Tag Archives: responsibilities

Price Fixing

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And this time it’s by the Republican caucus in the House. Among the moves they’re making in the reconciliation bill currently being debated in the various House committees is a badly needed move to reform the cost of college/university education and so improve the value of that education. The goal is to hold colleges accountable for student outcomes and curb the open-ended loan buffet.

The specific plan under consideration, though, is a terrible idea.

The House would reduce the aggregate limit for undergraduate loans to $50,000 from $57,500. The bill would also impose a $100,000 borrowing limit for master’s degree and doctoral programs and $150,000 for professional programs like law degrees. Graduate student loans are currently uncapped.

This is just price-fixing by another name, though, and worse than not addressing the underlying problem, it hides—like any price-fixing scheme does—the true costs and gains of the services being offered.

Better, and more efficient, would be to let free market forces solve the problem. I’ve offered this alternative before; it bears repeating, with a couple of additions.

• statutorily require colleges and universities to publish the average, median, and range of income at the five years employment mark for their graduates in each of the major fields offered
• [added] statutorily require colleges and universities to publish their graduates’ employment percentages at the five year post-graduation mark for each of the major fields’ graduates
• statutorily require student loans to be originated by private lenders or colleges and universities
• statutorily require colleges and universities to guarantee at least 50% of each loan granted their students [added:] by private lenders
• [added] bar any government or government-affiliated entity from guaranteeing any part of any student loan
• statutorily allow current and future student loans to be discharged in “ordinary” bankruptcy proceedings

With private lenders and colleges/universities having skin in this student loan game—and being the only players in the game—loans and their borrowers would be carefully screened for repayment risk. Just as importantly, prospective students and parents could better evaluate which majors to pursue and which schools best teach those majors. A happy side effect of that will be better use of us taxpayers’ money.

Demonstrating her Naked Bias

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Justice Ketanji Brown Jackson is at it again. At a recent “judges’ conference” in Puerto Rico, she said this about “relentless attacks” on judges “designed to intimidate:”

The attacks are not random. They seem designed to intimidate those of us who serve in this critical capacity. The threats and harassment are attacks on our democracy, on our system of government. And they ultimately risk undermining our Constitution and the rule of law.

So far, so good. She’s decrying attacks by the likes of then-Senate Majority Leader Chuck Schumer (D, NY) on two Supreme Court Justices he specifically named. She’s decrying the smear campaign against then-Supreme Court nominee Brett Kavanaugh.

Right?

No. She went on, speaking to judges, not those who threaten them:

I urge you to keep going, keep doing what is right for our country, and I do believe that history will vindicate your service[.]

There it is. Jackson has prejudged cases currently before activist (my term) district judges who’ve overstepped their roles and are looking to dictate foreign policy from their benches, presaging how she’ll rule when any of those cases come before the Supreme Court.

Another Alternative

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A letter writer in an earlier WSJ Letters section took issue with Allysia Finley’s op-ed in which Finley favored removing sugary foods from SNAP eligibility, characterizing Finley’s position with typical Leftist exaggeration:

[U]nder Ms Finley’s principle it would be appropriate for the government to withhold such benefits for given people unless they adhere to government diktats on such lifestyle choices as individual diets, exercise habits and so forth….

In Wednesday’s Letters section, another letter writer responded:

[T]hose who support taking sugary treats off the SNAP menu aren’t suggesting that the government monitor lifestyle choices—they’re simply encouraging the government to restrict harmful foods from the program. … Given that taxpayers are paying for that food, this would help fulfill the government’s fiduciary responsibility to manage taxpayers’ money wisely in another way: the policy would also minimize food-stamp recipients’ healthcare bills, for which taxpayers are also paying.

She’s absolutely right on this. There is, though, another alternative to the earlier letter writer’s exaggeration: if a citizen doesn’t want to have to adhere to government diktats, the citizen shouldn’t take the government’s schilling in the first place. This choice often involves hard, uncomfortable tradeoffs, but in the vast majority of cases, they’re entirely possible while in the medium- and longer-run being beneficial.

A Thought Experiment

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Our so-called “elite” universities are banding together to form a collective to resist the Trump administration’s efforts to withhold grants and contracts from those institutions that aren’t doing enough to combat antisemitic bigotry and support for terrorists, reporting what foreign money they’re receiving and in what amounts, and adequately limiting the numbers of foreign students and faculty to suit the administration.

The collective is centering its resistance on the premise that Government doesn’t get to dictate to them what their practices might be, never minding that all donors get to specify how their donations are used.

What this collective is missing is that colleges and universities have no particular right to government funds, and that government has no particular obligation to send money to colleges and universities.

Hence my thought experiment.

Consider that a large collection of private citizens get together and say to a college or university, “You can’t have any more of our money unless and until you stop doing these things and start doing these other things.”

What legal recourse would that college or university, or any collection of colleges and universities similarly addressed, have against that collection of private citizens? How is their private collective action any different from their collective action through their government? It is, after all, the same money, whether their private money given or withheld directly or their private money washed through government as tax remittances.

Americans’ Intellectual Property at Risk

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And that risk stems from President Donald Trump’s (R) alleged trade wars according to Daniel Gervais, a Vanderbilt professor and Director of Vanderbilt’s Intellectual Property Program, who should know better. In his letter to The Wall Street Journal‘s Tuesday Letters section, he wrote

The US is turning its back on the multilateral trading system it helped create after World War II, threatening Americans’ intellectual property…. Embodied by institutions such as the World Trade Organization (WTO), this system has provided stability through clear trade rules and dispute-settlement mechanisms….

And

The most important set of international rules protecting IP rights is the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights, or Trips. The agreement obligates member countries to provide IP rights, with limited exceptions, and enforce them at their borders and in national courts.

What Gervais ignored is that it is the PRC that’s been busily blowing up the global trading system ever since its accession to the WTO. Politically, the PRC ignores WTO rulings it doesn’t like, including one regarding its seizure and militarization of South Sea islands that belong to other nations and not the PRC. Specific to that ruling, the PRC is ignoring the Republic of Philippines’ ownership of—not mere responsibility for—the islands in its EEC.

Regarding intellectual property, Gervais also ignored the PRC’s assault on other nations’—particularly the US’—intellectual property and proprietary technologies. The PRC has long had (for all that the current regime recently has begun paying lip service to limiting) requirements that foreign companies partner with PRC-domiciled companies and agree to intellectual property and proprietary technology transfers that comport with PRC-mandated requirements at zero compensation beyond the privilege of doing business. These requirements go far beyond the WTO’s minimalist transfers with compensation for the transferring company.

Gervais also ignored the PRC’s long standing and extremely extensive intellectual property and technology thefts through corporate espionage.

It’s not the current administration that’s turning its back on the multilateral trading system and the WTO, it’s the PRC with its long-extant studied efforts to destroy them.