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Category Archives: Economics

Golden Eggs and Geese

Posted on November 7, 2011 by Ray Watkins
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My school, and my superiors particularly, have got some bad press recently (“A Chain of For-Profit Art Institutes Comes Under Scrutiny“). I think, as I have said before, that we in the for-profit industry ought to welcome increased scrutiny and regulation.  We’ve grown quickly in the last 15 years because we filled a gap in the education system that the public institutions ignored. The next 15 years will be different.

I think that the age of Reagan– characterized by a freakish worship of markets and profits– is rapidly coming to a close.  Not all markets are going to be equally regulated and no doubt some insidious ideology of the Reagan kind will always be with us. But the free wheeling days are over. I also think online for-profit eduction is likely to be one of the poster kids for the new age of regulation. That’s one major change.

Another change is that the public institutions are, at least in some cases, returning to their historical mission of proving an affordable education to a wide audience. That too will happen only unevenly and inconsistently but  it will happen. In the next 15 years, then, for-profits won’t be able to recruit as aggressively and its claims about results will come under increasing scrutiny. Soon enough, too, we’ll have real public competition.

If we are going to survive in this new environment, and keep our geese alive, we need to be the poster child for long-term thinking in capitalism. A good analogy might be to the for-profit medical systems’ (admittedly uneven) embrace of preventive medicine.  We need to invest in teachers– that means full-time faculty with job security– and in developing the professional networks that will add substance to our claims.

 

 

 

Amplify

Categories: Economics, Professional

Debt Forgiveness

Posted on October 26, 2011 by Ray Watkins
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I was sorry to see that a recent Rasmussen poll which reported that 2/3′s of Americans oppose full forgiveness for student loans (“66% Oppose Forgiveness of Student Loans“). That contrasts sharply with Obama’s announcement limiting loan repayment to around 10% of income for 20 years before forgiveness (President to Ease Student Loan Burden for Low-Income Graduates“).

Or maybe the contrast only suggests Obama’s tedious sense of caution… Either way, I think we need to do a lot more work in putting student debt into the context of the ongoing destruction of both class mobility in general and the middle class standard of living in particular.  It’s part of the same conservative economic world that brought us the housing crash, the European debt crisis, and the seemingly unending recession.

The Reagan ideology said that the market could do no wrong and wildly privatized and deregulated anything and everything. The result was inevitably the same: a radical concentration of power and resources into the hands of a tiny majority. The ruling class succeed beyond its wildest dreams. The problem, of course, is that they are killing the goose that laid this golden egg. It’s time to start to de-concentrate power and resources.

Amplify

Categories: Autobiographical, Economics, Professional

Transparency and Hypocrisy

Posted on October 24, 2011 by Ray Watkins
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It seems pretty obvious that posting professor salaries online, as Florida Governor Scott has done (“Posting of profs’ salaries online draws scrutiny“) is an act of aggression against what he no doubt sees as his natural enemies in the academy. It’s part of a long-term campaign to disparage public employees, and, no doubt further weaken academic freedom of speech and tenure.

The governor fails to mention, of course, that the majority of teachers are either adjuncts or part-time. The salaries don’t seem particularly exorbitant, either, and are below the national average. As the article notes, too, the information is inaccurate in some cases, because the highest paid professors are not professors, they are administrators, like Neil Fenske, who’s paid more than a million a year.

Amplify

Categories: Economics, Professional, Union

A Win for the Tortoise

Posted on October 19, 2011 by Ray Watkins
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The ongoing race between the for profit universities– the nimble but greedy rabbits– and the public universities–slow but steady democratic tortoises– crossed a landmark when  St. Leo’s University moved its online education system back in-house, dropping its long-standing outsourcing arrangement with Brisk Education (“We’ll Take It From Here“). We can hope that  privatization is slowing down.

As the article notes, many of the outsourcing contracts were long-term and relatively few have come up for renewal until recently. I think that as they do the public university system is going to be increasingly willing to follow St. Leo and other schools as they realize that what once seemed too alien and new now seems commonplace.  Outsourcing is about politics not expertise; public money needs to stay in the public system.

