Saturday, July 21, 2007
Regulation Should Trump Profits
For-Profit Education, like all enterprises centered on profit abhor regulation and love to scream that the marketplace should be the arbiter of all. If some companies operate on the margin and some consumers get swindled, its unfortunate, pitiful but a necessary consequence of the success of others who benefit from a "usually efficient" system unfettered by regulation. In other words, free enterprise, with the emphasis on the free, and the resulting profits, are more important that the victims of those businesses who abuse the unfettered marketplace. Regulation may curb profits as it protects consumers. There is always a balancing act between the two, consumer protection should always trump regulation especially in a field which is not a luxury and is so important to the success and well being of any member of society, such as education. That is the crux of the issue the legislation is wrestling with in California and I trust that the right side will win out. Profits are useless if they come at the expense of consumers.