[lbo-talk] The Corporate Scandal of Higher Education

[michael perelman]

I have been meaning for some time to offer a series of posts about the 
plague that is devastating education, even though education is supposed 
to fuel economic growth.  I was stirred to stop procrastinating by a 
note in yesterday's Wall Street Journal, which reported that the 
Washington Post's Kaplan "education division, which accounts for more 
than 60% of total revenue, increased 15% to $747.3 million. The bulk of 
Kaplan's revenue comes from the higher-education unit, consisting of a 
group of for-profit colleges that primarily offer certificate, 
associate's and bachelor's degrees."

I am going to start out with a shocking piece from the New York Times, 
which describes the enormous salaries given to presidents of elite 
universities to serve on corporate boards.  Administrative salaries 
alone should be enough to create an outrage now that money for teaching 
is drying up.  These presidents might be expected to offer a patina of 
respectability for the corporations.  Even more, presidents, who want to 
keep their lucrative board positions, will be careful not to offend 
corporate America.  Others who want to have comparable money thrown at 
them will be equally careful.  Here is the article:

more at

http://michaelperelman.wordpress.com/2010/08/09/the-corporate-scandal-of-higher-education/

-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com