(Austrailia) Deregulation of uni(versity) fees has not worked in the US

http://www.theage.com.au/federal-politics/political-opinion/deregulation-of-uni-fees-has-not-worked-in-the-us-20140607-zry7b.html



Deregulation of uni fees has not worked in the US
June 5, 2014
John Quiggin

The Abbott government’s proposal to deregulate university fees has raised a host of questions. Some are easily answered, such as ‘‘Does Education Minister Christopher Pyne know what he is talking about?’’

The answer, evidently is ‘‘No.’’

Not only is Pyne ill-informed about the details of his own policies but he seems unaware of the history of such policies in Australia and Britain. Contrary to Pyne’s suggestion (presumably based on advice from the free-market ideologues he chose to design his policy agenda), there is zero probability that competition among providers will prevent substantial increases in fees.

The last time Australian universities were given latitude in setting their fees, under the Howard government, all chose the maximum increase of 25 per cent (the handful who held out briefly were making a political point, not seeking to position themselves as low-cost competitors).