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number of government-run schools and per-

stantly changing economy.

haps a few schools run by alternative

Policymakers should pursue reforms that

providers is not sufficient to spur a competi-

enable education companies to flourish and

tive marketplace:

individuals to pursue further education. In

particular, policymakers should consider the

"Choice" as a synonym for free mar-

following reforms:

kets--where consumers are free to

· Return education dollars to individuals

choose and vendors are free to create

and sell a variety of products and ser-

through tax cuts and universal tuition

vices--is undeniably essential to cure

tax credits. Such policies would begin to

education's morbid productivity and

loosen the government's monopoly on

festering irrelevance. . . . However, the

education and allow the natural growth

need not merely for "choice" but for

of a vibrant education marketplace.

· Level the playing field by ending subsidies

commercialization of education has

been overlooked by most would-be

to government-run universities. Those

reformers. We need commercial

subsidies make it difficult for private

choice and competition in education

postsecondary institutions to compete.

Moving toward a

· Reduce the overall tax burden. By

first to goad technical innovation--

market-based

the profit motive is essential to

returning money to taxpayers, policy-

reward the creation and provision of

makers would enable more individuals

system holds

productive technologies. . . . Profit-

to invest in their own education and

great promise for

motivated competition also is neces-

more companies to invest in training

improving the

sary to provide quality control. Only

their employees. Such policies would

markets can create the information

encourage research and development as

quality of educa-

needed to determine "what works"

more investment capital would be avail-

tion in this

economically.100

able to for-profit education companies

and there would be a greater market for

country.

their products.

Perelman imagines a world without "cre-

dentialism," where businesses cannot consider

Such policies would increase educational

the educational "pedigree" of a job applicant

freedom, by giving parents choice, encouraging

but instead must focus on what an individual

competition, and motivating edupreneurs to

knows and can do. That mental exercise serves

invest in researching and developing more effec-

as a reminder of the fundamental purpose of

tive, efficient ways of educating individuals.

schools:

With diplomas no longer having eco-

Answering the Critics

nomic value, the public would quick-

ly turn its attention to what it should

Student Achievement

have been paying attention to all

along: What do you need to learn to

get the economic opportunities you

The bottom line for public educa-

want? And, what's the fastest, cheap-

tion has to be student achievement,

est, best way to learn that?101

not profit for private entities. . . .102

The for-profit education industry is

Opponents of customer-driven education

already offering a wide range of affordable

contend that education should be about

high-quality education services to help cus-

learning, not profit. Since companies natu-

tomers become knowledgeable individuals

rally are in business to make money, they will

prepared to meet the challenges of the con-

be more interested in cutting costs than in

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