Steve Jobs on School Vouchers

Smithsonian Institute Oral History Interview Transcript, April 1995

The Costs of Education - Alternatives

SJ: And there's a warranty. That's right. But in schools people don't feel that they're spending their own money. They feel like it's free, right? No one does any comparison shopping. A matter of fact if you want to put your kid in a private school, you can't take the forty-four hundred dollars a year out of the public school and use it, you have to come up with five or six thousand of your own money. I believe very strongly that if the country gave each parent a voucher for forty-four hundred dollars that they could only spend at any accredited school several things would happen. Number one schools would start marketing themselves like crazy to get students. Secondly, I think you'd see a lot of new schools starting. I've suggested as an example, if you go to Stanford Business School, they have a public policy track; they could start a school administrator track. You could get a bunch of people coming out of college tying up with someone out of the business school, they could be starting their own school. You could have twenty-five year old students out of college, very idealistic, full of energy instead of starting a Silicon Valley company, they'd start a school. I believe that they would do far better than any of our public schools would. The third thing you'd see is I believe, is the quality of schools again, just in a competitive marketplace, start to rise. Some of the schools would go broke. Alot of the public schools would go broke. There's no question about it. It would be rather painful for the first several years

DM: But deservedly so.

SJ: But far less painful I think than the kids going through the system as it is right now. The biggest complaint of course is that schools would pick off all the good kids and all the bad kids would be left to wallow together in either a private school or remnants of a public school system. To me that's like saying "Well, all the car manufacturers are going to make BMWs and Mercedes and nobody's going to make a ten thousand dollar car." I think the most hotly competitive market right now is the ten thousand dollar car area. You've got all the Japanese playing in it. You've got General Motors who spent five million dollars subsidizing Saturn to compete in that market. You've got Ford which has just introduced two new cars in that market. You've got Chrysler with the Neon.

DM: So you're spending thirty-two thousand and getting a five hundred dollar car in some cases.

SJ: The market competition model seems to indicate that where there is a need there is a lot of providers willing to tailor their products to fit that need and a lot of competition which forces them to get better and better. I used to think when I was in my twenties that technology was the solution to most of the world's problems, but unfortunately it just ain't so. I'll give you an analogy. Alot of times we think "Why is the television programming so bad? Why are television shows so demeaning, so poor?" The first thought that occurs to you is "Well, there is a conspiracy: the networks are feeding us this slop because its cheap to produce. It's the networks that are controlling this and they are feeding us this stuff but the truth of the matter, if you study it in any depth, is that networks absolutely want to give people what they want so that will watch the shows. If people wanted something different, they would get it. And the truth of the matter is that the shows that are on television, are on television because that's what people want. The majority of people in this country want to turn on a television and turn off their brain and that's what they get. And that's far more depressing than a conspiracy. Conspiracies are much more fun than the truth of the matter, which is that the vast majority of the public are pretty mindless most of the time. I think the school situation has a parallel here when it comes to technology. It is so much more hopeful to think that technology can solve the problems that are more human and more organizational and more political in nature, and it ain't so. We need to attack these things at the root, which is people and how much freedom we give people, the competition that will attract the best people. Unfortunately, there are side effects, like pushing out a lot of 46 year old teachers who lost their spirit fifteen years ago and shouldn't be teaching anymore. I feel very strongly about this. I wish it was as simple as giving it over to the computer.