Part 2 of the blog covering Reuters correspondent Stephanie Simon’s article “Private Firms Eyeing Profits from Public Schools“…
After finishing her discussion on the financial motives that have caused many investors and venture capitalists to enter the education services business, Simon moved on to cover what this new trend’s supporters and critics are saying about what it will mean for students, their teachers, and schools. She reported that among the supporters of the movement to increase the role of private (for profit) companies in public education, one of the biggest is Larry Shagrin who was the keynote speaker at the investment conference in Manhattan. According to her article, he talked about how during a time when cost cutting is already the standard in public schools, the need for education reform to catch up to the “healthcare and other sector [industries] that have already utilized outsourcing” to increase their efficiency has become all the more necessary. She further noted that “education entrepreneur John Katzman” added to this sentiment by “urging investors to look for companies developing software that can replace teachers for segments of the school day” in order to “drive down the labor costs” of paying “highly qualified teachers” by replacing them with technology driven alternatives.
After finishing her coverage of the movement’s supporters, Simon moved on to discuss the comments that some of it’s critics like New York University professor and education historian Diane Ravitch had to say about the “corporate profiteers invading public schools.” Simon starts her coverage of Professor Ravitch’s critical analysis by discussing her assertion that the new business of “firing the staff and turning the building over to private management” services have “in effect been set up by the bipartisan education reform movement that has placed an enourmous emphasis on standardized test scores.” Simon further noted that Professor Ravitch described the situation that was created through legislation like NCLB as “a new frontier” where “the private equity and hedge fund guys are circling public education” with the backward priorities of profit first and quality second. Ms. Simon then wraps up the dissent with Professor Ravitch’s quote where she talks about how the private (for profit) companies are “taking education which ought to be in a different sphere [from profit goals] where we’re constantly concerned about raising quality” instead of “applying the business metric: How do we cut costs?”
-To see part 1 of this blog, click here.
-To look at other posts on a wide variety of topics related to K-12 education click here.
(Originally posted on Saturday, 08/18/2012)