The reason this isn’t a simple “supply and demand” issue is because a good Jewish education is not a luxury item.
In many countries, items such as basic food, housing, and medical care are subsidized and don’t completely fit in to the supply and demand model.
Without more “government subsidies” (philanthropy), the schools cannot provide the superior product which we do not consider a luxury, so following the regular rules of supply and demand, which leaves the schools staffed by inexperienced and underskilled teachers.