Full Sail for Profit
Across the United States, public education has been under consistent assault. K-20 budgets have been cut, teachers’ unions have been attacked, political agendas have been pushed onto education, and educators have been vilified. One reason for this assault is to open up the education “market” to allow opportunities for profit. As such, the rise of for-profit schools is hardly surprising.
It is important to distinguish between the traditional private school, such as Marietta College, and the for-profit schools. While for-profit schools are privately owned, they are operated rather differently than the traditional private schools. The most obvious difference is that their main focus is profit.
There is, of course, the beloved myth that the profit motivated private sector can out-perform the allegedly inefficient and bloated public sector. However, an examination of the facts shows that when it comes to education, the for-profit schools often stack up poorly against public schools (and traditional private schools).
Thanks to Mitt Romney, one for-profit school, Full Sail University, has become somewhat well known. While Romney praised this Florida school (whose chief executive is a major campaign contributor) while in New Hampshire, a look at the facts will show that the school and other for-profits are not a good choice for students. For example, people who graduated from some Full Sail programs are defaulting on their college loans at a rate of up to 60-75%. The government has pushed for for-profit schools to achieve a graduate loan repayment rate of 35%, which is hardly an onerous requirement. As for why Full Sail graduates have a relatively poor repayment percentage, the average debt of a graduate is 300% to 800% of her income. To be fair to Full Sail, students at public schools are also graduating with significant debt, which provides an excellent reason to be critical of the cost of education in general.
The Obama administration has attempted to set regulations for repayment benchmarks and income-to-debt ratios for for-profit schools. Schools that could not meet these would no longer be eligible for federal funds. However, these regulations were struck down in July of 2012. Interestingly enough, public schools are often being subject to intense scrutiny from state legislatures. For example, Florida public universities have gotten considerable attention from Governor Rick Scott and the legislature. The professed reason is, of course, to ensure that education funds are being well spent. It is, of course, a point of concern that public schools are being subject to intense scrutiny while for-profit schools seem to be held to standards that are rather lower.
One obvious reply is that for-profit schools are privately owned and hence should not be subject to such government regulation. After all, one might argue, the market should decide (via the invisible hand) what education should cost and what jobs should pay. As such, if students have debts that far exceed their income, then that is just how the market works.
While this does have some appeal, the easy and obvious response is that these for-profit schools get over $30 billion a year in taxpayer funds. Interestingly, the 15 publicly traded for-profit college companies get 86% of their revenues from public money. This includes federal financial aid, the Post-9/11 GI Bill and the Department of Defense Tuition Assistance money. As such, these private companies are mostly public funded. This would certainly serve to justify the right of the state to regulate these schools. After all, they are effectively public funded institutions. This also certainly helps explain the attack on public education—the for-profits are competing with public universities for the same money and every dollar that goes to a public school is a dollar that a for-profit school does not get. Naturally, the for-profit schools also compete with traditional private schools. However, the traditional private schools are far less vulnerable to the machinations of those serving the interests of those who seek a profit focused education system.
There is also a myth that the private sector can provide better services at a lower cost. In the case of the for-profit schools, their B.A. degrees average 19% more than the cost of a B.A. at a top public university. The for-profit schools also compare unfavorably in the area of 2 year degrees—they charge 400% more than public non-profit schools. Given that the cost of public education has increased significantly (in part because of budget cuts to these schools), the for-profit schools are certainly very expensive.
Because of the greater cost, the public money that goes to for-profits yields less return than the same money spent on a public institution. Ironically, while public education has been accused of being costly, it is a far better deal than a for-profit education. Interestingly, if free-market forces were actually operating as they are alleged to operate, the for-profit schools should go out of business, given that they cost considerably more than public education. Of course, the mythical free-market is not operating here.
It might be replied that for-profit schools charge more but that they are providing more for the money relative to public schools. However, a look at how the money going into for-profit schools will reveal that this does not seem to be the case.
Based on a 2009 study of 30 for-profit companies, 22.4% of their income goes to marketing, advertising, recruiting and admission staffing. 19.4% goes to profit, which is rather impressive. In contrast, 17.7% goes to actual instruction. As such, the schools charge a great deal more than public schools and spend a great deal less on actual education. This would certainly indicate that they are not providing students with a good value for their money.
