Public choice economics simply says that those who govern us, politicians, bureaucrats, all those who inhabit the governing structure, are subject to the same enlightened self interest as the rest of us. They respond to incentives concerning their personal benefit just as the people they are.

Those in favour of ever yet more government action tend to dislike this theory. As if the receipt of a government paycheck negates basic humanity. Yes, easy to joke that clipboard wielders aren’t entirely human but that is a joke.

Worth noting that the idea doesn’t in fact militate against government action per se. It only says that we have to consider those incentives faced by those taking the action and perhaps rejig them so as to reflect the general, rather than specific, benefit.

Given all of that it’s useful to spot people reacting to said economic incentives in managing public policy. Oregon has decided to close the public schools in response to coronavirus. We’re not sure about that action but OK. Then they decided to close the online schools as well. Why would this be?

“Enrollment of new students to virtual public charter schools during the closure would impact school funding for districts across Oregon and therefore may impact the distribution of state school funds and delivery of services as directed under the executive order,” the department said in its guidance to districts.

People might actually like the online schools which are outside the standard public school bureaucracy and this would have funding implications for that standard public school bureaucracy in the future. Note that, observing the incentives faced and not considering the overall sensibleness of the policy, this does make perfect sense. The interest of the bureaucracy is not to have children escaping its tender ministrations therefore it acts to stop children doing so. An entirely rational response considering only that self interest.

There are reports of similar events in other states, Pennsylvania being mentioned more than once.

We thus have an example, out there in the wild, of public choice economics. The people within government take decisions based upon the incentives they face. Again, this does not mean that government should never do anything, it just means that we should be precise in our crafting of those incentives so as to end up with sensible decisions.

Oh, and, of course we also need to be distinctly suspicious of any decisions made until we’ve examined the incentives which lead to them.