D eclining academic standards and ques- tionable teachingmethods at Michigan

public universities producepoorly prepared K-12 teachersand graduates in other fields,according to a new studyreleased by the MackinacCenter for Public Policy onOctober 31 at MichiganState University. Based onemployer surveys, K-12student test scores, teachertraining studies, and ananalysis of over 300 coursesyllabi from all fifteen stateuniversity campuses, thestudy found that graduateslack many basic skills thatemployers require, and thataspiring K-12 teachers donot get the training neces-sary to prepare theirstudents for college orwork.

Study author Dr. ThomasBertonneau, a MackinacCenter Senior PolicyAnalyst and an Englishinstructor in CentralMichigan University’s (CMU’s)Extended Degree Program,traces the failure to the generaldemise of the core curriculumand the widespread replace-ment of traditional methods ofteaching English compositioncourses with the “processapproach.”

The core curriculum is a set ofcourses including history,

Study: Michigan Universities ProvideInadequate Preparation

University Officials Take Center Recommendations Seriouslyliterature, language, and thesciences, that all students oncetook to gain a broad education.The “process approach” to Englishcomposition places less emphasison formal grammar and study ofclassical literature than thetraditional approach to the

course. Bertonneau said, “Theprocess approach fails to producestudents well-grounded in formalgrammar and classical literature.Proper instruction in Englishcomposition is critical becausethat course, more than any other,should teach students how tocommunicate clearly, how tointerpret complex concepts, andhow to separate fact from fallacy.

Poor instruction in this courseadversely affects a student’sentire education and life.”

The study recommends ways tohelp universities better equipnew teachers and other profes-sionals to compete in the global

marketplace. They include

•Conduct a public trial todetermine which method ofteaching English composi-tion—the traditional orprocess approach—producesthe highest student achieve-ment. Bertonneau said, “Leteach method prove its worthand give students a chance tobenefit from the bettermethod.”•Re-establish core curriculaand the study of booksimportant to Western civiliza-tion.•Offer aspiring teachers amore meaningful curriculumby requiring fewer educationcourses and more courses intheir specialty discipline,such as math or history.•Alumni, parents, and

employers should hold universitygoverning boards more account-able for producing well-preparedgraduates.

The study stresses that theseimprovements can be madewithout legislative action. “If thelegislature or governor must get

See “Study...” on page 8

President’s Message ....... 2

Congressman and ScholarsConvene at Summit ....... 3

Ed Meese Speaks toPresident’s Council ........ 3

Contents:Media Impact ................ 4

New Internet Services .... 4

Educational Events ........ 5

High School Debate ....... 6

Development Impact ..... 8

Compassion andPolitics ......................... 9

Reed Wins Award ......... 12

Maze Joins Staff ........... 12

“I cannot find any authority in the Constitution for making the FederalGovernment the great almoner of public charity. . . .”

—U. S. President Franklin Pierce, in an 1854 veto message. See page 9 for related article.

THE NEWSLETTER OF THE MACKINAC CENTER FOR PUBLIC POLICY • FALL 1996

A s our supporters well know, the Mackinac Center for Public Policy seeks toadvance sound economic policy and greater appreciation of private property,entrepreneurship, limited government, and individual responsibility.

These ideas are certainly not new. They are, indeed, the foundations of a free society, theprinciples upon which Americans built a strong, prosperous and compassionate nation.It’s a timeless, inspirational message but I am often approached by doubting friends whoask, “Are we really making progress in getting this message across today?”

I could, of course, preface my response with any number of wishy-washy qualifiers: “Well,we just have to keep at it and hope for the best;” or “You know, nothing worthwhile comeseasily.” But that wouldn’t do justice to what I genuinely believe. So when someone asksme if we’re making headway, I say without a moment’s hesitation, “Yes!”

If you measure progress against where we were a few days ago, or before the last election,or prior to a particular recent debate in the legislature, you can always come up withreasons for pessimism. But progress ought to be considered in a broader, longer-termcontext. Are we better off today than we were, say, thirty years ago?

The term “privatization” was not even an entry in Webster’s dictionary thirty years ago.“School choice” was a fanciful concept discussed by a mere handful of people. Faith ingovernment spending as a cure-all was widespread. Few people were challenging theprevailing orthodoxy that called for higher taxes, more regulation, and the false andineffective compassion of government welfareprograms.

In Michigan thirty years ago, we didn’t have aHeadlee Amendment to constitutionally limit statespending. We didn’t have a lively, informed debateabout the proper role of government. And we didn’thave a Mackinac Center to provide economiceducation to teachers and students and problem-solving ideas to the media, legislature, and thegovernor. The public debate today is fundamentallydifferent and profoundly improved over where it wasthen.

Sometimes progress takes the course of “three stepsforward, two steps backward,” which can be a little discouraging at times if you don’tmaintain a long-term view or if you forget to “keep your eyes on the prize.” Personally, Inever take any setback as a reason to let up or feel glum. I take it as a reason to workharder and smarter, and so does the incredibly talented and dedicated staff I work withevery day.

So let’s celebrate the progress we’ve made, reaffirm our mission, and face the futureknowing that good ideas on behalf of a noble ideal will ultimately prevail. We’ve come toofar already to ever waste a second on self-defeating pessimism.!!!!!

