I just don't think I can agree with Gatto's main premise that schools aren't educating students or that a formal education serves no purpose in the modern world. We have seen world wide that schools are THE most effective tool for lifting people out of poverty. We also see that the countries with the best schools are dominating the world economy. There are also plenty of counter examples we can find: entire countries…
What does this even mean? The US spends more an education than anyone else and it dominated the world's economy because it's blown up everyone else who tried. This is a tautology. The countries with the schools people who rank schools like best are ranked best. That doesn't mean they are actually best.
Schooling absolutely helps people get out of poverty. But that doesn't mean it's the type of school that dominant in the West. We have a school and university system that's extended day care and teaches both incredibly slowly and way too fast. With smaller classes we could reduce the 12 years of schooling the average child gets today to 4. We never will because the parents don't know what to do with them and there aren't any jobs for 12 year olds.