In a consideration of limited funds for services to disabled persons, the author distinguishes the "truly handicapped" from "handicapped victims" (characterized as afflicted persons who receive few or no services) and the "mildly handicapped" (including educable retarded, learning disabled, and mildly emotionally disturbed). He proposes a model incorporating a competitive market for services to handicapped students. The amount of funding received by mildly handicapped students is questioned and overprotection of truly handicapped students is cited. The author suggests a change in the operation of special education in which families would receive voucher money to procure the services they deem most appropriate. Informal alliances among handicapped persons, as observed in developing nations, are advocated. There are two groups of "losers" in the present system: the mildly handicapped, who receive more stigmatization than help; and the handicapped victims, who society removes from the definition of handicapped because of a moral judgment. (CL)