tag:blogger.com,1999:blog-22031270.post7357068817894459571..comments2023-11-03T19:05:08.512+11:00Comments on Harry Clarke: More competition & accountability needed among private schoolsUnknownnoreply@blogger.comBlogger9125tag:blogger.com,1999:blog-22031270.post-51419755585629029862007-06-12T17:45:00.000+10:002007-06-12T17:45:00.000+10:00The problem is that private schools are engaged in...The problem is that private schools are engaged in an arms race of ever more elaborate sports facilities, campuses in China, performing arts centres etc. The more subsidies they get, the bigger the arms build up. But even with the subsidies they still have to put up their fees by 9% per year to pay for it all. <BR/><BR/>This implies that fees will double in real terms in 11 years. Whether the market can sustain this remains very much to be seen.<BR/><BR/>Curiously, there is a gap in the market for private school education that doesn't seem to be filled, and that is for schools with high quality teaching but without the super-expensive sports facilities etc. <BR/><BR/>This type of school would be medium priced. You'd think there'd be a large market for education which costs $5-10K per year instead of the now standard $20K (and counting), but it doesn't seem to be there.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-62131703954265963732007-06-11T13:50:00.000+10:002007-06-11T13:50:00.000+10:00Chrisl, There would be quite a few in private cons...Chrisl, There would be quite a few in private consultanies and a few in larger firms. In the US there are (I think) far more economists working in industry. But yes my guess is most economists who work as economists are in the public sector. <BR/><BR/>It is not so strange. Australia is just energing from being a highly regulated sector.hchttps://www.blogger.com/profile/13799594181016858701noreply@blogger.comtag:blogger.com,1999:blog-22031270.post-58819373147624255422007-06-11T13:01:00.000+10:002007-06-11T13:01:00.000+10:00Harry, An Off Topic question. Are there any free m...Harry, An Off Topic question. Are there any free market economists who actually work in the free market? i.e for themselves<BR/>Or are they all employed by the publicsector/large corporations?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-87998020265660441242007-06-10T13:09:00.000+10:002007-06-10T13:09:00.000+10:00"School boards need to be directly elected by and ..."School boards need to be directly elected by and responsible to fee-paying parents."<BR/><BR/>I agree - but I'm not sure that they aren't already. Universities should be the same, Councils should be elected by alumni. <BR/><BR/>But I'm not sure more competition is the solution to this problem. Private schools already face competition from a zero-price sector, tax-payer funded, public schools.<BR/><BR/>I'm also not convinced that increased government regulation is the solution either. The States already own the comprition so their regulation will be biased, and the Federal government has shown itself to be completely incapable of introducing sensible and simple regulations. This comes back to Joshua's initial point - from the public prespective it's cheaper to educate students through the private sector than the public sector and as long as they get educated (or at least schooled) who cares what happens after that?<BR/><BR/>I saw your previous article on Deveny - that's when I did the calculations. The Age is still sitting on my op-ed reply.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-23008654291310129302007-06-10T10:52:00.000+10:002007-06-10T10:52:00.000+10:00Sinclair, I recognise that subsidies support publi...Sinclair, I recognise that subsidies support public schools and have posted on that in this blog here:<BR/> http://kalimna.blogspot.com/search?q=deveny<BR/><BR/>The current post has to do with recognising that expenditures are not being well directed, that neither shareholders nor parents influence such expenditures.hchttps://www.blogger.com/profile/13799594181016858701noreply@blogger.comtag:blogger.com,1999:blog-22031270.post-52670280800463926842007-06-10T10:46:00.000+10:002007-06-10T10:46:00.000+10:00Joshua, There is not much of a free market here an...Joshua, There is not much of a free market here and strong evidence of local monopolies - the excess demands and waiting lists show this. <BR/><BR/>And the schools themselves don't have shareholders except in the most narrow sense - they are unaccountable. It is in no way the private firm model. <BR/><BR/>There are huge fixed costs of setting up schools as Slim points out. Hence not a lot of new entry even though demands are strong. <BR/><BR/>Your second para I agree with up to the final sentence. That I have sent all 3 of my kids to private schools does not mean they are beyond criticism. It means that, even with the criiticism I prefer them to the public schools. <BR/><BR/>But instead of 'innovation centres', new sports grounds and unnecessary performance centres how about investing something in junior school mathematics curricula and teaching. Our current programs are sub-thirds-worldd standard. <BR/><BR/>Without reform and increased competition I broadly support Slim's proposals for a 'needs based' system - at least with respect to funding capital works.hchttps://www.blogger.com/profile/13799594181016858701noreply@blogger.comtag:blogger.com,1999:blog-22031270.post-53380708183789153542007-06-10T10:44:00.000+10:002007-06-10T10:44:00.000+10:00Picking up on Joshua's comment, my back-of-the-env...Picking up on Joshua's comment, my back-of-the-envelope calculation is that the total subsidy is (on average) $4,000 less for students at private schools than at public schools. So parents are paying the $4,000 gap <I>and</I> for the buildings.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-76463828773061202022007-06-10T08:35:00.000+10:002007-06-10T08:35:00.000+10:00More competition in the sector to keep fees down? ...More competition in the sector to keep fees down? Given how long it takes to start up an independent school I think that would be an ineffectual instrument for correcting these excesses.<BR/><BR/>I'm sure the main reason fees have escalated is because the sector is a seller's market. Which begs the question why is public funding needed at all? The least we should do is return to a resource index based system of public funds for private schools, especially for funding for 'capital' works.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22031270.post-76913349718835851772007-06-10T08:34:00.000+10:002007-06-10T08:34:00.000+10:00Harry, you don't believe in the market! What is th...Harry, you don't believe in the market! What is this going to do to your conservative credentials?<BR/><BR/>What do we care what private schools spend their money on? The only issue is this: are they getting a subsidy per student less than the cost of educating that student in the public sector. I think that they are. So long as they educate that student -- in this case, to the satisfaction of parents -- who cares what their fees are.<BR/><BR/>And what is the evidence that they are local monopolies? Hardly seems plausible. If private school fees are high it is because parents are willing to pay them rather than a free public option. Can't think of a more market based mechanism than that.Joshua Ganshttps://www.blogger.com/profile/13713171032343855718noreply@blogger.com