Bobo is all up in arms over “The Cuomo College Fiasco.” He snarls that New York’s “free” tuition program is a truly bad attempt at improving higher ed. And “gemli” from Boston will explain what a putz Bobo is. Prof. Krugman has a question: “Can Trump Take Health Care Hostage?” He says the president has adopted a bargaining tactic that’s both nasty and stupid. Here’s Bobo:
Donald Trump sets the bar very high, but the award for the worst public policy idea of the year goes to New York Gov. Andrew Cuomo.
Cuomo presides over a state with a rich diversity of educational institutions. But he also presides over a state, like all states, where many students don’t complete college and where many are unprepared for the information economy. For example, fewer than half of the African-American and Hispanic students in New York public colleges graduate within six years.
Cuomo could have done many things to improve New York’s higher ed system. He could have poured all available money into the Tuition Assistance Program, which is directed at poorer students. He could have spent more to help students become academically ready for college, which is the biggest barrier to graduation. He could have done more to help students pay room and board expenses. He could have massively improved overstretched mental health services. He could have massively improved career counseling.
But in 2016 Bernie Sanders made a big splash on the campaign trail with a plan to make college “free.” So Cuomo proposed and on Wednesday signed legislation to make tuition free at New York public colleges for anybody coming from a family making no more than $100,000 a year, with the cap rising to $125,000 in 2019.
If he runs for president, this will be an outstanding talking point. Unfortunately, the law will hurt actual New Yorkers.
First, the law is regressive. It does nothing to help students from families earning less than $50,000 a year. Their tuition is already covered by other programs. But it does pay for tuition for New Yorkers who make double the state’s median income. The higher up the income scale you go, until the ceiling, the more you benefit.
Second, it doesn’t make a dent in reducing the nontuition fees, like living expenses, textbooks and travel, which for many students are far more onerous than tuition.
Third, it doesn’t cover students who don’t go to school full time and don’t complete in four years. In 2017 this is the vast, vast majority of all students, especially poorer students.
Fourth, it demotivates students. Research has shown that students who have to work to pay some college costs, even if only small expenses, are more spurred to work hard and graduate. As Northwestern researcher Chenny Ng put it in a Washington Post essay, “as the cost of attending college drops to zero, so does the perceived cost of dropping out.”
Fifth, Cuomo’s law threatens to destroy some of New York’s private colleges. Cuomo could have championed a Pell-like program that subsidizes attendance at any accredited school. Instead, he pays for tuition only at state schools.
This means that suddenly the state’s 150 private colleges have to compete with “free.” Many of these schools are already struggling to survive. If upper-middle-class students are drawn away to public colleges, private ones may close. That hurts the state’s educational diversity, it destroys jobs and it hurts the state.
These private colleges tend to have smaller classes, they tend to do a better job of graduating their students and they tend to spend heavily to subsidize poorer students.
Sixth, the law may widen the gap between rich and poor. When state schools are “free,” more people will apply. As more apply, selectivity will increase, as administrators chase higher U.S. News & World Report rankings. That will exclude students with lower credentials, who tend to be from more disadvantaged homes. Even Georgia’s successful Hope Scholarship program had this unintended consequence, widening the college attendance gap between white and black and rich and poor.
Seventh, over the long term the law could hurt the quality of New York’s state system. Right now those schools rely on tuition to help fund programs. If New York moves more toward a purely publicly funded model, it may suffer from the slow decay that has hurt many state systems. State budgets are perpetually challenged by rising entitlement spending. Education gets squeezed. The universities will try to claw back the private money with dorm fees, activities fees and other charges that don’t officially count as tuition, but still quality suffers.
Even in Germany, where a generous welfare state is valued, per-pupil spending has dropped by 10 percent since universities became free. Germany is an extremely successful country, but lecture classes are huge and the country’s universities are not generally ranked among the world’s best.
Finally, the law will hurt its recipients’ future earnings. Students who receive free tuition for four years have to remain in New York State for four years after graduating, or pay the money back. This means they won’t be able to seize out-of-state opportunities during the crucial years when their career track is being formed. They’ll be trapped in a state with one really expensive city, and other regions where good jobs are scarce.
This is a really counterproductive law. We’re all focused on Trump, but one of the reasons Trump was elected was that many of the people who try to use government to do good just haven’t thought things through.
Now here’s what “gemli” had to say about this:
“You know Cuomo is on the right track when David Brooks starts worrying about poor people. Not that he doesn’t like to talk about their plight. He takes every opportunity to promote the idea of leaving government out of the people-helping business. Volunteers are supposed to help at the community level, according to Brooks, which frees up the government to help the rich.
In this example, poor people, who may never have a chance to get a college education under any circumstances, are hit with an eight-point Brooksian fusillade of reasons why free college would be a huge burden to them, and ruin their lives, along with the great state of New York.
