The business of privatisation of schools

Many people want to send their children to large private schools. IMHO, the private schools have responded by turning themselves into businesses first, schools second. I read about a school with a Board, a Chairman, and Chief Operating Officer, and oh, by the way, also a Principal. I know they have to manage themselves efficiently and transparently, but it seems a case of the financial tail wagging the educational dog.

Other evidence of the expanding school sector is the fact that their fees are rising faster than inflation. The rising demand would push this, as well as the increasing capex required to compete with other private schools. It is not enough to provide facilities for academic studies, and some sports fields. These days, parents expect all the potential of their children to be explored, such as music, leadership, arts, commerce and of course networking with the other students who may become their business peers in the future.

How is this for a financial analogy?.... The share price of a listed company represents the expected value of future income. In the same way, the (rising) school fees represent the expected value of future income and lifestyle opportunities which result from attending a private school.