On 10/12/2011 3:52 PM, David Shemano wrote:
>
> I agree that these "for profits" are, on average, scams.  But
> it is not their "for-profit" status that is the problem.  I am
> surprised a sophisticated leftist would look at "Joe's
> Vocational School" and Harvard and say one is for-profit
> because one has shareholders and the other is not for-profit
> one does not have shareholders.  Harvard is a money-making
> machine.  The fact that the profits don't go to shareholders,
> but instead go to administrator salaries, nicer faculty
> lounges, more real estate acquisitions, etc. doesn't change
> that it is very profitable, and it is profiting from the
> buckets of money provided by the government no differently than
> Joe's Vocational School.

This is absolutely correct.

At some point I had kicked around the idea of a book on Bard 
College, the 5th most expensive school in the country and my alma 
mater, focusing on Leon Botstein's insatiable expansionist 
appetite. I have chatted with people in the budget office here 
(more technical than executive) about what makes a school follow 
these expansionist imperatives. Why couldn't Bard have stayed a 
nice little liberal arts school of 500 students? Why is Columbia 
created a huge expansion in Manhattanville? I can understand the 
logic behind Apple Inc. and General Motors but what kind of 
Marxist economic principles explain the transformation of American 
colleges and universities into such behemoths?
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