July 21, 2011 11:30AM

Debate: Colleges Getting Rich Off Students and Taxpayers?

On Tuesday, Cato held a forum on the big profits made by putatively “nonprofit” colleges, the subject of a new Cato Policy Analysis. Not surprisingly, Peter McPherson, president of the Association of Public and Land‐​grant Universities, objected to the use of the term “profits” to categorize the excess money colleges take in through undergraduate students, but all the panelists seemed to agree that there is both significant waste in higher ed, and that the Capitol Hill obsession with unabashedly for‐​profit institutions misses big cracks all over the Ivory Tower.

Unfortunately, of course, many of you couldn’t join us on Tuesday. Thankfully, you can now take in the entire bit of illuminating infotainment right here:

On a related note, give George Leef’s latest commentary a read. He does a nice job of pointing out all the major flaws in perhaps the most politically powerful argument for ever‐​greater government spending on higher education: because degree‐​holders tend to earn more, we need oodles more people with degrees. I’ve taken a whack at that dubious argument recently, but George gives it a far more comprehensive treatment.