Posted on 03/12/2023 6:03:44 PM PDT by anthropocene_x
Private equity is rapidly making inroads into the child care sector, expanding in size and political power while damaging quality, accessibility and affordability.
Investor-backed child care chains differ from independent “mom-and-pop” programs because they are either owned by a private equity firm or, in one case, traded on the stock market. In other words, they are accountable to investors looking for a big return on their money and therefore are hopelessly conflicted. Their growth since the turn of the millennium has been explosive. Several of these chains are now owned by overseas firms based in countries like China.
Quality in large for-profit chains tends to be lower than in nonprofit or independent programs. Despite that, chains regularly hike already-obscene parent fees and pay their teachers poorly all while many make a 15 to 20 percent profit margin. Their growth is largely through acquisitions and mergers, not building new supply. Programs tend to operate in high-income neighborhoods with a clientele they can fleece. And as The New York Times reported, the interest group that serves several large chain programs actively lobbied against comprehensive child care legislation in the Build Back Better Act.
To take public funding, for-profit programs in most provinces must accept a parent fee cap and reasonable restrictions on profit, executive compensation, and so on. No investor should be getting rich off public money intended to make high-quality child care affordable and accessible.
(Excerpt) Read more at thehill.com ...
Well, they destroyed funeral homes, vets, nursing homes, so this is the next logical move.
Child Trafficking ready for the next home grown business.
I’ve seen Chinese-based educational opportunities in nearby towns and have assumed that no responsible Chinese parent would be willing to leave their children to be destroyed by the American educational system. Last thing I’d want is to have a child in a public school today. Actually, also last would be most private schools now.
I took my first masters in education thinking I might have children and would trust my own teaching ability over anyone else’s. Didn’t have kids, but that masters turned out incredibly useful for teaching adults. They, too, need to be entertained while learning.
It’s not a “Chinese-based educational opportunity”. It’s Chinese investors investing in private equity trying to profit from daycare by lobbying out individual daycares and replacing them with monopolistic chains with high costs and worse service.
And they speak Mandarin, the sign says.
I just got laid off after PE bought the company I worked for. Almost 25 years of service. The company is bleeding employees, those that found other jobs have quit.
The shop floor was quite empty before I was let go.
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