Losing the brains race: America is spending more money on education while producing worse outcomes.

Author:de Rugy, Veronique

IN NOVEMBER the Organization for Economic Cooperation and Development (OECD) released its Program for International Student Assessment scores, measuring educational achievement in 65 countries. The results are depressingly familiar: While students in many developed nations have been learning more and more over time, American 15-year-olds are stuck in the middle of the pack in many fundamental areas, including reading and math. Yet the United States is near the top in education spending.

Using the OECD data, Figure 1 compares K-12 education expenditures per pupil in each of the world's major industrial powers. As you can see, with the exception of Switzerland, the U.S. spends the most in the world on education, an average of $91,700 per student in the nine years between the ages of 6 and 15. But the results do not correlate: For instance, we spend one-third more per student than Finland, which consistently ranks near the top in science, reading, and math.


Naturally, the OECD's report has sparked calls for more spending. Speaking at Forsyth Technical Community College in North Carolina at the beginning of December, President Barack Obama said the federal government should spend more on improving achievement in math and science, much as Washington did in response to the Soviet Union's Sputnik launch a half-century ago.

But throwing more money at poorly performing schools has not moved the needle on performance. During the last 40 years, the federal government has spent $1.8 trillion on education, and spending per pupil in the U.S. has tripled in real terms. Government at all levels spent an average of $149,000 on the 13-year education of a high school senior who graduated in 2009, compared to $50,000 (in 2009 dollars) for a 1970 graduate.

Despite the dramatic increase in spending, there has been no notable change in student outcomes. Using data provided by Andrew Coulson, an education policy analyst at the libertarian Cato Institute, Figure 2 shows National Assessment of Educational Progress scores in reading, math, and science, along with per pupil spending. The only trend line with a pulse is the amount of spending.

More spending usually means more teachers. Last year Obama not only used stimulus funds to preserve education jobs but called for "10,000 new teachers." Yet as Figure 3 shows, the number of students per teacher in U.S. public schools fell from 17.4 in 1990 to 15.7 in 2007.




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