THE NEWSLETTER OF THE MACKINAC CENTER FOR PUBLIC POLICY • WINTER 1997

President’s Message ....... 2

Outrageous LawsOverturned ................... 3

Right To Know PayrollForm Impact ................. 3

Million-Dollar Bequest ... 4

New ScholarsStrengthen Research ...... 4

Media Impact ................ 5

Detroit EntrepreneuersFrustrated ..................... 5

Award-WinningWeb Site ........................ 6

Contributor Profile ......... 8

Headquarters BuildingCampaign Launched ....... 8

Why Schools Succeed ...... 9

Saving Lighthouses ....... 12

Henton Joins Staff ........ 12

“The best way to get a bad law repealed is to enforce it strictly.”—U. S. President Abraham Lincoln. See page 3 for related article.

Contents:Contents:

I n a bid to improve theeffectiveness of the stategovernment workforce,Governor Engler ap-

pointed labor law specialistand Mackinac Center Direc-tor of Labor Policy RobertHunter to the Michigan CivilService Commission onDecember 23, 1996.

The four membercommission’s authority andresponsibilities are fixed bythe state constitution andinclude establishing wages,classifying jobs, and review-ing and ratifying collectivebargaining agreements forstate employees.

Hunter was appointed alongwith outgoing Wayne StateUniversity President DavidAdamany and former StateRepresentative SusanGrimes Munsell of Howell.The newly constituted panelwill oversee significantchanges in the stateworkforce, including arecently enacted programwhich makes about 7,000 ofthe state’s 63,000 employees

eligible for early retirementand added benefits.

Hunter said he hopes toinfluence policies andagreements that are good forstate employees and taxpay-ers. “I want to help civilservants exercise their rightswith respect to both theirunions and their employer,and I want taxpayers andstate employees to treat eachother fairly.”

Hunter said that state em-ployees who pay union duesor fees have a constitutionalright to refuse to pay for theirunions’ political activities towhich they may object. Thisright is rarely enforced,Hunter added, because itsexistence is not widelyknown among workers.

Hunter said, “The CivilService Commission could

See “Labor...” on page 10

Governor AppointsMackinac Center LaborDirector to State CivilService Commission

Director of Labor PolicyRobert Hunter

The Commission fixes state employee compensation which includes pensionbenefits from a $27 billion fund administered by the Department ofTreasury, pictured above.

Expect to WinLawrence ReedPresident

PRESIDENT’S MESSAGEPRESIDENT’S MESSAGEBoard of DirectorsRichard Antonini, ChairmanLawrence Reed, President

Peter CookHon. Paul GadolaMara LeticaRodney Lockwood Jr.Bruce Maguire Jr.

Richard McLellanRichard MerillatJames RodneyLinda Shinkle

Dr. Donald Alexander Western Michigan University

Dr. William Allen Michigan State University

Mr. Patrick Anderson Anderson Economic Consulting Group

Dr. Thomas Bertonneau Central Michigan University

Dr. Peter Boettke New York University

Dr. John Bornhofen Grand Valley State University

Dr. William Browne Central Michigan University

Dr. Stephen Colarelli Central Michigan University

Dr. Robert Crowner Eastern Michigan University

Dr. Richard Cutler Michigan Association of Scholars

Robert Daddow Oakland County Executive

Dr. Stephen Dresch Jhéön & Associates

Prof. Richard Ebeling Hillsdale College

Prof. Greg Fleckenstein Baker College

Dr. Christopher Fleury Eastern Michigan University

Dr. Wayland Gardner Western Michigan University

Dr. Dale Haywood Northwood University

Dr. Ormand Hook Michigan Resource Center for Charter Schools

Prof. Harry Hutchison University of Detroit Law School

Dr. David Janda Institute for Preventative Sports Medicine

Mrs. Russell Kirk Author, Lecturer

Dr. Robert Kleiman Oakland University

Dr. George Leef Patrick Henry Associates

David Littmann Comerica Bank

Dr. Dale Matcheck Northwood University

Dr. Paul McCracken University of Michigan

Prof. Charles Milliken Siena Heights College

Dr. George Nastas III Marketing Consultants

Dr. John Pafford Northwood University

Dr. Mark Perry University of Michigan-Flint

Dr. Karen Potter-Witter Michigan State University

Gregory Rehmke Free Enterprise Institute

Dr. Steve Safranek University of Detroit Law School

Dr. Parth Shah University of Michigan-Dearborn

Louis Schimmel Jr. Municipal Advisory Council of Michigan

James Sheehan Competitive Enterprise Institute

Fr. Robert Sirico Acton Institute for Religion and Liberty

Bradley Smith Capital University Law and Graduate Center

David Sowerby Beacon Investment Company

Dr. John Taylor Wayne State University

Dr. Charles Van Eaton Hillsdale College

Prof. Harry Veryser Jr. Walsh College

Dr. William Wilson Comerica Bank

Dr. Martin Wing GMI Engineering & Management Institute

Dr. Gary Wolfram Hillsdale College

IMPACT!Joseph Lehman

EditorTodd Crelly

Graphic Designer

IMPACT! is a quarterly publication of the Mackinac Center forPublic Policy, a nonprofit, nonpartisan, tax-exempt research andeducational organization classified under section 501(c)(3) of theIRS code.

