In economics, an externality, or transaction spill over is a cost or benefit that is not transmitted through prices. This spillover to others is called a positive externality in consumption, since people other than the direct consumer of the item find their well-being enhanced by the direct consumer’s use of it. Education is a good example of a positive externality to acquire educational benefits to the individual and to society as a whole. These are the possible positive externalities such as more the following:
1- Rapid economic growth
2- Better functioning democratic processes
3- Improve public safety, hygiene, and greater charitable giving as the average years of education increases.
Firstly, the positive externality associate with education is rapid economic growth. From this perspective, education increases not only productivity of the person ...view middle of the document...
Secondly, the government involvement in education ensures that every child receives the minimum amount of education is to promote a stable and democratic society. It is impossible to build a stable and democratic society without a minimum degree of literacy and knowledge and without spread acceptance of some common set of values. Education can contribute to both and the gain from the education of a child accrues not only to the child but also to other members of the society. It creates individuals with socially beneficial values such as a desire to help others.
Thirdly, improved public safety, hygiene, and greater charitable giving as the average years of education increases in society, communities manage programs for hygiene change undertakes by trained local or external health educators that helps local groups to establish and manage their own programs and organizations to realize the changes they want. In do so; they use community organization approach to health and hygiene methods from public education.
Therefore, I am total against the complete privatization of the educational system because many families had a burden to pay for lunch or cloth to their children, many families would not make their children go to school if it wasn't mandatory. If fewer children were going to school then we would be increasing illiteracy rate and crime rate as well. In other words, privatization of the education system would encourage class difference which eventually leads the society to the segregation, racism which had been eliminated after long struggle. Everyone has equal rights to have education regardless of income. A more realist understanding of the government intervention into education markets is to provide benefits that exceed their costs. In conclusion, the positive externality argument is the most frequently observed justification for government involvement in education since education generates sufficiently external benefits.
1- Economics of social issues 2010 Custom Edition