Our Success IsReason for Optimism

Lawrence Reed,President

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

Board of ScholarsDr. Donald Alexander Western Michigan University

Dr. William Allen Michigan State University

Mr. Patrick Anderson Anderson Economic Consulting Group

Mr. Brian Barnier Strategic Innovations Corporation

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

George Leef Patrick Henry Associates

David Littmann Comerica Bank

Dr. Brian Long Marketing & Management Institute

Dr. Dale Matcheck Northwood University

Dr. Paul McCracken University of Michigan

Prof. Charles Milliken Siena Heights College

Dr. Gerald Musgrave Economics America

Dr. George Nastas Marketing Consultants

Dr. John Pafford Northwood University

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

“I never take anysetback as a reason tolet up or feel glum. Itake it as a reason towork harder andsmarter. . . .”

Mackinac Center for Public Policy

Congressman HoekstraExplores Role of Ideas at Scholars Summit

Congressman Pete Hoekstra of Holland delighted an audience of over

60 scholars and guests at theannual Mackinac CenterScholars Summit at theDearborn Inn in Dearborn onNovember 8. Hoekstra’skeynote address was entitled“The Role of Ideas in CurrentPolitical Debate.”

Hoekstra sought to bothchallenge and get advicefrom the scholars on howprinciples and ideas of soundeconomics and good govern-ment could best be commu-nicated to opinion leadersand the public at large.

The evening event was followedby a full day of reviews of thepast year’s Mackinac Center-published research, and presen-tations by scholars in their

specific disciplines. Presenta-tions included

•Director of Labor Policy RobertHunter on how to move Michi-gan toward a free market in labor

representation;

•TransportationPolicy Analystand Wayne StateUniversityAssistant Profes-sor Dr. JohnTaylor on how toimprove therepair andmaintenance ofMichigan roads;

•Adjunct Scholarand StrategicInnovationsCorporationPresident BrianBarnier on howstate-initiated

local taxing districts subvert thedemocratic process;

•Senior Policy Analyst andHillsdale College Professor ofEconomics Dr. Gary Wolfram on

finding solutions to balancing thefederal budget;

•Adjunct Scholar and RussellKirk Center for Cultural RenewalPresident Annette Kirk on thehistory and influence of thewritings of the late Russell Kirk;

•Senior Policy Analyst Dr.Thomas Bertonneau on therestoration of university under-graduate core curricula andEnglish composition instruction;

•Adjunct Scholar and MichiganAssociation of Scholars PresidentRichard Cutler on how toreinvigorate and raise the qualityof K-12 education;

•Senior Fellow in EconomicEducation Dr. Burton Folsom onthe failures of 19th century state-run railroad and canal ventures

See “Hoekstra...” on page 10

Congressman Pete Hoekstra discusses with the scholarsthe best way to convey sound economic concepts to thepublic.

Former U. S. Attorney General Edwin Meese III Callsfor “Triage” Solution to Juvenile Crime

Edwin Meese III told Mackinac Centersupporters that local institutions arebest suited to help juvenile offenders.

F ormer United StatesAttorney General EdwinMeese III was thefeatured guest at the

Mackinac Center President’sCouncil dinner on September 30

at the Amway Grand Hotel inGrand Rapids.

Meese told about 80 friends ofthe Center that juvenile crimewould increase unless churches,schools, and law enforcementofficials worked together in a“triage” system. As envisionedby Meese, these institutionswould share information onyouthful offenders to separatethose who commit relativelyminor offenses from those whoare clearly headed for lives ofcrime. He cautioned againstgreater federal involvement injuvenile crime, calling it a localproblem. He also endorsedprivatization of correctionalfacilities as a viable, cost-savingoption.

Before the dinner, Meese wasinterviewed live for fifteen

EVENT IMPACTEVENT IMPACT

Mackinac Center for Public Policy IMPACT! Fall 1996 3

minutes by Grand Rapids TV-8and also by the Grand RapidsPress. Mackinac Center Board ofAdvisors member Ginny Seyferthgraciously coordinated the mediacoverage.

Meese’s itinerary included anaddress to nearly 200 high schoolstudents at the Center’s HighSchool Debate Workshop atGrand Valley State University thefollowing day.(See story page 6.)

Meese currently holds theRonald Reagan Chair in PublicPolicy at the Heritage Founda-tion, a Washington, D. C.-basedpublic policy think tank. Meeseserved as the 75th attorneygeneral of the United States from1985 until 1988. He was coun-selor to the president from 1981until 1985.!!!!!

Edwin Meese III discusses hisexperience as U.S. attorney generalwith Mackinac Center board memberand U.S. District Court Judge PaulGadola

Mackinac Center for Public Policy

Center Research Amplified by Massive Media Exposure

Mackinac Center newsmedia exposure hasbeen dominated thisfall by reports on a

new study, Declining Standards atMichigan Public Universities. (Seecover story.) Journalists soughtout Center staff and scholars forexpertise on many other policytopics as well. A few highlightsof recent news coverage follow.

