The Virginia Foxx Bill: “Protecting The Freedom Of For-Profit Schools To Suck Off The Government Teat Without Any Accountability Whatsoever Act”
Earlier this year, the U.S. House of Representatives voted to pass a bill with the impressive, everybody-can-get-behind-this title “Protecting Academic Freedom in Higher Education Act.” Sponsored by the ultra-conservative North Carolina Republican Virginia Foxx, the bill ostensibly took aim at an issue close to small-government-loving hearts: intrusive federal regulation of for-profit colleges — fast growing, highly profitable outfits like DeVry University or the online-only University of Phoenix.
Like so many of the bills passed by the House since Republicans gained the majority in the 2010 midterm elections, the bill was designed to repeal specific actions taken by the Obama administration. In this case, the issue at hand was the Obama administration’s efforts to ensure greater “program integrity” in the for-profit educational sector. Specifically, a new federal definition of what constitutes a legitimate academic “credit hour” and a new requirement that all online providers of post-secondary education be accredited in each and every state in which they do business.
Foxx’s bill repealed both measures. (The Senate has yet to address the measure.) According to Foxx, the new federal regulations threatened “innovation” in the educational sector. As reported by InsideHigherEducation, Foxx is on record as declaring that for-profit colleges do a “a better job of being mindful about efficiency and effectiveness than their nonprofit peers.” By, for example, flexibly providing online education when and where low-income working Americans want it, the for-profit free market delivers the kind of quality higher education that Americans so desperately need. The government should just stay out of their business.
I stumbled upon this story while researching the student loan crisis and at first I was perplexed. I didn’t understand why Republicans were opposed to higher academic standards for the for-profit sector, and I didn’t get the connection to student loans. But it didn’t take much research to discover what was really going on: an example of blatant hypocrisy sufficient to outrage even the most jaded observer of American politics.
The for-profit educational sector is an industry almost entirely subsidized by the federal government. Around 70-80 percent of for-profit revenues are generated by federal student loans. At the same time, judging by sky-high dropout rates, the for-profit schools do a terrible job of educating students. The Obama administration’s efforts to define a credit hour and require state accreditation were motivated by a very understandable desire: to ensure that taxpayers are getting their money’s worth when federal cash pays for a student’s education. In contrast, Foxx’s legislation is designed to remove that taxpayer protection. So here’s a more accurate title for her bill: “The Protecting the Freedom of For-Profit Schools to Suck off the Government Teat Without Any Accountability Whatsoever Act.”
The for-profit educational sector has been growing extraordinarily rapidly for the past decade: 12 percent of all post-secondary students are now enrolled in for-profit schools, up from 3 percent 10 years ago. But the main beneficiaries of the growth appear to be the shareholders and executives of the largest publicly traded for-profit schools, not the students.
- In 2008, for-profit schools registered a a graduation rate of 22 percent. (Public and private non-profits registered 55 percent and 65 percent respectively.)
- 54 percent of the students who enrolled in 2008-2009 in 14 publicly traded for-profit schools had withdrawn without a degree by 2010.
- The biggest player in the for-profit sector, the University of Phoenix, graduated only 9 percent of its B.A. candidates within six years.
The pathetic performance of the for-profit sector in delivering actual degrees becomes all the more alarming when you realize that most of the students who are dropping out paid for their educations with student loans that have to be paid back: According to a report released in the summer of 2010 by Sen. Tom Harkin, D-Iowa, “Emerging Risk?: An Overview of Growth, Spending, Student Debt and Unanswered Questions in For-Profit Higher Education,” in 2009, the five largest for-profit schools reported that government grants and loans accounted for 77.4 percent of their revenue.
The Harkin reports comes to a stark conclusion:
The Federal government and taxpayers are making a large and rapidly growing investment in financial aid to for-profit schools, with few tools in place to gauge how well that money is being spent. Available data show that very few students enroll in for-profit schools without taking on debt, while a staggering number of students are leaving the schools, presumably many without completing a degree or certificate.
It is precisely this situation that the Obama administration’s efforts to ensure “program integrity” were designed to address. Student loans are tied to credit hours: By requiring a more rigorous definition of credit hour, the administration was attempting to make sure that government money was paying for actual education. Similarly, the requirement that all for-profit schools must be accredited by the individual states in which they do business was a measure designed to keep fly-by-night online schools operating out of states with weak accreditation requirements from enrolling out-of-state students and ripping them off. The issue is not “innovation.” The issue is basic consumer protection.
