The Scorekeeping Society

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The aftermath of Hilary Rosen’s statement that Ann Romney “hasn’t worked a day in her life” has focused mainly on whether or not “mothering” is considered “work.” The Obama administration has fallen all over itself in an attempt to gain distance from Rosen’s statement, and Rosen herself has issued an apology. In fact, it would be hard to find anyone who would seriously assert that raising children and keeping house doesn’t require effort.

But the commentators are missing the real issue here. It isn’t how Ann Romney spent her time that bothers Rosen and others like her — it is the fact that Romney wasn’t paid by an outside source for her services. If she had operated a daycare center from her home, taking care of someone else’s five children for pay, or if she had gone into other people’s homes to clean and organize and drive carpool, no one would have suggested that she “hasn’t worked a day in her life.” It isn’t the nature of the work that angers them. The true, underlying objection to stay-at-home moms is that there is no way to measure the worth of their labor. We are a society that likes to keep score, and the way we keep score of an adult’s value is through dollars.

The truth is, most stay-at-home moms don’t stay at home. They are extremely active and productive. I was hoping Ann Romney would talk about some of the work she has done outside her home as well as how hard she worked inside her home raising her boys. She has worked as a teacher and as an administrator in many charitable organizations, particularly within the Church of Jesus Christ of Latter-day Saints. The Mormons are a lay church, meaning they have no paid ministry. As president of a congregation’s Relief Society, for example, a Mormon woman is responsible for ministering to the spiritual, social, and welfare needs of hundreds of families. She oversees weekly classes, coordinates compassionate service projects, counsels with women who are struggling with various problems, and delegates duties to an army of women who watch over the flock, all through voluntary service. In many ways, her job is similar to that of the director of a Red Cross or Salvation Army unit in a neighborhood that experiences the equivalent of a home fire every week. But because she is not paid for her services, there seems to be no acceptable way to measure the value of her work. And without a unit of measurement, the “score” is assumed to be zero.

For many years Ann Romney served as the teacher of a rigorous daily scripture-study course for high school students. The program is administered by the worldwide Church Educational System, which requires teachers to attend monthly faculty meetings and in-service training sessions. It also requires intensive daily study and preparation on the part of the teacher. True, a “real teacher” (i.e., “salaried” teacher) would spend the entire day leading perhaps five sections of the same course, instead of just one hour-long session. But the preparation required to teach a class is the same for one section or multiple sections. Ann Romney worked just as hard at just as respectable a job as any employed teacher. But she received no credit in the eyes of the world because she wasn’t financially remunerated. There was no way to keep score.

Romney is also an athlete. Despite being diagnosed with multiple sclerosis, she competes as an adult amateur in equestrian dressage at the national level. I suppose if she were a paid athlete, we would consider this a “job.” Certainly she puts in as much practice and effort to reach the national level as a professional athlete might. But since she is an unsalaried amateur, this is considered just one more example of Ann’s little hobbies as a wealthy stay-at-home mom. She has dedication and success, but it isn’t really “work,” is it?

This obsession with scorekeeping has invaded our school system as well, where it threatens to stultify the naturally creative minds of the young. Bush’s “No Child Left Behind” program has turned many of America’s children into mush-headed test-takers. “Teach to the test,” once the hallmark of the worst kind of teaching, has become the new mantra of public school education. With jobs and funding at stake, school administrators chastise teachers who introduce art, music, or even spelling (which isn’t on the standardized tests) to their students. “Get those scores up!” administrators fairly bellow, and that means focusing only on the tasks that are tested. It’s all about keeping score and bringing in the money.

In an advanced economic system, where money and exchange form the basis of measuring work, it is very easy for the capitalist to start viewing the world narrowly in terms of “making money” instead of “making useful goods and services.” But value is determined by much more than money. Interestingly, the people who characterize stay-at-home moms as “not working” because they don’t get paid are often the same ones who try to eliminate scorekeeping in Little League and other youth sports. “Children should play for the love of the game!” they proclaim.

I think they have this backwards. Games require scorekeeping. Goods and services require a medium of exchange. But caring for family, friends, and community can be done for the rich reward of merely a hug. Women who rear families and care for their homes do not need a paycheck for validation. Let’s put scorekeeping back on the soccer field, and take it out of our homes.




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Financial Responsibility

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The recent recession, which some call the Great Recession, has been around for years, yet it simply refuses to go away. I believe that American business is strong enough that not even Obama’s socialist agenda can permanently destroy our prosperity. But even if a Republican is elected in 2012 and this recession ends, what is to prevent another one?

The question of what causes recessions is perhaps the single most important and most highly political question that the science of economics seeks to answer. The Keynesians and socialists have one answer, the Austrians have quite another. Perhaps the Federal Reserve’s manipulation of interest rates has caused or exacerbated the recession. However, I think that from an empirical, factual standpoint the linchpin of the Great Recession was the American public's financial irresponsibility, as manifested in the collapse of the real estate bubble. Many thousands of Americans irrationally believed that home prices could only go up, and they incurred real estate mortgage indebtedness far in excess of what a financially responsible person would incur. When real estate prices collapsed, very many mortgages went into default, which led to foreclosure sales, which further reduced home values, which triggered a downward spiral. It is probably true that government efforts to encourage low-income home ownership and government home mortgage guarantees contributed to inflating the real estate bubble. But the disaster would not have been so widespread if more home buyers had been committed to living within their means or had been more risk-averse.

