"Milton Friedman, a senior research fellow at the Hoover Institution, won the Nobel Prize for Economics in 1976. This article appeared in the Washington Post on February 19, 1995. Reprinted by permission of the author and the Washington Post.
Executive Summary
Our elementary and secondary educational system needs to be radically restructured. Such a reconstruction can be achieved only by privatizing a major segment of the educational system--i.e., by enabling a private, for-profit industry to develop that will provide a wide variety of learning opportunities and offer effective competition to public schools.The most feasible way to bring about such a transfer from government to private enterprise is to enact in each state a voucher system that enables parents to choose freely the schools their children attend. The voucher must be universal,available to all parents, and large enough to cover the costs of a high-quality education. No conditions should be attached to vouchers that interfere with the freedom of private enterprises to experiment, to explore, and to innovate.
Introduction
Our elementary and secondary educational system needs to be radically reconstructed. That need arises in the first instance from the defects of our current system. But it has been greatly reinforced by some of the consequences of the technological and political revolutions of the past few decades. Those revolutions promise a major increase in world output, but they also threaten advanced countries with serious social conflict arising from a widening gap between the incomes of the highly skilled (cognitive elite) and the unskilled.
A radical reconstruction of the educational system has the potential of staving off social conflict while at the same time strengthening the growth in living standards made possible by the new technology and the increasingly global market.In my view, such a radical reconstruction can be achieved only by privatizing a major segment of the educational system--i.e., by enabling a private, for-profit industry to develop that will provide a wide variety of learning opportunities and offer effective competition to public schools. Such a reconstruction cannot come about overnight. It inevitably must be gradual.
The most feasible way to bring about a gradual yet substantial transfer from government to private enterprise is to enact in each state a voucher system that enables parents to choose freely the schools their children attend. I first proposed such a voucher system 40 years ago.
Many attempts have been made in the years since to adopt educational vouchers. With minor exceptions, no one has succeeded in getting a voucher system adopted, thanks primarily to the political power of the school establishment,more recently reinforced by the National Education Association and the American Federation of Teachers, together the strongest political lobbying body in the United States.
1. The Deterioration of Schooling
The quality of schooling is far worse today than it was in 1955. There is no respect in which inhabitants of a low-income neighborhood are so disadvantaged as in the kind of schooling they can get for their children. The reason is partly the deterioration of our central cities, partly the increased centralization of public schools--as evidenced by the decline in the number of school districts from 55,000 in 1955 to 15,000 in 1992. Along with centralization has come--as both cause and effect--the growing strength of teachers' unions. Whatever the reason, the fact of deterioration of elementary and secondary schools is not disputable.
The system over time has become more defective as it has become more centralized. Power has moved from the local community to the school district to the state, and to the federal government. About 90 percent of our kids now go to so-called public schools, which are really not public at all but simply private fiefs primarily of the administrators and the union officials.
We all know the dismal results: some relatively good government schools in high-income suburbs and communities;very poor government schools in our inner cities with high dropout rates, increasing violence, lower performance and demoralized students and teachers.
These changes in our educational system have clearly strengthened the need for basic reform. But they have also strengthened the obstacles to the kind of sweeping reform that could be produced by an effective voucher system. The teachers' unions are bitterly opposed to any reform that lessens their own power, and they have acquired enormous political and financial strength that they are prepared to devote to defeating any attempt to adopt a voucher system."
http://www.cato.org/pubs/bp/bp023.pdf