Paul Foot Award 2019

The #Paul Foot Award was started in memory of #Paul Foot, a campaigning left wing journalist, by The Guardian and Private Eye, both left wing operations.

The award was resurrected by the Eye and seems on this year's form [ i.e. 2019 in PE 1497/10 ] to be moderately even handed albeit tipping left. Some of their causes get no sympathy from me.

 

Paul Foot Award ex Wiki     
The Paul Foot Award is an award given for investigative or campaigning journalism, set up by The Guardian and Private Eye in memory of the journalist Paul Foot, who died in 2004.

The award, from 2005 to 2014, was for material published in print or online during the previous year. The prize fund totalled £10,000, with £5,000 given to the winner and £1,000 to each of five runners-up.[1] The award was discontinued in 2015,[2] but revived by Private Eye in 2017.[3]

Winners

2005: John Sweeney of the Daily Mail for his investigation into "Shaken Baby Syndrome" which led to the wrongly imprisoned mothers Sally Clark, Angela Cannings and Donna Anthony being freed and resulted in the exposure of the prosecution's chief witness, the paediatrician Sir Roy Meadow.[4]

2006: David Harrison for his three-part investigation into sex trafficking in Eastern Europe published in The Sunday Telegraph, which was praised by the UN and prompted action by British police and the Home Office..[4]

2007: Shared by Deborah Wain (Doncaster Free Press) for her exposé of corruption in the Doncaster Education City project and by David Leigh and Rob Evans (The Guardian) for their investigation into bribery in the British arms trade.[5]

2008: The top prize of £3,000 each was awarded to Camilla Cavendish of The Times for an investigation into the many injustices which have resulted from the Children Act 1989 and the professional cultures that have grown up around child "protection"; and Richard Brooks of Private Eye for his investigation into the mismanagement and financial irregularities surrounding the sale of the UK government's international development business, Actis. Four runners-up were each awarded £1,000:[6]

Andrew Gilligan (London Evening Standard) on financial irregularities in London City Hall and the London Development Agency.
Warwick Mansell (TES) on the Sats test marking scandal.
Dan McDougall (The Observer) on how children made clothes for Esprit, Primark and Gap in India, Pakistan, Nepal and Bangladesh.
Jim Oldfield (Rossington Community Newsletter, South Yorkshire Newspapers) on how landowners and speculators planned to build an eco-town in Rossington against the wishes of residents.

2009: At a presentation ceremony at the Spin Bar in London's Millbank Tower on 2 November 2009, the £5,000 Paul Foot Award for Campaigning Journalism 2009 was awarded to Ian Cobain of The Guardian for his long-running investigation into Britain’s involvement in the torture of terror suspects detained overseas. Five runners-up received £1,000 each:[7]

Jonathan Calvert and Clare Newell (Sunday Times) on a number of financial and legislative abuses in the Lords which had previously escaped scrutiny.
Ben Leapman (Sunday Telegraph and Daily Telegraph) on MPs' exploitation of parliamentary allowances to subsidise their lifestyles and multiple homes.
Paul Lewis (The Guardian) on the death of Ian Tomlinson at the 2009 G20 London summit protests.
Rob Waugh (The Yorkshire Post) on cavalier spending at Leeds Beckett University, the takeover of Sheffield Wednesday football club, and the mismanagement of Leeds City Credit Union.
Stephen Wright and Richard Pendlebury (Daily Mail) on the lawyer Shahrokh Mireskandari, and his criminal past and the bogus nature of his qualifications and claims of experience.

2010: Clare Sambrook for her investigating, reporting and campaigning against the government policy of locking up asylum-seeking families in conditions known to harm their mental health, and scrutinising the commercial contractors who run the detention centres for profit. A Special Lifetime Campaign Award of £2,000 was also presented to Eamonn McCann for his 40 years of campaigning journalism on behalf of the victims of Bloody Sunday. Each of the runners-up on the shortlist received £1,000. These were, in alphabetical order:

Jonathan Calvert and Clare Newell (Sunday Times) on MPs and peers seeking cash for influence.
David Cohen (Evening Standard) on the plight of the poor in London, including children's poverty and the continuing existence of paupers' graves in the capital.
Nick Davies (Guardian) on phone-hacking conducted by the News of the World when Andy Coulson, later the government's director of communications, was editor.
Linda Geddes (New Scientist) on evidence that DNA tests are not always accurately interpreted.[8]

2011: Nick Davies (The Guardian and guardian. co.uk) for a series of articles that helped to expose the scale of phone-hacking at the News of the World, beginning in July 2009 with the first report that phone hacking went beyond a single jailed journalist. Two years later, Davies, with colleague Amelia Hill, revealed that the News of the World had targeted voicemails left for the missing schoolgirl Milly Dowler, which led to a public backlash against the Sunday tabloid. The award organising committee praised Davies for his "dogged and lonely reporting" the impact of which forced "a humbled Rupert Murdoch to close the News of the World and abandon his planned buyout of the satellite broadcaster, BSkyB, and forced the country's most senior police officer to resign.[9] The judges commented that "This award is recognition of the cheering truth that the best journalism exposed the worst." [10] Runners-up were Jonathan Calvert and Claire Newell for their The Sunday Times articles exposing corruption in FIFA.[10] Also nominated were:[11]

Jon Austin (Basildon Echo) - Dale Farm evictions.
Katherine Quarmby (The Guardian, The Times, Mail on Sunday, Prospect magazine and others) - Disability hate crime awareness.
David Rose (Live magazine, Mail on Sunday/Mail Online) - UK aid to India.
Zoe Smeaton (Chemist + Druggist magazine, UBM Medica) - Government payment errors to community pharmacists.
Jerome Taylor (The Independent) - Open justice and the Court of Protection.
Mark Townsend (The Observer) - Exploitation of women and children trafficked into the UK.

2012: Andrew Norfolk (The Times) for "a two-year investigation into the grooming and sexual exploitation of teenage girls". The runner-up was Rob Waugh (Yorkshire Post) for his exposure of mis-spending by senior officers of Cleveland Police and abuse of power by ACPO and CPOSA. A Special Campaign Award was made to Stephen Wright (Daily Mail) for his "tireless reporting over 15 years" on the Stephen Lawrence murder investigation and Justice for Stephen campaign.[12] Also nominated were:[13]

Tom Bergin (Thomson Reuters) - Corporate tax avoidance by Vodafone and Starbucks .
Jonathan Calvert and Heidi Blake (Sunday Times) - Tory treasurer sells access to PM/Retired generals lobby for defence contracts.
Ted Jeory (Blog: trialbyjeory.wordpress.com) - Corruption in the borough of Tower Hamlets.
Alexi Mostrous and Fay Schlesinger (The Times) - Secrets of the tax avoiders.
Claire Newell, Graeme Paton, Holly Watt and Robert Winnet (Daily Telegraph) - GCSE and A-level examiners advising teachers on how to improve pupils’ results.

2013: David Cohen - (Evening Standard) for his work on gangs, which was part of the Standard’s Frontline London campaign. The Guardian’s Snowden team (James Ball, Julian Borger, Nick Davies, Nick Hopkins, Paul Johnson and Alan Rusbridger) received a Special Investigation Award for its investigation into the extent of mass surveillance undertaken by GCHQ - The Snowden Files: How GCHQ watches your every move. Also nominated were:

Tom Bergin (Reuters) - Corporate tax practices.
Jonathan Calvert and Heidi Blake (The Sunday Times) - Westminster for Sale.
Aasma Day (Lancashire Evening Post) - Life on the margins of society: Preston Twilight Investigation.
James Dean (The Times) - Fakes, fraud and forgery in Lloyds selling scandal.[14]

2014 (joint winners): Jonathan Calvert and Heidi Blake (Sunday Times) for "The Fifa Files" in which they reported on a campaign waged by Mohammed Bin Hammam, Qatar’s top football official, and how he exploited his position to help secure the votes Qatar needed to win the bid to host the 2022 World Cup; Richard Brooks and Andrew Bousfield (Private Eye) for "Shady Arabia and the Desert Fix", a long-running investigation into corruption on a contract between the governments of the UK and Saudi Arabia.[15] Also nominated were:

Richard Pendlebury (Daily Mail) - Migrant Lives
Claire Newall, Holly Watt, Claire Duffin and Ben Bryant (Daily Telegraph) - Qatar 2022 World Cup Bid
George Monbiot (The Guardian) - How farmers caused the floods
Mark Townsend (The Observer) - Sexual abuse of women at Yarl's Wood
Dominic Ponsford and William Turvill (Press Gazette) - Save Our Sources

2017: Emma Youle (Hackney Gazette) for her investigation, "The Hidden Homeless: £35m to keep the homeless homeless", which revealed Hackney's enormous, but hidden, homeless problem—highlighting the plight of the thousands who live in temporary accommodation.[16] Also nominated were:

Daniel Balint-Kurti & Leigh Baldwin (Global Witness) - The Deceivers
Katherine Faulkner (Daily Mail) - How Royal Mail helps conmen defraud the elderly
Will Hurst (The Architects' Journal) - The Garden Bridge investigation
Billy Kenber (The Times) - Drug company profiteering
Maeve McClenaghan & Crina Boros (Energydesk) - Big fish barons squeeze out small-scale fishermen
Daniel Taylor (The Guardian/The Observer) - Football's sexual abuse scandal

2018: Amelia Gentleman (The Guardian) for her investigation, "Long-term UK residents classed as illegal immigrants", which centred on tightened immigration regulations and the catastrophic consequences for a group of elderly Commonwealth-born citizens who were told they were illegal immigrants, despite having lived in the UK for around 50 years but with no formal paperwork to prove it.[17] Also nominated were:

Gordon Blackstock (The Sunday Post) - Hundreds of orphans buried in mass grave
Carole Cadwalladr (The Observer) - The Cambridge Analytica files
Madison Marriage (Financial Times) - Men only: inside the charity fundraiser where hostesses were put on show
Sean O'Neill (The Times) - Oxfam sex scandal cover-up
BuzzFeed News Investigations team (Heidi Blake, Tom Warren, Richard Holmes, Jason Leopold, Jane Bradley, Alex Campbell) - From Russia with blood

In addition, the Young Journalist Award was given to Ben Van Der Merwe and Emma Yeomans (London Student) for their investigation, "Toby Young and UCL's secret eugenics conference", about secretive annual conferences at UCL that covered genetic difference and intelligence, which was jointly published in Private Eye.