Mackinac Center for Public Policy119 Ashman Street • P.O. Box 568

Midland, Michigan 48640(517) 631-0900 • Fax (517) 631-0964

Internet: http://www.mackinac.org • mcpp@mackinac.org

Board of Scholars

One frustration of my otherwise fantastic job as president of theMackinac Center for Public Policy is getting our best friends to see itsfull potential. People who seem to understand our mission well, andwho want to see Michigan citizens prosper in a climate of freedom

and free enterprise, nonetheless often have surprisingly low expectations.

When I tell friends that the Mackinac Center has grown to be, by nearly anymeasure, the largest of its kind in the nation, I sometimes hear this response:“My, you’re building quite a bureaucracy there!” It is usually said with a grin,but there is also an underlying sentiment that’s a bit disturbing: a feeling thatwith a staff of sixteen, the Mackinac Center is about as big as a free-market thinktank needs to be.

Imagine that. State government has a “staff” of 63,000 people, at least some ofwhom would be perfectly happy if government grew bigger at the expense offamilies and private businesses. The United Auto Workers, the Michigan Educa-tion Association, and a couple dozen other groups that almost always promoteexpensive and counterproductive government solutions to problems have thou-sands of “staff.” If just sixteen people at the Mackinac Center are all we ever needto move public opinion in Michigan in the right direction, then we ought to win aNobel Prize.

Why is it that proponents of statism always think big inorder to win, while so many free-market advocates arecontent merely to go through the motions?

I am not for growth for growth’s sake. We do not addstaff at the Mackinac Center just to have more bodiesaround. We do it as funds permit and according to afinely honed strategic plan. We do not measure ourprogress by how many employees we have or howmuch paper they push out the door. We measure it byhow much real-world effect we have on public opinionand public policy.

We have accomplished a great deal for our size, some saymore than any other group of our kind. But we are inthis to win the war for the long haul—for sound economic policy and individualfreedom, and we are still a long way from victory.

If you believe that a handful of dedicated individuals at the Mackinac Center hasachieved a lot, just imagine what 50 of us could do! Imagine what a team of 100professional, articulate policy experts and communicators fanning out acrossMichigan could do!

To all good citizens who want Michigan to be the freest and most prosperousstate in the union, join with us. Grow with us. Expect the best. And do not for aminute let those who want to expand the role of government have themonopoly on thinking big. Expect to win.!!!!!

“Do not for aminute let thosewho want toexpand the roleof governmenthave themonopoly onthinking big.”

Outrageous Laws Repealed

Mackinac Center for Public Policy IMPACT! Winter 1997 3

A braham Lincolnsaid the best way toget a bad lawrepealed was to

enforce it. Another good wayis to enter the law in theMackinac Center OutrageousLaw Competition. At leastfive unneeded laws andordinances identified by theCenter’s competition havebeen taken off the books.

The 1995 competition fer-reted out over one hundredentries of Michigan laws,ordinances, and administra-tive regulations that weredeemed a waste of taxpayerdollars, humorous, or viola-tions of civil or economicliberties.

Michigan barbers may nowlegally cut the hair of livingpatrons on Sunday. Prior torepeal of the law in 1996which prohibited them,

Sunday haircuts were permit-ted only for the deceased.

An outdated state law wasrepealed in 1996 whichprohibited defrauding oflivery stables, but only if thelivery owner posted a copy ofthe law in large, plain En-

glish, and in a “prominentplace.” Fraud is still illegal,but livery owners no longerhave to post a copy of theapplicable law in order to beprotected by it.

Two outrageous laws affectingswamps and trees have been

repealed. Since 1995, thestate treasurer will notreceive money from the saleof swamp lands donated tothe state. Nor will landowners who maintain treesalong their land borderingpublic highways be entitled toa tax credit. This is notexpected to have a large effecton either the number of treesalong roads or on governmentfinance, since the credit wasonly five cents per tree beforethe “tree rebate” law wasrepealed last year.

Village of Lyons residents nolonger fear fines or imprison-ment for allowing “indecentexposure” of their stallions,bulls, or other animals.Village Clerk Betty Barneswas inspired by the Center’sOutrageous Law Competition

See “Laws...” on page 11

E veryone from politi-cians to editorialcartoonists seems tobe promoting

Mackinac Center ideas.

In less than a year, theMackinac Center’s innovativeRight To Know Payroll Formimpacted public policy in atleast two states, inspiredarticles in hundreds ofnewspapers nationwide,helped tens of thousands ofworkers better understandthe hidden costs of govern-ment, and finally, seems tohave influenced a syndicatededitorial cartoon.

The Right To Know PayrollForm gives workers a more

complete picture of howmuch money their employersets aside to keep them onthe payroll, and how much ofthat money goes not to theworker, but to pay for govern-ment programs andmandates instead.

