"Here the rough manners of the wilderness should be softened, and the principles of virtue and good behaviour inculcated. The virtues of men are of more consequence to society than their abilities; and for this reason, the heart should be cultivated with more assiduity than the head." -- Noah Webster, arguing for the establishment of public schools.
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More generally, are there any institutions which serve the purpose?
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Though come to think of it, elementary schools are usually smaller than middle schools or high schools, and it seems a good chunk of the "cultural shaping" happens there.
Hmm. I'll have to look up the history and see what grades were included in what Webster was discussing. I wonder what differences there are between what folks were talking about then and what we've got now.
As for existing institutions for the cultivation of hearts ... Churches. Specifically churches and synagogues with a high degree of community participation (i.e. not ones where most of the congregation just shows up on Saturday or Sunday for service, but ones where the congregation is a community with a high degree of interaction throughout the week). Of course, those aren't state-sponsored, nor is there any guarantee that the cultural values they instill will be what the larger society outside would like to see. (I think such faith-communities mostly work out to everyone's advantage, but we all know of counterexamples ranging from "mere" propogation of bigotry and ignorance to full-blown cult behaviour.)
Other groups that seem to have the same function even if it's a secondary goal (and speaking as an outsider yet again) -- the Boy Scouts, the Girl Scouts, and Little League? Do any of those succeed?