Answer to Question #66564 in Economics for Merjola

Question

Over the years, there have been many proposals for federally supported educational systems, for primary and secondary education, where the government provides a voucher that can be used to purchase education either from a public or private school. What do you see as the advantages and disadvantages of such a system? Think through all the pro's and con's from the prospective of a local, K-12, education district, with several private schools in the area. You are welcome to look up cases where these vouchers have been tried to help develop your arguments.

Answer 1

While considering buying a voucher for this type of service, it should be taken into account:

- While choosing a voucher to attend private school, a consumer invests funds into private business and therefore, boosts economic activity, which will generate taxes;
- While choosing a voucher to attend public school, a consumer must be exempted from some part of taxes before. This is because he will pay for this type of service on purpose.