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The outstanding strength of the US university system is derived from the fact that we have so many private universities that are not government-run or funded. I see no reason to change that.
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I agree, private education isn't necessarily a bad thing, if it doesnt infringe on modern western values like the primacy of science over religion, for example. The US has good top universities, but the quality of lower-grade education and financing is often extremely variable. There still is much need for reform in the american educational system.