The United States democratic system includes characteristics of capitalism as well as socialism. Perhaps the most socialistic endeavor of the US is its K-12 public school system; in fact, US public schools are necessary for democracy to thrive and to create an educated and well-informed populace. However, capitalism and socialism are strange bedfellows. The soft underbelly of capitalism--greed--has become a problematic influence for K-12 schools. This paper examines the history of US public schools and the influence of capitalism focusing on problems associated with greed at the individual and corporate level. [For the complete Volume 15 proceedings, see ED574185.]