Free To Choose: a personal Statement



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Milton y Rose Friedman - Free to Choose

Review, vol. 38, no. 1 (Winter 1968), pp. 100–113; passage cited from
pp. 110–11.
23. Daniel Weiler, A Public School Voucher Demonstration: The First
Year at Alum Rock, Rand Report No. 1495 (Santa Monica, Calif.:
The Rand Corporation, 1974).
24. Henry M. Levin, "Aspects of a Voucher Plan for Higher Education,
"
Occasional Paper 72-7, School of Education, Stanford University, July
1972, p. 16.
25. Carnegie Commission on Higher Education, Higher Education: Who
Pays? Who Benefits? Who Should Pay? ( McGraw-Hill, June 1973),
pp. 2-3.
26. Ibid., p. 4.
27. Ibid., p. 4.
28. Ibid., p. 15.
29. Carnegie Foundation for the Advancement of Teaching, More than
Survival: Prospects for Higher Education in a Period of Uncertainty
(San Francisco: Jossey Bass Publishers, 1975), p. 7.
30. Carnegie Commission, Higher Education, p. 176. We have not calcu-
lated the percentages in the text from the Carnegie table but from the
source it cited, Table 14, U.S. Census Reports Series P-20 for 1971,
no. 241, p. 40. In doing so, we found that the Carnegie report percent-
ages are slightly in error.
The figures we give are somewhat misleading because married stu-
dents living with their spouses are classified by their own and their
spouses' family income rather than by the income of their parents. If
married students are omitted, the effect described is even greater: 22
percent of students from families with incomes of less than $5,000 at-
tended private schools, 17 percent from families with incomes between
$5,000 and $10,000, and 25 percent from families with incomes of
$10,000 and over.
31. According to figures from the U.S. Bureau of the Census, of those
persons between eighteen and twenty-four who were enrolled as under-
graduates in public colleges in 1971, fewer than 14 percent came from


Notes
321
families with incomes below $5,000 a year, although more than 22
percent of all eighteen- to twenty-four-year-olds came from these low-
income families. And 57 percent of those enrolled came from families
with incomes above $10,000 a year, although fewer than 40 percent
of eighteen- to twenty-four-year-olds came from these higher-income
families.
Again, these figures are biased by the inclusion of married students
with spouse present. Only 9 percent of other students enrolled in public
colleges came from families with incomes below $5,000, although 18
percent of all such eighteen- to twenty-four-year-olds came from these
low-income families. Nearly 65 percent of students of other marital
status enrolled came from families with incomes of $10,000 or more,
although only a bit over 50 percent of all such eighteen- to twenty-four-
year-olds did.
Incidentally, in connection with this and the preceding note, it is
noteworthy that the Carnegie Commission, in the summary report in
which it refers to these figures, does not even mention that it combines
indiscriminately the married and unmarried students, even though do-
ing so clearly biases their results in the direction of understating the
transfer of income from lower to higher incomes that is involved in
governmental financing of higher education.
32. Douglas M. Windham made two estimates for 1967—68 for each of
four income classes of the difference between the dollar value of the
benefits received from public higher education and the cost incurred.
The estimates showing the smaller transfer are as follows.
Income Class
Total
Total
Net Cost (—)
($ per year)
Benefits
Costs
or Gain (+)
$
0— 3,000
$10,419,600
$14,259,360
—$ 3,839,760
3,000— 5,000
20,296,320
28,979,110

8,682,790
5,000—10,000
70,395,980
82,518,780
— 12,122,800
10,000 and over
64,278,490
39,603,440
+ 24,675,050
Douglas M. Windham, Education, Equality and Income Redistribution (Lexing-
ton, Mass.: Heath Lexington Books, 1970), p. 43.
33. W. Lee Hansen and Burton A. Weisbrod, Benefits, Costs, and Finance
of Public Higher Education (Chicago: Markom Publishing Co., 1969),
p. 76, except that line 5 below was calculated by us. Note that the
taxes in line 3, unlike the costs allowed for in Florida, include all taxes,
not simply the taxes going to pay for higher education.


322
FREE TO CHOOSE: A Personal Statement
All
Families
without
Children in
California
Public
Higher
Families with Children in
California Public Higher Education
Junior
State
Univ. of
Families
Education
Total
College
College
Calif.
1. Average family
income
$8,000
$7,900
$9,560
$8,800
$10,000
$12,000
2. Average higher
education sub-
sidy per year
0
880
720
1,400
1,700
3. Average total
state and local
taxes paid
620
650
740
680
770
910

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