While top public university administrators are well paid (for example, the former president of Florida A&M University made $330,000 a year plus a guaranteed bonus), the CEOs of the for-profit schools have an average salary of $7.3 million, despite the fact that by objective measures they deliver an inferior product at a higher price than public schools.
The above facts show a fundamental problem in the United States. Our education system is under concerted attack with the clear purpose of redistributing public funds from high quality public and private schools to the objectively inferior for-profit schools. It is indeed ironic that Obama was attacked in September, 2012 for his 1998 remarks about redistribution. After all, the for-profit schools are the recipients of a $30 billion dollar redistribution. It is also ironic that Mitt Romney, the man who accused the 47% of Americans who do not pay taxes of being irresponsible dependents of the state has praised the for-profit schools. After all, they are growing fat on public money.
This reality is concealed under deceitful rhetoric that is used to mislead the public and garner support for what is actually an attack on the bedrock of a democratic state, namely an effective system of affordable and accessible public education.
Ironically, the way to counter the problems presented by the for-profit schools is to apply conservative principles to them. To specific, they need to be removed from public welfare, they need to be held responsible, and they need to be forced to compete in a free market (one in which their allies do not use the state to impede their competition). This situation nicely exposes the lie of some conservatives: they are exactly what they profess to hate, only on a much bigger scale.
When is Religious Freedom Not Religious Freedom?
When it is not, of course.
As part of the systematic attack on public education in Florida, Proposition 8 has been put on the ballot. While it is called the “religious freedom amendment” the reality is rather different. After all, religious freedom means the freedom to practice one’s faith without interference by the state and is already guaranteed by both the United States constitution and the Florida state constitution. What the amendment explicitly does is remove the prohibition against funding sectarian institutions with public money. The exact wording is as follows:
Proposing an amendment to the State Constitution providing that no individual or entity may be denied, on the basis of religious identity or belief, governmental benefits, funding, or other support, except as required by the First Amendment of the United States Constitution, and deleting the prohibition against using revenues from the public treasury directly or indirectly in aid of any church, sect, or religious denomination or in aid of any sectarian institution.
If the proposition passes, the Florida constitution (section 3 Article I) will read:
There shall be no law respecting the establishment of religion or prohibiting or penalizing the free exercise thereof. Religious freedom shall not justify practices inconsistent with public morals, peace, or safety. No individual or entity may be discriminated against or barred from receiving funding on the basis of religious identity or belief.
No revenue of the state or any political subdivision or agency thereof shall ever be taken from the public treasury directly or indirectly in aid of any church, sect, or religious denomination or in aid of any sectarian institution.
While the proposition is being sold as being a matter of religious freedom, the reality of the matter is clearly revealed by Florida Representative Stephen Precourt. He regards education as a marketplace and contends that “they shouldn’t be telling a group that just because you’re faith-based organization you shouldn’t be participating in the market.”
I am, of course, for religious freedom. However, religious freedom is already adequately protecting by the existing laws and this proposition does nothing to expand religious freedom. Rather, as Precourt indicates, its main purpose seems to be to allow public money to fund private religious schools. Naturally, it also would allow public money to be given to any sectarian institution. On the face of it, this would allow public funds to be used for the construction of a new church, synagogue or mosque.
I am opposed to this on the following grounds.
First, the people of Florida have repeatedly been told that the state budget must be cut because of the lack of funds. For example, the public education system has seen widespread and deep cuts. It would certainly be inconsistent to be cutting the budget in so many areas while proposing what amounts to public funding for sectarian groups. Naturally, the proposition does not specify that money will be provided, but it would allow sectarian groups access to public money that is apparently in such short supply. Given the existing budget cuts, this is hardly something we can afford.
Second, as Precourt has indicated, the actual purpose of the proposition is to allow public money to fund private sectarian schools. It seems reasonable to infer that there are already plans to direct education funds from public schools to these private sectarian schools. If this occurs, this would do additional damage to the already weakened public education system. This would, of course, be detrimental to society. After all, as Jefferson and other founders argued, a public education system is a foundation of democracy.