 

Paul Foot ex Wiki       
Paul Mackintosh Foot
(8 November 1937 – 18 July 2004) was a British investigative journalist, political campaigner, author, and long-time member of the Socialist Workers Party (SWP).

Foot was born in Haifa, Palestine, during the British mandate.[1]

He was the son of Sir Hugh Foot (who was the last Governor of Cyprus and Jamaica and, as Lord Caradon, the British Ambassador to the United Nations from 1964 to 1970) and the grandson of Isaac Foot, who had been a Liberal MP. He was a nephew of Michael Foot, later leader of the Labour Party,[2] with whom the younger Foot was close. He spent his youth at his uncle's house in Devon, in Italy with his grandmother and with his parents (who lived abroad) in Cyprus and Jamaica.

He was sent to what he described as "a ludicrously snobbish preparatory school (Ludgrove) and an only slightly less absurd public school, Shrewsbury".[3] Contemporaries at Shrewsbury included Richard Ingrams, Willie Rushton, Christopher Booker and several other friends who would later become involved in Private Eye.

Anthony Chenevix-Trench, subsequently the Headmaster of Eton College, was Foot's Housemaster at Shrewsbury between 1950 and 1955, a time when corporal punishment in all schools was commonplace. In adult life, Foot exposed the ritual beatings that Chenevix-Trench had given. Nick Cohen wrote in Foot's obituary in The Observer:

"Even by the standards of England's public schools, Anthony Chenevix-Trench, his housemaster at Shrewsbury, was a flagellomaniac. Foot recalled, 'He would offer his culprit an alternative: four strokes with the cane, which hurt; or six with the strap, with trousers down, which didn't. Sensible boys always chose the strap, despite the humiliation, and Trench, quite unable to control his glee, led the way to an upstairs room, which he locked, before hauling down the miscreant's trousers, lying him face down on a couch and lashing out with a belt."[4]

Exposing him in Private Eye was one of Foot's happiest days in journalism.

After his national service in Jamaica, Foot was reunited with Ingrams at University College at the University of Oxford, where he read jurisprudence,[1] and wrote for Isis, one of the student publications at the University. He briefly edited Isis, resulting in the publication being temporarily banned by the university authorities after Foot began to publish articles which found fault with university lectures.[1]

 







 

http://nymag.com/intelligencer/2019/03/socialism-and-young-socialists.html

http://nymag.com/intelligencer/2019/03/socialism-and-young-socialists.html

http://nymag.com/intelligencer/2019/03/socialism-and-young-socialists.html

 

Pinkos Have More Fun

Socialism is AOC’s calling card, Trump’s latest rhetorical bludgeon, and a new way to date in Brooklyn.

Meet the New New Left: Attendees at Verso’s annual Red Party. Photo: Kyle Dorosz

It’s the Friday after Valentine’s Day. The radical publishing house Verso Books is throwing its annual Red Party, an anti-romance-themed banger. Like a lot of the best lefty parties, it takes place in Verso’s book-lined Jay Street loft, ten stories above cobblestoned Dumbo. The view of the East River is splendid, the DJ is good, and the beers cost three bucks.

The roster tonight is heavy on extremely online political-media types. The podcaster and performer Katie Halper tells me she’s a fourth-generation socialist from the Upper West Side who used to attend a summer camp once affiliated with a communist organization called the International Workers Order. The hosts of the leftist podcast Chapo Trap House are not here, but Eli Valley, the gonzo artist who illustrated their book, is, as is Dave Klion, a ubiquitous Twitter pundit recently seen feuding with CNN’s Jake Tapper. Nearby, Sarah Leonard, who, at 30, is a veteran of the lefty-journalism orbit, tells me she’s launching a Marxist-feminist glossy called Lux, named for Rosa Luxemburg.

The guests of honor tonight are the creators of Red Yenta, a new DIY dating platform: Marissa Brostoff, 33, a grad student at CUNY, and Mindy Isser, 28, an organizer in Philly. “I was complaining about how socialist men don’t date socialist women and it really bothers me,” Isser says. Online, there wasn’t a good way to filter for someone’s politics. Sample bio: “Labor activist and aspiring historian/sci-fi writer looking for friends/open relationships. Tell me about your student debt and let’s cry together.”

An hour into the party, Isser and Brostoff stage a version of The Dating Game — one bachelorette, four suitors — to promote Red Yenta. Friend-of-the-app Natasha Lennard, a columnist at the Intercept, yells for quiet. “There is a service — a communal service — that is better than a Tinder, or the last hurrahs of an OKCupid,” she announces. Who wants to slog through a few bad dates only “to find out that someone is a liberal?” Brostoff takes the mic. Pins and posters are available for purchase, she says, and donations are of course welcome. “That’s how we became capitalists,” she jokes. “And that’s what you call irony. Or dialectics.”

The bachelorette, Arielle Cohen — 30, former co-chair of the Pittsburgh chapter of Democratic Socialists of America (DSA) — asks her suitors a question. “Now that Amazon has been banished from New York” — triumphant shouting here — “you’re the one who gets free rein to build something ungodly in Queens: What are you building?” Some answers ring out — guillotine, public housing — but the invocation of Amazon is all it takes to get the party going.

A day earlier, Amazon had stunned the city by scrapping plans to build a new headquarters in Queens. Polls said a majority of New Yorkers, including Queens residents, favored Amazon’s arrival. As did the mayor, the governor, and the editorial pages of the New York Times and the Daily News. The grassroots opposition, which included DSA, had the backing of some new Democratic muscle in Albany and, crucially, the vocal support of socialist superhero Alexandria Ocasio-Cortez, whose district abuts the proposed building site. Ocasio-Cortez was offended not only by the tax break that greased the deal but by the company’s corporate makeup: monopolistic, anti-union, run by literally the richest man in the world. Amazon was the face of modern American capitalism, and that was disqualifying enough.
(An illustration of the growing divergence between the liberal and left wings of the Democratic Party: Amazon’s head of global PR is Jay Carney, the former Obama White House press secretary.) Led by the 29-year-old congresswoman, the deal’s opponents cranked up a relentless online noise machine and booed the company away. Democratic socialism secured its first big victory.

Until very recently, it wasn’t that socialism was toxic in a red-scare way. It was irrelevant, in a dustbin-of-history way. But then came Bernie Sanders’s 2016 candidacy, then the membership boom of DSA, then the proliferation of socialist cultural products like Chapo, and then, finally, the spectacular rise of Ocasio-Cortez.

The politics of the socialism that they helped revive isn’t always clear. Stripped of its Soviet context and cynically repurposed by conservative partisans, the word had lost its meaning by the time it got hot again. For some DSA grandees, like NYC chapter co-chair Bianca Cunningham, socialism means a planned economy that replaces market capitalism. “It means we own the means of production. It means we get to run our workplaces and our own government,” she says. But that is unusual. For Ocasio-Cortez, Sanders, and most of their devotees, it’s closer to a robust version of New Deal liberalism — or, perhaps, Northern European social democracy.

Still, among New York’s creative underclass — cash poor but culturally potent — it feels like everything but socialism is now irrelevant. “I’ve noticed that there’s a kind of baseline assumption in the room that everyone is a socialist,” says Brostoff. “And if they’re not, it’s because they’re an anarchist.” Coolheaded Obaman technocracy is out; strident left-wing moral clarity is in. And while this atmospheric shift is felt most acutely among the left-literary crowd, it’s also bled into the general discourse, such that Teen Vogue is constantly flacking against capitalism and one of the most devastating insults in certain corners of the internet is to call someone a neoliberal.

The word socialism has become a kind of blank canvas on which young leftists project their political desires. The reason to call it socialism, the lefty journalist Kate Aronoff has said, is because people are calling it socialism. At least in Brooklyn, and the spiritual Brooklyns of America, calling yourself a socialist sounds sexier than anything else out there, without necessarily advocating anything too risky.

Sean McElwee in his trademark ballcap at a regular Thursday happy hour at an East Village bar. Photo: Victor Llorente for New York Magazine

DSA’s growth — from 6,000 to 56,000 in a little more than two years — didn’t happen during the financial crash, or Occupy Wall Street, or even Sanders’s campaign. It happened after Donald Trump was elected. The staid and uncool Democratic Establishment, by blowing a gimme election, had discredited itself. Once she lost, Hillary Clinton’s cautious agenda, largely premised on electability and market-friendly incrementalism, seemed impossible to justify. If the existing, compromised political Establishment was crumbling, why not build something more daring to replace it?

