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Mitch Daniels Views Higher Education as a "Racket" (Health Care Too)



(p. A11) Mr. Daniels, 69, is the most innovative university president in America.


. . .


Mr. Daniels kicks off our conversation with a morality tale: "I'll speak to an audience of businesspeople and say: Here's the racket that you should have gone into. You're selling something, a college diploma, that's deemed a necessity. And you have total pricing power." Better than that: "When you raise your prices, you not only don't lose customers, you may actually attract new ones."

For lack of objective measures, "people associate the sticker price with quality: 'If school A costs more than B, I guess it's a better school.' " A third-party payer, the government, funds it all, so that "the customer--that is, the student and the family--feels insulated against the cost. A perfect formula for complacency." The parallels with health care, he observes, are "smack on."



For the full interview, see:

Tunku Varadarajan, interviewer. "THE WEEKEND INTERVIEW: College Bloat Meets 'The Blade'." The Wall Street Journal (Saturday, Dec. 15, 2018): A11.

(Note: ellipsis added.)

(Note: the online version of the interview has the date Dec. 14, 2018.)






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