•The Mackinac Center releasedits study, Declining Standards atMichigan Public Universities, andcalled on the state’s universitysystem to adopt recommenda-tions to improve undergraduateeducation. Every major newsoutlet was represented at theOctober 31 news conference atMichigan State University eventhough First Lady Hillary Clintonwas speaking on campus at thesame hour.•Senior Policy Analyst Dr.

ThomasBertonneau andDirector ofCommunicationsJoseph Lehmangave editors andreporters per-sonal briefings onDeclining Stan-dards at theoffices of theDetroit Free Press,The Detroit News,The OaklandPress, MidlandDaily News, andMount PleasantMorning Sun.

•Major stories in nearly everydaily newspaper in the state andmany campus newspapersreported the impact of andreaction to Declining Standards.Letters to the editor affirmingthe study were published inmany papers.

•Several newspapers to datehave editorialized about Declin-ing Standards. From the DetroitFree Press, “. . . there is goodreason to hear out arguments bythe Mackinac Center. . . .” Fromthe Lansing State Journal, “. . . theMackinac Center’s studyperforms a valuable service. . . .”From The Oakland Press, “. . . theMackinac Center for PublicPolicy has ridden to our rescue.”

•Declining Standards authorBertonneau explained weak-nesses in university corecurricula and English composi-tion courses in a Michigan PublicRadio interview broadcast onmore than a dozen public radiostations throughout the state.

•WJRT TV-12 in Saginaw carrieda 95-second news story onDeclining Standards. It said, inpart, that the study was beingtaken seriously by Michiganuniversities and that theMackinac Center defendedteachers against unfair blame forfailures in the K-12 schoolsystem. Channel 10 in Lansingalso covered the story.

New InternetServices Answer Students’ Questions Quicklyhttp://www.mackinac.org

•Nationally syndicated colum-nist Walter Williams devoted anentire column to the MackinacCenter’s Right To Know PayrollForm and how it helps workersbetter understand the cost ofgovernment. The column issyndicated in about 130 newspa-pers.

•Former United States AttorneyGeneral Edwin Meese IIIrepresented the MackinacCenter in a fifteen-minute liveinterview on Grand Rapidstelevision (Channel 8) and in aGrand Rapids Press story onjuvenile crime. (See story page3.)

•Lawrence Reed described in aDetroit News op-ed the potentialharm of a proposed Michiganlaw that would mandate insur-ance coverage of pre-existinghealth conditions.

•News reports describing theCenter’s educational High SchoolDebate Workshops were printedin newspapers in Detroit (DetroitFree Press), Grand Rapids,Traverse City, Cadillac, Holland,Gaylord, Zeeland, Petoskey, andBlissfield.

•Adjunct Scholar Dr. DavidJanda described how medicalsavings accounts can saveMedicare from bankruptcy in anop-ed which appeared in severalnewspapers.

•Adjunct Scholar RobertBidinotto reviewed history,causes, and solutions to juvenilecrime in an op-ed printed innewspapers around the state.Communications DirectorLehman explained how incometax cuts have historically beenfollowed by higher governmentrevenue on the syndicated radioprogram Michigan Business Beat,which is broadcast on severalstations.!!!!!

Two new Mackinac Center Internet e-mail services provide college and high school students

timely answers to tough ques-tions on economics and thenational high school debatetopic, juvenile crime.

“Ask the Economist” helps col-lege students who need sound

MEDIA IMPACT

Joseph Lehman (right) explains to Saginaw Channel 12’sTony Miller (second from left) that K-12 teachers shouldn’tbe singled out for blame for poor student performance.

Thomas Bertonneau describes hisrecommendations to improveundergraduate education to MichiganPublic Radio’s Rick Pluta.

MEDIA IMPACT

theory and solid evidence tobuttress their understanding ofeconomic principles, or to refuteeconomic myths perpetuated intheir classrooms. ResearchAssistant Michael LaFaivecoordinates the program andorganizes Mackinac Centereconomists to provide accurate,scholarly e-mail responses within24 hours.

Chris Wells, a student at HopeCollege in Holland, Michigan,recently asked if there was afree market remedy to theproblem of monopolistscharging exorbitant prices fortheir products. The MackinacCenter provided Mr. Wells areading list and a two-page

See “Web...” on page 11

4 IMPACT! Fall 1996

Mackinac Center for Public Policy

EVENT IMPACT

Expert Speakers EducateBusiness, Community, and Policy Leaders

Officials Learn For-ProfitHospitals Are Nothing to Fear

Lawrence Reed describes the Center’sgrowing staff, budget, andaccomplishments to over 230 friends inTraverse City.

T he Mackinac Centerassembled over 50 policyexperts to learn about for-profit hospitals at its

November Issues and Ideasluncheon forum in Lansing. JayGrinney, president of Columbia/HCA Healthcare Corporation’sEastern Group described hisfirm’s plan to establish itself inMichigan and its vision forproviding quality health careservices.

Among the attending stateofficials were Michigan Depart-ment of Community HealthDirector James Haveman, StateRepresentative Lingg Brewer,Department of Labor DeputyDirector Kalmin Smith, andpolicy professionals from thegovernor’s office, legislature,and executive branch.

