irony here is that the schools teach Darwinism, and Darwinism has no concept of natural law. Darwinism destroyed the concept of natural law. If the universe is evolving in autonomous, unpredictable ways, in terms of such random phenomena as genetic mutation, there can be no such thing as natural law. No social order is permanent; no legal order is permanent. The laws change as society changes.

In the modern world, anyone who suggests that all tax money should be withdrawn from the funding of educational programs is regarded as a crackpot. I am such a crackpot. I believe that the state does not have a moral right to compel parents to support other people’s educations.

If it were my decision, I would shut off the funding by the state for every school in the United States, including the military academies. This would add something in the range of $600 billion to the private sector. Governments would not be able to persuade parents and others to hand over their money at the point of a gun from one person in order to subsidize the education of another person.

One of the oddities about life is that a statement regarding a widely believed moral imperative in one area is regarded as morally unsustainable when virtually the same statement is applied to another area. What virtually everybody accepts as self-evident truth in one area is regarded as self-evident error in another area.

In order to discuss tax-funded education, I want to change the topic from tax support of educational institutions to tax support of churches. The logic that I am about present applies equally well to both forms of institutional arrangements. But the public is unwilling to accept the logic of the disestablishment of churches when it is applied to disestablishment of education.

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Reposted from LewRockwell.com