Tom Hamilton says private schools are a waste of money. This raises a puzzle.
Let's assume the average private school place costs £9777 a year. And let's say a parent decides to invest this money, and send their kid to state school instead. Then, assuming 11 years of investment at a real return of 2%, our parent could hand their child over £130,000 (with the obvious strings attached, natch) when it leaves school at 18.
Wouldn't most kids prefer the £130,000 plus the state education to private education?
So why do so many parents prefer private education? Is it really so superior to state education? Could it be that they regard education as a positional good, and one worth paying through the nose for? Are they paying to get their children social contacts rather than education per se? Or is the chance of a marginally better education really valuable in winner-take-all economies?