How Large Is the Opportunity Cost of Government Schooling?
Schooling is one function that is almost universally dominated by government managed institutions around the world. The belief that governments should provide “public schools” and that those schools were an “investment in human capital” and that they were “vital” for democratic citizenship are among the most deeply embedded beliefs around the world. Many people would be shocked that anyone would question it. There are mountains of research purporting to show the value of public schools.
But one of the most valuable concepts in economics is that of “opportunity costs.” What might have been if governments had not come to dominate K12 education in the 20th century?
A Skeptical History of “Public Schools”
Thomas Jefferson is often regarded as the father of public schooling because of his 1781 proposal in “Notes on the State of Virginia”,
This bill proposes to lay off every county into small districts of five or six miles square, called hundreds, and in each of them to establish a school for teaching reading, writing, and arithmetic. The tutor to be supported by the hundred, and every person in it entitled to send their children three years gratis, and as much longer as they please, paying for it. These schools to be under a visitor [i.e., superintendent], who is annually to choose the boy of best genius in the school, of those whose parents are too poor to give them further education, and to send him forward to one of the grammar schools [high schools, in effect] of which twenty are proposed to be erected in different parts of [Virginia], for teaching Greek, Latin, geography, and the higher branches of numerical arithmetic. Of the boys thus sent in any one year, trial is to be made at the grammar schools one or two years, and the best genius of the whole selected, and continued six years, and the residue dismissed. By this means twenty of the best geniuses will be raked from the rubbish annually, and be instructed, at the public expence, so far as the grammar schools go.
George H. Smith, summarizes Jefferson’s later views on education,
Throughout most of his life Jefferson favored providing three years of free education to all (free) children, rich and poor alike. By 1820, however, Jefferson had changed his mind. Only pauper children should receive free schooling; those parents able to pay tuition should be required to do so. Jefferson believed that the fees of parents who could afford to pay would cover much of the cost of educating pauper children. The remaining expenses would be minimal: “To a county, this addition would be of about one-fifth of the taxes we now pay to the State, or about one-fifth of one per cent.”
He was also against compulsory attendance laws,
“It is better to tolerate the rare instance of a parent refusing to let his child be educated, than to shock the common feelings and ideas by the forcible transportation and education of the infant against the will of the father.”
Jefferson’s model was much more similar to a system of voluntary private schools, with a modest state subsidy for “paupers” (plus scholarships for the super elite) than anything remotely similar to contemporary public schools.
Horace Mann is the real father of public schooling. He was influenced by the statist Prussian system,
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Madison’s district, despite an elite university pipeline, hypereducated leadership, and a shiny, new strategic plan, suffers the same frailties as Milwaukee’s: basement performance, backbreaking spending. But while Milwaukee is pulling out of its tailspin due to courageouschoices from the top, Madison is ponderously ambling to nowhere. Just ask the locals. “You need the marketing, and you need the product,” as a parent told a reporter. “I’m missing the product.”
2025-2026 Madison 4k-3rd grade Early Literacy Screener report: The bar moves faster than the kids.
Joe Gothard, Becky Kundert and Sonia Spencer Remarks on Madison’s K-12 Literacy Crisis.
2026-2027 Madison K-12 $pending continues to grow, fueled by a 9.7% (!) property tax increase. Total spending will be at least $706,000,000 for 25,003 students, or $28,236 per student.
May 2026 Madison School District Presentation: 7,095 adults for 25,003 students (3.52 students per adult!)
2024-2025 Early Literacy Screener Map.
Map: Foundations of Reading Results: 2015–2024
Where have all the students gone?
3,887 Madison 4 year old to third grade students scored lower than 75% of the students in the national comparison group.
Madison taxpayers have long supported far above average k-12 tax & $pending. This despite our long term, disastrous reading results. May, 2026: 7,095 Staff for 25,003 students; $pending > $26k per student!
Madison Schools: More $, No Accountability
The taxpayer funded Madison School District long used Reading Recovery…
The data clearly indicate that being able to read is not a requirement for graduation at (Madison) East, especially if you are black or Hispanic.
My Question to Wisconsin Governor Tony Evers on Teacher Mulligans and our Disastrous Reading Results
2017: West High Reading Interventionist Teacher’s Remarks to the School Board on Madison’s Disastrous Reading Results
Madison’s taxpayer supported K-12 school district, despite spending far more than most, has long tolerated disastrous reading results.
“An emphasis on adult employment”
Wisconsin Public Policy Forum Madison School District Report[PDF]
WEAC: $1.57 million for Four Wisconsin Senators
Friday Afternoon Veto: Governor Evers Rejects AB446/SB454; an effort to address our long term, disastrous reading results
Booked, but can’t read (Madison): functional literacy, National citizenship and the new face of Dred Scott in the age of mass incarceration.
When A Stands for Average: Students at the UW-Madison School of Education Receive Sky-High Grades. How Smart is That?
China’s PhD Glut Drives Top Graduates to High School Teaching Jobs