One would imagine that Republicans, who theoretically oppose government involvement in the private sector, and are always looking for ways to cut government spending, would approve of efforts to seek greater accountability for taxpayer funds. Virginia Foxx, after all, was notorious for being one of only 11 members of Congress to vote against a federal relief package for victims of Hurricane Katrina, citing the “high potential for the waste, fraud and abuse of federal tax dollars.”
But as it turns out, Foxx herself is benefiting from the waste and abuse of federal tax dollars. Among the top 20 financial contributors to Foxx in the 2011-2012 cycle are the Association of Private Sector Colleges/Universities, the Apollo Group (owner of the University of Phoenix), and Corinthian Colleges. Since federal student loans comprise the vast majority of the revenues of those for-profit schools, it follows that their campaign contributions to Foxx are also made possible by U.S. taxpayers.
By: Andrew Leonard, Salon, April 16, 2012
“GOP Tax Jihad Continues”: The Enemy Within Shoots Down The Buffett Rule
To nobody’s surprise, the Senate has blocked the Buffett Rule that would have required those earning more than $1 million a year to pay a minimum tax of 30 percent.
The 51-46 vote—short of the 60 votes in support needed to bring the measure to the floor—went along party lines with only GOP Senator Susan Collins crossing the aisle to vote with the Democrats while Senator Mark Pryor of Arkansas sided with the Republicans.
While passage of the measure is estimated to bring in only $47 billion in additional revenue, the proposed law, which has been actively pushed by the Obama Administration, is viewed by supporters as fairness issue while opponents claim that the rich already pay a disproportionate share of the nation’s tax revenue.
Failure of the bill to advance is also likely to give the President a popular issue for his re-election campaign, given the strong support for the law among the general public. According to a CNN/ORC poll out today, 72 percent of the nation’s registered voters support the measure.
Expressing disappointment with the vote, Senate Majority Leader Harry Reid (D-Nev.) said,
The wealthiest one percent takes home the highest share of the nation’s income since the early ’20s, the roaring ’20s. Times are tough for many middle class American families. Millionaires and billionaires aren’t sharing the pain or the sacrifice, not one bit. Last year there were 7,000 millionaires who didn’t pay a single penny in federal income taxes.
But Republicans aren’t buying it, arguing that the proposal is nothing more than a ‘political gimmick’—or so says GOP Minority Leader, Mitch McConnell:
The problem is, we’ve got a president who seems more interested in pitting people against each other than he is in actually doing what it takes to face these challenges head on. By wasting so much time on this political gimmick that even Democrats admit won’t solve our larger problems, it’s shown the president is more interested in misleading people than he is in leading.
Last week, ThinkProgress posted a video of President Ronald Reagan giving a speech indicating that he too objected to the notion of a secretary paying a higher rate of tax than her employer, the circumstance that gave rise to Warren Buffett’s proposal that resulted in his name going on this piece of legislation.
By: Rick Ungar, Contributor, The Policy Page, Forbes, April 16, 2012
“There He Goes Again”: Mitt Romney’s ‘92 Percent’ Lie
And they say Mitt Romney can’t be trusted! Why, the man is as consistent as the sun coming up in the morning.
Mitt Romney can always be counted upon—for intellectual dishonesty.
In the latest example of his egregious lack of intellectual integrity, Romney—desperate to reverse the GOP’s catastrophic loss of popularity among women voters—invented a fictitious Obama administration “war on women” and then claimed as proof the disproportionate job losses suffered by women during the second wave of the recession.
Romney’s misrepresentation of labor-force trends was hardly surprising; we’ve come to expect misleading and untruthful statements from a candidate infamous for denying he ever said things he did say and insisting he didn’t do things he did do.
“The real war on women has been waged by the policies of the Obama administration,” Romney claimed on This Week. “Did you know that of all the jobs lost during the Obama years, 92.3 percent of them are women?”
It’s enough to make you wish that Ronald Reagan were still around to shake his head sorrowfully and say, “There he goes again.”