Grinney explained Columbia/HCA’s corporate strategy and itssuccess in lowering health carecosts. He also dispelled manymyths surrounding the firm’sfor-profit network, such asreduced charity care and lack ofcooperation with other healthagencies. Grinney noted that nostate has erected more difficult

barriers to entering the market-place than Michigan.

Columbia/HCA has 340 for-profithospitals operating in 36 stateswith $19 billion in annualrevenue. Its first acquisitiontarget in this state is MichiganCapital Healthcare in Lansing.Attorney General Frank Kelleyblocked the 50-50 joint ventureproposal of Columbia/HCA andMichigan Capital. But a circuitcourt ruling found that a sale ofthe entire hospital to Columbia/HCA would be acceptable.Michigan Capital announced itwill appeal the circuit courtdecision to the state supremecourt, if necessary. MichiganCapital also said it is negotiatingfor the complete sale of thehospital to Columbia/HCA.

The Mackinac Center hostsregular Issues and Ideas lun-cheons in the state capital toexpose policy experts andgovernment officials to theoreti-cal and philosophical aspects ofcurrent public policy debates.The forums help equip officialsto enact policies which incorpo-rate the best understanding oflegal, economic, psychological,moral, and scientific principles.!!!!!

EVENT IMPACT

Mackinac Center for Public Policy IMPACT! Fall 1996 5

Joseph Overton stresses the crucialrole of strategic planning at theMackinac Center.

Burton Folsom explains thedevelopment of Michigan’s privateenterprise successes in the timber,carriage, and auto industries.

I n addition to extensive mediacoverage, hundreds of scholarlystudies and commentaries, anda host of educational programs,

the Mackinac Center also influencespublic opinion toward appreciationof the free market by providing keygroups with expert guest speakers.Three examples from this fallillustrate just some of the Center’simpact.

On November 12, PresidentLawrence Reed updated over 230members of the Traverse CityRotary Club on recent MackinacCenter successes. Reed told thegroup about the growing impact ofstudent and teacher educationalprograms, the Center’s expandingstaff and budget, and ongoingassistance to officials who areprivatizing to improve quality andreduce the cost of governmentservices. Many of the attendingbusiness people and communityleaders who belong to the RotaryClub are also Mackinac Centermembers.

Senior Fellow in Economic Educa-tion Burton Folsom described the

failures of 19th century state-runrailroad and canal companies to50 members of the MichiganRight of Way Association inFrankenmuth on November 7.This part of Michigan history isimportant, he explained, becausethe constitution was subse-quently amended to prohibitsuch state ventures. This paved

the way for a more free-marketeconomy which fueled thestate’s rise to world leadership inthe lumber, carriage, and autoindustries. Folsom also brieflyreviewed for the group an April1996 Mackinac Center study onprotecting private propertyrights.

Senior Vice President JosephOverton explained the methods,necessity, and benefits of

strategic planning to leaders ofover 25 state and national policyresearch institutes at a strategyplanning conference in Wichita,Kansas, on October 4-5. TheMackinac Center is nationallyrecognized as a leader in effec-tive management and executionof projects that influence publicpolicy and shift public opiniontoward a better understanding ofsound economic principles.!!!!!

Nick Grassman of Grand Rapids’ South Christian High School debates the meritsof federal juvenile crime programs while his opponents huddle on strategy.

For Once, Good News about Juvenile Crime

Rohin Verghese of Midland’s H.H. DowHigh School answers arguments for lessfederal involvement in juvenile crime.

Students at the workshops often heard free-marketeconomic ideas for the first time.

Debaters learned the important role of economics injuvenile crime.

David Beers helps the studentsunderstand a key economic concept:“There ain’t no such thing as a freelunch.”

M ost stories aboutkids and crimeare tragic. Buteducation and

bright potential are what youget when the MackinacCenter for Public Policycombines nearly 700 studentsand teachers from 49 highschools, five county andfederal judges, and a formerUnited States attorneygeneral to examine thehistory, causes, and remediesof juvenile crime.

On September 23 throughOctober 2, five Mackinac

Center High School DebateWorkshops in Southfield, GrandRapids, Jackson, Midland, andBoyne Falls helped debate teammembers and their coacheshone skills and build cases forand against increased federalinvolvement in the juvenilecrime problem. Juvenile crimewas selected as this year’snational debate topic by repre-sentatives of state high schoolassociations.

Juvenile crime experts andpracticing judges from Michiganand around the nation sharedinsights from their diverse

experiences and provided evidencethe students will use in a toughseason of debate competition.

Educational presentations weregiven by former United StatesAttorney General Edwin Meese III;David Beers, a program officer atthe Free Enterprise Institute inHouston, Texas; Robert JamesBidinotto, an award-winninginvestigative journalist; Dr. BurtonFolsom, Mackinac Center SeniorFellow in Economic Education; andGregory Rehmke, Free EnterpriseInstitute Director of EducationalPrograms.

Michigan judges also shared withthe students their professionalknowledge of juvenile crime. Theyincluded U. S. District Court JudgePaul Gadola, Jackson CountyProbate Judge Susan Vandercook,Oakland County Probate Judge JoanYoung, Midland County ProbateJudge Donna Morris, and AntrimCounty Probate Judge John Unger.

