What you are seeing is not a failure of fundamental American ideas, but a failure of a specific ideology grafted solidly onto our government-controlled education system.
We built the greatest technological society on the planet without a Federal Department of Education, and with schools that spent less a third per student of what they spend now (in constant dollars).
The modern education system is primarily concerned with promoting the education bureaucracy at the upper levels. Education costs rise steadily while teacher salaries remain almost flat. Unions tap already strained salaries, and use the cash to support statist political ideologies and a single political party. Actually educating children comes pretty far down the list of their priorities.
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