The Great Debate UK

The Consumer Student

–Priyamvada Gopal is a University Senior Lecturer at the Faculty of English and Fellow of Churchill College, University of Cambridge. The opinions expressed are her own.–

The once highly-regarded British public university is not quite dead but it is in terminal care. After half a century of global success on public funding that amounted to less than 1.5% of Britain’s GDP, in the space of two years we’ve seen the partial withdrawal of the state from the sector, and it is expected that this is a precursor to full withdrawal followed by extensive privatisation.

With the overnight tripling of tuition fees in 2010 (in the face of widespread protests) and with further rises in the offing, the student has been reframed as a consumer buying private goods in the form of a degree. Combine this with a mortgage and you have a large number of citizens who are unlikely to be debt-free at any point in their life.

Formerly known as a university, the service provider of higher education is now to sink or swim in response to the pressures of competition, as degree-awarding corporations rather than sites of inquiry and learning. Ironically, however, it turns out that the new fees regime which David Willetts, the Universities Minister, keeps bizarrely insisting is fairer than the previous one, is actually costing the exchequer more, through the rising costs of subsidising student loans.

from The Great Debate:

Executive pay caps: “stealth nationalization” or “political grandstanding”?

obama-geithner President Barack Obama set a $500,000 annual pay cap on Wednesday for executives at companies getting taxpayer bailouts as part of a wider process to clamp down on excessive corporate pay.

The new rules would require banks and other companies that get government funds in the future to abide by the new cap going forward, with any additional compensation being limited to restricted stock that does not vest until government funds are paid back.

from The Great Debate:

Is the executive pay bubble popping?

James Saft Great Debate -- James Saft is a Reuters columnist. The opinions expressed are his own --

Signs are it won't just be the salaries of bankers coming under fire.

An unusual array of forces are combining to make it very likely that top tier pay may be structurally falling, rather than simply taking a cyclical dip during a downturn.

Take it for granted that pay in the financial sector will fall. A combination of increased government ownership and a shrinking businesses taking fewer risks with other people's money will see to that.

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