Black Boxes, Student Data & Playing Moneyball for Education

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We’re rapidly entering a world of evidence-based decision making in public education. These decisions will be powered by vast amounts of data run through proprietary black boxes that parents will have no way of understanding. The approach is called Moneyball and the goal is to justify ration resources to students –while investors make a tidy profit.

One of the most difficult challenges I’ve had as a parent is convincing other parents that the endless collection of our kids’ data isn’t benign and technology isn’t inherently benevolent.

Big Data, Like Big Brother, Isn’t Your Friend

As adults, we’ve chosen to ignore this cold hard fact: that by using electronic devices, we are allowing ourselves to become a product. Von Shoshana Zuboff calls this evolution in big data mediated economics surveillance capitalism:

It’s now clear that this shift in the use of behavioral data was an historic turning point. Behavioral data that were once discarded or ignored were rediscovered as what I call behavioral surplus. Google’s dramatic success in “matching” ads to pages revealed the transformational value of this behavioral surplus as a means of generating revenue and ultimately turning investment into capital. Behavioral surplus was the game-changing zero-cost asset that could be diverted from service improvement toward a genuine market exchange. Key to this formula, however, is the fact that this new market exchange was not an exchange with users but rather with other companies who understood how to make money from bets on users’ future behavior. In this new context, users were no longer an end-in-themselves.  Instead they became a means to profits in  a new kind of marketplace in which users are neither buyers nor sellers nor products.  Users are the source of free raw material that feeds a new kind of manufacturing process.

As adults we’re vaguely aware that certain choices we make will impact our credit report. The inputs seem arbitrary and frankly ridiculous. Unless, there’s a problem, THEN, the unfairness of the system quickly comes into focus.

How your credit report is determined is an example of a black box. Inputs go in, something happens inside the box, and then your credit report comes out. What happens inside the box? Who knows? It’s a proprietary predictive model.

What sorts of random digital bits could impacts your credit report? Things like what operating system you use, if you do your browsing using a desktop or cellphone, even what you decided to use as your email address.

This excerpt is from New Study Shows You Can Predict Credit Rating from Your Online Tech Fingerprint.

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Stop Corporate Surveillance In Schools: A Movement Supporting People-Powered Classrooms (Webinars 9/11& 12/28 )

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Exciting news and updates!

Classrooms, Not Computers has found a new title for its campaign:

Stop Corporate Surveillance in Schools: A Movement Supporting People-Powered Classrooms Without Corporate Data Mined Students. 

Our mission is the same—to build a community-based movement to dismantle the corporate-driven policies and practices in schools that lead to violations of student privacy, surveillance of children and teachers, and corporate profiteering (we call this Education Reform 2.0).

You can check out the first call here:

https://m.mixcloud.com/Popular_Resistance/classrooms-not-computers-national-call-with-alison-mcdowell-and-morna-mcdermott/

We will be holding our second webinar on Sept 11 from 8:00-9:00pm EST.

This webinar will cover these three points:
1) Provide a brief overview of what Education Reform 2.0 is
2) How the SCSS campaign is working to eliminate corporate surveillance
3) How teachers, students, parents and members of communities can coordinate locally to be part of the campaign effort.

Our two-part strategy is to inform and then to develop sustainable, empowering actions centered on local community agency and control.

Who we are:
Morna McDermott is the SCSS campaign coordinator
Peggy Robertson is the SCSS information and communications coordinator
Michael Ippolito is the technical organizer and outreach
Alison McDowell is the lead researcher
Popular Resistance is the “parent” platform

Call times in Pacific and Eastern Time:

  • Tuesday, Sep 11, 2018 5pm PT / 8pm ET (1 hours 30 minutes)

  • Friday, Dec 28, 2018 5pm PT / 8pm ET (1 hours 30 minutes)

To register click here.

Is Robert Dugger setting up Robin Hood to steal from the poor?

Reposted with permission from Wrench in the Gears.

Dugger - Robin Hood

Patty Murray, a democratic senator from Washington state, crossed the aisle to collaborate closely with Lamar Alexander on the Every Student Succeeds Act, which included Pay for Success provisions. She also teamed up with Paul Ryan to push bi-partisan legislation, the Foundations for Evidence-Based Policymaking act, that would greatly expand access to program data, including student-level data on the nation’s children.

More on the people behind ReadyNation’s Global Business Summit on Early Childhood, November 1-2, 2018 New York City

Who is Robert Dugger?

Robert Dugger is the co-founder of ReadyNation and serves on the board of the Council for a Strong America. He began his career as an economist with the Board of Governor’s that oversees the Federal Reserve System, later serving as a senior advisor on banking and financial policy in the US House of Representatives and the US Senate. From 1988 until 1992 Dugger worked as policy director for the American Bankers Association where he was involved with the development of the Resolution Trust Corporation in the aftermath of the savings and loan crisis. He went on to become managing director of Paul Tudor Jones’s hedge fund, Tudor Investment Corporation, a position he held from 1992 until 2009. Dugger now runs Hanover Provident Capital in Alexandria, VA, while also serving on the boards of the Virginia Early Childhood Education Foundation and as the Chair of ReadyNation.

Tudor Investment Corporation and the Robin Hood Foundation

It is important to note Dugger’s ties to Paul Tudor Jones II, his employer for fifteen years. Jones created The Robin Hood Foundation in 1998. A 2007 feature in New York Magazine, “The Emperors of Benevolence: A Dossier on the Board of Directors of the Robin Hood Foundation where everybody either knows a rock star or is rich enough to buy one,” described the “anti-poverty” foundation as “one of the most influential philanthropic organizations of all time.” Robin Hood, associated with initiatives like the Harlem children’s zone, has only grown more influential.