The State of Michiganadopted the concept for its63,000 employees; legislationhas been introduced twice todo the same thing in Ohio;the Mackinac Center hasprinted three 5,000-copy runsof the Form brochure to meetnationwide demand. Theappearance of this cartoon inthe Columbus (Ohio) Dispatchand dozens of other newspa-pers has helped millions of

Innovative Idea Impacts Policy and Popular Culturepeople see through the myththat employment laws andmandates can be placed onjob providers without affect-ing workers.

More information on theRight To Know Payroll Formis available in the Free MarketBookstore, page 10.!!!!!

Is it illegal in Michigan to display on a vehicle the emblem of anorganization to which the owner does not belong. Is the owner of thisvehicle a member of the rock group The Grateful Dead?

POLICY IMPACTPOLICY IMPACT

Million Dollar Bequest Made to Mackinac Center

Mackinac Center for Public Policy4 IMPACT! Winter 1997

The Mackinac Centerfor Public Policy hasbeen named therecipient of a million-

dollar-plus bequest. Thebenefactor, who wishes toremain anonymous, has beena Mackinac Center membersince 1994 and now joins ourLegacy Society.

F our educators andeconomists are thenewest members ofthe Mackinac Center

for Public Policy Board ofScholars.

Dr. Thomas Bertonneau is anEnglish instructor in CentralMichigan University’s Ex-tended Degree Program. Heholds a Ph.D. in comparativeliterature from the Universityof California, Los Angeles.He is the author of the latestmajor Mackinac Centerstudy, Declining Standards atMichigan Public Universities.

Dr. Mark Perry is an assistantprofessor of economics at theUniversity of Michigan-Flint.Studying under Nobel laure-ate James Buchanan, heearned a Ph.D. in economicsfrom George Mason Univer-sity. Perry served as directorof the Center for WorldCapitalism, then in Jackson-ville, Florida. He isinstrumental in arrangingMackinac Center speakingevents at groups includingthe Flint Economic Club, andis writing a minimum wagecommentary for the Center.

Dr. Christopher Fleury is avisiting lecturer in politicalscience at Eastern MichiganUniversity. His Ph.D. inpolitical science is from theUniversity of Iowa. Fleurywill assist the Center with avariety of economic re-search projects.

Dr. Ormand Hook is thedirector of the MichiganResource Center for CharterSchools at Central MichiganUniversity. He holds a doctorof education degree from

New Scholars Strengthen Center ResearchTemple University, and hasserved in a number of privateand public schools holdingpositions including specialeducation supervisor andprincipal. Hook helps theMackinac Center researchcharter school effectiveness.His recent Viewpoint com-mentary describing theethnic diversity of Michigancharter public schools waspublished in the Detroit FreePress and many other news-papers in Michigan.!!!!!

The gift is part of a charitableremainder unit trust, whichallows a person to transferfinancial assets to nonprofitgroups or others at the timeof the giver’s passing.

The benefactor said, “TheMackinac Center is the best,and I want it to have theresources to remain the best.

No other public policyinstitute has more long-termimpact in making Michigan abetter place to live, work, andraise a family.”

Marking the milestone, VicePresident for DevelopmentJames E. Kostrava said,“Visionaries like this gener-ous friend leave a legacy that

promotes free markets,limited government, andrespect for private property.”

Mackinac Center friends whoare interested in joining theLegacy Society should call theOffice of Development at(517) 631-0900.!!!!!

Dr. Thomas Bertonneau explains ata news conference his research onMichigan public universityacademic standards.

Dr. Mark Perry Dr. Christopher Fleury Dr. Ormand Hook

Mackinac Center Ideas Reach Millionsthrough Print, Broadcast

Mackinac Center for Public Policy IMPACT! Winter 1997 5

N ewspaper, radio,and televisioncoverage ofMackinac Center

research is a key tool forshifting public opiniontoward greater appreciationof free markets and a freesociety. Hundreds of Centernews reports and commen-taries reached millions ofMichigan citizens over thepast quarter. Here are a fewof the most significant mediaexposures.

• Every major Michigannewspaper reported theGovernor’s appointment ofMackinac Center Director of

Labor Policy Robert Hunterto the state Civil ServiceCommission.• Former Director of theMichigan Family Indepen-dence Agency and CenterAdjunct Scholar Gerald Millerexplained the benefits ofprivate-sector involvement inwelfare reform in a DetroitNews op-ed.• Monica Pratt, adjunctscholar, recommended in aDetroit Free Press op-ed thatMichigan’s draconian andcounterproductive 650-Liferdrug law be reexamined.• Adjunct Scholar GeorgeLeef, in a Detroit News op-ed,called for legislation to

protect workers’ rights tosolve problems with manage-ment without involving alabor union.• President LawrenceReed assessed GovernorEngler’s policies in a Sun-day Detroit News and FreePress commentary.• A Detroit News editorialquoted Robert Huntersuggesting that GovernorEngler consider an executiveorder notifying union mem-bers of their right to refrainfrom supporting unionpolitical activities.• Commentaries on thestudy Declining Standards atMichigan Public Universities

were printed in numerousnewspapers.• Adjunct Scholar Dr.Ormand Hook explained in aDetroit Free Press op-ed thatMichigan charter publicschools serve a much higherproportion of minority and at-risk students than do theregular public schools.• Staff and scholars BurtonFolsom, George Leef, ThomasBertonneau, Jennie Barkey,Lawrence Reed, OrmandHook, and Joseph Lehmanwent on the air on severalradio stations to propose free-market solutions to variouseconomic problems.!!!!!

