Public education disaster

Public education - billions wasted window and a lot of wasted talent. Why? Because someone wanted to "do good"…

Centrally managed education - worse than you think ...
Centrally managed education - worse than you think ...

Schools are educational institutions. Their role is to educate a person - both professionally and in general. To pass on knowledge to people, thanks to which pupils and students will also be able to apply themselves in future life.

Interestingly, although Hayek's definition of the basic problem of economics, for example, is already talking about "coordination of knowledge," few have thought about the impact of current centrally-controlled education on the entire economic system. This impact can be much more fatalthan many can even imagine.

Market and knowledge coordination

FA Hayek asked himself an interesting question:

How is it possible that millions of people around the world are willing to work together to create complex goods and reach them as final consumers? How is it possible that even though no one knows how to make a pencil, this pencil will appear on store shelves? There is no one who knows how to make a saw, machines, extract graphite, cut wood, make pencil cars, extract oil - there is no one in the world who knows all these things at once - and yet the pencil appears in stores.

Jak je to možné?

The answer is actually simple: real, voluntarily set market prices! They give us informace about what's happening around the world! We don't have to know that oil or wood stocks are dwindling - we see in prices that oil and wood products are more expensive, so we start using alternative goods. It is just a pricing system that can coordinate the knowledge of millions of people around the world, who, without knowing it, work together to create the goods that we find on store shelves.

There is and cannot be any central authority that can effectively replace the price system.

Real prices arise only in the market - through voluntary exchanges. The exchange will not take place unless it is expected to be mutually beneficial. In the long run, trade cannot prosper if this expectation is not met. This ensures the bulletproof efficiency of the market system, which is the only one capable of coordinating human knowledge, which can be used to create things that no one can produce on their own.

The market is not the cause of the complexity of today's society, it is the opposite - the complexity of today's society, the diversity of human individuals, human needs and preferences is the cause of the emergence of the market.

If the market is the most effective tool for coordinating knowledge, can we leave educational institutions out of the market? After all, it is the schools that give us the educational basis for further development and specialization!

Nobody knows anything in schools

This is actually nothing new. It is still the same dispute about the "rationality of socialism" - today's education is state-owned. It is centrally managed, regardless of whether the founder is the state (in any form) or a private person, because the so-called. "Private schools" must bow before the Ministry of Education. Even "private schools" are paid for with state money.

There is no real market for education. There is no market for schools. There are no real market prices that carry information - students do not know, what is the demand for which graduates, has no outlook for the future (there is no market interest rate on student loans or scholarships). Thus, students cannot specialize properly.

On the other hand - on the school side - the situation is also deplorable. Due to the lack of real prices (and real interest rates on tuition loans), schools also do not know which fields are in demand and which are not. The result is a "suboptimal" offer of fields - there are too few fields, or in other words - there are many fields that schools do not offer. The student then has nowhere to studybecause "his" field simply does not exist. Applying for schools is more reminiscent of lotteriesthan interested in studying.

Wasted lives

Specialization is a cornerstone of the efficient functioning of markets. If we have a nationalized education system, we cannot expect people to specialize when people themselves do not know what to specialize in, or when there is no place to specialize in a given ability.

Often, public education is only a waste of time, because the specialization itself occurs only after the end of the educational process, when graduates work in industries that have nothing to do with their field of study.

However, not everyone is lucky enough to "socialize" after school in practice. Many people will never discover or develop their talent and abilities. The foundations for this development are to be given by educational institutions, which, however, do not work in the state system. There may be as many as millions of people whose talent is discarded. Millions of lives that will be ruined only by poor education. About the enormous "human capital", the potential that will remain untapped even though we have the capacity to do so.

And finally - it is necessary to realize that the money in the Czech Republic, for example, is about 100 billion crowns, which de facto every year is actually "thrown away from okna".


  1. re: roman- basically consent, I wrote a functional private school (not a degree printer), but I would still say that it is more complicated, if I omit such managerial or financial, etc. "schools", so private have more success rather due to better individual care than due to lower demands on the student (is it without debate for those language languages?)
    PS: re gofry: good reminder, I think this is an exemplary example of the thinking of bureaucrats, but people are not machines and some just do not play by the same rules as most, and I omit the fact that certain positions are certain titles are required retrospectively even though they are completely qualified and experienced staff (this is something I never understood…)

  2. It is covered that in many government jobs, title ownership is the only criterion for admission or higher pay. Often also in the highest positions in the state administration. That is why a market for paid degrees was created, even in public schools. There has been more than enough affair lately. Interestingly, all paid degrees were obtained at public schools.