Third, there is the obvious concern that certain sectarian groups will be able to avail themselves of the opportunity afforded by this proposition while others will not. For example, consider the chances that a Christian school will be funded and then consider the chances that a Islamic school or an atheist school will be funded. As such, there are legitimate concerns that the proposition would result in the state supporting specific sectarian groups at the expense of others, which would certainly be a problem.
Proponents of the proposition contend that it is necessary because sectarian organizations are currently being discriminated against on the basis of their being sectarian rather than secular. I have two responses.
First, sectarian organizations currently receive state funds to support their secular public programs. As such, when sectarian groups are engaged in the secular sector, they are as entitled as any other group to public funding. It hardly seems unjust or discrimination to not fund the specific sectarian operations that are not in the secular and public realm.
Second, sectarian groups do get treated with discrimination. However, it is discrimination in their favor. To be specific, sectarian organizations benefit from being tax exempt, at least in certain areas. This, it could be argued, would counter any alleged discrimination when it comes to public funds. After all, if sectarian organizations are content to not pay taxes in regards to the sectarian aspects of their operations, then they should hardly expect the state to help fund those sectarian operations.
As such, I am voting against proposition 8 and I would recommend that you do so as well. Assuming, of course, you can vote in Florida.
Mittens
Envy & Class Warfare
This concise work is aimed at presenting a philosophical look at economic disparity in the United States. Since this is a truly massive topic, this work is focused on specific aspects of this matter and is divided into sections based on these specifics. As might be imagined, I make no pretense of covering all aspects of economic disparity. Rather, I am focusing on matters that have tended to be at the forefront of the political debate in the United States in recent years. My overall objective is to provide a rational and unbiased (at least as far as that is possible) examination of these matters. My main hope is that this work will be of some use to the reader in sorting out some of these matters and in getting an enhanced understanding of the issues. I also hope to help the reader develop a better defense against some of the rhetoric and fallacies that are used all too often in the place of proper arguments.
Being a rational person (well, at least some of the time) and a philosopher I am open to the possibility that I am wrong in my view and in error in my arguments. As such, I invite people to present critical assessments of my work. My commitment is not to any specific agenda or ideology, but rather to the true and the good.
The work itself is divided into distinct sections. The first section, Economic Disparity, is a very brief look at some areas of economic disparity in the United States. The second section, Taxes, examines taxes from a philosophical perspective. The third section focuses on corporations—which might or might not be people. Fourth, I turn to the matters of class and class warfare. Not to worry, the revolution will be televised. Fifth, the state, democracy and the common good will be discussed. The book ends with envy, avarice and rhetoric.
Migrant Professors
Many years ago I was running with a friend of mine who is also a professor. We were talking about the fact that university faculty in the Florida state system generally have nine month contracts and hence are effectively unemployed in the summer. We also talked about how the adjunct faculty had it far worse: they tend to work on a course by course basis and have no job security beyond the need to have them teach classes. My friend said that this was somewhat like being migrant workers— working part time and moving from job to job without any security and with terrible pay. Naturally, the migrant professors, as my friend called them, have it somewhat better than migrant laborers who pick crops and do other such backbreaking work for pitiful wages. However, the comparison seemed apt.
At my mother’s suggestion I did try my hand once at picking blueberries for extra money. When she was a kid, this was something commonly done by the Maine kids. But this was apparently before the days of cheap migrant labor and, as we found out, things had changed. My sister, her friend and I gave it a shot, but we did not make it through a full day and ended up in the hole because someone stole our rakes and baskets. It was the worst job I ever tried.
Years later, I started my academic career as an adjunct professor. I taught four classes each semester for $2,000 per class and had no benefits or job security. The next year I was hired as a visiting professor and made $30,000 for the year—plus benefits. After three years of that, I was finally hired into a tenure track line. Though I am a tenured full professor, I certainly have not forgotten those adjunct days. It was not as bad as raking blueberries, but it was a lot of work for very little money and it felt a lot like that blueberry day, although it lasted for an academic year.