In the absence of Reagan and his famous line, Treasury Secretary Timothy Geithner dutifully made the rounds yesterday, trying to explain what was wrong with Romney’s charge. “It’s a ridiculous argument,” Geithner said, noting that the first round of job losses affected mostly men, particularly in construction and manufacturing, while subsequent budget cuts by state and local governments eliminated many jobs held primarily by women, many of them teachers.
The Obama administration was far from alone in rejecting Romney’s claims; virtually every independent analysis dismissed them as “mostly false,” as the nonpartisan fact-check site Politifact put it.
But Romney’s accusations were worse than false; they were the political equivalent of that old joke about the guy who begs the judge for mercy, saying he shouldn’t be convicted of murder because he’s an orphan—while neglecting to mention that he’s an orphan because he killed his parents.
As any debater knows, making your case is about the facts you include, but it’s also about the facts you leave out. And when it comes to the nation’s economic woes, the facts that Romney leaves out include the culpability of Republican policies and office holders for the dismal state of the labor market—particularly when it comes to women.
First of all, most of the catastrophic job losses affecting men actually occurred while President Bush was still in office. According to the Bureau of Labor Statistics, men lost 5,355,000 jobs between December 2007 and June 2009, whereas women lost less than half that number—“only” 2,124,000 jobs.
But after that devastating first hit, men’s job losses slowed, whereas women’s accelerated. Between January 2009 and March 2012, men lost 57,000 jobs, but women lost 683,000 jobs. Of those 683,000 jobs, 64 percent were in government, and 36 percent were in the private sector.
And it was Republican office holders at the state and local level, not Democrats at the federal level, who were responsible for a disproportionate share of those losses. According to a study by the Roosevelt Institute, 11 states that went Republican in 2010 accounted for more than 40 percent of all state- and local-government job losses.
But Romney’s claim that President Obama has destroyed women’s jobs leaves out that part, just as it omits any acknowledgment of the terrifying fiscal mess that Obama inherited from a disastrous Republican administration when he came into office.
Although Romney’s specious statistics were designed to scare women into thinking that the Obama administration has somehow vaporized huge numbers of women’s jobs while leaving men virtually unscathed, that’s hardly the reality. Of all the jobs lost since 2007, only 39.7 percent were held by women; more than 60 percent were held by men. The recession has been terrible for everyone, and it hit women’s jobs somewhat later than it hit men’s jobs, but it’s not as if anyone escaped unscathed.
Mitt Romney surely knows this—and yet his attack on Obama might just as easily have been leveled by someone who was completely clueless about labor-force trends, the structural reasons that explain how they happen, and what they mean.
No one who’s followed the presidential campaign, let alone Romney’s political career, could possibly be surprised that he distorted the facts; he’s an old hand at that stuff. But what’s really startling is how stupid his analysis was.
Romney keeps telling voters they should elect him because Obama broke the nation’s economy and he’s such a smart businessman he knows how to fix it.
But if his latest salvo is any indication of how well Romney understands the economy, Harvard Business School should demand that he give back his M.B.A.
By: Leslie Bennetts, The Daily Beast, April 16, 2012
Heritage Foundation-Fox News Purity Police: “It’s As If Hillary Clinton Was Auditioning For “The Jersey Shore”
Secretary of State Hillary Clinton is having quite a month. After a photo of her spawned its own internet sensation, new images from a nightlife hotspot in Colombia that show Clinton sipping on a beer and dancing have ignited a fresh wave of gossipy commentary.
The New York Post ran one photo on its front page under the banner headline “Swillary,” apparently upset that she imbibes the same liquid as much of the rest of humanity.
But perhaps the best reaction to the shocking news that Hillary Clinton can have a good time goes to Nile Gardiner from the Heritage Foundation, who appeared on the Fox News show Your World with Neil Cavuto to attack Clinton for “embarrassing” herself:
Hillary Clinton is a public servant, she’s out to serve the American people, to advance US interests. And I think that conducting herself in this way, as a senior US official on the world stage, doesn’t advance American interests in any way. In fact its downright embarrassing. It’s as though she’s auditioning for the sixth series of Jersey Shore rather than representing America on the world stage as the Secretary of State.