D etroit has amongthe highest unem-ployment, poverty,and public assis-

tance rates in the country.The creation of new busi-nesses could solve many ofthese woes. Although manyresidents are spirited, ener-getic, and willing to take therisks necessary to providejobs for others, the citybureaucracy discourages

business start-up at everyturn, according to Institutefor Justice Staff AttorneyDana Berliner.

Berliner explained to about 25legislative aides, policymakers, and governmentagency officials the findingsof her study on barriers toDetroit entrepreneurism onDecember 9, 1996. The“Issues and Ideas” meeting

was hosted inLansing by theMackinacCenter forPublic Policy.

According tothe study, thecity squelchesinitiative inpart throughburdensomelicensing andpermit require-ments. The

Motor City sharply limits thenumber of taxicabs and othertransportation services andrestricts nearly all streetvending. While Detroitprohibits home-based busi-nesses, compliance with itslabyrinthine zoning andbuilding laws is so time-consuming and expensivethat many businesses eithergive up or simply ignore therules and operate illegally.

The study’s recommenda-tions include allowing freeentry into the taxicab marketand rescinding the ban onhome-based businesses.These reforms would focusbenefits sharply on thosewith low skill levels and onparents who cannot workoutside the home, accordingto Berliner.

Berliner’s research took herto many urban centers in the

country, but she said Detroit’scitizens stood above the restin entrepreneurial zeal. Shesaid, “Detroit is an astonish-ingly vibrant city, full ofentrepreneurs with ideas,energy, and dreams.”

At the Institute for Justice, aWashington, D. C.-basedpublic interest law center,Berliner litigates civil rights,economic liberty, propertyrights, and other constitu-tional cases in both federaland state courts.

“Issues and Ideas” is a regularMackinac Center forum forpolicy professionals. It bringsthe best application of legal,economic, psychological,moral, and scientific prin-ciples to public issues, givinggovernment officials bettertools with which to enactsound policies.!!!!!

Detroit Drives Out Motor City Entrepreneurs

Detroit ordinances make it difficult for businessowners to improve their property.

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The World Wide Web’s best sourceof Michigan public policy re-search and information has wontwo awards for excellence and

innovation.

The Mackinac Center for Public PolicyWeb site was honored in September withits first award, the “Freedom Home Pageof the Week.” The award is sponsored byFree-Market.Com (http://www.free-market.com), which bills itself as the“starting point for liberty on theInternet.” Each week, Free-Market.Comselects the single best Web page out ofthousands to recognize for excellence inadvancing freedom and free markets.Free-Market.Com said this about theCenter’s Web page:

This is Michigan’s free-marketthink tank—the latest pro-freedomorganization to jump into theWorld-Wide Web head first. Thisisn’t an experiment; they’re seriousabout their Internet presence.Mackinac offers stacks of publicpolicy information that are search-able and sensibly indexed, plus twospecial Q&A features for students:“Ask the Debate Coach” and “Askthe Economist.”

In winning the award, the MackinacCenter joins other prestigious organiza-tions including the Cato Institute, AtlasEconomic Research Foundation, and theFoundation for Economic Education.

The second honor is the “Editor’s Choice”award from The Liberator Online(http://www.self-gov.org/liberator/), an

electronic Internet magazine with over3,300 subscribers in 44 countries.Liberator Online’s January 25 reviewof the Mackinac Center’s Website reads

The Mackinac Center for PublicPolicy is committed to deliver-ing the highest quality and mostreliable research on Michiganissues. Their well-done sitecontains well-researched articleson a variety of topics such aseducation, taxes, privatization,and more.

One of the most interestingaspects of their site is “Ask theEconomist.” Each week theyfeature an on-line economist toanswer your questions abouteconomic principles and theirreal-world implementation.Their “faculty” is comprised ofuniversity professors, profes-sional economists, and policyspecialists who recognize theimportance of sound economics,and want to help you learn. Socheck out the page for informa-tion on how to get expert helpwithin 24 hours.

The Mackinac Center’s unique “Askthe Debate Coach” and “Ask theEconomist” services have providedfast, accurate, and scholarly informa-tion to scores of students (and evensome teachers) in Michigan andaround the country.

Award-WinningMackinacCenterWebSiteDeliversPolicyResearchandInformation

Award-WinningMackinacCenterWebSiteDeliversPolicyResearchandInformation

Mackinac Center for Public Policy6 IMPACT! Winter 1997

Liberator Online told 3,000 subscribers theycould access economics expertise through theMackinac Center Web site.