Looking back, my education in New Orleans in the late 1960s was nearly free. I paid for six years of college as a student worker, and earned a B.S. and an M.S. degree in the process. Looking back a bit further, the government paid returning G.I.s to go to school, and the result was the biggest social and economic upsurge in living memory.
Today, graduates are saddled with so much debt from usurious student loans that it’s a national disgrace. Nobody fixes the problem because the financial industry loves it. It’s a cash cow that never stops giving milk.
All of Brooks’ bogus complaints are aimed at making sure the status quo doesn’t change. And if anyone hadn’t already noticed, the status quo is a lousy place for the poor to be. The only door that leads out is one that opens into a classroom.”
Now here’s Prof. Krugman:
Three weeks have passed since the Trumpcare debacle. After eight years spent denouncing the Affordable Care Act, the G.O.P. finally found itself in a position to do what it had promised, and deliver something better. But it couldn’t.
And Republicans, President Trump very much included, had nobody but themselves to blame. Basically, the party has been lying all this time, and the lies finally caught up with the liars. Mr. Trump promised health care that would be “far less expensive and far better”; in the event, all he and his allies had to offer were surging premiums, higher out-of-pocket expenses and mass loss of coverage.
But Mr. Trump, as you may have noticed, isn’t big on accepting responsibility for his failures. Instead, he has decided to blame Democrats for not cooperating in the destruction of their proudest achievement in decades. And on Wednesday, in an interview with The Wall Street Journal, he openly threatened to sabotage health care for millions if the opposition party doesn’t give him what he wants.
In that interview, the president of the United States sounded just like a mobster trying to extort protection payments from a shopkeeper.
“Obamacare is dead next month if it doesn’t get that money,” he declared, referring to cost-sharing subsidies that reduce out-of-pocket expenses for low-income families, and are crucial even to higher-income families, because they help keep insurance companies in the system. “I don’t want people to get hurt.” (Nice shop you’ve got here, shame if something were to happen to it.) “What I think should happen and will happen is the Democrats will start calling me and negotiating.” (I’m making them an offer they can’t refuse.)
It’s a nasty political tactic. It’s also remarkably stupid.
The nastiness should be obvious, but let’s spell it out. Mr. Trump is trying to bully Democrats by threatening to hurt millions of innocent bystanders — ordinary American families who have gained coverage thanks to health reform. True, Democrats care about these families — but Republicans at least pretend to care about them, too.
Why does Mr. Trump even imagine that this threat might work? Implicitly, he’s saying that hurting innocent people doesn’t bother him as much as it bothers his opponents. Actually, this is probably true — remember, we’re talking about a man who once cut off health benefits to his nephew’s seriously ill 18-month-old son to gain the upper hand in a family dispute. But it’s not the kind of thing one expects to hear from the occupant of the White House.
What makes Mr. Trump’s tactic stupid as well as nasty is the reality that Democrats have no incentive whatsoever to give in.
For one thing, what is he offering by way of a deal? Obamacare increased coverage two ways, via Medicaid expansion and subsidized private insurance. Mr. Trump might be able to undermine the private markets, but Medicaid wouldn’t be affected. Why would Democrats ever agree to Republican plans, which would basically kill both?
Then there’s the political reality that by sabotaging Obamacare, the Trump administration would be handing Democrats a huge electoral gift. Bear in mind that the places that are already poorly served by private insurers, and would therefore be most hurt, are relatively poor, rural areas — places that overwhelmingly voted Trump last year.
Maybe Mr. Trump believes that he could somehow shift the blame for the devastation he has threatened to wreak onto Democrats. “See, there’s the death spiral I predicted!” But that probably wouldn’t work even if he hadn’t effectively proclaimed his own guilt in advance. Voters tend to blame whoever holds the White House for bad things, and in this case they’d be right: If there is a death spiral, it will have Mr. Trump’s name on it, and deservedly so.
Put it this way: There’s a reason an open letter to Mr. Trump urging that the cost-sharing subsidies be maintained was signed by a wide array of lobbying organizations, including very conservative groups like the U.S. Chamber of Commerce. What they understand is that sabotaging Obamacare would be a disaster for their interests.
So the Trump health care threat is, as I said, stupid as well as nasty. And it’s hard to believe that it will be carried out.
But here’s the thing: Even if Mr. Trump wimps out, as he is doing on so many other issues, he may already have done much of the threatened damage. Insurers are deciding right now whether to participate in the 2018 Obamacare exchanges. Mr. Trump’s tough talk is creating a lot of uncertainty, which in itself may undermine coverage for many Americans.
There is, of course, a good chance that Mr. Trump doesn’t understand any of this. Unfortunately, when you’re in the White House, what you don’t know can hurt a lot of people.