Hedge Funds in Education?... It’s All About the Money!
Nearly twenty years ago I attended the Model Schools Conference in Nashville, Tennessee. Education futurist Bill Dagget gave a sobering talk in which he warned attendees to beware of business getting into education, as it was the last vestige they had yet exploited. ~ Kevin Corbett
I’m concerned with the well-orchestrated attacks on education in the media–both in news stories and heart-wrenching stories played out in movies (ex Waiting for Superman – see: counter web site: http://www.waitingforsupermantruth.org/).
Teachers are blamed for all of society’s ills (Marysville HS teacher Conrad Wold does a great job responding to this charge in an article posted in the Everett Herald: Are teachers the problem? Here’s one educator’s view), and business is all too ready to “save us” all.
My point for writing this article is to highlight something that seems to be consistently absent from the conversation: Private companies profit from public tax dollars.
The market forces typically associated from “capitalism” are non-existent as their partnership WITH government guarantees they get all of the collected public monies.
(This isn’t even a voucher system where families are given money to make their own choice about where to spend their education allotment).
It should be obvious when hedge fund managers want to get into the “school business” that profit is the bottom line and the only ones to suffer are our children and most importantly the education of our nation.
June 2nd’s article Education According to Mike Milken-
With K12, the largest U.S. operator of taxpayer-funded online schools, the former junk-bond king has figured out how to make money in education. Is that a good thing? by John Hechinger, in Bloomberg’s Business Week (reproduced at the end of this post) highlights the degree to which funding is growing and the businesses are expanding into education.
Already, the political influence they exert through their lobbyists are changing legislation locally and nationally to benefit their companies.
In future posts, I will provide more detailed information. Until then, find some interesting articles related to hedge fund involvement in education below.
• Attack of the hedge-fund managers
Why do they care about schools? It’s all about money
• The Big Hedge Fund Killing in For Profit Education
Making a few hundred million dollars along the way is nice too. Call it creative destruction with a turbocharger.
• Why Are 25 Hedge Fund Managers Worth 658,000 Teachers?
• Education Department Rules on For-Profit Schools Created With Investor’s Help
A proposed regulation from the Education Department threatens to devastate for-profit career or trade schools, but one thing is even more controversial than the regulation — how it was crafted.
Education Department officials were encouraged and advised about the content of the regulation by a man who stood to make millions if it were issued.
Read full article HERE