Amplify

Categories: Economics, Professional

You’ve Been Schooled: Class War, Class Struggle

Posted on October 12, 2011 by Ray Watkins
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A few years ago,  maybe less, the big insult from the right was to call Obama, or anyone they did not like, a socialist. It drove anyone who was literate nuts, simply because the Obama administration was nearly as far from socialist as you could imagine, at least in the traditional sense.  Arguably, something  had to be done less capitalism implode, but would a socialist spend all or most of his time saving the banks?

That doesn’t even take into account the endless wars and illegal assassinations and the cowardly abandonment of single payer health care and the endless compromises. Obama has certainly accomplished some amazing things but he’s not used the crisis to move the country in a decisively new direction. Clinton was Reagan with a (slight) difference and Obama is Clinton’s Reaganomics with a (slight) difference.

The socialist charge hasn’t disappeared but it’s been overshadowed by the latest charge: class warfare.  This too ought to drive anyone in education and anyone who’s educated nuts. It’s not simply that there’s no war, or implied violence. It’s that this idea serves is, in effect, a denial of the reality of capitalism as an ongoing class struggle over resources and power, not necessarily in that order. It’s not war but it is a struggle.

The last thirty years or so have shown that if ordinary people don’t respond to the struggle with their own struggle, resources and wealth tend to concentrate at the top.  It’s incorrect to think of this in terms of individuals, aka the millionaire’s tax. Instead this has to be thought of in terms of how resources and power are distributed and as a result what sort of society you want to create. That’s the real question.

That’s what the Occupy Wall Street reaction– it’s not  yet a movement–is about. Do we want a morally sound society in which everyone has access to food, health care, and education as a human right? If we do, we have to accept limits on the ability to accumulate resources and power.  That’s the discussion the Occupation has begun. I think the proposed limits in Obama’s Jobs Bill is a good start, but only a start.

Amplify

Categories: Economics, Professional, Uncategorized

Occupy the Left

Posted on October 10, 2011 by Ray Watkins
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I’ve watched the Occupy Wall Street folks, as well as their education analog, Occupy Colleges, and I have to say that I am a little surprised at the seeming reticence of much of the “usual suspects” left. I think a lot of us feel either confused– we’re taking a wait and see attitude– or simply unwilling to tinker– even only rhetorically–with what might be a genuine and growing popular uprising.

Doug Henwood has a nicely cogent analysis that suggests that an authentic movement should be, in effect, rudderless, at least for a while.Robert Reich has pointed out that it’s going to be difficult for the Obama led Democratic party follow the lead of the protesters, simply because Wall Street has done so much to support the current administration. I think the left, maybe especially the educational left, needs to start talking.

We’ve been thinking about these things for years, and I think we have lots ideas that might be put high on the educational agenda if the movement begins to enter what Henwood calls “another stage of more organization and specificity.”  I know I have more than a few. In the long run, we need to figure out how regulations–tied to federal aid– can address the rise of administrative costs and the loss of full-time tenured positions.

In the short-term, we need a student deb forgiveness plan that has real substance.  I think this could have several possible components. It has to include a switch  to a grant based system that would prevent debt in the first place. Another part might be a drop in interest rates on all current loans to 1% as suggested by the “Reduce the Rate” people. Last we need a 100% forgiveness program for anyone in public service.

Amplify

Categories: Economics, Professional, Writing
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    Get my book at Southern Illinois University Press, Amazon, or Powell's Books.

     

    The C.C.C.C webpage, A Taste for Language: Literacy, Class, and English Studies includes a short podcast interview with me along with links to these reviews:

    ... by Victor Villanueva in CCC 62.4 (June 2011)
    ... by Chanon Adsanatham in Teaching English in the Two-Year College 38.3 (March 2011)
    ... by Scott McLemee in Inside Higher Education (17 Feb 2010)

    Note: you need to be a member of NCTE, and a subscriber to the relevant journal, to read the reviews by Villanueva and Adsanatham; the review by McLemee is available to the general public.

  • Reading

    • 'Change.edu' and the Problem With For-Profits - Commentary - The Chronicle of Higher Education 2012/02/01
    • Jonathan Franzen: E-readers are 'damaging to society' - CSMonitor.com 2012/01/31
    • The Time is Now: Report from the New Faculty Majority Summit | Inside Higher Ed 2012/01/31
    • MIT Mints a Valuable New Form of Academic Currency - Commentary - The Chronicle of Higher Education 2012/01/26
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