Past participants, including teamsfrom (Detroit) Southwest High

Former U. S. Attorney General EdwinMeese III delighted nearly 200 highschool students debate at the GrandRapids workshop.

EDUCATION IMPACTEDUCATION IMPACT

Debaters take notes to add to theirresearch on juvenile crime.

School and (Midland) Calvary BaptistAcademy won championships usingideas they learned at the educationalworkshops.

The full-day workshops do morethan just help students win competi-tions. Carefully structured sessionsteach a systematic approach topersuasive free-market economicarguments that many students havenever before heard. Since debaterstend to be among the brighteststudents and those who pursueleadership positions in society, thisexposure to sound economics hasdecades-long impact.

None of this would be possiblewithout the foresight and commit-ment of Mackinac Center members.Special gifts, such as the PatriciaRodney High School Debate Work-shop Scholarship Fund, help thou-sands of students learn free marketeconomic concepts at debateworkshops. Some of their thank younotes are shown here.!!!!!

DEVELOPMENT IMPACT

O’Neil Helps ThousandsLearn about Sound Economics

Omer O’Neil is president of the Southern Wayne County Chamber of

Commerce, a business organiza-tion which works with over 6,000job providers to improve thecompetitiveness and workplacequality of southern Wayneounty. He has been a memberof the Mackinac Center forPublic Policy since 1994.

O’Neil provides his members anddirectors with Mackinac Centerreports and commentaries onspecific issues to help thembetter understand how govern-ment economic policies affecttheir businesses and livelihood.

As president, O’Neil believes hismembers, many of whom owntheir own businesses, shouldlearn as much as they can aboutsound economic policy so they

Setting Standards, Changing Opinions, and Getting Results

Politicians come and go, but the Mackinac

Center for Public Policy is here to stay. The

Mackinac Center raises thepublic standards for good policyand blows the whistle on thebad.

The month after the nationalelections is a good time forreflection and analysis. Are yousatisfied with the electionoutcome? Did your candidateswin? Did you contribute finan-cially to campaigns? Did you doeverything you could to helpyour candidates win? And ifthey were elected, are youconfident that they will do whatthey promised to do to earn yoursupport?

It’s frustrating to be a voter, but a

James E. Kostrava, VicePresident for Development

make well-informed decisions inthe political process. “I want mymembers to understand how freemarkets and individual libertylead to more prosperity for theirfamilies, suppliers, customers,

politician’s challenge is notmuch easier. Elected officialsare expected to be high-mindedpeople of principle, knowledge-able on current issues, and full ofthoughtful solutions to problemsfacing their constituency. Even

if a politician is all these things,there is still pressure to make bigcampaign promises calculated toappeal to voters. Once elected,there is more pressure to keepvoters “happy” to gain re-election. Is this good representa-tive government?

Fortunately, the problem of poorpolicy resulting from attempts tosatisfy voter demands has asolution. The answer lies inchanging public opinion. Ifcitizens understand basic issuesand economic principles such as“there is no such thing as a freelunch,” they will ask candidatestough questions and supportpoliticians who are honestenough to give tough answers andenact sound policy accordingly.

The Mackinac Center’s role is to

shift public opinion to anappreciation of sound policy—free markets, limited govern-ment, personal responsibility,and respect for private prop-erty—which voters will demandat the polls, and then get fromelected leaders.

Each fall we ask you to supportthe Mackinac Center AnnualFund with a year-end contribu-tion. These funds help theCenter shift public opiniontoward sound policy that thepoliticians then have a strongincentive to enact. There is nomore effective way to changeopinion and policy toward freemarket solutions than investingin the Mackinac Center forPublic Policy. Please givegenerously.!!!!!

and communities. MackinacCenter literature is a greatteaching tool and that’s why Iprovide it to Chamber members.”

O’Neil and his wife, Theresa, livein Allen Park and have twelvechildren, most of them grown.He has held various professionalpositions with ProductionFinishing Corporation inWyandotte and Seco SafetyProducts. He served in the U. S.Navy in World War II. Hestudied at University of DetroitMercy, Walsh College, andWayne State University.

The Southern Wayne CountyChamber of Commerce serves21 communities with 400,000residents and 10,000 busi-nesses.!!!!!

Omer O’Neil

DEVELOPMENT IMPACTStudy, continued from page 1

involved, there is more risk ofpoliticization,” Bertonneau said.Chrysler Corporation Presidentand Chief Operating OfficerRobert A. Lutz writes in thestudy’s foreword that the successof universities directly affectsour nation’s economic success.

Print and broadcast mediareported widely on the studyand official reaction to it. (Seepage 4.) Bertonneau andMackinac Center officials metpersonally to discuss the study’sfindings with Michigan StateUniversity President PeterMcPherson and CMU PresidentLeonard Plachta.

Several universities orderedmultiple copies of the document.CMU has ordered fifty inpreparation for what publishedreports say is the creation of aspecial panel to considerimplementing the document’srecommendations at the school.CMU Provost Richard Davenportsaid, “Nobody is taking thereport lightly. . . .”!!!!!

