On May 23rd, Li Keqiang, Premier of the State Council of the People's Republic of China, People's Republic of China (PRC) presided over the the State Council executive meeting, and decided to increase investment in education in difficult areas and weak links, and promote the supply of kindergarten and preschool education resources through multiple channels. In my opinion, the economic nature of preschool education determines its supply mode.

Preschool education is a public product or quasi-public product.

The common demand of society is the fundamental factor that determines whether a product is a public product, a quasi-public product or a private product. Influenced by factors such as the level of economic development and moral values of a country or society in a certain period. According to this fundamental factor, a pedigree of product economic attributes can be formed: products with high social common demand are public products, products with no social common demand at all are private products, and the intermediate form is often quasi-public products.

The economic attributes of public goods or quasi-public goods are mainly reflected by their supply methods and sources of funds. Public goods are generally provided by the government, and the funds mainly come from financial funds. Quasi-public products are generally provided by the government, market and society, and the funds come from financial funds, market investment, charitable donations and personal consumption expenses.

Preschool education is the foundation stage of individual life development, which plays a very important and positive role in improving national quality, maintaining social stability, developing national economy and even improving comprehensive national strength. There is a strong social common demand for preschool education in all countries, and preschool education is positioned as a public product or quasi-public product. Take the countries of the Organization for Economic Cooperation and Development as an example, Ireland, Finland, Hungary, Switzerland and other countries define preschool education as a public product, which is mainly provided by the government, and the financial expenditure accounts for more than 90% of the total expenditure. The United States, Germany, France, Belgium and other countries define preschool education as a quasi-public product, which is jointly provided by the government, market and society, and the financial funds account for 48%, 60%, 80% and 80% of the total expenditure respectively. Countries whose fiscal expenditure accounts for more than 50% of the total expenditure account for nearly 70% of the countries of the Organization for Economic Cooperation and Development.

Preschool education is a public product or quasi-public product with unequal quality.

Recognizing that preschool education is a public product or quasi-public product is helpful to clarify the responsibility of the government. On this basis, further analysis of its characteristics will help the government to better assume its responsibilities.

The product homogeneity and consumption equality determined by it are the standards for dividing public goods or quasi-public goods. Product homogeneity means that the same or similar products have the same quality; Consumption equality refers to the similarity in quantity and quality of a product consumed by different consumers under given time and space conditions, which can be measured from both quantity and quality. Consumption equality has an important influence on consumers' consumption preference. The stronger the equality of consumption, the weaker the competitiveness and exclusivity; The weaker the homogeneity of consumption, the stronger the competitiveness and exclusivity. In contrast, it is the heterogeneity of products and the resulting consumption inequality.