Earlier this week, President Barack Obama announced a series of major reforms to the American public education system. In an address to the Hispanic Chamber of Commerce, he proposed increased spending for the hiring of new teachers as well as greater funding for Head Start and other early childhood education programs. Especially promising, his plan would institute merit pay for teachers in up to 150 school districts, lift the limits on charter schools that exist in some states, and make it easier for schools to fire underperforming teachers. We are encouraged by President Obama’s commitment to the innovative policies he proposed during his campaign and are pleased to see his willingness to challenge teachers’ unions—a key Democratic constituency—in the pursuit of a better education for young Americans.

The quality of public education in the United States, on average, is lackluster. Though math and science scores are up nationwide, study after study still finds that students in U.S. schools underperform compared to students in many other developed countries. Teachers’ poor classroom performance is thought to be a major cause of this education gap, and President Obama has wisely identified teachers’ pay scale as a main determinant of teacher quality. Currently, teachers’ compensation is largely based on their seniority. After teachers gain tenure at a school, their salary steadily increases over time, and they become nearly impossible for administrators to dismiss. This system discourages teacher effort by removing the financial incentive to work harder. Furthermore, college graduates who might otherwise pursue a career in education are discouraged by the fact that greater effort does not result in a commensurate reward. This accommodation pleases teachers’ unions and their members, but at the expense of the students they teach.

Merit pay would go a long way toward correcting this imbalance. Under the system President Obama has proposed, teachers whose students show significant improvement would be eligible for performance-based bonuses. This is only fair: A higher quality of work should be rewarded with greater pay, just as it is in nearly every other career. Merit pay incentivizes greater teacher effort, encourages high-achieving college graduates to become teachers, and makes it easier to identify the worst teachers and fire them. This improves overall teacher quality and benefits students in the end.

Charter schools are another important tool in fostering higher levels of academic achievement. They offer smaller class sizes, more rigorous course loads, and provide students with a viable alternative to failing public schools—placing additional pressure on these schools to improve in response. They also act as “laboratories of innovation,” according to President Obama, in turning out new education methods. Many large cities, including New York and Los Angeles, have seen significant improvement in education quality thanks to the proliferation of charter schools. Illogically, 26 states cap the number of charter schools that can be operated within their borders. President Obama’s plan would lift these limits, which, in his words, are “not good for our children, our economy, or our country.”

Teachers’ unions have a vested interest in preserving the status quo. They fear that merit pay and charter schools will make teachers more accountable for their performances and put the unions’ worst members at risk of being dismissed. This perverse incentive has stymied Democratic politicians’ efforts at school reform for decades. But President Obama’s refusal to kowtow to a powerful lobby, even if it forms a strong base of support for his party, demonstrates his independence and desire to put campaign promises into action. This is encouraging for the state of education in this country.

Our economic strength tomorrow depends on the quality of education American children receive today. President Obama’s proposals represent a courageous effort to put the needs of the next generation ahead of the demands of a special-interest group. We hope that Congress will share his enthusiasm for reform and back the president’s commendable proposals. Though teachers’ unions may sulk, the Obama education plan has the potential to erase the culture of complacency that pervades too many of our schools. For that, it deserves a gold star.