South America’s Most Free Nation Rapidly Growing Less Free

3

by Jerry Bowyer

Increase in education spending without any increase in accountability will be disastrous. Eliminating parent co-pay for tuition will weaken competition and weaken parental control. Forbidding funding of for-profit schools will cut off the powerful incentives of the profit motive, and paying for all this with taxes on new research and other capital investment will be bad for growth.

“Ms. Bachelet’s government has said it would pay for the education overhaul through a controversial tax reform that will increase the tax haul by three percentage points of gross domestic product, or about $8.2 billion annually.

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