How much does an education really cost?

I thing the 7% expected annual return may too high, but otherwise Mr. Bill Walker has a very good point. Are we really getting our money’s worth with our public schools?

US Education: Show Us the Money!

by Bill Walker

According to the 2009 OECD figures, the US government spends more per pupil than any nation in the world except Switzerland. The US spent an average of $149,000 for the K–12 education of every 2009 public high school graduate. That works out to $11,461 per year or so.

So the solution is obvious: shut down the schools and invest the money instead. Just let the kids stay home and study on the Internet. Let’s even save some money to reduce the deficit, and only invest $11,000 per year. At 7% return, each child would have a $391,000 IRA when they’re 18. That way, even if they spend the next 50 years surfing or hiking the Appalachian Trail, they would all retire at 68 with $12,512,000 (assuming the same 7% average yearly return). This solves not only the education crisis, but the Social Security problem (they wouldn’t need it) AND the health-budget crisis (how much heart disease could there be, if everyone spent their time surfing and hiking?)

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One response to “How much does an education really cost?

  1. Mr Bill leaves out a lot of points to do with private education. Many if not all private schools have donors and fund raisers to keep their tuition where it is. They also have access to financial aide for those that qualify. Many have state funding.

    He points to the tuition of some of the private schools but does not reflect a state average of the tuition. There is a lot more questions I have about how he arrived at state spending, as well as district funds for schools. It is not as cut and dry as he likes to put it here. He also does not address the excess spent on administration. Here in my state as principle makes an average of one hundred and twenty thousand a year.

    Anything over simplified is usually that… over simplified.

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