Higher education in the U.S. used to stand on its own feet, having little to do with government. Then, under LBJ, the federal government began supporting and regulating it. Inevitably, colleges and universities started lobbying for more and more favors. They rapidly learned to engage in what economists call rent-seeking, which is to say trying to pry gains out of government rather than through voluntary transactions.
In today’s Martin Center article, economics professor Richard Vedder reflects on this state of affairs. His point of departure is the recent retirement of a top lobbyist for the higher-ed establishment, Terry Hartle.
Vedder writes, “Arguably the preeminent rent-seeker in higher education, Terry Hartle, announced his retirement recently from his position as chief lobbyist at the American Council of Education (ACE). Terry is a master at the rent-seeking craft, persuasive in cajoling legislators into approving laws that lead to vast numbers of dollars being dropped onto college campuses.”
It’s all about the Benjamins these days. Colleges are able to spend far more than before and yet the educational quality they deliver has plunged.
Vedder calls out accreditation, athletics, and research as three egregious cases of waste. He continues, “All of this bespeaks the tremendous success that American colleges and universities have enjoyed in the game of rent-seeking. The numerous higher-education lobbying organizations, of which ACE is but one, will no doubt continue pushing for the money and advantages that only governmental power can deliver.”
What we desperately need is a separation of education and state.