In my recent report, Connecting Nuclear’s Past and Present: Guiding Missouri’s Future, one of the policy solutions I offer to meet electricity demand is consumer-regulated electricity (CRE). In short, CRE would allow for the creation of private energy entities, disconnected from utility grids, in order to serve the largest customers more efficiently.

A recent article on this topic caught my eye. The article mentions that delegates at the World Nuclear Association summit in London discussed forming private energy clusters, disconnected from the grid, to meet surging demand from data centers.

Doesn’t that sound familiar?

Bringing Energy Clusters (or CRE) to Missouri

A few weeks ago, New Hampshire’s governor signed into law House Bill 672, which allows for “off grid electricity providers”—independent and disconnected from the main grid—to generate, transmit, distribute, and sell electricity.

Whether you call it CRE, off-grid providers, or private energy clusters, the concept is similar: enabling private energy systems to serve large industrial customers with less delays, less red tape, and less pressure on the main grid and ratepayers.

Poland and the Netherlands are beginning to consider the use of energy clustering to meet industrial energy needs. The previously mentioned article identifies a few potential benefits from energy clustering:

• It would allow large customers to take their electricity from a co-located generation source
• If a thermal energy source like nuclear is used, large customers could use its industrial heat (high-temperature steam used in industrial processes like manufacturing)
• The energy developer would benefit from simplified project finance
• Both consumers and developers would avoid long transmission lines
• These clusters would also help reduce the burden on grid resources, which are at a premium in most markets and in Missouri

CRE gives large customers the option to use an energy source of their choice, so long as they meet the still-applicable regulations (such as the Clean Air Act for fossil-fuel plants).

As we have seen with the drastic actions of Meta, Microsoft, and Google, there is a market for this type of arrangement as these huge customers have sought connection to nuclear reactors. States and countries are taking notice of these market conditions and are bringing the free market into the energy sector.

Missouri needs to reduce pressure on the grid and attract investment. In the upcoming legislative session, lawmakers should seriously evaluate how CRE—or private energy clustering—could benefit consumers, energy developers, and ratepayers in our state.

Want to read more? Check out these related articles:

Connecting Nuclear’s Past and Present: Guiding Missouri’s Future

New Nuclear Energy: Business-Speed and Business Friendly

Mission Impossible and Nuclear Energy

One Way Missouri Could Keep its Grid Reliable

Weighing Consumer Regulated Electricity to Meet Energy Demand Growth

Missouri Needs to Be Prepared for Growing Energy Demand

The post Is Consumer-Regulated Electricity Going Worldwide? appeared first on Show-Me Institute.

Berner goes on to offer examples from the United Kingdom, Belgium, the Netherlands, Canada, and many other countries that support a broad variety of schools. In a pluralistic system, students or their parents are allowed to choose the type of school that their child will attend. The school may be religious, it may have a specific pedagogical practice, or may have various other defining features, but it will still receive public funds.

Berner suggests that the key to a pluralistic education system is that there must be some form of accountability for all schools, even private ones.

While I may not completely agree with Berner on the extent to which the government should regulate private schools, her paper offers an excellent overview of what educational pluralism is, the perceived obstacles to pluralism in the United States, and an overview of compelling educational research.

To learn more, give her paper a read or check out her recent op-ed on the matter here.

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Last month, former Missouri legislator Dr. Roy Holand wrote a letter to the editor of the Springfield News-Leader warning about trends—including both an increase in student poverty and declining test scores—that have the Springfield School District headed in the wrong direction. Could Springfield end up like Kansas City or St. Louis and, as Dr. Holand warns, suffer from “local urban flight” to surrounding districts? Moreover, will students from low-income families be stuck in poor-performing schools because they cannot afford to move to another district or attend a private school?

Based on data from the Department of Elementary and Secondary Education (DESE), Springfield’s enrollment is remaining steady around 25,000, but it is not faring as well as neighboring districts. Take a look at nearby districts’ performance as measured by the 8th grade MAP tests and student population characteristics compared to Springfield:

Compared to surrounding districts, Springfield has a similar achievement level in eighth grade English, but scores much lower in math. Moreover, Springfield is close to the statewide average of 60.2 percent of eighth graders scoring proficient or better in English, but it is far behind the statewide score of 30.5 percent of eighth graders scoring proficient or advanced in math.

Given these scores, it is not surprising that six out of nine middle schools in the district scored less than 70 percent on the 2017 Annual Performance Review (APR), which is the state’s threshold for full accreditation.

