Tuition Fees: For and Against

For:

OK, so 20 years ago we had a situation where a tiny group of people had their entire higher education costs paid for by the state. These people, ceteris paribus, went on to earn vastly more than people who did not go to university. It was the latter group whose income tax went to pay for the education of the former. It was a massively regressive situation. You had poor people paying rich people so that the rich could get richer.

Over time we have shifted towards a system where more of the costs are paid by the individual who gains most from going to university, both in terms of their future income and in terms of the experience.

Now one could argue that even the poor receive indirect benefits from having a bunch of highly educated people in society, but this objection falls for two reasons: 1) There is no reason to imagine that charging high fees will mean people *won't* go to university, there might be fewer, but the externalities will still be there and 2) The person who benefits most directly, concretely, and straightforwardly is the person receiving the education, so it is only fair that they pay the bulk of the costs.

Now there are a bunch of arguments about community and reciprocity and all that jazz which I am sympathetic to but still don't find terribly persuasive, probably because I have been conditioned within an atomistic liberal individualistic society to believe all the stuff I just wrote outweighs that hippy BS.

Peace out.

Against:

1) Although poor people's taxes paying for wealthier people to have free university education is regressive, it is not the only thing the state does. If you look at the welfare state in aggregate is generally redistributive and progressive in that poor people get out more than they pay in and rich people get out less than they pay in. However it is important that rich people get *something* for two reasons:
a) If it is only poor people who gain from something it will become stigmatised, so being a beneficiary of the welfare state will become something to be ashamed of.
b) If rich people perceive the state to be constantly taking away from them and giving nothing in return they will be begin to resent the welfare state. As rich people are generally more politically influential than poor people (because they can fund political parties and are more likely to vote and more often live in marginal constituencies) then this will result in rich people agitating for a smaller welfare state, which will have long term negative effects for poor people, if they succeed (and as rich people are generally better at being organised and have more resources they are quite likely to succeed).

On the other hand if the rich perceive the welfare state to be a community enterprise, with everyone paying in and everyone receiving some kind of benefit, then it will not be considered a "bad thing" to be the recipient of welfare because everyone receives it, and the rich will not resent the welfare state, so the poor won't end up being on the losing side of a class war.

So by subsidising the higher education of the children of the rich you are tying the rich into the system of mutual obligation and support that underpins our political community.

2) Externalities: we want as many people as possible to go to university because it's good in and of itself and because it is good for the economy. More educated people are more skilled, more skilled people earn more money and in so doing create more wealth, which is better for society as a whole, including poor people. Also more better-off skilled workers pay more tax which means more support for poor people through the welfare state and redistributive taxation. More people will go to university if going to university is cheaper. Therefore it should be subsidised. Moreover if more people go to university then it makes more and more sense to pay for it out of general taxation anyway, because the state can more easily bear the burden of cost than the individual.

My reading list

Imperial Life in the Emerald City: Inside Baghdad's Green Zone by Rajiv Chandrasekaran

Rationale: I wasn't paying very close attention to Our Glorious Ally's Recent Imperial Adventures whilst it was happening. Partly this was because this sort of thing is difficult to piece together when you're reading it on a daily basis in the newspapers and partly because I was busy being a truculent teenager.

Anyway this seems to be the standard text on the subject and will hopefully give me a good grounding in What the Hell Happened.

The Trouble with Physics: The Rise of String Theory, the Fall of a Science and What Comes Next by Lee Smolin

Rationale: I enjoyed the discussion of theoretical physics in The Quark and the Jaguar by Murray Gell-Mann, which was published in the early nineties, and I also enjoyed The Sleepwalkers by Arthur Koestler. I really want to find out what's happened since, and what the current state of play is as regards Big Science.

This book was recommended to me by one of my physics teachers a few years ago, and at the time was being serialised in The Times. I skimmed through it a while back in a bookshop and was impressed by the tone and content.

Introduction to Materials Science for Engineers by James F. Shackelford

Rationale: this is one of the set textbooks for the course I am (if everything works out) starting in September (there will be a few of these to come).

