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Education could be a force for inequality just as well. Especially when the government chooses just to simulate public interest.

From Salon.com:

... Everyone in the age of inequality knows that the purpose of a college education isn't to benefit the nation; it's to give the private individual a shot at achieving a High Net Worth.

Agreeing upon that, everyone from state legislators to the Secretary of Education naturally began to ask, Why should I pay for someone else to get rich? Those people need to foot the bill themselves.

[...] Werth quoted an administrator from Lehigh University who put the new philosophy succinctly: "If it's going to be a world of haves and have-nots, we sure intend to be among the haves."

That is the offer our ever-more expensive colleges extend to their students as well: in a world of rich and poor, the only choice before you is whether or not you intend to purchase a place among the haves. And these days even the once-sanctimonious New York Times runs stories openly treating the most expensive colleges as brands, as class signifiers.

Economists who write about class issues usually depict higher ed as a force for solving the inequality problem, not for making it worse. Other big thinkers tell us that universities are fountainheads of innovation and creativity, the only things we really have going for us as a nation. Those attitudes, plus the amazing deference our professional and political classes feel toward the hallowed groves of academe, probably explain why this industry has been able to get away with 30 years of something close to price gouging, a practice that would never be tolerated from any other provider of life's necessities...

by das monde on Wed Jun 11th, 2014 at 05:15:10 AM EST
.. a practice that would never be tolerated from any other provider of life's necessities...

This bit had me in stitches. There is no price gauging in health care? Aren't the laws Enron bought still in place in California? Has the author never heard of PPPs? Price gauging is everywhere.

by generic on Wed Jun 11th, 2014 at 05:25:00 AM EST
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Price gauging must surely occur, if that means judging what price the market can bear ...

... but it could only be price gouging if for whatever reasons the market can bear a price well over the price required to continue providing the service.

In education rgar mostly consists "cost gouging" ~ upper administrators in particular setting up conditions in which they "have to" be given pay increases "so we can talk to big contributors as relative equals" (for instance) ... which then means that the conventionally necessary cost for the managerial overhead of the University experiences rampant runaway inflation over time.

And, yes, of course, there is rampant cost gouging of that kind in the production of quite a lot of Basic Needs.

Basic Needs are, indeed, especially attractive to both their producers price gouging, and also to some in-group deriving income from their producers cost-gouging, precisely because their price elasticity tends to be rather low.

Or, when the price of a luxury rises, you stop buying that luxury. When the price of a necessity rises, you stop buying some other luxury. Or, IOW, one way to get rich is to control the water supply during a time of drought.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Tue Jun 17th, 2014 at 02:20:40 PM EST
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