I will introduce free enterprise reforms in higher education. Students will be given the option of free, online sources as an alternative to high-price textbooks. Students taking free MOOC’s (Massive Open Online Courses) by first rate colleges will be given full credit towards their degree, thus greatly reducing their tuition. I will open accreditations to new educational models that recognize real world experience.
Just to make it very clear, the Haley plan for colleges is for a full transition to free enterprise. This means no more state colleges, nor government funding of colleges, nor government involvement in student loans, nor education credits though the tax codes, nor control of curriculum. Government will be 100% out after the transition. This especially means government reducing tax rates to match what they are not spending directly in the budget or indirectly through the tax code.
Our current system is greatly unfair to the poor and those that do not receive a college education. Taxes are paid by everyone and harm the poor the most. The poor are paying for others to get an education when not gaining the extra human capital, thus the extra future earning potential. Yes, this means that those currently gaining a higher education and greater income potential are being subsidized by those who are not. Free enterprise student loans link the increased earnings potential to repaying the loans.
Many people will claim that the poor will not be able to access higher education without government money. This is highly ignorant of the reality of the countless ways that people with a desire will create a way. There are countless stories of people working their way through college and emerging without debt. There are many charities, scholarships, businesses, banks, among others that will help the poor achieve higher education in dynamic ways. People recognize the value of increasing human capital and invest for future return.
Funding, regulations, accreditations, curriculums, diplomas, and certifications, among others, will be the responsibility of individuals, parents, families, colleges, banks, and Competitive Regulatory Agencies, among others, in the free enterprise system. Colleges will be businesses fully within the free enterprise system, which is very dynamic, and when people find worth, they find opportunity, and if not hampered by government, will bring that worth to realization.
If government is not funding higher education, government would require far lower tax rates, thus leaving more money for the individual or others to fund their own education. The Laffer Curve demonstrates that decreased tax rates would increase economic activity, thus more jobs and higher earnings.
People going to college have on average, higher motivation, higher IQ , higher dedication and smarter than those not going to college(on average). Is this really the group of people that needs socialism and heavy government control? Banks, colleges, charities and businesses will all be in CRA’s and will all be competing to have the best ratings on the poor having access to higher education. Free enterprise is dynamic and always finds a way.
Licenses and accreditations are protectionist policies by government and can be abused by the few politicians, thus a way to benefit cronies. Private accreditations will emerge and businesses will have to cater to customers desiring high standards accreditations. More people will come to understand how the competitive nature of the free enterprise system can handle these issues better then government. The Rating system inherent in Competitive Regulatory Agencies would be vital to informing the public of the quality of standards.
The amount of free or close to free information on the internet is overwhelming. High quality colleges put out Massive Open Online Courses (MOOCs). MOOC’s are free online courses offered by the best universities around the world. The list is long and the courses are serious and comprehensive. The biggest cost to education is the student’s time and
The old model will still be around and many new models will emerge. Imagine an example of a new inexpensive model that might be tried. Yes, there are free MOOC’s, however that is only part of the story. Trying to put together the whole package will take a lot of effort by the student. There would still be the need for many, for a ‘coach’ or a ‘consultant’. There could be low cost colleges that has most of the work done by MOOC’s and other online classes where these coaches group students and oversee their work.
Many of these would likely find businesses within their field of study that could gain real worth from an ‘intern like’ arrangement that would fund these low cost coaches. These coaches would ensure the students are achieving the required knowledge and experience to achieve certificates for their fields of study that are rated high enough to attract employers. This example is just showing the dynamic nature of free enterprise verses the hard and fast rules from government that inhibits new business / educational models.
Many people feel an increased motivation to get the most out of education when they have to pay for the classes themselves. Often, when the government or a third party pays, the student does not feel they can hold the college accountable because it is not their money paying. Yes, it always beneficial for the student to increase their human capital, however the motivation is different depending on who is funding.
Once this bill is passed, the government will create a publicly traded corporation for each government owned college or other groups of assests. At the beginning, the government will be the sole owner of all stocks. Each month they will have to price the stocks to sell off an additional one percent of the corporations. As long as the government owns the stocks in the colleges, each legislator will have voting rights for a percentage of the stocks that the government owns.
Politicians love to claim they are funding higher education or giving major tax breaks, however college tuition and other education related costs always go up faster than the average inflation, even with greater government funding. Government subsidizing education or allowing credits and deductions creates education payments through taxes, thus lifetime education loan payments on everyone.