Additionally, legislation has been introduced that would allow for charter schools to open in any district that has at least one school that earned 60 percent or fewer of the possible points on the APR in two of the last three years. Four elementary schools and three middle schools in Springfield currently meet those criteria. If this legislation passes, Springfield will join St. Louis and Kansas City as “charter schools as intervention” districts.

While Springfield is technically still accredited under the Missouri School Improvement Program (MSIP) system, the number of struggling schools in the district is cause for concern. Because some of the 2017 MAP tests were thrown out, 2016 is the most recent year that all school received an APR score; as you can see, the schools’ performance varies significantly:

Considering this range in performance, can a parent in Springfield be confident that their child will be able to attend a quality school? While Springfield does have some choice programs, such as the option to enroll in schools emphasizing STEM subjects and an intra-district transfer option, the seats for these programs—and in the good middle schools—are limited. With so few quality options for middle school, and with the elementary schools being a mixed bag, it would not be surprising if families started leaving for the surrounding districts or sending their kids to private schools.

Holand is not the only one worried about the direction of the district. As the school board considered renewing Superintendent John Jungmann’s contract, former Springfield teacher Carl Herd also argued that district’s performance is “not acceptable” and it will hurt the economic health of the city. Nonetheless, the school board voted unanimously to extend Jungmann’s contract through 2021.

Kansas City’s and St. Louis’s experiences serve as a cautionary tale. Fortunately, families in these cities have charter schools as an option. And while these districts’ enrollment continues to decline, charter school enrollment grew by 11 percent last year. If Springfield’s performance continues to slip—and there is growing evidence that it this is happening—the families who cannot afford private school or are unable to move to another district will suffer.

The needs of the students and parents in the Springfield should be the top priority of the school district. Expanding school choice programs, such as charter schools or education savings accounts, which are popular with parents, would ensure that these students have more quality options.

The post Will Springfield School District Become the Next Kansas City or St. Louis? appeared first on Show-Me Institute.

The piece begins with the following claim:

The 11-story former Netherlands Hotel is slated to be redeveloped into 110 apartments, part of a Main Street development surge linked to the planned streetcar extension.

Linked? What does that mean? The article repeatedly asserts a causal link to the streetcar, even quoting Tom Gerend of the Kansas City Streetcar Authority as saying “the streetcar is an attractive catalyst for continued investment along the corridor.” Are developers buying up buildings along the streetcar route, investing their own money and contributing to the city and county tax rolls all because of the taxpayer funded streetcar? If so, that would be news!

It would be newsworthy because economic literature in the United States and around the world shows that it cannot be concluded that streetcars drive economic development. What actually happens here and elsewhere is that cities provide all sorts of taxpayer-funded subsidies along the route. What appears to be new economic activity is just redirected tax money.

In fact, the KCUR piece makes this very point:

Buland says Exact Partners already have purchased the six-story Monarch and expect to complete the purchase of the Netherlands this week.

The developer is seeking a 10-year, 75 percent property tax abatement from the city, and already has lined up historic tax credits to help finance the Netherland renovation.

While the developers may like the streetcar, how likely is it that they would be working on these buildings if there was no city tax abatement or state tax credit? In another story about the project in The Kansas City Business Journal, Buland says, “We look for challenging properties in that area that no one else wants to redevelop.” So much for a streetcar alone creating a clamor among developers!

The streetcar did not spur any redevelopment. The development at hand is due to lowered taxes. In short, Kansas City raised taxes to pay for the streetcar and then lowered taxes to spur development along the route. Imagine what would happen if we scrapped the streetcar and lowered taxes for everyone!

The post Lower Taxes, not Streetcars, Drive Development appeared first on Show-Me Institute.

In his First Thanksgiving 1621, we see prosperous, black-clad Pilgrims in the company of new-found friends – bare-chested Indians in feathered war bonnets (one of several historical inaccuracies). The “thanks” here are for a bountiful harvest and the early realization of America as a land of milk and honey.

But how could it have been so easy for the settlers to carve a life out of the wildness in a cold and unknown land far from home?  Simple answer: It wasn’t, as most people instinctively recognize.

Out of 102 passengers on the Mayflower who arrived in Plymouth, Massachusetts, in December of 1620, 51, or exactly half, died from malnutrition or disease within a few months. The bereaved survivors must have been painfully aware of the precariousness of their own existence. They included William Bradford, the author of the classic Of Plymouth Plantation, who went on to become governor of the colony for many years. Gravely ill, his young wife, Dorothy May, either fell or threw herself to her death as the Mayflower lay at anchor in Cape Cod.

