Equal Rights Libertarian

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Education as Investment

By all signs education in America is failing for a great number of individuals from low income background. Traditionally education for such people is provided via various forms of public expense – community money collection in the past which outgrow into multiple forms of taxation to finance government bureaucracy that supposed to provide education.

It is not working.

The solution from the point of few of Rights Libertarian (RL) would be to substitute hierarchy of politicians and bureaucrats with direct investment by individuals and/or commercial entities into younger people the same way as people invest in any company, organization, or entity which has at least some chance to generate more resources then were consumed.

Contemporary technology allows creating a market for trade between young people or their parents (custodians) and completely unrelated people with current resources supplied in exchange for obligation to pay back a share of specific individual’s income in the future. It would obviously create competition for resources between young people who would try to demonstrate that they are a better investment than other guy. This would add to educational process the part, which is most missing – deep interest of youth to obtain marketable skills whatever they are. It would also create competition among resource providers for opportunity to invest in the most promising young people and therefore greatly improve resource allocation process. By the way profitability would mean that some people would try to invest in great geniuses, but other would invest in bad cases where marginal improvement at decent scale could bring significant profits.

If such market created, all supplemental market activities like insurance, educational programs, materials, and services will be generated in necessary amount and of much higher quality then bureaucrats and politicians can do. It would open a great opportunity for all bureaucrats and politicians who actually capable to teach effectively to earn much higher return on their talents than what they get from being part (usually lower) of bureaucratic educational structure.

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