8 IMPACT! Fall 1996

FREE MARKET FUNDAMENTALS

The Politics of Compassionby William B. Irvine

Editor’s note: It is appropriate thisholiday season to consider what itmeans to be compassionate. Mayyou experience the joy of bothgiving and receiving.—JGL

N ot long ago a colleague and I werediscussing my articleon Federal disaster

relief that appeared in the March1990 Freeman. In the article Iargued, among other things, thatthe government should notspend money to help rebuild thehomes and businesses of thevictims of the 1989 San Franciscoearthquake. I pointed out thatsomeone who could own a homein San Francisco would bewealthier than most Americans,and would therefore hardly be inneed of a Federal bailout; thatthe homeowner could andshould have bought earthquakeinsurance; and that by “bailingout” those who failed to buyearthquake insurance, thegovernment was inadvertentlyencouraging people to gowithout insurance.

My colleague reacted to myarticle not by attempting torefute its claims, but by com-menting on my lack of compas-sion. According to him, myviews on the San Franciscoearthquake showed an incredibledegree of “professional detach-ment.” This, of course, was justa socially acceptable way ofcalling me heartless. This is acharge I have run into before,and it is a charge that anyonewho opposes Big Governmentmust learn to live with, since byopposing Big Government onemust simultaneously opposemost of the things our govern-ment does to “help people.”

Indeed, a case can be made thatmany individuals developmodern liberal political lean-ings—and come to advocate avariety of government aidprograms—because they think

that to do otherwise is toabandon compassion. Before wefollow in their footsteps, though,we would do well to think aboutthe nature of compassion.

There are, I think, two compet-ing “theories of compassion”—i.e., two different ways in whichwe can measure how caring anindividual is. There is, to begin

with, what might be called theMother Teresa Theory ofCompassion. According to thistheory, when A feels sorry for B,what A should do is expendpersonal effort and/or personalfinances on B’s behalf. Thistheory used to be popular, but inAmerica it has been supplantedby what might be called theModern Liberal Theory ofCompassion. According to thistheory, when A feels sorry for B,what A should do is cause C tobe taxed so that B can benefitfrom the revenues thus raised.

The Modern Liberal Theory maysound odd, but it has someobvious advantages over thecompeting theory. In the firstplace, it requires nowhere nearthe level of personal commit-ment that the Mother TeresaTheory requires. In the secondplace, it is far easier to spend

someone else’s money thanyour own. In short, the ModernLiberal Theory of Compassionallows you to create the appear-ance that you are a caringperson without simultaneouslyputting a dent in your lifestyle.

These two theories of compas-sion will, of course, differ in the“compassion rating” they assign

to various individuals. MotherTeresa, for example, rates aperfect 10 under the MotherTeresa Theory (which is why Inamed it after her), but wouldrate perhaps a 2 under theModern Liberal Theory; some-one like Senator EdwardKennedy, on the other hand,would presumably fare betterunder the Modern Liberaltheory than he would under theMother Teresa Theory.

Which theory of compassion iscorrect? In answering thisquestion, it is useful to ask asecond question: Who, in youropinion, is a better example of atruly compassionate person,Mother Teresa or EdwardKennedy? If you think thatMother Teresa really is the morecompassionate person, you willreject the Modern LiberalTheory of Compassion in favor

of the Mother Teresa Theory.

It is indeed puzzling that anyonewould take a person’s willingnessto spend government funds onaid programs as evidence thatthe person is himself compas-sionate. By way of analogy, itwould be absurd to take aperson’s willingness to increaseFederal defense spending asevidence that the person ishimself brave, or to take aperson’s willingness to spendgovernment money on athleticprograms as evidence that theperson is himself physically fit.In the same way as it is possiblefor a “couch potato” to favorgovernment funding of athleticteams, it is possible for a personwho lacks compassion to favorvarious government aid pro-grams; and conversely, it ispossible for a compassionateperson to oppose these pro-grams.

In general, it is a mistake to usea person’s political beliefs as thelitmus test of his compassion. Ifyou want to determine howcompassionate an individual is,you are wasting your time if youask for whom he voted; instead,you should ask what charitablecontributions he has made andwhether he has done anyvolunteer work lately. Youmight also inquire into how heresponds to the trials andtribulations of his relatives,friends, and neighbors.

Politically speaking, there arethree important reasons why weshould favor private acts ofcharity over governmental aidprograms. In the first place,government aid programs tendto be destructive of Americans’spirit of charity. Many Ameri-cans do not make charitablecontributions and do not play apersonal role in relief effortsbecause they feel that they havealready given—not “at the office,”

See “Politics...” on page 10

FREE MARKET FUNDAMENTALS

Mackinac Center for Public Policy IMPACT! Fall 1996 9

Viewpoint Commentaries

FREE MARKET BOOKSTOREFREE MARKET BOOKSTORE

and how subsequent revisionsof Michigan’s constitution setthe stage for the state’s worldindustrial leadership; and

•Adjunct Scholar and PatrickHenry Associates PresidentGeorge Leef on positivealternatives to the barriers ofoccupational licensure.!!!!!

but on April 15th on their 1040tax forms. In the second place,a case can be made that privateacts of charity are more “costeffective” than government aidprograms. People are unlikelyto give their hard-earnedmoney to an unworthy recipi-ent or to a charitable organiza-tion that will waste it. Thosewho administer governmentaid programs, on the otherhand, often lack the samemotivation to make sure thatthe money they are spending isspent wisely. In the thirdplace, private acts of charity arevoluntary: No one forcesanyone to give money. Thesame cannot be said of govern-ment aid programs, which arefunded by tax dollars.