Last summer, at a sold-out Strand event to promote their New York Times’ best-selling book, Chapo Trap House host Will Menaker laid out the tactical id of young socialism. “Liberals think they want the same things we do, but they’re just skeptical that this is too extreme or this is going to turn off more moderate people. You’re not even winning elections anymore, so why would we be playing from your playbook?” he said. “Any mild reform to capitalism or our society will be called socialism anyways, so why not just go whole hog and ask for what you really want to achieve?” And so, two years after we were supposed to usher in our second era of Clintonian triangulation, we’re staring down this country’s most serious flirtation with socialism since the 1930s (all while the right aligns itself with Russia and supports a coup in Venezuela).

Many socialists distance themselves from Chapo, which for many embodies Bernie-bro machismo. But its zero-sum politics and caustic nihilism — the exact inverse of the Establishment-liberal Pod Save America—have set the tone for socialist discourse, especially in contrast to the pieties of the identity-politics left, the righteousness of the #resistance, or the smug wonkishness of Vox. As a result, its enemy isn’t so much Trumpism as the gauzy liberal triumphalism — like the Broadway musical Hamilton — that papers over the indignities of American life. Anyone who feels otherwise is clinging to an outmoded West Wing fantasy of American politics.

In this way, socialism is as much a repudiation of crash-era capitalism as it is of postrecession liberalism. The Democratic Party, which gave us the New Deal, had long ago lost its working-class soul. Democrats promoted valuable causes — gun control, combating climate change — but rarely challenged the economic elite. As n+1 editor Nikil Saval wrote, liberalism had become a “politics in which government cravenly submits to corporate power and cultural debates distract from material needs.” He cited examples: “The chief executive of Patagonia being hailed as a leader of ‘corporate resistance to Trump’ or Chelsea Clinton’s accusing Steve Bannon of ‘fat shaming’ Sean Spicer.”

The race to the left was stoked by an attitudinal shift in the young, mainstream press. Before it was sued out of existence by a revanchist libertarian billionaire, Gawker Media embodied the arch, ironic sensibility of New York’s online-media ecosystem. Now its alumni earnestly proselytize labor unions. (“Peace to the Denver teachers on strike today. America is with you,” tweeted Gawker alum Hamilton Nolan recently.) Across the industry, editorial staffs of a number of publications, including this one, have unionized.

Meanwhile, the magazine Jacobin — named for the insurgents who led France’s murderous Reign of Terror during the Revolution — has only grown in influence since its 2010 founding, popularizing socialism for a wider audience (“Are Workers the ‘Gravediggers’ of Capitalism?”; “Eight Marxist Claims That May Surprise You”) and elevating a new generation of leftist voices. But Twitter — a medium that structurally encourages moral grandstanding, savage infighting, and collective action — is where young socialism lives.

For those on the left not enamored of democratic socialism, these trends have been destabilizing. “If you set yourself up to represent the progressive flank of politics and someone says, ‘Actually, you’re a centrist, we are the left,’ it shakes your identity, your career, your influence,” says Leonard. Confronted with a more muscular politics than previously seemed possible, many liberal skeptics have quietly nudged themselves left. In the wake of the Amazon pullout, de Blasio abruptly reversed himself, and an account that tracks copy changes in the Times caught this revealing tweak: “FOR SOME 2020 DEMOCRATS, REJECTION OF AMAZON ALIGNS WITH FAR-LEFT LIBERAL POLICY VIEWS.”

Last year, Audrey Gelman of the women’s co-working space the Wing, and Lena Dunham of Girls — both Hillary Clinton backers in 2016 — held competing events for Ocasio-Cortez and millionaire actress Cynthia Nixon, who in her gubernatorial campaign against Andrew Cuomo declared herself a democratic socialist. People stuck red roses next to their Twitter avatars and started calling each other “comrade.” And while in theory socialism connoted a collectivist politics, in practice it ended up becoming a new identity category around which to rally.

DSA is still a sixth the size of the Rotary Club, and only two of its members are in Congress. But in a populist moment defined by an ever-widening income gap, its platform has tremendous currency. Ocasio-Cortez’s Green New Deal has become a signature, if controversial, Democratic policy, and Sanders is considered a presidential front-runner even as Trump and the Breitbart right have settled on #socialism as their new bogeyman. In February, Mitch McConnell denounced DSA on the floor of the Senate. It’s hard not to feel that a cultural primary has been won when Fox News Tucker Carlson is suddenly delivering viral pro-worker, anti-capitalist rants on the air.

Toward the end of the Red Party, I find Brostoff and Leonard standing by the open windows at the far end of the loft, where smokers are exhaling in the direction of the Manhattan Bridge. Online, atomized young socialists affect cynical despair about the Trumpy hellworld that engulfs them. In real life, at parties like this one, the mood is exultant.

“We were putting forth these ideas with enormous confidence because we didn’t have any power,” Leonard says. And now, suddenly, they do.
“So, what’s the plan?” she asks. “Still hashing it out,” she answers herself, grinning. “But we’re definitely not doing a worse job than the people running shit now.”

A South Brooklyn DSA potluck and media-training session. From left: Photo: Amy Lombard for New York MagazinePhoto: Amy Lombard for New York Magazine

Michael Kinnucan is a widely read — there’s no other way to put this — Facebook essayist, whose sharp commentary has been something of a socialist gateway drug for young DSAers. Over beers in Crown Heights, we’re tracing the origins of the movement. The most straightforward explanation for the socialism boom is, fittingly, a material one: Saddled with student debt and thrust into a shit post-2008 economy, millennials were overeducated, downwardly mobile, and financially insecure. On top of everything, the internet was making them feel bad and the planet was melting. The precariat, they called themselves.

In between frequent cigarette breaks, Kinnucan sketched his version of this progression. Graduate from the University of Chicago in 2009; get bogged down in the post-crash economy; drift to Occupy Wall Street in 2011; get radicalized. “There was a Twitter hashtag and internet meme, #SIFUAB: Shit is fucked up and bullshit,” he recalled fondly. “There was a large element of collectivizing depression. The genre of meme where you write on a piece of paper and hold up the amount of student loans you have.”

He mentioned another Occupy hashtag: #nodads. It means, loosely, “Screw the Man.” And the anti-Establishment cynicism it connoted precluded people like him from engaging in something as compromised as electoral politics. When Occupy died, Kinnucan withdrew from activism, worked on his writing, and scraped by as a math tutor. Two things changed that. First, Bernie. “Sanders was different, because Sanders was the idea that most people agreed with us and we could just win outright. Not, like, block highways and get arrested, but some day take power.” Then, Trump. “It took an emotional crisis,” as Kinnucan puts it, to get off the sidelines.

If liberals have moved left ideologically, the far left has moved to the center tactically by getting involved in elections at all. Ocasio-Cortez’s political awakening happened in similar fashion. She graduated from Boston University in 2011, worked a bunch of crap jobs to pay off her debt, volunteered on the Sanders campaign, protested at Standing Rock, then ran for office. While she wasn’t incubated in DSA, she started appearing at meetings and joined the organization, securing its endorsement and grassroots manpower. In June 2018, when she knocked off congressional heavyweight Joe Crowley, it legitimized not just DSA but its electoral strategy of supporting Democratic candidates.

Last summer, smitten with AOC, a fascinated national media descended on New York to find an organization all-in on a new race: the State Senate campaign of 27-year-old Bushwick organizer Julia Salazar. The press got excited because her profile — photogenic Columbia-educated Latina socialist — resembled AOC’s. Democratic socialists, meanwhile, were even more thrilled: Unlike Ocasio-Cortez, Salazar was a true product of DSA and had gotten her start at a Jacobin reading group. Michael Kinnucan was her spokesperson.

In early August, a month before the primary, the Salazar campaign hosted a comedy fund-raiser at a Bushwick beer garden called the Well headlined by Chapo Trap House. Given the demographic — white, 21-to-36-year-old Tecate drinkers — the draw couldn’t have been bigger. Ocasio-Cortez was supposed to show up, and the event sold out. Right away, I met someone who had recently taken a job at New York, whose sister was dating Virgil Texas, one of the Chapo hosts, and who was accompanied by a friend who worked for Vogue who also happened to be a friend of a friend. (One of the most noticeable aspects of New York’s left-wing insurgency is the proliferation of socialist VIPs you used to know from completely different contexts. Kinnucan, though he didn’t remember me, briefly attended the same high school I did.)

Socialism is frequently tagged as the province of polemical white guys, and when Chapo went on, Virgil Texas — not his real name — gestured at the show’s Bernie-bro reputation. “We are three men here to explain why those speakers are wrong,” he began, referring to the women who preceded them. “This event is now the Well, Actually.” While the racial breakdown was indeed a little awkward — Latina candidate onstage, white allies in the beer tent — it was nothing new for the nearly all-Caucasian DSA left.

The more interesting tension at the event was generational. Appearing earlier onstage had been 47-year-old attorney-general candidate Zephyr Teachout, who ran a competitive gubernatorial primary against Cuomo in 2014 and, this time around, earned the endorsement of the Times. But her granola Gen-X progressivism — her main issue is anti-corruption — didn’t thrill the crowd. Salazar, a political neophyte running for a less significant office, had more luck. “There’s a movement behind us,” she declared. “I’m a member of the Democratic Socialists of America, and I have this team of fellow dirtbag leftists.” She paused to marvel at the power of the word socialist. “It’s so cool that you’re clapping for that right now.”

What were they clapping for exactly? The amorphousness of the word has left it open to a number of critiques. Chapo devoted its set to helping the crowd debunk anti-socialism talking points. “This is the main one that anyone on television is going to be asked,” said Menaker. “ ‘How’s it going to get paid for?’ We’ve already seen Alexandria get asked over and over. It’s important to come up with a smart response. The smart response is: ‘All the numbers are correct. All this is true about the deficit. But, fuck the deficit because it’s not real and it doesn’t matter.’ ” The audience whooped. Another option, he said, is to “turn all the existing billionaires into millionaires. Or Soylent.”

