Alan Singer reviews the ways that hedge funds will benefit by the privatization of public funding for public schools.

 

Consider Michigan, just one state:

 

Michigan, Betsy DeVos’ home state, has 1.5 million children attending public elementary and secondary schools and spends about $11,000 per student. If charter networks operated all of Michigan’s schools, we are talking about $16.5 billion. Now that is real money! The charter network could stash away profits of $5.5 billion just my having high teacher turnover.

 

But that’s not the only way the hedge fund charter networks and private schools will make money. Inexperienced teachers need scripted lessons, staff development, and supervision, so the hedge fund schools can outsource these activities to subsidiary companies. They can also buy books, tests, supplies, computer software and hardware, and guidance services from their own companies and award maintenance contracts to themselves.