Question

Recently, the U.S. Supreme Court ruled that cities could have voucher programs that give money directly to parents, and the parents can then choose between competing schools: public and private. The idea for promoting such a ruling was to create competition among schools. As with businesses, schools were expected to improve their products (how effectively they teach) to win students from competitors. Supposedly, that would mean an improvement in all schools, private and public, and would benefit many students. Do you believe that such economic principles apply in both private and public organizations?

Answer 1

Answer:

No, it cannot be applied to all private and public organizations

Explanation:

Not all private and public organization operates a competitive business system, and not all organizations primary goal is to make profit even though it is a norm to do so.

The idea of applying such voucher based approach in winning or generating competition among schools may not work for some organizations that are basically defined as non-profit oriented. The essence is simply in the fact that they are operation with the goal of not generating profits but to add value to existing structures and standards. Such class of organizations do not focus on generating more income as usual even though it is not totally the case. Reason is that such organization depends on grants, donations, sponsorship and other forms of giving to implement most of their programs and plans.

Hence setting such standard and policy will have little or no adverse effect on this class of organization.