The Mackinac Center earned this award less than one month after launching itsWeb site.

http://www.mackinac.orghttp://www.mackinac.org

Ask the DebateAsk the Debate

Nearly 500 authoritative MackinacCenter studies, reports, articles andcommentaries that have shifted thewindow of public opinion—andpolicy—over the last nine years are alsoavailable on the Web site at no charge.

Fresh research is added to the Web siteweekly and more than 600 text andgraphics files per day are accessed byresearchers and others. Manager ofInformation Systems Jeffrey Tucker

Mackinac Center for Public Policy IMPACT! Winter 1997 7

High school debaters get facts and arguments that help them win from the Mackinac Center’s on-line “Debate Coach.”

The Mackinac Center is the only policy researchinstitute to offer the Guarantee of QualityScholarship.

COLLEGE STUDENTS: Is your professor

TRAPPED in a KEYNESIAN TIME WARP?

Do you need STRAIGHT ANSWERS based on modern economic scholarship?

to the FREE MARKET? hostile

A S K T H E E C O N O M I S TA S K T H E E C O N O M I S TThe Mackinac Center’s on-line “faculty” teaches college students principles of sound economics.

said, “The Web lets us deliverinformation to citizens and policymakers instantaneously. To remainMichigan’s best site for public policyresearch, we take advantage of thetechnology by making continual up-dates.”

To use the Mackinac Center Web site,point your browser tohttp://www.mackinac.org.!!!!!

DEVELOPMENT IMPACT

Stoddard: More Fun to Give While You Can See the Results

Explosive Growth Leads to Headquarters Building Campaign

DEVELOPMENT IMPACT

Mackinac Center for Public Policy8 IMPACT! Winter 1997

C huck Stoddard hasmore on his mindthan the bottomline of Grand Bank,

the $112 million GrandRapids institution of whichhe is CEO and president. Hewants to improve the bottomline of his whole community.

That is why he leads GrandBank to practice a concept hecalls “corporate tithing.”Tithing is a centuries-oldpractice of giving away tenpercent of one’s increase inwealth. Corporate tithingextends the concept to firmswhich make charitable gifts.By supporting the mosteffective charities, a firm’sgift helps its entire commu-nity prosper.

Nearly $144 billion was givento U.S. charities in 1995, but

only five percent of thatamount was given directly bycorporations. The MackinacCenter for Public Policyreceives roughly 25 percentof its contributions frombusinesses.

Stoddard is a MackinacCenter ambassador,President’s Council member,and a Grand Rapids AreaBoard of Advisors member.Largely due to his efforts,over half of Grand Bank’sdirectors have joined theMackinac Center. He said, “Isupport the Mackinac Centerbecause there is no betterway to influence policies thatimprove Michigan’s schools,neighborhoods, competitive-ness, and quality of life.”

He encourages individualsand corporations to consider

the benefits of supporting theMackinac Center. Stoddardcites an article entitled “TenFrom the Top,” in whichMazda Great Lakes PresidentRobert Hooker writes that

The Mackinac Center’sexplosive growth in effective-ness and support has allowedus to double our staff ofpolicy specialists in just overtwo years. To build on thesegains, we are now taking thenext step in our strategicplan. The Mackinac Centerfor Public Policy is launchinga $2.2-to-$2.4 million head-quarters building campaign.

After successfully completingthe campaign, the 17,000-square-foot building willaccommodate about 50professionals, plus seminarfacilities, a media and mailingcenter, and a library. It willbe located directly acrossfrom the Marriott AshmanCourt Hotel and ConferenceCenter on Main Street indowntown Midland. The

Center has secured an optionto purchase the site, a formerWoolworth department store.

The headquarters buildingcampaign is spearheaded bytwo outstanding leaders

dedicated to advancing theaims of the Mackinac Center.They are Margaret “Ranny”Riecker of Midland, a philan-thropist and founding directorof the Center, and Alan Ott,chairman of the board ofChemical Bank and Trust ofMidland. They have commit-ted to raise support inMidland and around the state.

Why does the MackinacCenter need a new building?The Center’s relentlessgrowth leaves no choice but toseek new quarters—both forspace reasons and in keepingwith our reputation as thenation’s most prestigious andinfluential state-focusedpolicy research institute.

The new building will be anexcellent location for ex-

panded educational pro-grams, policy briefings, andtraining sessions. It will alsohelp the Mackinac Centerrecruit the high level talentwe need to succeed.

A signature building is asymbol of permanence.Lawmakers, citizens, andopinion leaders who see theimpressive, modern head-quarters will sense that theMackinac Center is the bestsource of policy research andinformation in the state, anda potent agent for shiftingpublic opinion toward greaterappreciation of the principlesof a free society.

This campaign will havestrong support from not only

See “Growth...” on page 11

many people delay largecharitable contributions untilthey pass on and leavebequests. Stoddard said, “Tome, it’s more fun to givewhile you’re alive so you cansee the good that it does.”

Chuck Stoddard foundedGrand Bank in 1987. He isthe director of the GrandRapids Economic Club, andwas appointed by GovernorEngler to serve on the Michi-gan Municipal BondAuthority from 1993 until1996. He holds degrees fromMichigan State University andHarvard Graduate School ofBusiness Administration. Heand his wife, Jan, have fourchildren.!!!!!