Paul Tudor Jones and Bill Gates Gala

During the organization’s annual gala earlier this month, over $15 million was raised in minutes as Jones, according to Bloomberg’s coverage of the event, enjoyed fennel-braised beef with Bill Gates.

New York’s first social impact bond drew a $300,000 investment from the foundation. Clearly Robin Hood could have access to almost limitless capital if Pay for Success opportunities around Pre-K open up in New York. The New York State Early Childhood Advisory Council prepared a 2012 report, “Using Pay for Success Strategies to Increase School Readiness.” The clock is ticking…

The Robin Hood Foundation has developed a sophisticated system of metrics to track the programs they fund, which means they have considerable infrastructure in place to take advantage of social impact investment opportunities. They have an exhaustive list of very specific equations aligned to education, work readiness, and health outcomes. You can review the equations here and/or watch the video summary. Thanks to blog commenter Laura Chapman for that lead.

Sara Watson and the Pew Charitable Trusts

Dugger and Heckman both served on the advisory board of The Pew Center on the States’ initiative Partnership for America’s Economic Success that launched in 2006. Dr. Sara Watson ran the program in her capacity as senior program officer for the Pew Charitable Trusts. She has conducted extensive research in the pre-k investment space, including a 2014 analysis of Pennsylvania’s Pre-K Counts in partnership with ReadyNation and America’s Edge Pennsylvania. Below is a relationship map showing the connections between Dugger/ReadyNation and Watson/Pew. Click here for the interactive version.

During her tenure at Pew, Watson regularly joined Dugger to develop reports and speak at conferences promoting the economic impact of early childhood investments. Among these were presentations in 2007 in Washington, DC supported by PNC Financial Services; in 2008 to the Milken (Michael Milken, indicted junk bond trader and founder of K12, Inc.) Institute; the National Conference of State Legislatures in Washington, DC in 2013; and a Pay for Success conference sponsored by the Pritzkers in San Diego in 2015.

Pew Charitable Trusts joined the Chicago-based MacArthur Foundation in 2011 to spearhead a “results-first” initiative. It’s useful to know that Pritzker is also based in Chicago, and 2011 was the year BEFORE the first social impact bond came to the US. The goal of their initiative was to pressure states into adopting “evidence-based” approaches to funding social programs. States that participated agreed to a year-long analysis using return on investment as a key determiner as to whether a program would be included in the budget.

In 2016 “Results-First” joined the Urban Institute, The Brookings Institution, and the American Enterprise Institute in the Evidence-Based Policy Making Collaborative funded by the pension-busting, pay-for-success promoting John and Laura Arnold Foundation. Pew and MacArthur based their cost-benefit approach on work done by the Washington State Institute for Public Policy, created by the Washington State Legislature in 1983. Sara Watson worked in Washington state in the mid-1990s as an analyst for the Family Policy Council.

Patty Murray, a democratic senator from Washington state, crossed the aisle to collaborate closely with Lamar Alexander on the Every Student Succeeds Act, which included Pay for Success provisions. She also teamed up with Paul Ryan to push bi-partisan legislation, the Foundations for Evidence-Based Policymaking act, that would greatly expand access to program data, including student-level data on the nation’s children.

Sara Watson served as Executive Vice President of America’s Promise in 2012, the year it released a study promoting the use of Pay for Success Finance for workforce development programs. Page six of the document notes that in addition to relieving pressure on state and federal budgets, early childhood social impact bonds will be able to be bought and sold by investors, traded worldwide and aggregated into asset-backed securities.

In 2014 Watson joined ReadyNation as their global program director. ReadyNation International is doing work in Romania, Uganda, and Australia. Members of their taskforce promote the investment potential of early childhood interventions to bodies including the United Nations and the World Bank. In 2016 they held an invitation-only event with representatives from Switzerland, Belgium, the Netherlands, Portugal, Italy, Romania, and the United Kingdom in Marbach Germany. The gathering promoted “business activism” in the early childhood space and featured speakers from the World Bank, KPMG, and Bain & Co. Are these the people we want making decisions about our children’s care? People who see toddlers as human capital? Their education as an investment opportunity?

Absolutely not.

As I noted in my previous post, Pay-for-Success promoters are the sort who would elect NOT to feed hungry children unless they can make a return on their investment. Dugger/ReadyNation, Jones/Robin Hood, and Watson/Pew are not organizing business leaders to SOLVE global poverty. Rather, they are organizing business people to maximize the profit that can be extracted by strategically managing poverty and the securitized debt associated with public program service delivery. Their plan is to enrich the funders and non-profits that are willing to play the data-dashboard game, at the expense of humanity.

-Alison McDowell

Previous posts about the ReadyNation Global Business Summit on Early Childhood:

Pre-K Profit: ReadyNation Hosts Global Business Leaders in New York City This November: Link

Making Childhood Pay: Arthur Rolnick, Steven Rothschild and ReadyNation: Link

Galton and Global Education Futures Forum: Scientific Racism Looking Backwards and Forwards: Link

Heckman and Pritzker Pitch Apps as Poverty “Solutions” Yielding A 13% Rate of Return: Link

The Chicago School of Economics and George Soros: New Theories for An Impoverished World: Link