Ocasio-Cortez didn’t show. By the end of the night, people were buzzed and no one cared. Someone bought Menaker tequila shots for his birthday, and Salazar explained to a new fan the difference between her brand of socialism and the guerrilla Marxism of Colombia’s farc rebels. I struck up a conversation with Virgil Texas, who was sucking on a Juul and drinking from a plastic cup of frozé. As we discussed Chapo’s then-forthcoming book, subtitled “A Manifesto Against Logic, Facts, and Reason,” a 23-year-old self-proclaimed venture capitalist named Michael introduced himself. He asked that I not use his last name, because his parents fled the Soviet Union and hate socialism. “I’m a little conflicted about my life choices,” he told us. “It’s weird to say, but thank you. I went from a neoliberal Hillary Clinton fan to, like, questioning everything I believed.” Virgil, in between drags, nodded approvingly. Michael continued. “That was my shit, dude. I was so pragmatist. I was all about it. And then I was like, This makes no sense.”

Within a couple weeks, Salazar would be accused of fabricating basically everything about herself, from her supposed immigrant status to her supposed lack of wealth, to say nothing of a weird identity theft allegation, which she successfully challenged, involving the ex-wife of former Met Keith Hernandez. Just as these stories were coming out, DSA threw a massive party at the Verso loft.

“Everybody looks fuckin’ sexy as hell,” shouted Cunningham, NYC-DSA’s co-chair. “This is amazing to have everybody here looking beautiful in the same room, spreading the message of socialism. Give yourselves a round of applause.”

DSA was founded, to little fanfare, in 1982 by the social theorist Michael Harrington. Harrington’s group occupied the “left wing of the possible,” a sensible enough mantra that excited nobody and helped the organization stay minuscule for decades. DSA now has branches in all five boroughs, three in Brooklyn alone.

Along with its growth, DSA became way more ecumenical and, like any good leftist organization, riven by factionalism. DSA’s most vocal faction is Spring Caucus, which until recently was known as Momentum, a Jacobin-heavy bloc of Medicare for All fanatics that seems to be folding itself into the Bernie Sanders effort. Spring’s critics say it’s dominated by “class reductionist” white men who ignore matters of race and gender.

This is where the brand-new Socialist Majority Caucus, which seeks to be more inclusive, comes in. Beyond that, there are the libertarian socialists, or anarchists, who are skeptical of electoral work. There is the North Star Caucus, which is holding down the old “left wing of the possible” line. At the Verso party, I ran into a libertarian-socialist guy whom I hadn’t seen since college, and who told me that “North Star is the worst thing you can call someone in DSA.” Then there are disbanded groups like the ReFoundation caucus, which was populated by Fidel Castro sympathizers and Stalinoid tankies. Finally, there are all the nondenominational socialists, who couldn’t care less and just want to do the work. And while the sheer amount of random stuff going on every night can feel like leftist self-parody — “eco-socialist working group”; “North Brooklyn Night School Session 19 — The Lenin Controversy” — DSA’s wide-open democratic structure has also empowered its members.

In the middle of the dance floor I ran into Nicole Carty, a DSA-curious professional organizer I also hadn’t seen since college, who made a name for herself doing tenant work after Occupy Wall Street. (DSA can feel like a never-ending Brown University reunion.) “Movements are, yeah, about causes and about progress and beliefs and feelings, but the strength of movements comes from social ties and peer pressure and relationships,” Carty said. “People are craving this. Your social world intersecting with your politics. A world of our own.”

DSA is led by its dues-paying members, rather than paid staff. It is, essentially, bossless. That has allowed the organizers to reflect back to those members the world they’re trying to create. “It’s playing the role of a place where they seek a sense of fulfillment and rootedness that they otherwise lack in their lives,” says a writer acquaintance, Sam Adler-Bell, yet another Brown graduate and a DSA member. Socialism was appealing not because it promised equality but because it looked like liberation.

Last fall brought mixed results for New York City’s left. Before the primaries, a friend and I watched the gubernatorial debate at Tip-Top, a pre-gentrification Bed-Stuy dive bar that has for that reason become popular with white gentrifiers. There were two African-American women there when we walked in, one of them tending bar. I asked who they were voting for. “Cuomo.” What did they think of Nixon? “Who?”

Despite the hype around her campaign, Nixon lost the gubernatorial primary to Cuomo by basically the same amount Teachout had four years earlier. Salazar, incredibly, won. But the results weren’t contradictory.
Nixon and Salazar appealed to the same core set of voters: white, college-educated progressives. Proportionally, there were just way more of them in Williamsburg and Bushwick than in the rest of the state. Salazar’s remarkable accomplishment, besides winning as an ethically suspect socialist, was getting so many usually apathetic Brooklynites to turn out. The more awkward aspect of her victory is that she had less success with poorer black and Hispanic voters. The gentrifiers, not the gentrified, carried her.

In November, after the midterm elections, which Democrats in Albany swept, I attended a Queens branch meeting in a predominantly Mexican section of Jackson Heights. The meeting’s demographic makeup, as usual, was considerably whiter. At the beginning of the session, a DSA member stood up in front of the room and explained DSA’s “progressive stack” policy, in which white guys are encouraged to cede the floor when possible to ward off mansplaining. “We will be prioritizing non-men and people of color, so to try to work to try to undo some of the historical injustices,” he said. (He is white.) “We ask folks to ask themselves, ‘Why are they talking?’ Step up, step back after you make your point. Give other folks a chance to speak. Use ‘I’ statements …” He spoke for long enough you wondered why he didn’t just let a woman or person of color do it in his stead.

A little later, a health-care coordinator for DSA’s socialist-feminist working group took the floor. In November, thanks in part to DSA-friendly candidates, the Democrats fully took control of the New York State Senate for the first time in a decade. “Who knows how many years out of the last 50 years have the Democrats had the majority?” she asked. A middle-aged guy in a green pullover held up three fingers in A-okay formation. He was correct, but she wasn’t pleased. “I see you’re trying to answer that question, but that is a white-supremacist hand signal.”

Ross Barkan, a 29-year-old local political journalist who ran unsuccessfully for State Senate in his native Bay Ridge last fall, told me he aggressively courted DSA’s endorsement as “one of the very few groups anywhere that can put a lot of bodies on the ground.” (DSA declined to endorse anyone.) Still, Barkan says, “DSA can be intimidating for outsiders. If you are not steeped in the vernacular and jargon of the socialist left, if you did not attend college, if you did not take the right classes, you will not know what they are talking about.”

DSA’s closest historical analogue is probably not the century-old socialism of Sanders’s hero Eugene Debs but the New Left of the 1960s and its campus organizing vehicle, Students for a Democratic Society. SDS laid the groundwork for a lot of effective antiwar activism, but the New Left was far from a mass movement and never got close to wielding political power.
“DSA needs to become a genuine working-class organization,” Barkan said. “And it’s not yet. It’s still driven by affluent, college-educated people.”

“The libertarian sees the market as synonymous with freedom,” Brooklyn College political scientist Corey Robin wrote last year in the Times. “But socialists hear ‘the market’ and think of the anxious parent, desperate not to offend the insurance representative on the phone, lest he decree that the policy she paid for doesn’t cover her child’s appendectomy. Under capitalism, we’re forced to submit to the boss. Terrified of getting on his bad side, we bow and scrape, flatter and flirt, or worse — just to get that raise or make sure we don’t get fired.” The further democratic socialists stray from that message, the less resonance socialism may have with a broader audience.

When Barkan ran, DSA sent him a questionnaire to fill out. His answers would help determine whether it would endorse him. Topics included the school-to-prison pipeline, socialist feminism, state-guaranteed access to high-speed internet, drug decriminalization, fossil-fuel dependency, education-funding algorithms, sanctuary cities, health care as a human right, and criminal-justice reform for violent prison offenders.

Even Ocasio-Cortez, DSA’s proudest export, hasn’t emerged unscathed from the organization’s purity tests. After Senator John McCain died last summer, she had the temerity to say a few nice words about him on Twitter. Twitter, being Twitter, slammed her for it. Not long afterward, she held a closed-door DSA town hall in Queens, where members submitted questions. And she was grilled about the tweet. In December, after George H.W. Bush died, Ocasio-Cortez did not tweet her condolences.

Every Thursday for the past few years, 26-year-old Sean McElwee, an autodidact political consultant and leftist Twitter personality known for his Abolish ICE activism, has hosted a socialist happy hour in a dank East Village bar. (McElwee told me I couldn’t name the bar because if I did, it might get stormed by the alt-right Proud Boys.) The happy hour used to be a marginal event, like a sad but beloved open-mic night. Now Democratic politicians in nice clothes Uber in to kiss McElwee’s ring and gain the trust of New York’s young socialist power elite. Like Mike Gianaris, a state senator from Queens standing by the bar one Thursday in November who had originally supported the Amazon deal but, his finger to the wind, reversed himself and turned into an anti-Amazon firebrand. Soon he and McElwee were co-authoring op-eds and retweeting each other. Also there was Jumaane Williams, to gin up support for the upcoming race for public advocate — de Blasio’s old job — which he ended up winning. And those guys are B-list. McElwee boasted to me that Senator Kirsten Gillibrand had been by recently, drinking the “piss bar wine.”

