Big 3 Bailout and Public Schools


Cato economist Andrew Coulson has a great new post arguing that Big-Three US Automakers ought to emulate public schools if they want to lower expectations while demanding more taxpayer money:

…Consider how well this has worked for public schools. Between 1970 and 2005, real, inflation-adjusted public school revenues more than doubled, to nearly $12,000 per pupil. And the schools didn’t have to compete with anyone or show any improvement to get it! According to the National Assessment of Educational progress, 17-year-olds perform no better academically today than they did back in 1970.

If the auto industry had gotten a similarly sweet deal (double the revenue, no improvement required) Chevrolet would still be able to sell 1971 Impalas today, at a whopping $43,479! Due to the rigors of competition, however, they’ve been forced to innovate and keep prices down. They’ve had to improve mileage and mechanicals, refine fit and finish, add airbags and On-Star, and they still can’t get away with charging more than $21,975 for their vastly improved 2008 model….

Read more here.


One response to “Big 3 Bailout and Public Schools

  1. This is a good analysis. There are a few details missing. In order for the Impala to be like our public schools, you would not be allowed to pick the color or options.

    If you took it in for service, the dealership would not fix it but may remove a plug wire since you came in and stirred up trouble.

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