Many claim that college graduates earn a million dollars more in a lifetime than high school graduates. This figure is grossly inflated.

We estimate that public-school teachers receive total compensation roughly 50 percent higher than they would likely receive in the private sector.

Public school teacher salaries are fair and their fringe benefits far outclass private saector jobs. In total, public school teachers are overpaid by more than 50 percent which costs governments over $100 billion annually.

What do we learn if the Thiel fellows go on to be wildly successful? That taking the most academically gifted students in the country and putting them in an awesome program flush with resources is a good idea. It doesn't tell us much of anything about whether higher education is a good investment more generally.

Many more factors figure into the cost of a bachelor's degree than just tuition. Taxpayers may contribute a substantial tax subsidy or, in rare cases, receive a moderate net "profit" per bachelor’s degree--fueling an intense discussion about the true costs of higher education and who pays for them.

Detailed return-on-investment data should be available for more schools to help students make worthwhile investments of their time and money.

It is time for straight talk on teacher compensation and sensible steps to reform the way teachers are paid and managed.

Personal and Intellectual History

Alan Johnson: You were raised in a devoutly socialist family in the 1950s, and spent your adolescence running the US young socialist movement in the 1960s and early 1970s. As an adult you have been a leading figure in the neoconservative movement. People will assume a single rupture was involved in...