Watch it: http://youtu.be/NUC9lo7gOx4
Gardiner’s remarks stunned even guest host Stuart Varney, who was filling in for Cavuto. Varney asked Gardiner if he would support a rule stating that no senior public official must ever be seen in a bar with a drink and/or dancing, to which Gardiner responded that he thought it was “a pretty good idea.”
Fortunately, Varney promised to give his viewers “both sides” of Hillary Clinton drinking a beer, so he invited on GOP strategist Dee Dee Benkie. To her credit, she defended Clinton, saying that “she deserves a few beers.”
But if you’re Hillary Clinton, you can be attacked by conservatives for both being too uptight and for having too much fun.
By: Adam Peck, Think Progress, April 16, 2012
Tenther Judges “Radical Misreading Of The Constitution”: All Labor, Business Or Wall Street Regulation Is Unconstitutional
For more than two years, ThinkProgress has tracked “tentherism,” a radical misreading of the Constitution which claims that pretty much everything the federal government does is unconstitutional. Tenther lawmakers — who include members of Congress, senators, governors and at least one sitting Supreme Court justice — have claimed that child labor laws, Social Security, Medicare, Medicaid, clean air laws and the federal highway systemall violate the Constitution.
Even tentherism has a limit, however. While tenthers would all but eliminate our national leaders’ ability to solve national problems, they concede that state governments are still free to serve their citizens. Which is why a recent concurring opinion signed by U.S. Court of Appeals judges David Sentelle and Janice Rogers Brown is so disturbing. Under Sentelle and Brown’s vision, any attempt to protect workers, investors or consumers from unscrupulous businesses is in jeopardy:
America’s cowboy capitalism was long ago disarmed by a democratic process increasingly dominated by powerful groups with economic interests antithetical to competitors and consumers. And the courts, from which the victims of burdensome regulation sought protection, have been negotiating the terms of surrender since the 1930s.
First the Supreme Court allowed state and local jurisdictions to regulate property, pursuant to their police powers, in the public interest, and to “adopt whatever economic policy may reasonably be deemed to promote public welfare.” Then the Court relegated economic liberty to a lower echelon of constitutional protection than personal or political liberty, according restrictions on property rights only minimal review. . . . Thus the Supreme Court decided economic liberty was not a fundamental constitutional right, and decreed economic legislation must be upheld against an equal protection challenge “if there is any reasonably conceivable state of facts that could provide a rational basis” for it.
To translate this a bit, Sentelle and Brown disagree with the fact that representatives chosen by the American people, rather than unelected judges such as themselves, get to decide America’s economic policy. At best, their opinion calls for a return to a discredited era when judges could simply toss out laws protecting workers or consumers that the judges did not like.
Yet Sentelle and Brown also appear to be arguing for something even more radical than that. Their opinion complains that “economic liberty [is] not a fundamental constitutional right.” “Fundamental rights” are the very most protected rights under the Constitution. The right to be free from race discrimination is a fundamental right. As is the right to criticize the government. Sentelle and Brown’s opinion, however, concerns a law that removes a loophole exempting certain dairies from a 70 year-old system regulating the milk industry. In their apparent view, a law that regulates how dairy executives operate their business is exactly as offensive as a law that bans black people from voting.
Nor would their opinion stop there. The minimum wage regulates how dairy executives operate their business. As do child labor laws. Or workplace safety laws. Or laws that prevent dairies from selling spoiled or tainted milk. In Sentelle and Brown’s America, these laws likely would also be just as constitutionally suspect as a law that gives special rights to white people and not to black people.
Nor would their opinion stop there, for, indeed, their opinion laments that “economic legislation” as a whole is left to the people’s representatives and not to judges. The likely implication of Sentelle and Brown’s vision is any attempt to protect workers, or to regulate Wall Street, or to ensure that food and drugs sold in the marketplace are safe, or to enact any law protecting ordinary American consumers must be treated with exactly the same constitutional skepticism judges would bring to a law that tosses people who speak out against President Obama in jail.
Yet for all the many, many laws they would strike down, for all the anarchy they would create by sweeping away literally centuries of regulation in a single constitutional whirlwind, one thing is conspicuously absent from Sentelle and Brown’s opinion. At no point do they cite a single word of the Constitution which supports their sweeping assault on America’s power to govern itself.
This is not a coincidence. Those words do not exist.
By: Ian Millhiser, Think Progress, April 16, 2012
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