A discussion is presented on the feasibility of developing and encouraging more profit-making private schools. The point is made that there are structural obstacles to improvement and reform in the public schools: (1) teacher unions are strong and primarily interested in teacher benefits, not student welfare; (2) state and federal regulation severely limits local autonomy and decision-making authority; and (3) political and educational leaders have a larger personal stake in the appearance of reform than in its actual existence. The argument is offered that private schools can adopt policies and practices that are legally prohibited or too costly politically to adopt in public schools; e.g., the right to search lockers at any time for drugs means stronger control of student behavior. It is pointed out that the greater effectiveness of private schools may be due not to greater expertise but to greater legal freedom to adopt the most effective social technology. Suggestions are made on effectively contracting out educational services and using competition between profit-making schools to improve education. (JD)