Thursday, June 14, 2007

Conservative con men corrupt campus!

Jonathan Chait argues convincingly that the conservative impulse to unreflectivly shrink government is what caused the student loan scandal. His point, briefly stated: The government offered colleges a choice between cheaper direct loans and more expensive guaranteed loans. Colleges overwhelmingly chose option b - but only because the private lenders who stood to profit from the guaranteed loans BRIBED college administrators. And on what is turning out ot be a massive scale.

Chait goes on to say that the Conservative impulse to unreflectivly shrink government puts us at risk for additional scandals and corruption. Money quote:
The conservative approach to health care runs along the same lines. Most conservatives opposed the prescription-drug bill, but they approved of the provisions funneling recipients to private insurers, even though such plans cost around 20 percent more than traditional Medicare. During the Social Security fight last year, the right's main goal was not to cut benefits but to funnel as much of the money as possible into private accounts, where Wall Street could take a healthy piece. Government can easily mail out checks to old people without corruption. Apportioning a $100 billion investment market without corruption would not be nearly so easy.
Exactly right.


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