Market Myths

The US health care system is 2.5 times more expensive than the nearest competitor for inferior overall outcomes. A UK Treasury study of “private financing initiatives” showed they typically added 40% to the cost of public services. Academic publisher Elsevier’s 37% profit margins are a big reason why its articles cost 8 times more apiece than do their open source equivalents. And of course the Cameron government’s massive cut to British universities resulted in an immediate, nearly-universal tripling of fees and a likely increase of 100 billion pounds to public debt.

MOOCs and Parking Lots: Privatization on Auto-Pilot,” Chris Newfield

As a kid, I loved the Greek Myths. I am not completely sure why– I wasn’t a natural scholar or anything, and there was nothing systematic or intellectual about my interests. I think I just liked the idea of a world that included these supernatural beings. I have the same feeling now when I watch Dr. Who. I don’t have to believe in the good Doctor– literally, as my students would say– in order to take pleasure in the idea that he exists.

I think the market has a similar role in the lives of a lot of people. If you think about it, or do some reading, you quickly find out that the market is no panacea for anything. It does some things well, but even the things it does well have very high costs, many conveniently hidden. Apple brought us the I-phone, but behind the technology lies an entire world of exploited labor and environmental damage, among other things.

At some point– reading Yeats, I think– I discovered that the Greek Myths also included the rape of Leda by Zeus in the form of a Swan. It’s a freaky and disturbing story. We need a similar sort of story for the people who believe in markets. The market is comforting because we want to live in a world that sorts itself out automatically, that settle into fairness in the way a dog settles down to sleep. The market story is pleasant and utterly impossible.

The All Too Visible Hand of the Market

The technological transformation of education has wide-ranging political implications. Blended learning may not eliminate the need for classroom instructors, but it will reduce the numbers required. Over time, the reduction will significantly reduce the amount of dues raised by teachers unions—and therefore the influence of one of the most liberal constituencies within the Democrat Party. It will also reduce the manpower available at election time to canvass neighborhoods, cover phone banks and drive people to the voting booth in support of left-leaning candidates.

The Hidden Revolution in Online Learning,” Lewis M. Andrews

We talk about the economy as if it were a force of nature, without any intention or direction or purpose. Jobs are “outsourced” or moved overseas and so on. In fact, the industries most impacted by these processes are by no coincidence the same industries– steel, automobiles particularly– that were most unionized. The Reagan revolution fought unions at the root: it dismantled entire industries sending everything to places where labor is cheaper.

This had horrific effects ranging from driving down wages and productivity and quality of life in the U.S. to weakening national security to the growing deficit. That was simply the price to be paid for increasing profits; capital has no morality or ethics. You can see the same sort of dynamic in the current debate over austerity: if it has any impact on the wealth of their masters the Republican right is willing to risk everything. Power is all.

The last bastion of the unionized economy is the public sector, especially the schools, which have long been under attack by the charter movement. Here, too, if the entire sector has to be dismantled to maximize profits and destroy unions, so be it. The crude economic motivations of these folks are rarely discussed as openly as Mr. Andrews does in this piece. Here we see the outlines of how online education will serve the right’s cause.

Arguably, the process is well under way in higher education, on both ideological and more practical fronts. The right is perhaps best served by a kind of ideological naiveté which believes that the liberatory potentials of online education outweigh its political import. The dismantling of higher education is well underway, too, with about 70% of the faculty now part-time adjuncts. As Andrews hints, the industry is ripe for the picking.

The Best for the Rest

Average folks and higher education researchers have conflicting views of academia. Average folks believe that most college teachers are tenured professors and that most students are residential students who play ultimate Frisbee on the quad. Higher education researchers have a different view. We know that most teachers are actually part time adjuncts and graduate students. Residential college is for the top of the pool. Most students are part time commuters or community college students. The mistake that people make is that the most visible forms of higher education (e.g., elite research universities and liberal arts schools) are the most common.

orgtheory by fabiorojas, as quoted by Vanessa Vaile

Here’s the thing. If you take unions, and to a lesser extent, faculty governance, completely out of the picture you end up with a version of higher education that fabiorojas, in this post, calls “the best and the rest.” In other words, you get a system which has fully abandoned the goal of an educated society, and that no longer believes that scientific literacy is crucial to the future of human society. It’s a vision of utter powerlessness.

Instead, you get a system in which, as fabiorojas, says, a small minority of students “want genuine engagement and learning.” It’s expensive, though, and only available to the socioeconomic elite. That’s the best; taught by tenured faculty. The rest get “a credential and some basic vocational instruction.” That can be done on the internet, or at junior colleges, or community colleges, taught largely by adjuncts and graduate students.

I think fabiorojas is wrong on at least two counts. Humans, including teenagers, are seekers, programmed to be curious and interested in knowledge and understanding. If the system made some sort of sense, I think lots of people would choose, at various points in their lives, to immerse themselves in knowledge for a time. I also think the writer is wrong insofar as he or she implies that our current system is a tenable– or even stable– state of affairs.

Democratic culture won’t survive unless we continue to expand intellectual literacy. We can’t make good decisions otherwise; technological culture isn’t going away. In the U.S. fewer than 1/3 of us have undergraduate college degrees; that needs to double and then triple and it needs to happen sooner rather than later. It won’t happen, on or off-line, unless teachers put their own power back into the equations in the form of aggressive, unionized faculties.

Lemonaide

As income and wealth become ever more concentrated in America, the nation’s billionaire political investors will invest even more.

A record $6 billion was spent on the 2012 campaign, and outside groups poured $1.3 billion into political races, according to data from the Federal Election Commission and the Center for Responsive Politics.

That’s why Citizens United v. the Federal Election Commission has to be reversed – either by a Supreme Court that becomes aware of the poison it’s unleashed into our democracy, or by constitutional amendment.

It’s also why we need full disclosure of who contributes what to whom.

And public financing that matches public money to contributions from small donors.

Most fundamentally, it’s why America’s widening inequality must be reversed.

Why Billionaire Political Investors Will Keep Pouring Money Into Politics — Until They’re Stopped,” Robert Reich

Last night, with the help of more of these billionaires (in this case, the Koch brothers) Michigan’s legislature passed a right to work law, almost in full secrecy, and the governor signed it within hours, as if there was some danger that the ink would fade before he got his pen on it. The sneakiness is the point; these folks are afraid of their own constituencies. As always with the right, if the problem is democracy, dump the democratic process.

Or, perhaps, they are afraid of people more powerful than their citizens: those billionaires again. The right has been working on this for decades now, starting with the election of Reagan and the destruction of PATCO. The billionaires seed the state legislatures with right-wing legislation, written through ALEC, and they push astroturf Tea Party candidates to make sure they have the votes to get their laws passed. It’s a nearly ideal system.

We managed to stop one of them from becoming president, but that single presidential election, and even the gains in the Senate, or even in the Michigan legislature, can’t overcome the billionaires’ political machine, which rolls on, seemingly unaffected. As Riech says, they won’t stop until something makes them stop. He puts his faith in the Supreme Court, or a constitutional amendment. I think the only real hope lies in well-organized people.