The Pilgrims did not build on a record of success.  As Donna Curtin, the executive director of the Pilgrim Hall Museum points out, “Many other colonies (in the Americas) had failed terribly.” Set up in 1607, the original English settlement in Jamestown, Virginia, had all but collapsed three years later – with 80-90 percent of its inhabitants lost to starvation and disease. In Ms. Curtin’s words, “They had murder, cannibalism, you name it – horrific, brutal conditions.”  No fewer than 10 colonies set up before Jamestown by the Spanish and French had also ended in disaster.

The Pilgrim leaders were well aware of this string of failures, as we know from Bradford’s journal. Coming with intact families and a strong sense of community, the Pilgrims bore more than a passing resemblance to the ancient Jews who sojourned in Egypt before going on to find their new home. Having fled religious persecution in England, the Pilgrims spent a dozen years in the Netherlands before fresh troubles there prompted many of their congregation to pin their hopes on the new world.

However, within three years of their landing, Pilgrims faced major problems of their own.   Bradford wrote:  “Famine began to pinch them [the Pilgrims] sore.”

The investors who paid their passage hoped to get an adequate payback on their investment in the founding company.  Fearing that would not be possible if people were free to farm their own land, they insisted upon “a common course and conditions” over the first seven years – under which there were no individual property rights and each member was entitled an equal share of total output.

Bradford recognized the demoralizing aspect of this arrangement. The industrious would subsidize the slackers; the most productive would get no more “in the division of the victuals and clothes” than the least productive. Instead of fostering harmony, communal property led to laziness, envy, thievery, poverty, and social dysfunction – just as it would in the 20^th Century through the spread of communism.

In 1623, Bradford and other leaders assigned to every family “a parcel of land” for its own use. With private property came economic freedom and individual initiative. “This had a very good result,” Bradford wrote, “for it made all hands very industrious” – leading to a big increase in corn production and far greater “contentment” for the community as a whole.

That’s how private property and economic freedom saved the Pilgrims. Happy Thanksgiving!

The post A Thanksgiving Reflection: How Private Property and Economic Freedom Saved the Pilgrims appeared first on Show-Me Institute.

All I could think was, here we go again.

If you’ve followed education policy for any length of time this routine looks familiar. Researchers or policymakers visit some other country that performs better than we do on international assessments and then come back with the secret sauce that makes them do so well. The recommendations are so anodyne that that anyone with a passing knowledge of the education system will probably agree with them. The policy flavor of the month (national education standards, universal pre-K, etc.) is usually highlighted. Rinse and repeat.

For a while we were told to emulate Shanghai—until we learned that Shanghai systematically excludes disadvantaged students from its testing pool to juice its scores. Then it was Finland, at least until Finland’s scores dropped precipitously on the very test that ushered in its rise to prominence.

Here is the problem with this approach, and why it never actually yields the information we’re looking for: it violates the basic precepts of research design. If you want to know if a certain policy affects an outcome, you develop a hypothesis and test it. You follow children that are subject to the policy and children that aren’t—doing your best to make sure all other aspects of the two groups’ educational environments are identical—and you see what happens. If the children who were subject to the policy do better than those who weren’t, then you have reason to believe that the policy caused the improvement.

“Do what the best schools do” research does the exact opposite of that. It sees a result it likes and then tries to work backwards to the cause without isolating other variables that might also explain the outcome. That is not how science works. Are there places, for example, that do the very things that Finland or Shanghai or any of these other countries do that don’t meet with success?  Are there countries meeting with success that don’t do these things? As I’ve written before, the Netherlands is a very high-performing country that is marked by an incredible degree of school choice. So why does a universal voucher system always seem to be missing from the list of recommendations? In short, we have no idea whether the policies these folks advocate are really behind these countries’ successes.

I don’t want to say there’s nothing we can learn from other states or other countries about how to improve education here at home. However, if we are going to make claims that one policy or another causes a particular outcome, we need to back those claims up with research done the proper way. 

The post Not This Again appeared first on Show-Me Institute.

I know what you’re thinking: “Wait a second, all of these people tell me that if we have school vouchers, they will drive wedges in our communities and lead to intolerance and social turmoil. From what I know from my kids’ trips to Amsterdam, the Netherlands is a . . . tolerant place.”

Even though school vouchers were initially proposed in the Netherlands so that different religious communities could essentially segregate themselves in response to centuries of strife between Catholics and Protestants, over time they have been part of a country that is growing less sectarian. While I have no direct proof, I would wager that decreasing the number of fights over what gets taught in school has helped folks get along better.