Manufacturing Engineering and Technology by Serope Kalpakjian and Steven Schmid

Rationale: Again another set text. I want to have a vague familiarity with the course materials well before the course actually starts. The reason for this is that I learn best when presented with a fairly long runway. I also like the opportunity to become comfortable with a particular textbook layout before using it in earnest.

The End of Politics: New Labour and the Folly of Managerialism by Chris Dillow

Rationale: This book is much discussed by the likes of Alex Harrowell and Daniel Davis and Dillow's blog is quite superb. If his book is even half as interesting and engaging as his blog then this will be a worthwhile read.

The Hidden Family by Charles Stross

Rationale: I enjoyed the previous book in this series and since I finished it the sequence has been praised and commented on by Nobel economics laureate Paul Krugman. Definitely not one to miss out on.

Foundations of Engineering by Mark T. Holtzapple

Rationale: Another set text!

Mathematics for Engineers: A Modern Interactive Approach by Anthony Croft

Rationale: And again.

Management for Engineers, Scientists and Technologists by John V. Chelsom

Rationale: Same again - nothing to see here.

Traders, Guns and Money: Knowns and Unknowns in the Dazzling World of Derivatives by Satyajit Das

Rationale: I've read Nassim Nicholas Taleb's books,The Black Swan and Fooled by Randomness, and enjoyed them immensely. However I would like a more in-depth and technical look at all the derivatives, investments, quantitative finance, mortgage-backed securities and other paraphernalia of the ongoing economic troubles.

This book seems to get high reviews and from the brief excerpt on Amazon seem to capture this particular facet of the Zeitgeist rather well.

The Accidental Pornographer: A Story About Having a Go - And Succeeding... in Failing by Gavin Griffiths

Rationale: After reading Paul Carr's enjoyable account of trying and sort of not-quite failing,Bringing Nothing To The Party , I sought out similarly themed books. This looks to be one such in which the eponymous pornographer protagonist tries and fails.

And as an additional bonus he apparently meets none other than my favourite business antihero Felix Dennis!

Against a Dark Background by Iain M Banks

Rationale: Well, I'm reading this at the moment so I've rather jumped the gun as far as rationale goes. It is a spectacularly florid book with titanic set pieces and more Big Dumb Objects than you can shake a space elevator at. Truth be told it could easily gain from content-trimming if you prefer tighter reads, but I've always enjoyed Banks' Banksishness so it's all puppy for the fat as far as I'm concerned.

Validation in graphs

Confirming what I always suspected:



{{{"You're reading The Economist??? --- it's Christmas etc!}}}

[from the Economist]

Knowledge and newspapers

After thinking about my previous post further I've realised that newspapers are fairly entertaining. They also help fulfil the basic human need for gossip and discussion, which is good.

The problem is they just provide you with information, no deep knowledge. I read loads of newspapers and news websites every day and I know what's happening, but (to quote Elliot Carver) I don't know "why" things are happening.

I don't know enough about the world to come to analyse what happens independently of journalistic blowhards, disingenuous politicians, lawyers, scientists, and experts of every stripe.

Chris Dillow (a journalist who has written this book, and can therefore be considered an agent of deep knowledge) says of opinion:

Opinion is over-rated. Sure, I like a neat turn of phrase or a new perspective. On a good day I even like the occasional fact. But mere opinions are like arseholes - everyone's got one, and I don't want to hear any of them.

Because I possess relatively little deep knowledge it would be a good idea for me to go somewhere and read lots of books about a wide variety of important things (economics, management, accountancy, psychology, engineering, physics, maths, electronics, computer science, literature, philosophy, politics etc) and get "up to speed" on Life, the Universe, and Everything and then I'll be able to make my own judgements.

I also think that "not reading the daily newspapers" would be a good New Years Resolution, particularly bearing in mind (the opinion of) Thomas Jefferson:

Avertisements contain the only truths to be relied on in a newspaper.

...

I do not take a single newspaper, nor read one a month, and I feel myself infinitely the happier for it.

...

The man who reads nothing at all is better educated than the man who reads nothing but newspapers.

Quite right. An opinion, of course, but still.

So I guess I'll be reapplying to university...

Update:

Edited on the 27th of December, links and quotes added.