German economy in Free universities in Germany

In a fair comparison, one might note the huge drag on the German economy that the free universities have. Students can stay in school practically forever sucking up tax dollars and providing no economic value. In America, for the most part education is about giving someone enough knowledge to make a living and then putting that person to work. It is an entirely different mentality that you are not attempting to understand.
In summary, you seem to be greatly oversimplifying all these issues with the intent of putting down the United States rather than trying to come to any sort of understanding. Of course there are problems with the US, especially its current short-sighted foreign policy, but it is not the straw man that you make it out to be.