The United States government, primarily State and local, play an integral role in the education system. States and communities, as well as public and private organizations of all kinds, establish schools and colleges, develop curriculum, and determine requirements for enrollment and graduation. Of an estimated $1.5 trillion being spent nationwide on education at all levels for the school year 2011-2012, 87.7 percent of the funds will come from non-Federal sources. Thus, Federal contribution to elementary and post-secondary education is about 10.8 percent. Education in the United States is subsidized by taxes, grants, and donations in the belief that it will provide profound benefits to our society. The government’s role in subsidizing education
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When analyzing education along the positive externality graph, the deadweight loss represents the lost opportunity cost due to the number of people that could be going to school, but choose not to. Furthermore, society wants the education level to be higher than where it currently is, thus deadweight loss is created between where the marginal private and marginal social benefit crosses the marginal cost curve. In attempts to correct the deadweight loss, the government subsidizes education. These actions shift marginal private benefit in the direction of marginal social benefit. In doing so, deadweight loss decreases and society becomes better off. Subsidizing education provides the necessary conditions for a well-informed population so that a representational democracy can operate, and we can maintain a society comprised of individuals who have the basic skills required to join the labor force, act responsibly, and have the tools necessary to face the many global challenges faced by humans today. The government will continue to subsidize post-secondary education in order to produce the benefits beyond those that simply ensue for a student through vocational training and employment. The United States wants to provide the means to educate and provide skills to serve the labor market to benefit individuals, society as a whole, and the …show more content…
This is evident because human capital and well being increases. People that are educated increase job creation, individual awareness on social, economical, and political issues, and generates better well-being for society in that it contributes to health care, job security, income, and money given back to the government. Furthermore, the subsidizing of education is associated with a number of positive externalities. Not only does subsidizing education allow for an increase in the number of people that are educated, it also contributes to allocative efficiency. Allocative efficiency is concerned with whether we are producing the goods and services that are equal to our changing needs and preferences. Furthermore, it occurs when the value that consumers place on a good or service equals the cost of those resources used in production. Subsidizing education is allocative in that the value that consumers are placing on education reform in America is beginning to equal the cost of the resources used up in the production. This is apparent when we look at the graph and note that the marginal cost equals the marginal private and social
When analyzing education along the positive externality graph, the deadweight loss represents the lost opportunity cost due to the number of people that could be going to school, but choose not to. Furthermore, society wants the education level to be higher than where it currently is, thus deadweight loss is created between where the marginal private and marginal social benefit crosses the marginal cost curve. In attempts to correct the deadweight loss, the government subsidizes education. These actions shift marginal private benefit in the direction of marginal social benefit. In doing so, deadweight loss decreases and society becomes better off. Subsidizing education provides the necessary conditions for a well-informed population so that a representational democracy can operate, and we can maintain a society comprised of individuals who have the basic skills required to join the labor force, act responsibly, and have the tools necessary to face the many global challenges faced by humans today. The government will continue to subsidize post-secondary education in order to produce the benefits beyond those that simply ensue for a student through vocational training and employment. The United States wants to provide the means to educate and provide skills to serve the labor market to benefit individuals, society as a whole, and the …show more content…
This is evident because human capital and well being increases. People that are educated increase job creation, individual awareness on social, economical, and political issues, and generates better well-being for society in that it contributes to health care, job security, income, and money given back to the government. Furthermore, the subsidizing of education is associated with a number of positive externalities. Not only does subsidizing education allow for an increase in the number of people that are educated, it also contributes to allocative efficiency. Allocative efficiency is concerned with whether we are producing the goods and services that are equal to our changing needs and preferences. Furthermore, it occurs when the value that consumers place on a good or service equals the cost of those resources used in production. Subsidizing education is allocative in that the value that consumers are placing on education reform in America is beginning to equal the cost of the resources used up in the production. This is apparent when we look at the graph and note that the marginal cost equals the marginal private and social