Tuesday, February 14, 2012

Good insight into why public schools struggle so much

I like Paul Jacobs' post Will They Ever Learn.  He makes the point the government organizations by their very nature have a hard time being productive.

He starts with:

In which industries do prices and costs rise fastest? Those in which government is most involved.

The process is no mystery. Regulate supply by limiting entry into the business — to “increase quality,” of course — will raise prices, as producers behave oligopolistically. Government does this with health care providers, and have done so increasingly for the last century. If, at the same time, you subsidize the consumption, that amounts to increasing demand, which also puts upward pressure on prices. This has been accelerated in America since the beginning of Medicare, and with each additional healthcare program.

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