  3. re 3,14ranha: although I agree with most of what you say, there is another reason why parents send their children to private schools - because there it is paid that the child actually crawls and gets a paper. Unfortunately, this is the role of at least some private schools in the current system, and the quality of these schools looks like that. It's proof that the market is indeed satisfying demand, but it's a bit distorted

  4. re meca:

    bacha na strawmena, the author pushes the problems to the extreme (would the discussion be just as lively if he only stated the facts?), if you don't mind why are you making the same mistake? Do you think that the Minister of Education can meet demand and supply better than the market? it's nothing else… why do so many people send children to "semi" private schools (church, language, etc.) when the state budget should be of similar quality with a similar budget? why state language teaching fails almost everywhere and whoever wants to go to the world has to take sour courses / school anyway

    PS: I am average for ("this time") the preservation of the function of the state as a certain guarantor (let's not be afraid of the word, for the better of us should be accessible eg transfer exams…) and it is certainly naive to think that a private school will be established in "Upper lower" where it hardly fills a one-class class (although it is not unrealistic - it depends on the access to time and finances of parents), but you can clearly enjoy any other functioning private school and any law that reduces bureaucracy in education (ask "your" teachers ;-P)

  5. It's a bit complicated for me. I will simplify it, better selection, greater chances of developing talents, greater opportunity to apply. The rest is a student's business.
    So the question is whether or not the liberal approach will bring the "better choice". The logic of things and practical experience speak for themselves.

  6. But it's still around - if there are more fields, a better specialized person will probably climb out of them - but what will it say about the person's talent? So the market is asking for a "yo-yo producer ad supervisor," okay, says a rational robot in 9th grade - but how on earth does he find out he has the talent to do that?

    I just think it has nothing to do with the real world. It's throwing keywords that really really bother people around a simple (pseudo) solution valid all over the world - some can do it better that even a non-fanatical reader can imagine the functioning of their MODELS, others simply wrap the words in terms of words and… After all, how say Wanastovki, love 😉

  7. Re meca:
    The mention of underdeveloped talents follows the sentence "there are many fields that schools do not offer. The student then has nowhere to study. " I do not see a logical contradiction in this.

  8. Roman: But what does it mean that the market will respond to your demand? OK - that is, “students do not know what the demand for which graduates is, they have no outlook for the future (there is no market interest rate on student loans or scholarships). This way, students can't specialize properly. ”- so the market will tell you what is best to study, to find a job after school, to fit in best and to be as happy as possible in the best possible world. Here, if it were over, I wouldn't even say fart, but then what has something to do with the fact that "many people will never discover and never develop their talent and abilities" - you can't throw it at the market, but at your own stupidity that you went to gympl / middle / college, which didn't tell you anything that your parents, fate, etc. caught up with you, and what's more, not that you were drunk after saying goodbye to 9th grade didn't have a chance to calculate the interest rate on student loans to calculate it best, where the company probably needs you, and there it went, because where the market needs you, there also lies your talent…

  9. Re meca:
    What contradictions do you have in mind? Naturally, the market will not tell you anything about your talents, it will only respond to demand more effectively than, for example, an official. You will have a larger, more up-to-date and, as a result, cheaper choice. That's all. It works in other fields and there is no reason to think that it would not work in education. One is always dependent on something, so it doesn't hurt to think about what and how and whether it works.
    In my opinion, there are no contradictions in the text, only everything is not explained to the half-heel.

  10. # 13: I'm just fascinated by your belief that there really is one solution to all the world's problems and that you're giving up critical thinking and discussion for it - because it really seems to me that there are logical contradictions in that text. So either I'm an asshole and you should say in the discussion "You're an asshole, it's not because you don't see that…" or… Just mark anyone who (more / less) tries to think and somehow try to take it critically "Socanacy" is strange among people who don't just want to watch TV.

  11. "There is no such thing as a real education market." - I don't think that's true. There are many courses that one can pay for and gain the necessary knowledge there, many times just a few weeks. Not to mention that such courses can far better reflect the current state of the world, while continuing education will necessarily lag behind the world.

    Of course, I am not saying that public education does no harm, on the contrary, compulsory state attendance deprives people of valuable time.

  12. You slap the fifth through the ninth - on the one hand, you regret that there is no market with fields that would tell those interested in studying what to specialize in, so that they become the rational gears in the gears; on the other hand, because of all this, people are wasting their talent - so the market will tell you what you have talent for? You make people idiots who rely on God's order of the market.

    Take the book and make a world of it!

  13. A similar problem is the monetary system, health care, energy, agriculture, science, etc.

  14. The pricing system can coordinate people around the world who have never heard and will never hear of each other so that they are mutually beneficial.

    The state apparatus can destroy any cooperation of a group of people simply by deciding to support their activities.

    So I'm absolutely clear about that.

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