Chuck Stoddard believes businessesshould support effective charities.

James KostravaVice President for Development

FREE MARKET FUNDAMENTALS

Which Schools Succeed, and Why?

FREE MARKET FUNDAMENTALS

Mackinac Center for Public Policy IMPACT! Winter 1997 9

The 1980s and 1990shave not been kind tosupporters of publiceducation in the

United States. Early in the1980s there emerged evi-dence of the shortcomings ofthe public schools from themassive 60,000-student “HighSchool and Beyond” survey.As sociologists JamesColeman, Thomas Hoffer,and Sally Kilgore summarizedthis study of U. S. secondaryeducation, “students in bothCatholic and other privateschools were shown toachieve at a higher level thanstudents in public schools.”Their overall finding wasthat, controlling for socialand demographic factors,students in private schoolswere a full year ahead ofpublic school students.

An exhaustive study bypolitical scientists JohnChubb and Terry Moe,published in the December1988 American PoliticalScience Review, documentedthe theory behind thisdifference. Its findings arejust as relevant now as eightyears ago. Private schools arebetter, said Chubb and Moe,because they are betterorganized to deliver qualityeducation.

Private schools face a markettest: If parents and studentsaren’t satisfied, they leave theschool and stop payingtuition. This propels privateschools to structure them-selves so they can deliver abetter product. When apublic school starts deterio-rating, on the other hand, thetax moneys keep coming in.Hence inefficient arrange-ments persist.

What are the patterns ofsuccessful management thatthe private schools haveadopted? From their surveyof 500 schools, Chubb andMoe documented how theprivate schools differ from thepublic ones. First, in privateschools, the higher, distantauthorities like boards andsupervisors have less power.In the public schools, theschool boards and supervisorstry to micro-manage theschools—leaving principalsand teachers frustrated. Thiscontrast, by the way, holds upeven for the Catholic schools:The higher ecclesiasticalauthorities meddle less intheir schools than publicschool boards and supervisorsdo in theirs.

Another difference is thatprivate schools have moreflexibility in personnelpolicies. The procedures tofire someone are less com-plex and take less time. Thusprivate school managers canmore easily discharge unsat-isfactory personnel. Further-more, private schools aremore focused and coherentin their orientations. Differ-ent private schools may offerdifferent approaches, butwithin each school, Chubband Moe found more clarityon goals and less disagree-ment among the staff thanprevail in the typical publicschool.

Another key difference iswith the principals. Asdocumented by Chubb andMoe, the private schoolprincipals have more teachingbackground than publicschool principals. They areless interested in administra-tive duties than their public

school counterparts, andmore interested in educa-tional philosophy. Also,private school principals aremuch less likely to be seekingcareer advancement. Theresult of these differences isthat private school principalsare educational leaders. Thisis less the pattern in thepublic schools where princi-pals, hemmed in by higherauthorities, regulations, andunions, tend to be seen asbureaucratic managers.

With the principal given somuch authority in privateschools, what happens tomorale and staff relations?To hear the unions tell it,without the government andunion “protection” found inthe public schools, privateschool teachers must lead amiserable life. Well, it isn’tso. Chubb and Moe foundthat the work context is morerewarding for a teacher in aprivate school: principal-teacher relations are better;teacher-teacher relations aremore cordial and moresupportive; teachers havemore influence in everyphase of the school, fromchoosing texts and decidingwhat to teach to establishingstandards for discipline andhomework. Private schoolteachers “feel more effica-cious than public schoolteachers. Unlike their publiccounterparts, they do notbelieve their success isbeyond their control, andthey do not feel it is a wasteof time to do their best.”

In monetary compensation,private teachers lag behind.This, say Chubb and Moe, isperfectly understandable:“Private school teachers are

trading economic compensa-tion and formal job securityfor superior working condi-tions, professional autonomy,and personal fulfillment.Public school teachers aredoing precisely the opposite.”

What the unions and thepoliticians have overlooked isthat job satisfaction forteachers depends on havingthe flexibility to accomplishthe mission of education.The regulations and restraintsthat enmesh the public schoolare undermining everyone’smorale. So even though weare pouring more and moremoney into public schools,the quality goes down.

Of course, there are somegood public schools witheffective programs. What theChubb and Moe study gives isthe overall, nationwidepattern. And that pictureclearly shows that the lessonof the market applies toeducation, too: Where con-sumers are free to choose,suppliers organize themselvesto deliver a superior product.!!!!!

Editor’s note: The MackinacCenter for Public Policy’seducation policy initiative isaimed at improving the qualityof education for all Michiganstudents. Much of the Center’sgrowth this year will be theaddition of a full-time, profes-sional education policy staff.

Adapted from The Freeman,June 1989, with permission ofthe Foundation for EconomicEducation.

by James L. Payne

Viewpoint Commentaries

FREE MARKET BOOKSTOREFREE MARKET BOOKSTORE

Mackinac Center for Public Policy10 IMPACT! Winter 1997

Should Good Relationswith Employees Be anUnfair Labor Practice?

