Cost of k thru 12 US Education – Where does the money go?

Patrick M. Byrne – 2007 Most Hated Man on Wall Street.

Looking at a Federal Document showing the condition of Education in 2012

There are 3 questions you should know:

How much do we spend on it?

How many kids go to it?

What’s that per student?

Answer found in above document –

$750 billion dollars in k through 12 education

50 million students in k through 12 schools

math says cost is $15,000 per child

US Ed is 40% higher than the OECD average

Our results are at the bottom of the OECD – 21st or 25th out of 30 OECD Countries, depending on which one you look at.

This is a disaster in the making.

Education and Capital Market

Building Human Capital (Which is Education) and marrying it to Financial Capital which in one case means Wall Street

This is from the NEA

There are an average of 24-26 children in each classroom.

$15,000 spent per child.

Math says $367,000 dollars are being spent in average classroom.

 Every k thru 12 teacher earns around $47,000 plus benefits get to $60,000

Cost of building, heating, lighting, sweeping etc. $20,000

This accounts for about $80 to 90,000…That leaves the question, where is the other $270,000?

Answer: Monopolist Rent.

What’s going on in US Eduction is what goes on in monopolies.

The whole point of having a monopoly, the reason why business men try to get monopolies is to sell inferior product at inflated price and capture the difference.

The unions aren’t the problem exclusively. I think of it as a guild. There are layers and layers behind the public high school you are aware of. The District, the County, the State, the Federal are absorbing this huge amount of cost.

 You can’t pour more money into the top of the funnel to fix the problem. Has to begin at the bottom – have to give people choices.

 

My 2 cents worth.

Why do our property taxes have to be so high to pay for school education that is so poor and is really just putting money in the pockets of the ones at the top of the ladder/guild while they are happy to take away from the kids and teachers. On top of that, all the lottery money was set up to pay for education. Where is that money going? Again, government robbery.

Some interesting links:

http://www.oecd.org/site/eduistp2012/49850576.pdf

 

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October 31, 2014 · Jennifer · No Comments
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