November 16, 2012
News of Hostess, the company that produces Twinkies, Wonderbread, and other food items close to the hearts of many Americans, has surely hit your ears or eyes by now. Although there’s more to the story, the company essentially called it quits because its current cost structure was no longer profitable. A large part of that unprofitable structure? Union wages and pension costs.
Well it just so happens that pension costs are also wreaking havoc on the traditional public education system in America. Spending on education is increasing while American students are falling behind, yet stories of teachers paying for supplies out of pocket still permeate the media, fueling this notion that any sort of cuts to education is just wrong. Stories of what is eating up large education budgets and why ever-increasing spending never actually reaches students, however, are few and far between.
The reality is the current cost structure of the U.S. education system is, like Hostess, no longer profitable, and it’s coming at the expense of taxpayers and students. At least Hostess can shut down and say enough is enough…