McElwee, a lapsed Evangelical Christian who used to intern at the libertarian Reason Foundation, has through sheer chutzpah transformed himself into one of the go-to voices of New York City socialism. (He tracks the performance of Abolish ICE tweets via Excel spreadsheet.) I saw him again at a happy hour a month later. “What’s your name again?” he asked me. “I always forget white guys’ names.” (McElwee is white.) I bought McElwee a vodka-and-soda — “I’m trying to lose weight. All the white supremacists are making fun of me” — and we chatted with a guy in wire-rimmed glasses and muttonchops who worked at Google and said he was at the Seattle WTO protests in 1999. The beauty of “Abolish ICE,” he told us, was its simplicity. “Build the wall,” “Lock her up”: They’re all perfect for shouting.

McElwee’s Abolish ICE activism has made his brand of immigration politics synonymous with young socialism. But it taps into a deep and awkward divide on the left. Bernie Sanders, for example, has long toed a more conservative line on immigration. To him, unchecked immigration is favorable to the bosses since it leads to an influx of cheap labor. “Open borders,” he has said, “is a Koch-brothers proposal.” A cause like Abolish ICE, in the view of the socialist old school, will galvanize a progressive constituency at the expense of uniting a populist movement, which Sanders has long dreamed of building around class. By that logic, to divide your coalition into competing identity groups is to fracture and doom your movement.

This is also the Jacobin view of socialism. Bhaskar Sunkara, the magazine’s founder, lays out the anti-identity argument in his forthcoming book, The Socialist Manifesto: “Without the bedrock of a class politics, identity politics has become an agenda of inclusionary neoliberalism,” he writes. “A world where half the Fortune 500 CEOs are women and fewer of them are white would be better than our world today, but still doesn’t mean much if there are just as many poor kids experiencing the same oppression they are now.” Or, as he put it more provocatively in person, “I’d rather be a black middle-class person than a white poor person.”

McElwee couldn’t disagree more. “I don’t ascribe in any way to these ideas that identity politics is bad for us. I think I can take someone who is deeply concerned about patriarchy and I can make them understand how patriarchy intersects with capitalism much more than I can take someone who’s mad because GM took their job away and make them understand socialism,” he said. (DSA’s Cunningham, who is black, sees class versus race as a false choice. “Racism,” she says, “is a tool of capitalism” to divide workers.)

One reason McElwee isn’t bothered about alienating blue-collar whites is that he’s not interested in their votes. Like the Ocasio-Cortez-aligned PAC Justice Democrats, his activism revolves around running candidates in safe blue districts and pushing leftward from within. Which is exactly how ultra­progressive congresswomen and close AOC allies Ayanna Pressley, Ilhan Omar, and DSA member Rashida Tlaib were elected to the House in the November midterm elections.

“It’s weird to me that DSA is a coalition of college-educated white people who, like, hate the idea that the Democratic Party should appeal to college-educated white people,” McElwee said. Sanders, meanwhile, is hoping for a somewhat broader appeal.

Why is there no socialism in the United States? That’s the famous question the social theorist Werner Sombart asked in 1906, anticipating the next century of American capitalist hegemony. His answer: “roast beef and apple pie.” Then why did socialism still fail to catch on in periods of deprivation and unrest? Decades later, Daniel Bell, a Harvard sociologist, offered an alternative explanation. Socialists were forever doomed to the margins, he argued, because their idealistic causes were at odds with the political compromises necessary to see them realized.

Lately, the democratic-socialist left has found something of a middle path. Candidates like Ocasio-Cortez and Sanders are no longer too precious to run on the Democratic ticket, though the proposals they suggest are so ambitious — like Medicare for All, a Green New Deal, and free public college — that they don’t feel like compromises at all. The week after Sanders announced his presidential bid, the socialist left coalesced around him completely (Elizabeth “I am a capitalist to my bones.” Warren was out of the question) as hundreds of thousands of donations, worth $10 million, flowed into his campaign. Jacobin, meanwhile, released its latest issue, imaging a world in which Sanders was already president. Mainstream politics finally seemed to be catching up to the long-marginalized left. “Is there a point in spending all day trying to explain, like, the Marxist theory of exploitation to some 18-year-old?” Sunkara asked at the issue launch. “Yes! Because that kid might be the next Bernie Sanders.”

Last week, I went to the monthly general meeting of DSA’s North Brooklyn branch in Bushwick. I was expecting talk of the campaign to dominate the meeting, which, as ever, was packed. Instead, the agenda — elected civilian-review board, ending school suspensions, Medicare for All/NY Health Act, and a 45-minute training session for a political tactic called “bird-dogging” — had nothing to do with Sanders at all. It turned out that a byzantine endorsement process, requiring ratification by a 35-member board called the Citywide Leadership Committee, needed to take place before DSA could get formally involved with the Sanders campaign.

At first blush, this seemed ludicrous. Finally, the left was in striking distance of seizing serious political power in America, and it was getting bogged down by bureaucracy. And yet: All those people came out and sat through a bird-dogging seminar in deep Brooklyn on a freezing Tuesday and didn’t even seem to mind. Like devoted members of a social club, or a church parish, Brooklyn’s young left seemed to be building something designed to outlast the vagaries of a campaign, or transcend the personality cult of its politicians, and in doing so keep alive the embers of an idea that’s lived and died so many times before.

*A version of this article appears in the March 4, 2019, issue of New York Magazine. Subscribe Now!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

https://www.huffpost.com/highline/article/capitalist-takeover-college/?guccounter=1

https://www.huffpost.com/highline/article/capitalist-takeover-college/?guccounter=1

https://www.huffpost.com/highline/article/capitalist-takeover-college

https://www.huffpost.com/highline/article/capitalist-takeover-college
QUOTE
The price of college is breaking America. At a moment when Hollywood celebrities and private equity titans have allegedly been spending hundreds of thousands in bribes to get their children into elite schools, it seems quaint to recall that higher learning is supposed to be an engine of social mobility. Today, the country’s best colleges are an overpriced gated community whose benefits accrue mostly to the wealthy. At 38 colleges, including Yale, Princeton, Brown and Penn, there are more students from the top 1 percent than the bottom 60 percent.

Tuition prices aren’t the only reason for this, but they’re a major one. Public university tuition has doubled in the last two decades, tripled in the last three. Prestige-hungry universities admit large numbers of students who can pay ever-increasing fees and only a relative handful of low-income students. The U.S. now has more student loan debt than credit card debt—upward of $1.5 trillion. Nearly 40 percent of borrowers who entered college in the 2003 academic year could default on their loans by 2023, the Brookings Institution predicts.

The colleges would have you believe that none of this is their fault. They would point out that public schools took a huge financial hit during the recession when states slashed their education budgets. This is true, but that hardly explains the size and pace of the price hikes or the fact that tuition at private schools has exploded, too. [1] Average real-dollar private school tuition jumped from $17,000 in the late 1980s to over $35,000 in the most recent academic year.

It also doesn’t explain why colleges have failed to take advantage of the best opportunity to radically drop the price of a good degree that I’ve seen in 15 years of watching and reporting on the industry. This opportunity doesn’t have the daunting price tag of worthy proposals like “free college.” It doesn’t require any action from Congress at all.

The answer is online learning. When online degrees started proliferating 20 years ago, they earned their reputation for being second-rate or just plain scammy. Many were little more than jumped-up correspondence courses offered by for-profit colleges out to make a quick buck, and they were particularly ineffective for low-income students.

But there have been remarkable advances in online learning in the last decade. Nearly every prestigious college and university now offers multiple online degrees taught by skilled professors. And many of the courses are really good—engaging, rigorous, truly interactive. They are also a lot cheaper for universities to run. There are no buildings to maintain, no lawns to mow, no juice bars and lazy rivers to lure new students. While traditional courses are limited by the size of a lecture hall, online courses can accommodate thousands of people at a time.

This is how universities could break the tuition cost curve—by making the price of online degrees proportional to what colleges actually spend to operate the courses. So far, colleges have been more aggressive in launching online graduate programs. But there’s huge potential for undergraduate education, too, including hybrid programs that combine the best of in-person and virtual learning. And yet nearly every academic institution, from the Ivies to state university systems to liberal arts schools, has refused to pass even the tiniest fraction of the savings on to students. They charge online students the same astronomical prices they levy for the on-campus experience.

Universities often omit any mention of the private companies that help run their online degrees, but these companies typically take a 60 percent cut of tuition, sometimes more.

This is because many colleges don’t actually run online programs themselves. They outsource much of the work to an obscure species of for-profit company that has figured out how to gouge students in new and creative ways. These companies are called online program managers, or OPMs, an acronym that could come right out of “Office Space.” They have goofy, forgettable names like 2U, HotChalk and iDesign. As the founder of 2U puts it, “The more invisible we are, the better.”

But OPMs are transforming both the economics and the practice of higher learning. They help a growing number of America’s most-lauded colleges provide online degrees—including Harvard, Yale, Georgetown, NYU, UC Berkeley, UNC Chapel Hill, Northwestern, Syracuse, Rice and USC, to name just a few. The schools often omit any mention of these companies on their course pages, but OPMs typically take a 60 percent cut of tuition, sometimes more. Trace Urdan, managing director at the investment bank and consulting firm Tyton Partners, estimates that the market for OPMs and related services will be worth nearly $8 billion by 2020.

What this means is that an innovation that should have been used to address inequality is serving to fuel it. Instead of students receiving a reasonably priced, quality online degree, universities are using them as cash cows while corporate middlemen hoover up the greater share of the profits. In a perfect twist, big tech companies are getting the spill-off, in the form of massive sums spent on Facebook and Google ads. It’s a near-perfect encapsulation of the social and structural forces that allow the already-rich to get richer at the expense of everyone else. And it all started with a man named John Katzman, who has come to deeply question what has become of his own creation.

