Inherent, interrelated, and structural biases against excellence in education that operate at the university and school levels in the American educational system are discussed in this paper. Structural constraints of the American secondary system include universal secondary education, comprehensive school organization, downward coupling, local control, and local monopoly. A limitation of higher education is its bias against teacher education. Restructuring efforts must therefore examine current institutional arrangements prior to attempting change at the individual behavioral level. An overview of Japanese education concludes that American shortcomings in secondary education are rooted in a lack of differentiation and competition. A recommendation is made to stimulate diversity through increased student tracking, comparative ranking of schools, and competition among them. Propositions for higher education include integration of teacher education into academic life and inclusion of a variety of teacher training modes. Thirty-seven notes are attached. (LMI)