Pure Capitalism would lead to Armageddon: Education

Education

This is a series of objections, starting with the common misconception that capitalism and freedom would hurt everyone, especially the poor, creating unheardof poverty for all. See the initial post here and the entire category here.

Without government providing and financing education, there would be no education. We'd all be stupid and illiterate, right? That's usually the normal claim, and it has some appeal to it - who would pay for all this expensive education? It's not like regular Joe-s on the street can pay thousands of pounds worth of education just like that. Better government do it?

Not really. Education greatly enhances ones productivity, that is what constitutes your wage rate (see post on Salaries above). People with engineering knowledge of how to build a house, would be a lot more valuable to a House Developing company than would an illiterate 25-year-old autarkic farmer - thus, his wages would be higher than said autarkic farmer (assuming such farm activities doesn't yield immense amounts of returns). 

So, if your future wages would be higher (and especially when that's a sure deal, such as the above example) there'd be people willing to supply that fund (eg: banks, financial institutions, the entire financial system..) because you'd be in a position to pay that back after completing your education. 

Essentially, the exact same reasoning that occurs in Student Loans for Higher Education today (students know that their productivity will be enhanced, thus their take-homepay compared to what McDonalds currently offers them would be substantially bigger, and they can then make simple calculations to find out that it is beneficial for them to take on these loans).

Education in a free society would simply be the same thing, even in primary and secondary schooling (even more so, because productivity increases from illiterate to literate are among the biggest increases of all).