This is the most dangerous matter, and also the easiest to correct. If the American public, especially the lower middle class, learned to understand the concept of “financial responsibility” then this syndrome would never happen again.

What precisely is financial responsibility? I think that the main point that people should understand is that money does not grow on trees, and there is no such thing as a free lunch or easy money, and that money is not magical and cannot be created by waving a magic wand. The great Randian contribution to economic theory is the idea that in a free market people trade value for value, and to “make money” is to create value. (Yes, Ayn Rand did not invent this idea, but she perfected it.) In order to make money you have to do work to produce the value; in other words, you need to make the money that you trade with others when you buy things from them. If you don’t produce value, then you have nothing to trade.

This not only means that people earn and deserve their salary by working at their job; it also means that people do not deserve to consume more value than what the other traders in the free market are willing to purchase in exchange for money. From each as he chooses, to each as he is chosen, to quote a Robert Nozick saying that captures this concept.

Financial responsibility is the understanding that you cannot spend more money than the amount you earned because of the work you did, unless someone gives you charity or you steal wealth from others, and that you cannot consume a value that has not been produced by someone. To use Rand’s old-fashioned phrasing, you can’t have your cake and eat it too, or as I would prefer to say, you can’t eat your cake before you bake it. Understand this, and you will probably not spend money that you don’t have or use borrowed money to buy stuff when you can’t repay your loans. If you want to buy something, then you will be more likely to do the work necessary to earn the money before trying to get what you want.

This understanding that money is finite and must be created before it can be spent is the essence of financial responsibility. Implicit in the concept, however, is the notion that charity and theft are exceptions, and the general rule is that you, and only you, must do what is necessary to make your own money and control your individual financial destiny.

But if you understand this principle then you will be very careful about economic risk, because you will understand that you will be required to assume responsibility if you make a mistake.  You will be on the hook for your losses and no government will bail you out. Financial responsibility means being held responsible, which means that you are held accountable and you will accept the rewards and punishments that result from your economic choices. Thus, you will not assume risks in excess of the amount of sweat or skill you are willing to put in to compensate for your mistakes. A person who is financially responsible would not assume a gigantic mortgage on real estate he had an annual income in the lower-middle class range, because he would understand that the debt would actually need to be repaid.

If the public were financially responsible, it would not put up with a government that steals money from others or borrows excessively and spends money that it does not have.

It seems to me that the solution to the problem is for high schools or colleges to incorporate personal finance management training into their liberal arts educations. Simply teaching people how to write up a personal budget that matches income and expenditures, sort of like a balance sheet, would go far toward creating the practical skills of financial responsibility. Some high schools have such classes, but they are treated like trivial afterthoughts compared to the more important subjects. Also, merely teaching students how to spend money is not enough; the financial responsibility class would somehow have to simulate earning income in proportion to productivity, possibly by tying fake money to GPA or class performance, to give students a feel for the fact that you cannot spend what you have not earned. The ideal personal finance class would teach career ambition, how to budget to spend within your means, and the crucial importance of saving money and not borrowing beyond your ability to repay.

One would expect the poor to appreciate the crucial importance of saving money. But it is precisely the low-income families that are most vulnerable to financial irresponsibility. The poor face a dark temptation to borrow beyond their ability to repay and not worry about repayment until it is too late, so that for a short time they can live a more affluent lifestyle before their debts catch up with them. The temptation to take shortcuts to one’s desires is deeply seductive even to rational, honest people. But people with no money to spare can least afford to make mistakes. Good finance classes in high school would help poor families budget properly, save for retirement, and avoid predatory lenders. This would help the poor much more than all the modern-liberal nonsense of entitlement spending, welfare, food stamps, etc.

Middle- and upper-income people could also benefit. A study cited on Yahoo claims that the average New Yorker is $200,000 in debt and the average Californian is $300,000 in debt. The American economic system encourages credit card debt, home mortgage debt, and student loan debt. I personally have struggled with handling my finances, which were recently made worse by roughly $90,000 in law school student loans that I needed to incur; and I wish that there had been a serious class in this subject that I could have taken, particularly in college where young people are supposed to learn how to live like adults.

If such classes were commonly available, the average American would actually be exposed to the concept of financial responsibility, and the odds of another recession happening would be greatly reduced. If it were customary for every American student to take a class in financial responsibility, it would be more likely for voters to vote for financially responsible fiscal policy. And if American politicians had taken such classes, they might have better training in the art of living within a budget and be more appreciative of a balanced budget and the dangers of excessive debt.

Of course, if the public were financially responsible, it would not put up with a government that steals money from others or borrows excessively and spends money that it does not have. So the leftists who control most colleges and the teachers' unions who control the high schools would fight to keep people from understanding the truth about financial responsibility and how to prevent another recession.  But while government is the primary source of economic problems, even in a libertarian anarchy they would still exist, if the majority of individuals were financially irresponsible.

Financial responsibility is the understanding that you cannot spend more money than the amount you earned because of the work you did, unless someone gives you charity or you steal wealth from others, and that you cannot consume a value that has not been produced by someone. To use Rand




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