this post was submitted on 20 Aug 2023
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Welcome to the Australian Government!
Their logic is "it gets people out of the public system to take burden out of the public system". Neglecting completely the economies of scale that would be involved if the public system got all of that funding.
They have a similar attitude towards education. Private schools get a lot of funding (though thankfully not the scammy consumer-side incentives) from the government on the theory that they take students out of the public school system.
"Welcome to capitalism!"
FTFY