It may be true, then, that weopponents of governmentallargess lack compassion—asmeasured by the ModernLiberal Theory of Compassion,at any rate. Fortunately for us,there is another way to mea-sure compassion, and I trustthat we fare somewhat betterunder this alternativeyardstick.!!!!!

Reprinted from The Freeman,October 1990, with permissionof the Foundation for EconomicEducation.

“Politics...” continued frompage 9

“Hoekstra...” continuedfrom page 3

Exploring MedicaidOptions

September 1996 VP 96-25Michigan’s Medicaid programhas ballooned into a $4.5 billiongiant. Medical savings accountsare a promising way to treatpoor, disabled, and elderlypeople fairly and relieveMedicaid of the burden ofproviding long-term care for themiddle class.

Let’s Get Moving onthe Roads

September 1996VP 96-26Everyone agrees that Michigan’scrumbling roads need to befixed. The state needs to makeroad repair a higher priority,continue recent cost-saving andefficiency measures, and adoptother recommendations thatapply market forces and soundeconomics to road funding.

Can Michigan Keep ItsStatus as a Leader inEducation Reform?

September 1996 VP 96-27In Michigan, the same constitu-tion that reads the “means ofeducation shall forever beencouraged” is also the nation’sstrictest in forcing parents whochoose an alternative to thepublic school system to paytwice for education. A tuitiontax credit plan would providesome relief and address some ofthe flaws of a voucher system.

More Juvenile Justice,Fewer Excuses

October 1996 VP 96-28Our 97-year-old juvenile justicesystem sends the message toyoung criminals that the law hasno teeth. Until young people areheld responsible for theiractions, the rebounding teen

population will be accompaniedby another surge in violentyouth crime.

Union “Salt” Poisons theWell

October 1996 VP 96-29Some unions “salt” non-unionfirms by forcing them to hireunion sympathizers or even paidunion organizers in an attemptto force them to unionize. Thisabuse means higher prices forconsumers and loss of freedomfor non-union firms and theirworkers.

Cutting Taxes to RaiseRevenue

October 1996 VP 96-30Are income tax cuts voodooeconomics or an economicjump-start? History tells us whatCoolidge, Kennedy, and Reaganlearned when they slashedincome taxes.

High Time to ReverseLow Standards in HigherEducation

November 1996 VP 96-31Blame for the decline in literacyis often hung on K-12 publiceducation. However, theuniversity system that teachesthe teachers should be madeaccountable for its contributionto K-12 educational problems.

New Energy Tax IsBad Economics andFaulty Science

November 1996 VP 96-32One of President Clinton’s firstactions was to propose an energytax. This destructive tax couldbe back in 1997, but it is basedon unsound economics anddubious science.

What Is CorporateResponsibility?

November 1996 VP 96-33What does it mean for a firm tobe a good corporate citizen? Aregenerous benefits, family-friendly policies, and earth-friendly practices enough, or arethere also responsibilities tocustomers and shareholders?

Pre-ExistingCondition Mandate IsUnhealthy Policy

November 1996 VP 96-34By forcing insurance companiesto cover pre-existing conditions, aproposed Michigan law maymake health insurance harder toget, not easier.

JournalsMichigan PrivatizationReport

Summer 1996MPR 96-03 $3.00This issue frames privatization’sbig picture: an AFSCME laborunion chief who embracesprivatization, private prisonsuccesses, the role of privatebusiness in fostering civil society,an interview with a public schoolsuperintendent whose district is

10 IMPACT! Fall 1996

contracting with The EdisonProject, and the regulatoryextermination of America’sjitney bus industry. 20 pages.

Studies

Declining Standardsat Michigan PublicUniversities

October 1996S96-04 $10.00Reflecting a national problem,Michigan public universities areproducing graduates who areunprepared for K-12 teachingcareers and the business world.The demise of the traditionalcore curriculum, indoctrinationin the classroom, and question-able teaching methods thatemphasize emotion and subjec-

tivity over rigor and criticalthinking are to blame. Thestudy documents extensiveevidence cited by employersthat college graduates lackcrucial communications andthinking skills, and it finds a linkbetween poor training ofaspiring teachers and decliningK-12 student performance.Analysis of over 300 under-graduate course syllabi revealthe dominance of trendy,politicized course content.Eleven practical recommenda-tions for improvement are

FREE MARKET BOOKSTOREFREE MARKET BOOKSTOREoffered to university presidents,faculty, alumni, employers, andelected officials. 88 pages.

Special Items

The Right To KnowPayroll Form Kit

#RTKPF ComplimentaryHundreds of companies arefinding The Right To KnowPayroll Form an easy, effectiveway for employers to show theirworkers the true cost of govern-ment with every paycheck. Aninformative four-page brochureexplains how to modify paystubs to show line-by-line thehidden government-mandatedcosts paid by the company onbehalf of the worker. These

costs include employer-paidSocial Security and Medicaretaxes, unemployment andworker’s compensation insur-ance, and other costly mandates.The Right To Know Payroll Formhelps employees be betterinformed in the democraticprocess by shattering the myththat taxes, regulations, andmandates on businesses do notaffect them personally.