During this time, it was common for my university to rely heavily on adjuncts. There was, however, an effort made to hire full time faculty and this met with some success. However, there are still many classes taught by adjuncts and other universities rely very heavily on adjunct instructors who are treated as migrant laborers in the academy.
Like migrant laborers, the migrant professors are poorly paid. Back in 1993 I was paid $2,000 per class, making $16,000 for the eight classes I taught over the school year. In 2010, the median salary for adjuncts was $2,700 per three credit hour class. The low was $2,235 and the high was $3,400.
Like migrant laborers, the migrant professors generally have no benefits. While there might be some exceptions, adjunct (or part time, although “part time” might actually mean teaching what would be a full time number of classes) faculty typically do not get health coverage from their employers or other benefits. When I was an adjunct, I was fortunate to be young and healthy, but a major medical problem would have ruined me financially. The same is no doubt true of other adjuncts.
Like migrant laborers, the migrant professors typically have to travel from workplace to workplace to make their living. One of my colleagues, who has a doctorate and years of experience, typically teaches at my university, Florida State, and Tallahassee Community College. He has to rush between classes to get from school to school. His situation is not uncommon—other adjuncts I know teach at both universities in Tallahassee, the community college and other colleges in town just to make enough to live on. Some even travel about the county from job to job, literally acting as migrant laborers. While regular faculty have offices, phones and computers, adjuncts sometimes do not. They might, for example, be assigned a room for office hours and have to get the department office manager to open the door for them because they are not given a key.
Unlike migrant laborers, the migrant professors are highly educated professionals who are doing jobs that normally pay full time employees reasonably well. To use an analogy, the situation of adjuncts in higher education is comparable to what it would be like if hospitals employed adjunct doctors. The adjuncts doctors would have their medical doctorates, perform surgery, treat patients and so on. That is, they would be just like the regular doctors except that their pay would be a fraction of what the doctors received and they would have little or no benefits or job security.
As might be imagined, this terrible disparity in pay is rather unjust. After all, the adjuncts are being paid far less for doing the same work and they are generally just as qualified as regular faculty. It would, of course, be another matter if adjuncts were far less educated or did work proportional to their pay. However, this is not the case. As such, the treatment of adjuncts is clearly wrong.
Naturally, those employing adjuncts have a good reason to use them: they do professional work at a fraction of the cost of hiring regular faculty and they can be terminated simply by not re-hiring them next semester. It is also not uncommon for universities to hold off providing an adjunct with a contract until two or more weeks into a semester—that way they can be sure that the class with fill and that the money is available. An adjunct without a contract can typically and unfortunately just be let go. I have seen this happen—people working for two weeks, then being told to not come back for week three. This is unfair as it hardly seems unreasonable to be able to tell a person in advance whether or not they will be teaching that semester. Obviously enough, the failure to pay an adjunct for the time worked would be theft, although this does happen.
One irony of the plight of adjuncts is that the students they are teaching will generally increase their earning potential significantly by getting a college degree. In fact, the college graduates will most likely end up making more per year than the adjuncts who taught them.
One rather obvious question is why adjuncts put up with the terrible conditions rather than simply getting a job elsewhere. While in some cases people do admit that they have been unable to get a job elsewhere, the majority of adjuncts I have spoken with (and I have met many over the years) make it clear that they love teaching and that they are willing to live with horrible salaries to do what they love to do.
Naturally, this claim might be doubted. However, this sort of attitude holds all through teaching, from K through the graduate level. After all, people who have the degrees needed to teach could make much more money working in other professions, yet they choose to remain in academics. While they might have some other reasons, it is most often because they believe in what they are doing and like teaching.
Unfortunately, this love is being unfairly exploited and little is being done to address it. In fact, the current trend in public education has been towards cutting budgets and for educators’ unions to be subject to concerted attacks. As such, it seems likely that the situation in higher education will worsen. This suggests that there will be an increase in the number of adjuncts (some universities are 33-55% adjunct faculty). Oddly enough, education costs continue to increase—but you can be sure that this money is not going to paying adjuncts properly.
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