Public education has become the latest item on Wall Street’s list of societal functions, which are used to make big money for the nation’s largest investment banks.
According to the Corporation for National and Community Service, the U.S. government is sponsoring a program called Pay For Success. This program utilizes a provision of the federal Every Student Succeeds Act of 2015, which is a law that replaced No Child Left Behind.
Proponents of the U.S. government’s Pay For Success program claim that it creates a way for the private sector to invest in public schools that are struggling. However, critics of the government program believe that it will end up bankrolling Wall Street instead of helping under-funded public school districts.
Kenneth J. Saltman is a professor in the Department of Educational Leadership at the University of Massachusetts at Dartmouth. Saltman is a staunch critic of Pay For Success. He wrote an informative piece sharing his view about the controversial government program that was republished in the Washington Post on Wednesday (September 14th).
“Pay for Success/ Social Impact Bonds appeal to banks for their capacity to generate profits from public tax money for education, juvenile justice, and other services and they represent a form of economic redistribution from desperately needed public money for the most vulnerable citizens such as poor youth to business,” Saltman wrote.
“[These bonds] also appeal to banks who have gotten caught defrauding investors and that can now promote themselves as doing good works while turning a profit,” he continued.
When private corporations get their hands involved in attempting to solve the problems that are going on with public institutions, it usually sets the stage for disaster. You don’t have to be the biggest financial expert to understand what happens when Wall Street gets involved in schemes to create another one of its so-called “bubbles.”
One thing people can count on is that Pay For Success will add to America’s already overwhelming debt burden. The U.S. has officially followed the lead of countries like the U.K., which have literally placed their public education systems up for sale.