1. Education has a positive external effect, which makes the whole society benefit from the improvement of the educated. When education is provided by individuals or the private sector, this external effect already exists, but private education will also encounter the problem of insufficient funds.
Public education is more helpful to solve this problem, making education produce more and more beneficial external effects, which is beneficial to the development of the whole economy.
2. To solve the unfair phenomenon of income distribution, the government needs to participate in education. By adopting social welfare policies and providing various subsidies and relief, the existing unfair phenomenon of income and distribution can be alleviated. However, it is difficult to eliminate the gap between the rich and the poor and a series of problems arising from it, especially the education of the poor.
3. The imperfect capital market requires the government to participate in the development of education. This is particularly evident in higher education. The government's financial assistance to college students mainly takes the form of free education, subsidies and loans. For young people who are receiving higher education, their income after completing their studies can exceed their expenses.
Therefore, in the case of insufficient financial resources, they are also willing to complete their studies by obtaining loans. But the problem is that institutions in folk credit are generally reluctant to issue loans to college students. Their main concern is that it is quite difficult to recover loans. At this time, the government provides loans to students, which helps them complete their studies.
The main functions of education are:
(1) The primary function of education is to promote individual development, including individual socialization and individualization.
(2) The most basic function of education is to influence the change of social talent system and economic development. Modern society emphasizes that the economic function of education mainly includes: providing a good background for the sustained and stable development of the economy; Improve the potential labor ability of the educated; Form ideas, attitudes and behaviors that adapt to modern economic life.
(3) The social function of education is to cultivate talents for the development of the country and serve the political and economic development of the country.
(4) The most far-reaching function of education is to influence the development of culture. Education should not only convey culture, but also meet the requirements of the continuation and renewal of culture itself.