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Reality shows that the outcome are centers with a television on 24/7, or where kids are given drugs to sleep. That's not the exception but the rule. That's why inspections and licensing came in.

The longterm costs of that -- crime, mental health, etc. -- explain why subsidies make sense. Every rich country has universal public education for a good reason.

Market forces, as you point out, will drive your enterprising person making 72k out-of-business very quickly, and the market becomes a cesspool.