The argument is that "many of these school systems are failing, from insufficient infrastructure to a significant disconnect between schools and the local economy." The proposed solution is to charge money for school, and redirect government resources to subsidize this education for the relatively well-off. User fees, in other words. The way this works is by magic: "These schools compete for hard earned dollars from parents and are therefore highly incentivized to create education solutions that meet parents expectations." So I guess 'innovation' in this case means 'serve the rich, ignore the poor'. As it so often does.
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