December 1996 VP 96-35Employee Involvementprograms to improve theworkplace are under attackfrom organized labor. Shouldit be illegal for workers andtheir companies to discusstopics of mutual interest?

An Economic Lessonfrom Michigan’s EarlyHistory

December 1996 VP 96-36Michigan’s early state-runrailroads and canals weresuch colossal failures that thecitizens demanded a constitu-tional prohibition of state-runfirms. This set the stage forMichigan’s world-classlumber, carriage, and auto-mobile industries.

A Case Where Local IsBetter Than State

January 1997 VP 97-01“Friend of the Court” is acounty government functioninvolved in administeringchild support payments. Acongressional mandate mayrequire this local governmentfunction to be centralized atthe state level. Is this goodpolicy?

What Is RealCompassion?

January 1997 VP 97-02Is it a mark of compassion tofavor government aid pro-grams for the poor? A look atthe effectiveness of these

programs, and the traditionalmeaning of compassion, helpus tell the difference betweenthose who just talk aboutcompassion and those whoactually practice it.

Let’s Get the FactsStraight on CharterSchools

January 1997 VP 97-03When charter school legisla-tion was first introduced,critics charged that theserelatively independentschools would be elitist, oreven racist. Demographicstatistics of actual charterschool enrollment tell thereal story.

Welfare Reform MeansMore Private SectorInvolvement

February 1997 VP 97-04Can government reformwelfare alone? Privatebusiness has the uniqueability to match people withjobs, and private charity canprovide the personal, com-passionate attentiongovernment programs lack.

Lakefront PropertyOwners Told, “Look,But Don’t Touch.”

February 1997 VP 97-05Property rights on the UpperPeninsula’s Crooked Lake arebeing regulated away by thelake’s biggest land owner—the federal government. Thistakes the “bad neighbor”concept to a new low.

Bridging theRacial Gap

February 1997 VP 97-06A great Michigan builderbenefited from a company thatcared more about his skillsthan his skin color. FredPelham’s experience illustratesthe wisdom of rising aboveracial discrimination.

Michigan PrivatizationReport

Fall 1996MPR 96-04 $3.00Private efforts to treat mu-nicipal wastewater, monitorand maintain clean water-sheds, make rationalrecycling choices, andpurchase and sell air emis-sion credits can protect theenvironment. Other articlesinclude an interview withState Representative HowardWetters on encouragingvoluntary environmentalcompliance audits, and thestory of a private wetlandsdeveloper and his amazingjourney from environmentalvisionary to fugitive fromjustice. 20 pages.

Journals

promulgate a rule that tellsworkers how to exert theirright to refuse to pay forunion political activities. Anexecutive order from Gover-nor Engler would have thesame effect.” Such an actionwould help protect the rightsof the 73 percent of stateemployees who belong tounions, Hunter said.

Hunter has extensive experi-ence in labor law, laborrelations, and governmentaffairs. As an attorney inprivate practice he repre-sented several Fortune 500companies on issues includ-ing collective bargaining andfederal discrimination cases.

In 1981, Hunter was ap-pointed by President Reaganto the National Labor Rela-tions Board where headjudicated more than 1,000cases. He also served as chiefcounsel and staff director forthe U.S. Senate Labor andHuman Resources Commit-tee. He has been a laborpolicy advisor for the U.S.Chamber of Commerce.

As Mackinac Center Directorof Labor Policy, Hunteranalyzes the impact of Michi-gan and federal labor law onworker productivity, livingstandards, and the economy.He will retain his full-timeduties at the Center during hisCommission tenure.

Governor Engler said thatHunter has “. . .the foresight,vision, experience, intellect,and common sense to helpstate government recruit andretain a skilled and diverseworkforce that fulfills thehighest ideals of publicservice.”!!!!!

“Labor...” from page 1

Declining Standardsat Michigan PublicUniversities

Second EditionFebruary 1997S96-04 $10.00Reflecting a national prob-lem, Michigan publicuniversities are producinggraduates who are unpre-pared for K-12 teachingcareers and the business

world. The demise of thetraditional core curriculum,indoctrination in the class-room, and questionableteaching methods thatemphasize emotion andsubjectivity over rigor andcritical thinking are to blame.The study documentsextensive evidence cited byemployers that collegegraduates lack crucialcommunications and think-ing skills, and it finds a linkbetween poor training ofaspiring teachers and declin-ing K-12 studentperformance. Analysis ofover 300 undergraduatecourse syllabi reveal thedominance of trendy, politi-cized course content. 88 pp.

FREE MARKET BOOKSTOREFREE MARKET BOOKSTORE

Mackinac Center for Public Policy IMPACT! Winter 1997 11

How to order:

VIEWPOINTS: Viewpoints onPublic Issues are two-pagecommentaries on currentMichigan policy issues. Two orthree are published eachmonth. Individual Viewpointsare 50¢ each. Please call forbulk discounts.