Freedom from Bad LaborAdvice

#LABOR ComplimentaryThis informative resource givesworkers straight answers tocommonquestionsabout laborunions andemployeerights andresponsibili-ties. Thequestion-and-answerformat helpsworkersunderstandhow federallabor lawaffects themdirectly ontopicsincludingmandatoryunion membership and paymentof dues. Public employees,including teachers, will alsobenefit from this handy brochure.

Mackinac Center for Public Policy IMPACT! Fall 1996 11

response that explained howfree-market conditions such asfree entry to the marketplace,competition of substitutes, andforeign competition all work tolimit a monopolist’s advantageand make it short-lived.

Mackinac Center scholars whohave served as the “economist oncall” include Dr. Gary Wolfram,Dr. Richard Ebeling, Dr. MartinWing, and Dr. Lawrence Reed.

“Ask the Debate Coach” providesa 48-hour e-mail turnaround tohigh school students’ questionson juvenile crime and debatetechniques and tips. High SchoolDebate Workshop CoordinatorKendra Shrode and AdjunctScholar Gregory Rehmke work toanswer questions such as the oneasked by Milford, Michigan, highschool debater Mark Laidlawregarding the effectiveness ofgovernment youth employmentprograms in reducing juvenilecrime. Rehmke providedevidence that specific govern-ment job programs have failed toproduce many jobs or reducecrime, and that the tax burdencreated by these programsactually makes it more difficultfor private job providers toemploy young people.

Both “Ask the Economist” and“Ask the Debate Coach” areaccessible through the MackinacCenter World Wide Web site athttp://www.mackinac.org.

Please direct questions about theWeb site to Manager of Informa-tion Systems Jeff Tucker attucker@mackinac.org.!!!!!

“Web...” continued from page 4

How to order:VIEWPOINTS: Viewpoints on PublicIssues are two-page commentarieson current Michigan policy issues.Two or three are published eachmonth. Individual Viewpoints are50¢ each. Please call for bulkdiscounts.

For telephone orders, please callthe Mackinac Center at (517) 631-0900. The Center accepts Visa orMastercard for your convenience.Please have your card and itemtitle(s) handy when calling. If youdo not have the Mackinac Centerfor Public Policy’s current Publica-tions catalog with a complete listingof all Mackinac Center publications,please request your free copy whenordering.

Maze Begins Labor PolicyWork

Reed Wins Prestigious Roe Award

Recent Wayne StateUniversity law graduateWilliam Maze is theMackinac Center for

Public Policy’s new labor policyresearch assistant.

Maze is working with Director ofLabor Policy Robert Hunter tohelp Michigan workers andemployers better understandtheir legal rights and responsi-bilities.

Maze’s projects include helpingunion members exercise theircivil rights, analyzing theeconomic impact of labor laws,and educating workers and thepublic about labor representa-tion in a free market.

Maze is a member of the statebar of Michigan. He received hisJuris Doctor from Wayne State in1996, where he was editor inchief of the school’s law newslet-ter, The Advocate. In 1995, hewas an intern at the NationalLabor Relations Board, Region 7(Detroit). He earned a bachelor

of arts degree from The Citadel inCharleston, South Carolina, in1992.

Hunter, a former NLRB member,said, “William has precisely theskills we need to help theMackinac Center advance a freemarket in Michigan laborrepresentation. His NLRBexperience and desire to helppeople exercise their rights makehim a great addition to theteam.”!!!!!

Mackinac CenterPresident LawrenceReed has received a1996 Roe Award in

recognition of his leadership andinnovation in state and localpublic policy research andeducation.

Reed was honored along withJohn Fund, editorial writer forThe Wall Street Journal, andWilliam Eggers, director of theLos Angeles-based ReasonFoundation’s Privatization Center.

The award is sponsored by theState Policy Network (SPN) andwas given at the group’s annualmeeting last September inMinneapolis.

The Roe Award is named tohonor Thomas A. Roe, a foundingdirector of the South CarolinaPolicy Council and a founder andchairman emeritus of SPN.

Presenting the award, Roe notedthat in addition to Reed’s leader-ship in public policy, the

Mackinac Center’swillingness tomentor new state-focused researchinstitutes is espe-cially valuable.

Reed acknowledgedthe award with praisefor the professionalstaff and scholars ofthe Mackinac Center,saying “This greathonor is a tribute tothe strategic plan-ning, hard work, andresults-oriented focusof my MackinacCenter colleagues.”

Reed, a past presi-dent of SPN, was alsoelected to anotherterm on its Board ofDirectors.

William Maze

Lawrence Reed received this congratulatory letterfrom Byron Lamm, State Policy Network ExecutiveDirector.

INDIVIDUAL IMPACT

The State Policy Network is anorganization serving andpromoting the work of morethan 35 independent, nonparti-

san public policy researchinstitutes at state and locallevels.!!!!!

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

NON PROFIT ORG.U.S. POSTAGE

PAIDMIDLAND, MI 48640

PERMIT #275