Tuesday, November 3, 2015

For-Profit Education as Corrupt as the Worst Corporations?

Charlie Munger is the partner of Warren Buffett and the co-creator of the sensational holding company Berkshire Hathaway, which has made multi-millionaires of thousands of patient investors. I have written here about Buffett and Munger and their very productive view of investing and life.

Munger was recently quoted on the occasion of the centre temps of the drug company Valeant. Valeant's stock dropped more than 50% in price between August and November 2015 as its shady dealings in attempts to deceive auditors became known. Among its other alleged misdeeds has been the practice of buying up small pharmaceutical companies to acquire the patents to their drugs, then hugely increasing the price of the drugs. Munger called this practice "deeply immoral" and said that it was "similar to the worst abuses in for-profit education."

It is simply shocking to see a sector of the country's education system being used as a simile for the corrupt practices of private corporations. Shocking, but apt.

Gene V Glass
Arizona State University
National Education Policy Center
University of Colorado Boulder

The opinions expressed here are those of the authors and do not represent the official position of the National Education Policy Center, Arizona State University, nor the University of Colorado Boulder.

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