It’s no surprise the Department of Education faces nearly 50 percent reduction in force after Tuesday's notice this week. If the Department of Education was a publicly traded company, its stock would be in freefall, analysts would be issuing dire warnings, and shareholders would be calling for the CEO’s resignation. Why? Because in the business world, companies that spend billions of dollars without achieving measurable success eventually collapse.

Yet, when it comes to government institutions, failure seems to have no consequences – except for the taxpayers footing the bill. With President  wanting to abolish the Department Of Education, should this agency have been RIP a long time ago?



### **The Department of Education’s Spending Problem**

Since its establishment in 1979, the Department of Education has ballooned into a bureaucratic behemoth. In 2023, the department’s budget was roughly $79.6 billion, not including an additional $120 billion in pandemic relief funds allocated to schools. Despite these astronomical figures, student performance in reading, math and science has either stagnated or declined over the past two decades.



Linda McMahon was confirmed by the Senate to lead the Department of Education. (Getty Images)

To put this in perspective, imagine if a publicly traded company like Ford spent $200 billion over a few years but saw no increase in vehicle sales, no improvements in safety and no innovation in product design. Investors would flee, executives would be fired and the company would likely face major challenges from a stock price perspective on Wall Street. Yet, the Department of Education continues to spend excessively while achieving no meaningful results and with absolutely no accountability.



### **A Failing Report Card**

The National Assessment of Educational Progress (NAEP), often referred to as the Nation’s Report Card, consistently shows declining student achievement. In 2022, math and reading scores for 9-year-olds dropped to levels not seen in decades.

U.S. students ranked 28th out of 37 OECD member countries in math. Japanese students had the highest math scores, and Colombian students scored lowest. The U.S. ranking was similar in 2018, the last time the test was administered.

The U.S. average score for math fell by 13 percentage points between 2018 and 2022, but the U.S. was far from alone in experiencing a decline in scores. In fact, 25 of the 37 OECD countries saw at least a 10-point drop in average math scores from 2018 to 2022.

In science,  out of 37 OECD countries. Japanese students ranked highest and Mexican students ranked lowest. The U.S average science score was virtually unchanged since 2018.



Across OECD countries, far fewer countries experienced a large decline in science scores than in math scores. Seven OECD countries saw their mean science scores decline by 10 points or more.

High school graduates are entering college or the workforce with lower proficiency in basic subjects, and universities are forced to offer remedial courses to incoming freshmen. The return on investment is currently abysmal.

### **The Bureaucratic Nightmare**

One of the biggest  is its sheer inefficiency. A significant portion of its budget goes toward administrative costs rather than directly benefiting students. Layers of bureaucracy slow down progress, with funds being funneled through federal programs, state agencies and local school districts before they ever reach a classroom. By the time money gets to students and teachers, much of it has been absorbed by administrative overhead.

Contrast this with a company like Amazon. If Amazon were to experience significant inefficiencies in its supply chain – delayed deliveries, wasted resources, excessive administrative costs – its leadership would act swiftly to streamline operations or risk losing customers to competitors. In the case of the Department of Education, there is no competition, and taxpayers are left to foot the bill for systemic inefficiency.



### **No Incentive for Change**

A publicly traded company must answer to shareholders. If profits fall, changes must be made. But government agencies don’t operate under the same rules. When test scores decline, instead of demanding reforms, policymakers often argue for more funding – throwing good money after bad.

Consider the case of Blockbuster. In the early 2000s, Blockbuster had the resources and brand recognition to dominate the home entertainment industry. But instead of adapting to new trends, it continued doubling down on its outdated model while ignoring the rise of streaming services like Netflix. The result? Blockbuster ceased to exist.



### **What Should Be Done?**

If the Department of Education were a company, it would need to undergo a complete restructuring – or shut down altogether. The private sector has demonstrated time and time again that innovation and accountability drive success. Education should be no different.

Here are a few possible solutions:

**Decentralization** – The federal government should take a step back and allow states and local districts to take more control. Education policies that work in one region may not be effective in another, and local governance allows for greater adaptability.

**School Choice and Competition** – Just as competition in the free market leads to better products and services, competition in education – through , charter schools and voucher programs – could drive innovation and improve student outcomes.

**Outcome-Based Funding** – Instead of blindly increasing budgets, funding should be tied to measurable improvements in student performance. If a school district fails to improve, it should not receive additional funding without implementing proven reforms.

**Cutting Bureaucratic Waste** – The private sector consistently finds ways to streamline operations. The education system should be no different. Eliminating unnecessary administrative costs and redirecting funds to teachers and classrooms would have a direct impact on student success.



### **The Department Of Education Does An IPO?**

If the Department of Education were a publicly traded company, it would be failing spectacularly and headed toward a delisting – burning through cash, failing to deliver results and losing public confidence. Unlike a failing business, however, it has an unlimited source of revenue in the form of taxpayer dollars and no real consequences for poor performance. Without serious reform, the only future it has is one of continued failure.

It’s time to take a business-minded approach to education: cut waste, demand results and introduce real accountability for results that make us the greatest education country in the world. Otherwise, the Department of Education as we know it, will quickly have three letters on its tombstone… RIP.


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