For telephone orders, please callthe Mackinac Center at (517)631-0900. The Center acceptsVisa or Mastercard for yourconvenience. Please have yourcard and item title(s) handywhen calling. If you do nothave the Mackinac Center forPublic Policy’s current Publica-tions catalog with a completelisting of all Mackinac Centerpublications, please requestyour free copy when ordering.

Studies Special Items

The Right To KnowPayroll Form Kit

#RTKPF ComplimentaryHundreds of companies arefinding The Right To KnowPayroll Form an easy,effective way for employersto show their workers thetrue cost of government withevery paycheck. An infor-mative four-page brochureexplains how to modify paystubs to show line-by-line

the hidden government-mandated costs paid by thecompany on behalf of theworker. These costs includeemployer-paid Social Secu-rity and Medicare taxes,unemployment and worker’scompensation insurance,and other costly mandates.The Right To Know PayrollForm helps employees bebetter informed in thedemocratic process byshattering the myth thattaxes, regulations, andmandates on businesses donot affect them personally.

Freedom from Bad LaborAdvice

#LABOR ComplimentaryThis informative resourcegives workers straight an-swers tocommonquestionsabout laborunions andemployeerights andresponsi-bilities.Thequestion-and-answerformathelpsworkersunderstandhowfederallabor lawaffects them directly on topicsincluding mandatory unionmembership and payment ofdues. Public employees,including teachers, will alsobenefit from this handybrochure.

to initiate the 1995 repeal ofthis ordinance, which won“honorable mention” in thehumorous law category.

Most laws submitted to thecompetition still await repeal.For example, it is still illegal topaint birds in Harper Woods;an antiquated, race-basedstatute still makes it a felony toincite an Indian to violate alaw; Detroit parking lot atten-dants are still subjected toburdensome licensing require-ments; and taxpayers are stillfooting the bill for an $87,000annual program to count thenumber of horses in Michigan.

The purpose of the competi-tion was to highlightburdensome, intrusive, andsilly laws that should berepealed, and to remind stateand local law makers to thinktwice before enacting un-needed and arbitraryintrusions into citizens lives.The contest sparkedsimilar projects by policygroups in Washington stateand Wisconsin.!!!!!

“Laws...” from page 3

“Growth...” from page 8

the Midland community, butfrom supporters statewide.The Center’s many friendsknow how to think big. Theyknow the Mackinac Center’strack record and its potential.

Will you be part of thisexciting milestone in theMackinac Center’s growth?We—and Michigan—needyour financial support, brick-and-mortar challenge grant, orin-kind contribution. Pleasecall the Office of Develop-ment at (517) 631-0900 andjoin us in thinking big!!!!!!

119 Ashman Street • P.O. Box 568 • Midland, Michigan 48640

NON PROFIT ORG.U.S. POSTAGE

PAIDMIDLAND, MI 48640

PERMIT #275

J oi Henton believes themost effective way toimprove schools andhelp Michigan citizens

is to volunteer her profes-sional skills thirty hours perweek to the Mackinac Centerfor Public Policy.

Since January, Henton hasdone preliminary researchfor several upcoming studiesand projects on education.Her data collection andcontact with educationofficials statewide gives theMackinac Center’s EducationPolicy Initiative a runningstart. The Center is conduct-ing a national search for botha full-time director andresearch assistant in educa-tion policy.

Henton, a mother of three, iscommitted to helping schoolsimprove and allowing parentsmore freedom to choose thebest school for their child.“Good education is the key toeffective democracy. I canhelp make that happen by

volunteering at the MackinacCenter,” she said.

Volunteering is an importantpart of Henton’s life. Shefounded a Midland-area groupof parents dedicated toimproving education, anddirected publicity efforts for alocal Habitat for Humanityaffiliate which providedaffordable housing for needyfamilies.!!!!!

Henton’s Commitment toEducation Helps Schools andStudents

Lighthouses Face BrighterFuture Thanks to CenterRecommendation

Joi Henton helps schools improveby working at the Mackinac Center.

The privately owned Sand Hillslighthouse on Michigan’s Keeweenawpeninsula is preserved andmaintained as a bed-and-breakfast.

L ighthouses are a fasci-nating part of Michiganhistory, but many ofthem are sadly falling

into disrepair. The U.S. CoastGuard is now acting topreserve seventeen GreatLakes lighthouses in accor-dance with a MackinacCenter for Public Policyrecommendation to allowtheir sale to private parties.

Many of the beacons are indanger of being lost forever

because Coast Guard fundsprohibit expensive preserva-tion efforts. Lighthouse DigestEditor Tim Harrison saidmany of them have been“abandoned by the authoritiesand are falling victim tovandalism and the elements.”

Last July’s Mackinac Centerrecommendation pointed outthat private property ownershave built-in incentives topreserve and care for whatthey own. Government isoften unable for politicalreasons to protect historicstructures it owns. The lawthat prohibited sale of light-houses to private individualsactually impeded theirpreservation.

Eight Michigan lighthouseshave begun the transitionfrom government to possibleprivate ownership. This is avictory for lighthouse enthusi-asts, historic preservationists,and citizens concerned aboutgood government stewardshipand sound policy.!!!!!