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LEt's take a look at Friedman's dilemma of investing in Human Capital in a non-slave state. After all, you can't buy a piece of a person.

I'll propose an idea, an original idea that I just dawned on me: Education Bonds! We'll call them "EduBonds".

How they will work is that government will issue bonds for investing in a certain educational field. The government will give a defined dividend (we'll say 3% annual) on each type (engineering, computer science, literature, psychology, etc.). If the market feels that a particular field is needed more than others, investors will bid up the value of that bond, thereby increasing it's value. This will accurately reflect the supply and demand of certain professions in the private sector. If a private-sector investor feels that a certain profession will be in strong demand in the future, he can "buy into it" before it goes up in the future. The only money the government would pay is the dividend. Since the dividend rate is the same across all professions (3% in this scenario), but the price of the bond is not (it fluctuates based on private-sector demand), the government will end up paying for education based directly on what the private-sector is demanding!!!

Under this scenario, the government is not distorting what the private sector needs, but merely following the market's needs.

I really think I'm on to something. Can you help me work on it?

Oh god, you sure wouldn't want MY advice on financial matters. One look at my stock portfolio and you know why...LOL.

Interesting concept. Even the artsie-fartsies (I will get sooo in trouble for this) can have influence on "their" bond by simply buying it. I dunno if that works but it's interesting. I'll run it by my economics colleagues next week.

I spent some time in British Columbia, Canada, recently. The Govt there issues Labour Bonds. The return is tied to the labour market. If you buy them you help creating new jobs which triggers the economy etc. etc. Sounded good to me. Little bit related to what you propose.