The Student Loan Fiasco: Made in D.C.
The Student Loan Sunshine Act is the latest legislative attempt to crack down on student loan curruption. Straightforward as this act seems, it will fail to address the true causes of corruption in higher education. Stronger proposals, such as to bypass the private lenders altogether and have all students get their loans directly from the federal government, would be disastrous. At root the problem is massive government subsidies and regulations, and more of the same will only make the situation worse. FULL ARTICLE
Comments (4)
The reason for the outrage here is because of the public's strong desire to think of colleges (public or private) as being "non-profit". But nothing could be further from the truth. They do make profits (check out the difference between production costs and what they can charge!); they do distribute the profits; they just don't distribute them to people who count as shareholders. This leads them to maximize profits, but inefficiently. (As anyone who's familiar with educational bureacracy knows...)
If it were possible to "buy out" control of universities (like it is for even privately-held firms), inefficiencies including this would probably be stamped out a long time ago. But then, making the business-like nature of a university apparent, would be disorienting for a lot of people, and probably cost it prestige and/or accreditation.
People need to accept that universities *are* for-profit, and not act surprised when they sell out students like this, when they think they can get away with it.
Published: June 27, 2007 8:10 AM
The problem with socialism and democracy is that the combination pervades everything and eventually consumes everything. Limited government is the only way to rein in the natural laziness of the voting masses and perfidy of the ruling classes.
In fact, if the government's power were limited enough, the lazy and perfidious would have to go elsewhere for sustenance... and they would have to work -- i.e., be productive instead of parasitic. Cool, huh?
Published: June 27, 2007 10:32 AM
Large scale Federal subsidies of higher education only started in the mid 20th century (the G.I. bill) so if we define "democracy" as most people having the vote, democracy need not mean such subsides - or the explosion of costs that they lead to (just as Medicare and Medicaid helped lead to a vast increase in costs in health care).
Even at the State level some States did not have a State college system, or subsidize people going to private colleges.
As Ludwig Von Mises taught, it is the ideas that people have (not wherher they have the vote or not)that is the really important thing.
I most people want government to be strictly limited it will be. And if they do not it will not no matter what the Constitution says.
See the collapse in resistance to an expanded role for government after the elections of 1936.
The Constitution remained exactly the same - but the Supreme Court (basically) gave up.
Published: June 27, 2007 11:16 AM
Anyone can go to a Microsoft testing centre almost anywhere in the world and write the tests to achieve the MCP or MCSE certification. People can attend college lectures to prepare for these exams ot they may take the learn-at-your-own-pace approach through home study. More certifications need to be offered this way. Enthusiastic people of minimal means could upgrade their qualifications and acquire better jobs. Of course Microsoft is private . . . not state.
Published: June 29, 2007 8:07 AM