It’s 8:00 a.m. and John Katzman, education entrepreneur, is doing his morning workout while simultaneously explaining how he upended the business of American higher education not once but twice. I had suggested meeting for coffee. But Katzman had just arrived in Washington, D.C., on the red-eye from California and he likes to attack sleeplessness with exercise, which is how I wound up conducting an interview on side-by-side elliptical trainers in the gym at the Ritz-Carlton. Katzman likes to describe himself as “the ghost of unintended consequences”—a man who sees the corruption and inefficiencies at the heart of the education system and leverages them to get very, very rich.

Katzman is now in his late 50s, but you can still see traces of the boyish upstart who founded his first company out of his parents' apartment on Central Park West in 1981. He got the idea as an undergraduate at Princeton University, when he tutored local high schoolers for the SAT to earn extra cash. Pretty soon he was making so much money he nearly dropped out. He didn’t, but shortly after graduating, he founded a test prep company called The Princeton Review.

There were other test prep companies out there, but no one in the business embodied his customers’ aspirations quite like Katzman—old money, Ivy League degree, cool and a little bit brash, always willing to explain to a reporter that the SAT was a “scam” and “moronic” and that its supposed value as a meritocratic sorting instrument was “bullshit.” In attacking the SAT’s flaws, Katzman only created more demand for a service that could exploit them. Princeton Review was ultimately valued at $300 million—and helped spawn an entire industry of companies that would teach kids to game the test, if their parents could afford to pay. Elite universities became even more swollen with the children of the 1 percent.

A young John Katzman. Courtesy of John Katzman

Yet Katzman was still only tinkering on the margins of the higher education market, which is worth at least $300 billion. The majority of that money comes, in one way or another, from the government: state funding for public universities and community colleges, federally guaranteed student loans, tax credits, grants for low-income students. For most of the past seven decades, private companies could build thriving businesses on the periphery of higher education—broadcasting football games or selling expensive textbooks. But the big pile of government money was largely off-limits. It remained in the control of public and nonprofit colleges that, whatever their shortcomings, weren’t explicitly designed to put profits ahead of students. That is, until the arrival of the internet.

One of the first companies to locate a loophole was Kaplan, Inc., Katzman’s biggest rival in SAT prep. In 2000, Kaplan bought a chain of vocational schools called Quest Education. Most of the schools were modest storefronts serving a few hundred students. The real value was in the Davenport, Iowa, campus, which had “regional accreditation”—the same stamp of approval given to schools in the Ivy League. [2] There are seven regional accreditors, founded in the late 19th and early 20th century. The Ivies, as well as pretty much every well-known college, are regionally accredited. There are also a handful of “national” accreditors that tend to focus on for-profits. The genius of this move was that 1) any accredited school can be paid for with federal grants and loans and 2) thanks to a 1998 reform intended to encourage distance learning, the Davenport college's accreditation magically extended to everything Kaplan did online. Instead of charging $500 to prepare students for a college entrance exam, Kaplan could charge $50,000 for college itself, through a new division called Kaplan College. It had found a way into the pile of government money. The University of Phoenix and a dozen other for-profit corporations did the same. At some for-profit schools, almost 90 percent of revenues came from federal funds. The stock market took notice; many investors and executives became very wealthy.

 

For obvious reasons, Katzman could hardly start selling online degrees from Princeton Review University. Besides, he was no fan of for-profit colleges. “Just about all of them were levels of suck,” he says. “I didn’t want to do that.” So he decided to get Princeton itself, or an equally prestigious institution, to lend its name to online degrees instead. He would focus on graduate schools, where admissions standards are opaque. He would provide all of the upfront capital. He’d do the digital marketing and hire course designers and produce the videos of lectures and the software that allowed students and faculty to interact live online, with worldwide 24/7 support. In return, the colleges had to give him 60 percent of the tuition. This was still a good deal for them, since 40 percent of something was better than 100 percent of the nothing they had before.

In 2008, Katzman left Princeton Review and founded his second startup, eventually named 2U, which was one of the very first OPMs. He likes to joke that the acronym also stands for “other people’s money.” “The key insight was to take the systems from for-profits that were actually good ... married to the goodwill and good quality of the best traditional schools,” he says. “That is virgin snow.”

Selecting a college is one of the most high-stakes financial decisions a person will ever make, right up there with buying a house. And yet every year, millions of people do it on the basis of shockingly little information. College rankings are notoriously unscientific. There’s no form of independent quality control, since every school decides for itself what students need to do in order to pass courses. Accreditors assess the administrative practices of schools, but they are indirectly funded by colleges themselves. And the biggest financier of higher learning, the federal government, can’t force a school to reduce tuition if it believes students are being overcharged. What all of this means is that colleges essentially approve one another to be eligible for government money.

Nor can students expect “the market” to help them figure it out. Universities aren’t like restaurants that rely on repeat customers: pretty much nobody gets two bachelor’s degrees. If you choose the wrong place, as many students do, it’s not easy to signal your dissatisfaction by transferring to a competitor. Besides, every year, colleges are practically guaranteed a fresh supply of high school graduates and adults looking for new skills. The result is a profiteer’s paradise: millions of highly motivated, naive, overwhelmed consumers loaded up with armfuls of government money. Perhaps no one understands the many ways in which this can go horribly wrong better than Bob Shireman.

Shireman, a prototypically earnest D.C. policy wonk, is surprisingly genial for a man who is actively hated by an entire industry of powerful corporations. Over his three-decade career, he’s fought exploitative for-profit education companies more aggressively than anyone in Washington. In February 1990, as a newbie staffer for Illinois Senator Paul Simon, Shireman was dispatched to take notes on a series of hearings being conducted by Senator Sam Nunn, chairman of the Permanent Subcommittee on Investigations. The subject was abuses by for-profit colleges, and what the 28-year-old Shireman heard there was, he recalls, “eye-opening and appalling.”

There was the recruiter who described hunting for students outside welfare offices in poor, mostly black neighborhoods. A prospect was considered qualified if he could “breathe, scribble his name, had a driver’s license, and was over 18 years of age,” the recruiter explained. There was the bricklaying institute in Texas that bused in hundreds of what the Senate termed “homeless street people” from New Orleans. There was the culinary school in Washington, D.C., where training consisted of working—for free—in a water treatment facility cafeteria. There was the college owner who brazenly declared, “I’m a businessman out to make a profit. Truly I don’t care about the well-being of these students.”

These schools had been gorging on government money. During the previous six years, the guaranteed student loan program had almost doubled to $12.4 billion, while defaults had increased by a staggering 338 percent. The bad debt was heavily concentrated in schools that paid salespeople on commission to sign up as many students as possible in order to harvest their grants and loans. Since many of the degrees were essentially worthless, the students had little hope of ever getting out of debt.

It wasn’t the first time Congress had uncovered misconduct on this scale. It was at least the third. After the 1944 G.I. Bill, most vets used their benefits to attend for-profit schools, many of them fly-by-night operations offering substandard training in fields with no jobs. A second feeding frenzy came in the late 1960s and early 1970s, when expanded G.I. Bill benefits for Vietnam War veterans and Lyndon Johnson’s Great Society injected billions of dollars into higher education. “Every time Congress has been led to believe these scandals are a thing of the past, they come roaring back,” Shireman says. “Government action always ends up being too late for hundreds of thousands of students.”

The Nunn investigation was no different. In 1992, Congress banned “incentive compensation”—meaning that if colleges wanted federal financing, they could no longer pay employees or outside recruiters based on the number of students they signed up. More than 1,000 unscrupulous operators unceremoniously closed up shop. Then, in the early-2000s, the George W. Bush administration softened the ban and the industry began to reformulate again.

In November 2008, Shireman joined the Obama transition team and in early 2009, became the deputy undersecretary for higher education policy at the Department of Education. After leaving Congress, Shireman later became a senior policy adviser on Bill Clinton's National Economic Council and founded a nonprofit dedicated to making college more accessible for disadvantaged students By then, the for-profit industry was dominated by publicly traded corporations, powered by a potent mix of Wall Street money and the internet. Shireman noticed that the new crop of executives were smart-suited graduates of the best business schools, not the small-time grifters of old. From 2000 to 2010, enrollment in the for-profit sector quadrupled. At its peak, the University of Phoenix Online enrolled over 200,000 students. In 2010, Kaplan pulled in nearly $1.5 billion in federal funds. Kaplan’s success was welcome news for its owner, The Washington Post: At a shareholders meeting, the Post’s then-chairman and CEO, Donald Graham, announced, “Going forward we have excellent prospects as a company and the primary reason for that is spelled K-A-P-L-A-N.”

Tuition for USC’s online master of social work degree is exactly the same as the on-campus version: currently, $107,484.

This boom was built on easy access to government money. Very few federal student loans require credit checks, and they can be used at any accredited college. With incomes stagnant, borrowing exorbitant sums became the norm. The warning signs were all there. The nonprofit Shireman founded, the Institute for College Access and Success, had reported a tenfold increase in college graduates with large debt burdens. A fourth wave of scandal was cresting.

This time, it fell to Senator Tom Harkin to issue the damning report with findings that could have appeared verbatim in the previous three. He convened a commission to investigate for-profit colleges, which found that some of the biggest for-profits were among the more notorious offenders. From 2006 to 2008, the loan default rate at online Kaplan University nearly doubled. Undercover Government Accountability Office investigators recorded recruiters at its campus in Pembroke Pines, Florida, misleading prospective students. (Kaplan did not admit wrongdoing, but reached an agreement with the Florida attorney general to improve its practices and donated $350,000 to a scholarship fund.) In December 2009, the University of Phoenix paid a $78.5 million fine to settle allegations of incentive compensation malfeasance brought by whistleblowers working with the Department of Justice.