But in addition to facilitating social cohesion, the voucher system in the Netherlands has helped create a really solid education system. On the 2012 international PISA exam, the Netherlands ranked 4th in the world in math, 8th in science, and 10th in reading. It isn’t necessarily fair to compare the Netherlands with a country that is 20 times larger and substantially more diverse, but for reference, the United States ranked 27th, 20th, and 17th on those tests, respectively.

Specifically, access to private schooling has helped Dutch students. A 2013 study in Education Economics used some nifty statistical footwork (an instrumental variables analysis to account for the selection bias that would otherwise make comparisons between private school and non–private school students inappropriate) to reveal strong positive effects for students using the voucher program to attend private schools. The effects were anywhere between 0.2 and 0.3 standard deviations, which would move a student at the mean of the standard bell curve of student performance up 10 or so percentile points (from a 50 to a 60).

Given these large effects, it shouldn’t be surprising that in a system where two thirds of the schools are private, we see strong academic performance. What’s more, according to the National Center on Education Statistics, Dutch schools spend on average $1,500 less per student per year than American schools do.

The Netherlands is more than canals and bicycles. It is a multi-ethnic and pluralistic society with an education system with parental choice at its heart. While it would be impossible (and even if possible, unwise) to try and import the Dutch education system to America, it does shed light on key concerns that Americans have with a system driven by school choice. Far from underperformance and balkanization, we see tolerance and success—two things we can always use more of around these parts.

The post Going Dutch on School Choice appeared first on Show-Me Institute.

Here are five market-oriented resolutions for a more prosperous 2014:

1. Privatize the United States Postal Service (USPS). The United States should follow the lead of other Western nations, including Finland, Sweden, the Netherlands and Britain, in deregulating and privatizing mail service. It is a form of economic insanity, which can only be explained by the power of the postal union and its political friends, to require daily delivery of mountains of mostly junk mail to U.S. households. The USPS should have to compete with FedEx, UPS and other private concerns in the delivery of first-class mail.

2. Follow suit with other public services. Look for other ways to benefit consumers and taxpayers by deregulating or privatizing other public services, with airports, roads and public utilities at the top of the list. There is a reason vacation travel is much cheaper and more convenient within European and Mediterranean countries than it is in North America and the Caribbean. Europe has widespread airport privatization and greater reliance on market forces to allocate scarce resources. As travel writer Rick Steves says on his website, “Ryanair routinely flies from London to any one of dozens of European cities for less than $20” (through its most heavily discounted fares paid weeks or months in advance).

3. Do not buy the “living wage” rhetoric. Recognize the folly of calls to increase the minimum wage — now $7.25 nationally — to $10 or more at a time of sky-high youth and minority unemployment. Why would a fast-food restaurant — or any other business — want to hire someone for $10 an hour who adds, say, only $6 an hour in additional profit, before counting the cost of his or her wages? To do so would be to accept a $4-an-hour loss. Raising the minimum wage thus has the perverse effect of causing unemployment. It artificially reduces the demand for labor and makes the first rung on the job ladder higher than it ought to be for young and unskilled workers.

4. Break the health insurance oligopoly. The next stage in the seemingly never-ending debate about health care, now entering its sixth year, might be between full-scale nationalization — as one way of rescuing the Affordable Care Act from going into a full-scale “death spiral” in 2014 — and the creation of a much more market-oriented system than the status quo ante. The starting point for a market-oriented approach should be in freeing — and, indeed, forcing — insurers to compete across state lines on both price and range of product offerings, without a great assortment of government dictates or mandates at either the state or federal level.

That would give individual consumers the right to buy low-cost, low-price health insurance — from a far larger universe of sellers. And it would cause big insurers to lose the monopolistic or oligopolistic positions they have built up over the years through assiduous lobbying at statehouses around the country. Their cozy arrangements with state regulatory offices have resulted in mandates to cover everything from hair pieces and contraceptives to acupuncture and marriage counseling. Opening the insurance market to open-ended interstate commerce will cause all producers — both insurers and health care providers — to reduce costs and look for more and better ways to satisfy the health care customer.

5. Choose growth over class warfare. Be prepared for the proponents of big government to try to turn every debate — whether it is about health care, privatization, the minimum wage, entitlement reform, curbing the power and privileges of public sector unions or any other issue — into another rant on what President Obama has called “the defining issue of our time”: namely, income inequality. However, the president and others greatly exaggerate income disparities between different quintiles in the distribution of income by ignoring the effects of high taxes on high earners and, for lower earners, the effects of income tax rebates, food stamps and other welfare. One study finds that income inequality actually declined between 1993 and 2007, after adjusting for taxes and transfer payments.

But the real takeaway here is what the poor and the middle class really need to achieve a better life for themselves and their children. That is faster growth, not more income redistribution. It is the opportunity for self-improvement, not the fallback of welfare dependency.

