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The problem with all this government v. nongovernment crap is that it overlooks how much of school depends on the environment of the school and the education/educational values/educational resources of the people who live there.
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Do you think teachers being held accountable for the grades of the students, and paying more to teachers who are teaching in these difficult areas could help to increase the quality of these childrens education?
I know money and incentive won't work to fix the problem 100%, but it might be a good first step towards trying to turn around the slump in public education in urban areas. Sadly the people in these areas are products of their environment and education just isn't something that is valued by many who live in these areas.