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Public No MoreA New Path to Excellence for America's Public Universities$
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Andrew J. Policano and Gary C. Fethke

Print publication date: 2012

Print ISBN-13: 9780804780506

Published to Stanford Scholarship Online: June 2013

DOI: 10.11126/stanford/9780804780506.001.0001

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Subsidies to Public Higher Education

Subsidies to Public Higher Education

(p.109) 7 Subsidies to Public Higher Education
Public No More
Stanford University Press

This chapter analyzes arguments for and against subsidies to higher education in the U.S. It discusses the opinion of James Garland, president of Miami University in Ohio, that public appropriations are not contingent on institutional performance, benefit the wealthy at the expense of the poor, and shield institutions from the efficiency-enhancing forces of competition. The analysis reveals that higher education is primarily a private good, with most of its returns flowing to the recipients. This chapter argues that from this perspective, it cannot be argued that higher education should receive a significant subsidy.

Keywords:   subsidies, higher education, U.S., James Garland, public appropriations, private good

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