Andrew B. Wilson is resident fellow and senior writer at the Show-Me Institute, which promotes market solutions for Missouri public policy.

The post Let Market Guide Us To Prosperity In ’14 appeared first on Show-Me Institute.

The court said that while Dekker’s sailing skills were adequate and a psychological report concluded that the voyage would not harm her social or emotional development, there were questions about safety and her ability to continue her schooling while at sea.

It turns out that the psychological assessments were given simply for the purpose of digging up a reason to stop Dekker. She wouldn’t have been allowed to sail had she failed them, and she’s not allowed to sail now that she’s passed.

I’m appalled that Dekker’s inability to attend school while sailing is given as a reason for the state to detain her on land. By this reasoning, a court could prevent kids from going on extended vacations with their families or participating in any competitive sports.

The post Dutch Court Abandons All Pretense of Impartiality in Dekker Case appeared first on Show-Me Institute.

Dekker is bending over backward to respond to criticisms of her plans. She’s delaying her trip until after this school year. She says she’ll study while she’s sailing, and take exams when she stops at ports along the way. She’s already submitted to an IQ test for the court’s scrutiny. (What will they ask her to do next? Postpone the voyage until she gains entrance to Harvard Law School?)

Another boat will shadow her in the most challenging waters, and a veteran sailor has volunteered to escort her the entire way.

And the big news is that she might have her own reality show. I can hear the response now: “These reality shows have gone too far. People need to stop doing outrageous things to get on television.” But I think a show could be a positive thing. It would involve a lot of close monitoring of Dekker’s voyage, and probably extra safety measures. Dekker would not be able to recklessly head off into a storm or other dangerous situation into which a film crew would not agree to come along. (Although I doubt Dekker would act foolishly on her own, considering that she intends to break up the trip into short segments and take other precautions, the close presence of people and cameras should reassure everyone further.)

I’m looking forward to hearing the court’s decision. There are just a few more days to wait!

The post Laura Dekker: Check Your Local Listings! appeared first on Show-Me Institute.

One reason advanced in opposition to the girl’s plan is that she would have to study by herself for two years rather than going to school. This is a scary example of a state imposing uniformity at the expense of someone’s dream. Schools as we know them have been around for only a short period of time, relative to the vast span of history. People have been exploring for thousands of years. Who is to say that the modern classroom constitutes a normal experience and sailing the open seas is aberrant?

As for the safety issue, the girl’s family planned her trip so that she would at most be at sea for three weeks at a time. Young teenagers have sailed solo on voyages of that duration. If a three-week journey is acceptable, then there should be nothing wrong with many three-week journeys in succession.

The post “On Life’s Vast Ocean Diversely We Sail” appeared first on Show-Me Institute.

“My two kids were born with the help of the midwives,” he says.

The author of the article seems more interested in Meeus’ predictions about Obama, and quickly moves on to discuss politics and the upcoming election. The comments to the article, though, pick up on the midwife issue. Here’s what “Natalie” has to say:

I love that he interviewed the woman and her midwife. Very cool. That is definitely a big issue right now, whether women here will have the freedoms women have in other states and countries, and the access to skilled and personal care during pregnancy and birth.

I rarely find myself arguing that Missouri should resemble Scandinavian countries, but on the question of freedom for midwives and expecting parents, I’ve got to agree. Oh, and we could use more parental choice in education, too.

The post Inspiring Policy From the Netherlands appeared first on Show-Me Institute.

There are two well-established nationwide school voucher programs, one in the Netherlands, the other in Chile. The first was created in 1917, the second in 1982. In both cases, the supply of private schools rose dramatically to meet demand. Roughly three quarters of Dutch students are now enrolled in private schools. In Chile, private sector enrollment doubled within the first decade and passed the 50 percent mark in December of 2005.

Sweden and Denmark enacted voucher programs more recently, and both are seeing the creation of new private schools as a result. Swedish private sector enrollment rose from 1 percent to 10 percent of the student population in a decade, and continues to rise. I discuss this issue at greater length in my chapter in the Cato book: What America Can Learn from School Choice in other Countries.

Turning to Mr. Rotherham’s assertion, I pointed out at our forum that there are vibrant, unregulated, rapidly growing education markets all over the world. In some areas, such as the U.S., Japan, and South Korea, these are niche markets ? mainly after-school tutoring. In other parts of the globe, particularly South Asia and Africa, they are mainstream elementary and secondary schools.

It’s frustrating that special interest groups in Missouri spend so much money opposing a school reform strategy that worked so well around the world.

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