The schemes were not subtle. Recruiters at a for-profit called Westwood College were trained to promote tuition costs of $4,800 per term without mentioning that Westwood had five semesters instead of the standard two. Westwood also falsely told students their tuition would be completely covered by grants. In reality, the school gave students private loans—they were instructed to call them “student supplemental financing”—at an interest rate of up to 18 percent. (Federal loans currently charge 5 percent.)

“This is a cash cow,” says Marilyn Flynn, a former dean at USC. “Universities are struggling to find a business plan that works. And I was very aware that we would have a dramatic increase in revenue from this.”

Shireman had already decided to fix the incentive compensation rules. He also used a long-dormant clause in the Higher Education Act to create new quality standards for the industry. For-profit colleges fought the changes, hiring lobbyists on both sides of the aisle, including Democrat Tony Podesta and, perhaps inevitably, longtime D.C. fixer Lanny Davis.

The industry managed to tie up new regulations in court for years. But there were just too many horror stories to ignore, too many lawsuits and state investigations. Enrollment in for-profit schools dropped, cratering share prices that had been premised on rapid growth. Both the president and CEO of two Kaplan higher education divisions departed in 2011, not long after the Post published a self-flagellating expose.

Shireman had stepped down the previous year. He was 48 years old with a wife and family, and he wanted to get back to California. In the hour between the announcement of Shireman’s impending resignation and the close of trading on Wall Street, the value of the major for-profit companies jumped by hundreds of millions of dollars.

During the for-profit meltdown, no one paid much attention to 2U, John Katzman’s fledgling company. In 2008, he struck his first deal with USC, for an online master of teaching. At the time, the university was in the middle of a dogged, decadeslong climb to the top tier of the U.S. News & World Report rankings. It lacked the money to compete with deep-pocketed rivals like Stanford or Harvard, so it issued a mandate to the deans who ran schools and colleges like independent fiefdoms: Be creative. Marilyn Flynn, then the dean of the School of Social Work, recalls that online education was a “very high priority” for USC President C.L. Max Nikias. “Our merit reviews would reflect our ability to do this,” she says. She signed up with 2U in 2010. USC’s online master of social work would cost exactly the same as the on-campus version: currently, $107,484.

Katzman’s pitch was hard to resist. Back then, many online programs were extremely lo-fi. 2U, by contrast, offered live video interaction with teachers and other students, arrayed on screen in squares like the opening credits of “The Brady Bunch.” Plus, the company assumed all of the financial risk. College deans could use their cut to lure star research professors by promising them large salaries and small or nonexistent teaching loads, pushing programs up the rankings. The online courses would be staffed by adjuncts, most working far from the campus and much cheaper to employ. “This is a cash cow,” Flynn says bluntly. “Universities are struggling to find a business plan that works. And I was very aware that we would have a dramatic increase in revenue from this.”

Hundreds of students across the country and overseas signed up for the USC degrees. In 2010, 2U began negotiating to launch an online MBA with UNC Chapel Hill and a nursing degree with Georgetown University. The partnership with USC’s education school was especially smart, because there is a huge market for master’s degrees in education. A graduate degree almost always qualifies a teacher to an automatic raise: More than half of America’s 3.8 million public schoolteachers have one. Many earn their degrees while working full time, making the convenience of online learning a major draw.

Nearly $1 billion of online cost savings may go straight into the pockets of Mark Zuckerberg, Larry Page, Sergey Brin and their shareholders each year.

Master’s degrees are also an entirely different market from undergraduate ones. Colleges are legally required to publicly report undergraduate admissions statistics, including SAT scores and what percentage of their applicants gain admission. This prevents elite schools from simply jacking up the number of students admitted to their most prestigious undergraduate programs to make more money—those programs are sought after precisely because they are exclusive. Ph.D. programs at elite universities tend to be similarly selective.

By contrast, master’s programs are a black box—there is no requirement to publish any admissions data. This means universities can dramatically lower their admissions standards and enroll thousands of highly profitable students without sullying their brand. The University of Pennsylvania, for example, offers a master’s in “Applied Positive Psychology,” which is essentially a $66,000 Ivy League degree in self-affirmation. It has “no specific prerequisite courses” and applications are accepted from anyone with a minimum 3.0 grade point average. [4] According to a UPenn official, the program, which launched 15 years ago, is for individuals who “desire to apply evidence-based positive psychology to their area of expertise.”

There are also strict limits on how much government money students can borrow for an associate or bachelor’s degree. But as long as a master’s degree is accredited, students can take out federal loans for the entire cost of tuition, fees, books and living expenses, with no limit on what the college can charge. These loans can easily top $100,000.

By 2009, private investors had caught on to the potential of OPMs. 2U raised $100 million in four years to expand its operations. And then the company hit a snag, in the form of the regulations Bob Shireman and his colleagues authored before his departure. The new incentive compensation rules strengthened the existing prohibition of any “commission, bonus, or other incentive” based “directly or indirectly” on enrollments or financial aid. Sharing tuition revenue, however, was how 2U made all its money.

Chip Paucek. Courtesy of 2U

In 2010, 2U’s then-chief operating officer, Chip Paucek, met with Secretary of Education Arne Duncan to lobby for an exception for OPMs. He brought along a dean from the Georgetown nursing program to help argue the case.

According to four former Department of Education employees who were involved with or had knowledge of the issue, career staff had serious misgivings. But they told themselves that the OPMs' university partners wouldn’t risk their reputations by offering shoddy degrees or defrauding students. In March 2011, the department issued a final clarification: It was OK to share tuition with a third-party firm, as long as the recruiting was part of a larger package of “bundled services” that included marketing, support services, the provision of technology and career assistance. 2U’s business model was now enshrined in federal regulation.

If there’s one thing you can count on in these uncertain times, it’s that the cost of college will rise—and then rise some more. Almost every year, whether the economy is in a state of boom or bust, tuition hits a record high. But why? Is it really twice as expensive to provide a degree as it was 20 years ago? Colleges go to absurd and extraordinary lengths to avoid answering this question, reporting their financials in a way that deliberately obscures how much money different units spend and make. They don’t even like to use the word “profits,” preferring euphemisms like “surplus.” If nobody knows how much your degree really costs to run, then nobody can accuse you of charging too much, which is an excellent strategy for charging too much.

One of the very few prestigious colleges that has attempted to create an affordable online degree is the Georgia Institute of Technology. In 2014, its college of computing created an online master’s with the radical objective of charging the lowest tuition possible. Charles Isbell, a Georgia Tech dean, says he saw the effort as part of the university’s mission of public service. Udacity, an online education provider, helped design the program. AT&T chipped in a $4 million gift for startup costs. Georgia Tech sets a price that allows it to break even—currently, $6,600.

To understand just how jaw-droppingly low this figure is, consider that Georgia Tech has the eighth-ranked computer science department in the country, according to U.S. News & World Report. Here are the prices for similar online degrees, along with the department’s ranking:

The Real Cost Of An Online Degree
#8
Georgia Tech

Charges students at cost

$6,600
#13
Columbia
University
$64,595
  • #20 University of Southern California: $60,150
  • #25 Johns Hopkins University: $42,500
  • #43 North Carolina State: $49,197
  • #68 Syracuse: $46,770
  • not ranked Louisville: $21,420

Georgia Tech is charging around one-tenth the tuition of Columbia University. Even if Georgia Tech wanted to make a 100 percent profit, it would still be charging $47,000 less than what USC demands for a lower-ranked degree.

There are two main reasons most online degrees are so expensive. The first is that middlemen like 2U spend enormous sums on marketing, a cost that is then passed on to the student. In materials it provides to investors, 2U helpfully estimates what happens to every $100 in revenue for a typical program that's not being launched or expanded. Approximately $15 is spent on actual teaching. Developing and administering the courses costs around $23. Marketing and sales eats up $19. And the cost of buying ad words and search terms on Facebook and Google keeps on rising, as OPMs compete with each other and with colleges running their own online programs.

Based on the size of the OPM industry, 2U’s spending patterns, and Facebook and Google’s share of the digital advertising market, nearly $1 billion in online education cost savings may be going straight into the pockets of Mark Zuckerberg, Larry Page, Sergey Brin and their fellow shareholders every year. That doesn’t include billions more paid by colleges that don’t use OPMs. Recently, I tried a Google search for “Georgia tech online masters computer science.” The first result was a paid advertisement for Johns Hopkins’ version of the same degree, which costs $42,500.

Source: 2U investor materials.

The second reason online degrees are so expensive is the generous profit margins sought by both OPMs and the colleges themselves. The beauty of the model is that after a course is taught for a few years, up-front development costs get paid off and profit margins rise. At that point, 2U estimates that out of every $100 in tuition revenue, the profit is almost $43, split evenly with the university at about $21 apiece. On a recent call with Wall Street investors, 2U revealed that for programs operating for at least four years, profit margins are up to 25 percent, 4 percentage points above their projections. I asked a number of schools why the prices for online and on-campus courses were the same. Most declined to explain their reasoning, but former USC dean Marilyn Flynn said there had been a “policy decision” to charge the same amount for both versions of its social work master’s degree “because there is no difference in the quality.”

