"Even with billions of dollars spent on Education at various levels of Government, quality of public education is still poor. Various remedies that were tried over last few decades like reducing classroom size, increasing teachers-student ratio, and investment in high-technology have not yielded significant results. Significant percentage of high school graduates still cannot read or write decent English. Situation in other areas like science and mathematics is scary. Educators fervently resist any effort to introduce accountability and performance based pay as this will increase political interference and reduce their academic freedom.
Quite different problem is that of securing the retirement for many working class people. Solvency of social security system is being threatened by rapidly declining workers to retiree ratio and imminent retirement of the baby boomers. What if we can solve the problem of quality education and secure retirement for educators all at the same time by tying educators pension to the taxes from their students? This will provide significant incentive to educators to maintain and improve quality of education. The improved quality of education will help students to earn more income as they go out into real world. Taxes from the increased income of the students should help secure retirement of the educators easily."
Also, see http://econlog.econlib.org/archives/000536.html