A Different Way to Think

Our current educational system is another example of why government managed entities don’t fit in with the capitalist nature of America.  Government run and managed programs are run to provide a service and not to make money.  Without a profit motive, motivation to do a better job is limited to whatever is convenient and cheap.  This is why I say privatize schools and provide vouchers for the poor. 

For free schools have to be subsidized by local governments through taxes on property.  In times of recession when tax collection suffers municipalities don’t have the benefit of being able to print or borrow money indefinitely like the federal government does.  As a result the government which is already overburdened with spending a large percentage of its income on education has to cut funding in order to balance its budget.  The system is set up such that the goal is to do the best that you can with education rather than provide the best education you can.

For profit schools would have more reason to compete for money by being better educators.  Teachers would be more dedicated and well paid and since parents would have a choice of schools, there wouldn’t be a bunch of under performing urban schools as income levels would be mixed.  Not to mention during hard times school budgets wouldn’t be cut because instead of spending 50% of budgets on schools, municipalities would only be on the hook for vouchers for the poor. 

One negative…The fed or more likely state would have to really regulate the business to make sure profit motive doesn’t lead to high costs and poor education, because you don’t want the motivation to swing from making money by providing better education to making as much money as possible by providing education.  This is the only regulation required, however.  Whereas you want to regulate business as little as possible, in life altering areas such as health care and education you have to make sure the motivation doesn’t diminish the service provided.  In capitalism the motive is naturally going to be to make as much profit as possible, even at the expense of the customers eventually.  But the government’s job is to protect rights and thus opportunity.  You have to make sure that the best health care and education that is possible is provided, versus the best health care that doesn’t cut into profits.