Hi Earle,
I appreciate your comments, and I think you got the message without the math. It's a pretty simplistic analysis, but so is thermodynamics, and it describes reality quite well in many appropriate situations.
The part you are concerned with, the "educational fund" was thrown in as a hint as to how I would try to design a better system. There was no space to really get the idea across (nor is there in a comment.) The idea is that government takes our money and uses it to bribe voters and power-brokers and does so ineffectively, with education as an afterthought, while those pursuing their own education go "deeper in debt" as Tennessee Ernie used to sing. They "owe their soul to the company store", while the company store, academia in this case, and teachers unions, does quite well.
I agree with you about the history of education and about the desirability of "free market education." And although I did not spell it out, there is no requirement that the money come from government. I grew up with an excellent Carnegie library. There is no reason, in my plan, that the money paying for study should come only from government. The wealthy, for the most part, try to accomplish goals. Let's say I am a billionaire and desire for more people to understand XYZ. I can prepare courses on XYZ and pay people to master them. But this is not confined to the wealthy. If, say, many average people feel that, for instance, the Constitution is not being taught, they can support this cause with donations, etc., a form of crowd-sourcing. The point is that our system is inverted. It's hard work to learn, and one should not have to do the work and simultaneously go deeply into debt, when the results should benefit us all.
But to do proper justice to that idea takes far more than nine pages. Nevertheless the communications technology required to make such a system work is evolving nicely.
My best regards and thanks again for your fine essay.
Edwin Eugene Klingman