Economics and Educational Opportunity
April 2nd, 2012
There seem to be two worlds in which education reform, along with everything else, proceeds. In one a purely statistical and theoretical view of economics prevails. In the other sociology, a view informed by studies of the social interaction of people. To move from the former view to the latter is to enter through a kind of ‘green door’ from a society dominated by individual utility maximisation to one more concerned with social value and which recognises the sometimes irrational behaviour of people. One is based entirely in theory and has a utility related to its alleged predictability derived from sophisticated mathematics, a predictability which in most cases is at best difficult to test. The other is supported by extensive research on what people value and what they do not and how they actually behave in relation to their stated values.
These extracts from the essay on economics critique neoclassical economics and its application to education policy. Neoclassical economics and neoliberalism which is derived from it has gained substantial influence over the last 50 years. In that time economic growth in many countries has been accompanied by a number of important features. These include the application of notions about competition, choice and accountability to policies on schools and universities as well as early childhood. The last several decades have also seen increasing disparities in wealth within populations accompanied by “offshoring’ of many jobs in order to decrease costs. In several countries costs of education, of schools and of universities, have increased also. In the view of a number of economists this has led to a decline in the standards of education.
The focus on economics as if it is the basis of human society has been criticised by a number of scholars and writers and the failure of neoclassical economic theory and practice seen in severe economic turbulence has led leaders of a number of nations to question its appropriateness. In other cases the deregulation advocated by the proponents of neoclassical economics have led to profound fluctuations in national and international economies with “speculative bubbles” being enhanced by use of complicated mathematical algorithms and complex financial instruments as well as artificially low interest rates and excessive lending and borrowing at individual, corporate, government and national levels.
These notes on economics accompany essays on community and inequality. It needs to be kept in mind that the socio-economic and educational levels of parents are the most accurate predictors of children’s educational achievement. This is not because of some link with intelligence but with the profound differences in opportunities which are provided to those at higher economic and social levels. The differences which these opportunities make are evident in the first year to 18 months.
Continue to Education – Introductory Background
Continue to A Word on Economics, Neoclassical Economics : a Failure of Theory or a Theoretical Failure? and An Alternative View: Behavioural Economics