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Why is that true? There are many ways to make a profit besides just being the largest competitor. Having a small service for a premium price also works.
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Yes it does, and to maximize on profit the firm would naturally expand having a network of small classrooms or tutors that give a high qualilty education. The goal of anyone in a free-market is to maximize on their desires. For some money is prevalent, and for others, charities. Some want to feed the poor and others want to transport them. For someone who tutors children for free or for a price their goal must either be profit or charity. Either way the logical thing to do is expand their service to teach more children and/or make more money.
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While they would no doubt be true, I again submit to you that many of the poor will not want to pay anything for their children's educations because they don't value education (or are too whacked out on drugs to care). There's a certain segment of the population for whom any price is too much, and frankly that's probably the segment of the population that needs education the most.
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True enough, the parents simply may not care about their children enough to undergo the challenge of education. In these circumstances, charity takes place, with capped tax credits the use of charities will be greatly impacted.
Under the current system the State takes all of my taxes and uses them as it wills. But if we allowed people to submit a portion of their taxes towards the educational charity of their choice instead of sending the money to the army or police force charities will have the rescources to educate children that cannot be otherwise. The investment benefits the tax payer simply because there is now 1 less hooligan on the street, which makes the police more effective and benefits them as well as everyone else. Now this method could be called an alternative to the voucher system. While people who can afford education pay for it, charities take care of people who can't. Price competition between schools (something lacking from voucher programs) is introduced and every year schools will be forced to lower prices due to market forces.