When the Department of Education officially endorsed the 2U model, it essentially removed any incentives for colleges to create cheaper online degrees. The decision, says David Bergeron, then a senior department official who worked on the regulations, “caused an explosion in the marketplace.” By 2014, 2U’s annual revenue had passed the $100 million mark. It also had an increasing number of competitors. According to Tyton Partners, more than a third of colleges with online programs—525 total—have signed OPM contracts. Paxton Riter, founder of an OPM called iDesign, told InsideHigherEd that proportion could soon reach 50 percent.

The upper ranks of these companies are a who’s who of refugees from controversial for-profit colleges. To name just a few examples, OPM executives include the two high-ranking Kaplan executives who left in 2011, a former University of Phoenix vice president and a president at Career Education Corporation, a scandal-ridden for-profit that has been investigated by the SEC, the DOJ and more than a dozen state attorneys general. [5] According to a 2019 settlement with 48 state attorney generals and the District of Columbia, the company forgave $493 million in student loan debt, affecting nearly 180,000 students, and paid $5 million in fines to the states. “When you have similar incentives and similar actors involved, it's difficult not to worry,” says Spiros Protopsaltis, a senior education official during Obama’s second term.

Also scrambling to get in on the action: textbook publishers. With the internet imperiling their comfortable racket selling $300 textbooks, publishing giants such as Wiley, Pearson and Bertelsmann have snapped up OPMs for hundreds of millions of dollars. One analyst described the current state of the industry as “a scene out of ‘Mad Max,’ a chase through these dystopian hinterlands with obstacles in the way and people attacking each other.”

All of this has created serious doubts from the man who made the OPM market possible in the first place: John Katzman. As 2U’s board began preparing in 2012 to go public, he moved to an executive chairman role, with Chip Paucek running the company day-to-day. What happened next is disputed. Katzman says the two agreed on a vision, but then Paucek made “a series of decisions that I consider to be not in the interests of kids, not in the interests of educators, but in the interest of stockholders.”

Katzman notes that after Paucek took over, UC Berkeley launched a 2U-supported master of information and data science without in-state tuition. All students pay the same for the 20-month program: $66,150, plus fees. Katzman watched in dismay as enrollment declined in USC’s master’s in teaching, even as it surged in its much more lucrative social work program, which costs more than twice as much. (Karen Symms Gallagher, the dean of USC's education school, observed that around the time the teaching master’s was created, post-recession education budget cuts significantly reduced job opportunities.) “There are CEOs who believe they have a fiduciary duty to their stockholders to just market the most expensive programs and encourage schools to jack up tuition,” Katzman says. “I am horrified. That was not the goal.”

2U’s headquarters is next to the last stop on the D.C. Metro’s Orange Line, in suburban Maryland. Walking inside is like teleporting into a neon-and-teak-accented Silicon Valley startup—except, because office space is a lot cheaper here, on a heroic scale. There’s a coffee bar in the lobby, a cafeteria that serves affordable gourmet food and fridges full of lightly flavored carbonated water.

I met with Paucek, now the CEO, who readily acknowledged the key role he played in the Department of Education rule change. “I personally had a lot to do with that,” he said. He made no apologies for the profit margins that have made him a very wealthy man. “Some folks don't think that there should be any profit motive in education whatsoever,” he said. “I've been in for-profit education, in one way or the other, my entire life.” His position on Katzman’s departure is that the two men simply had a difference of opinion over leadership style and the focus of the business. “Every company has founding drama,” Paucek said.

Katzman quit in August 2012, a year and a half before 2U listed on the Nasdaq. By then, OPMs had punctured a hole in the distinction between for-profit and nonprofit education. The breach started out small and manageable. But the exception to the incentive compensation law is now being expanded by multibillion-dollar companies that have realized that the best way to avoid for-profit regulation is to pretend to be something else. “The department opened Pandora's box,” says Protopsaltis. “Closing it will not be easy.”

Kaplan Higher Education never really recovered from the combination of business missteps and the intense public scrutiny of the for-profit industry in the late 2000s. In April 2017, Donald Graham announced that Kaplan University was being sold for $1 to Purdue University, Indiana’s public land grant college. It sounded like Purdue had picked up a distressed asset and turned it into a public concern. But that’s not exactly what happened.

What Purdue really did was create a separate organization, eventually named Purdue University Global. It was granted a highly unusual legal status by the Indiana legislature, in which it is simultaneously considered a nonprofit institution immune from Bob Shireman’s for-profit regulations and a private institution immune to public records requests. Purdue University Global took ownership of Kaplan’s few remaining physical campuses, all of its online programs, and hired its academic personnel.

But Kaplan Higher Education still very much exists as a division of Graham Holdings. It is now being paid 12.5 percent of Purdue University Global’s revenues to provide recruiting services, marketing and other OPM capabilities under a long-term contract. The contract, which Purdue tried to keep secret, penalizes the university if it tries to lower prices, raise admissions standards or otherwise cut into Kaplan’s revenue stream. In other words, Kaplan University became an OPM to itself.

Once again, Kaplan is at the forefront of a trend—this time, for-profit colleges that have discovered a way to secure all of the benefits of a nonprofit institution with none of the obligations. One of the most striking cases is a former for-profit college named Grand Canyon University.

“The political staff are writing the regulations in secret and the policy staff are kept in the dark,” says a staffer at the Department of Education.

In July 2018, the college's parent company (known as LOPE on the Nasdaq), got final approval to create a nonprofit, also named “Grand Canyon University.” LOPE lent the nonprofit $870 million plus interest. The nonprofit promptly paid the $870 million right back to LOPE to purchase Grand Canyon's physical campus in Phoenix, Arizona, as well as the university’s academic operations. (Most of its roughly 90,000 students are online.)

Meanwhile, LOPE signed a 15-year contract with the nonprofit to provide OPM-style services. In exchange, LOPE gets 60 percent of Grand Canyon University’s tuition and fee revenues, in addition to $52 million in annual interest payments on the loan.

It sounds impossibly convoluted, but it’s actually quite simple. Grand Canyon put all of its academic operations into a nonprofit that serves as a conduit for federal financial aid. (Last year, Grand Canyon received over $760 million from federal student loans, the most of any college or university nationwide.) The nonprofit university is also able to avoid local property taxes and for-profit regulations, not to mention the industry’s toxic reputation. But most of the profits eventually end up in the same place—with LOPE, a $5 billion corporation. Grand Canyon University is “not non-profit in any meaningful legal sense,” wrote Brian Galle, a former attorney in the tax enforcement policy section of the Justice Department, in a letter to the Department of Education. He later added, “[It’s] a trustworthy-looking wrapper around a for-profit business.”

As a general rule, it’s in students’ best interests if university contracts with private companies are arm’s-length transactions between independent firms. But in this case, Brian Mueller, former CEO of the University of Phoenix Online, is the CEO of LOPE and president of the nonprofit Grand Canyon University. In 2017, Grand Canyon’s accreditor, the Higher Learning Commission, issued standards allowing, among other things, the president of a nonprofit university to run the for-profit company that gets most of the nonprofit’s money. Which is great news for Mueller: According to the Chronicle of Higher Education, he has made at least $15 million selling LOPE stock since January 2017, far more than the salary of any other nonprofit college president. This entire structure wouldn’t be possible without the exception that the Department of Education granted to OPMs.

And nonprofit conversion has spread like a virus. The remaining big half-dozen for-profit companies are all, industry insiders say, considering similar moves. Luckily for them, the Trump administration is about to take the rickety structure of regulation protecting college students and burn it to the ground.

Diane Auer Jones. Courtesy of the Department of Education

The person in charge of higher education at the department is Diane Auer Jones, a onetime official in George W. Bush’s Department of Education who worked for some of the most powerful operators in the previous for-profit scandals. [6] Before entering the administration, Jones operated a company associated with the private student loan industry and the main trade organization of for-profit colleges. Previously, she was the chief external affairs officer for the Career Education Corporation, which dealt with multiple lawsuits and government investigations during her tenure. Soon after starting at the department, Jones promptly threw out all of the regulatory work that her predecessors and career staff had been developing and began rushing through new versions that she wrote all on her own, according to a staffer currently working for Jones. “The political staff are writing the regulations in secret and the policy staff are kept in the dark,” the staffer says. (The Department of Education didn’t respond to a request for comment.)

Jones’ proposed rules, released in January, amount to a sweeping deregulation of higher education. They include abolishing a rule that prevents colleges from outsourcing more than half of a program to outside companies—for example, OPMs—and a rule that bans federal aid to programs where students don't interact with an instructor. “We’re talking about basic questions here, like the amount of student learning we should expect and what the faculty role is,” says James Kvaal, an Obama White House official who is now president of the Institute for College Access and Success. “The prospect of removing any federal guardrails at all is really scary.”

The rules, if adopted, would also weaken the power of accreditors, as well as the government’s oversight of whether colleges are eligible for federal money. In a December speech, Secretary of Education Betsy DeVos said that her department’s current oversight role “stymies competition.” (An accreditor is also one of the few outside organizations that can block an OPM contract.) Late in the Obama administration, the department shut down an accreditor that had approved many of the for-profit colleges cited in the Senate's investigative report a decade ago—including several belonging to Career Education Corporation, Jones’ former employer. Soon after taking office, Jones resurrected the accreditor, citing support from nine others. In fact, only one of the accreditors she named endorsed the move. The department blamed an “inadvertent error in the editing process.”

If Jones’ proposed rules are finalized later this year, it will be almost impossible to prevent another armada of private profiteers from rolling in. This time, they will be much harder to detect. By now, the public is largely aware of the dangers of shady for-profit colleges. But OPMs are taking Katzman’s approach of “the more invisible, the better” to extremes. The next wave of for-profits are becoming so entangled with well-known, trusted institutions that it will be impossible to tell where one ends and the other begins.

 

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