What
Economics Tells Us
A Little
Economics History
The experience of the past
century, if it has shown nothing else, suggests that
capitalism is the most productive economic system. As a
corollary, services and products provided by for-profit
enterprises are generally superior and more cost-effective
than those provided by non-profit organizations. And the
comparison with government provided services is even more
stark.
The
Economics Of Stellar Schools
There are five kinds of
efficiencies that contribute to the
profitability/cost-effectiveness of Asora's Stellar
Schools:
•
Those from automation.
• Those from self-pacing.
• Those from economies of scale.
• Those from labor force efficiency (non-union
professional teachers).
• Those from the low cost of labor implicit in the use
of student tutors.
Is The
Education Industry Immune To Economics?
While the education industry
has a highly distorted marketplace, owing to the various
government subsidies, players, and regulations, it
nevertheless has its niches where for-profit schools and
vendors provide high quality services that surpass those
provided either by non-profit organizations or the public
education systems- at least when compared on a dollar for
dollar basis. Thus, we are led to conclude that reforming
K-12 education should primarily be a task for businesses.
Post-Secondary
Successes
Schools already exist at the
college level (and beyond) that have benefited from these
kinds of methods and technologies. We believe that there is
no essential difference between post-secondary and the K-12
years that would discourage the implementation of Stellar
Schools. Just as economists would have predicted!
Encouraging
Developments in K-12 Instructional Services
The use of self-pacing, an
integral aspect of Stellar Schools, has been quite
effective in schools that have implemented it. Franchising
in the K-12 environment is exemplified by Sylvan Learning
Centers which have been quite successful. Distance
education is used in physical schools, but on a limited
basis- usually to teach courses for which the school is not
capable.
Wherewithal
for K-12 Tuition Significantly Increasing
A
combination of the continuing improvements in the American
standard of living and the expanding availability of
scholarships and other school funding devices suggest that
many more parents will have the means to send their
children to private schools. Given that Stellar Schools
will charge markedly less for tuition than other private
schools suggests its popularity and market share will grow
appreciably.