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army1987 comments on Ethics in a Feedback Loop: A Parable - Less Wrong Discussion
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Nowhere in the story is it implied that the humans a martian will pleasantly tickle once blue must be the same ones he unpleasantly tickled when green in order to become blue.
The analogy doesn't require that the same individual human who is green-tickled is the one who's blue-tickled, but the analogy does require that the humans and Martians who green-tickle them are an analogy for the same kind of thing as the humans and the Martians who blue-tickle them. So if "humans blue-tickled by Martians" means "employers hiring educated people on an individual basis", then "humans green-tickled by Martians" means "employers paying to educate people on an individual basis". Employers don't do that--the analogy fails.
You can't just say that blue-tickling means hiring and green-tickling means paying for education, without considering who is hiring whom, and who is paying to educate whom.