Under the current situation, in which government provides low-level competence to everyone, private industry provides only the high-level premium. In effect, individuals with high-level competence receive benefits from both low- and high-level competence training, but those with only low-level competence receive no additional economic benefit. In other words, the government subsidizes those who sell their high-level competence to government and industry at the expense of low-level competent individuals.

One way in which the government could eliminate part of the social waste is to limit the number of low-level competent individuals supplied to the private sector. Alternatively, it could limit the number of private sector schools through special licensing agreements. This would insure that employers of high-level competence pay the full cost of their inputs. This of course would be a great boon to those who go on to acquire high-level competence, and who have only to pay the high-level premium for the acquisition of their skills. Unless the universal language requirement were removed, however, low-level competent individuals would continue to receive the short-end of the stick.

The market optimum suggests that government should provide only high-level competent individuals, thus compelling private schools to pay the full cost of providing high-level competence and insuring that government, industry, and the general public pay the full cost of what they utilize.

A$$afhk =	P$$e · Q$$e
=	total revenue
A$$acjk =	A$$bdhj
=	cost of providing low-level competence
A$$abjk =	cost of providing high-level competence
A$$adhk =	total cost
A$$dfh =	A$$afhk - A$$adhk
=	profit