Market forces in education question

[SocialLiberal]

Dear people,

I have a question about a passage in a book; the context is Holland where all the statutory education used to be wholly publicly funded for centuries:

"Pleas for market forces in education also mean that parents who are willing and able, should be able to put more money into the education of their children: the market mechanism works via the price mechanism"

I totally don't understand the 'the market mechanism works because the price mechanism' part and how it's connected with the previous statement. I have a fair idea what the mechanisms are though.

Thanks and with love,
A dutchman

 

[expat_panama]

...parents who are willing and able, should be able to put more money into the education of their children: the market mechanism works via the price mechanism[/I]" I totally don't understand the 'the market mechanism works because the price mechanism' part and how it's connected with the previous statement....

What I get is that since the state usually provides education, that typically means one level of education quality for everyone. So if some parents decide they want better than average education, they have to buy additional education from private sources because by offering the amount of money they want to pay (price) they get the amount of extra education they choose to add on.

Any help?

 

[SocialLiberal]

Yeah it helps.
But isn't it pretty obvious that the market mechanism works with/through the price mechanism (and moreover, the price mechanism is for providing a equilibrium price)?

 

[expat_panama]

sounds right, and it's probably what your text was getting at too. More or less.

cheers!

 

[The Rabbi]

Yeah it helps.
But isn't it pretty obvious that the market mechanism works with/through the price mechanism (and moreover, the price mechanism is for providing a equilibrium price)?

Markets typically allocate based on price. But not always. When gov't outlaws pricing mechanisms, setting floors or ceilings, then there are other forms of allocation, like rationing or waiting in lines.

 

[EdwardBaiamonte]

Dear people,

I have a question about a passage in a book; the context is Holland where all the statutory education used to be wholly publicly funded for centuries:

"Pleas for market forces in education also mean that parents who are willing and able, should be able to put more money into the education of their children: the market mechanism works via the price mechanism"

I totally don't understand the 'the market mechanism works because the price mechanism' part and how it's connected with the previous statement. I have a fair idea what the mechanisms are though.

Thanks and with love,
A dutchman

and don't forget that the market produces competitive evolution. Competition will force schools to specialize and excell in their areas of expertise thus advancing education further and faster.