[fardo]

Simpler isn’t always preferable: note that the key feature from the consumer perspective in that system is

> you pay no matter what

Meaning if it’s assumed “despite learning little, you still will be able to pay for it”, there’s no longer any motive force towards quality, as your payment is assured. Incentives on taxpayers thereafter who want to minimize their tax burden would therefore be optimizing primarily toward cheapness of the educational process, rather than efficacy and quality of the education which outbound students received.

A vigorous market for education, would suggest you would likely get a variety of nodes along a “costliness to quality” options frontier.

[eesmith]

> there’s no longer any motive force towards quality, as your payment is assured

There are many excellent European universities, including ones which have been around for centuries, telling me there are ways to handle your concerns.

> A vigorous market for education

How's that Corinthian Colleges degree working out? Costly and no quality. And exactly the life-crippling outcome we should expect in a 'vigorous market'.

[fardo]

This is non-responsive to my point. Pointing out that paid universities like Corinthian in a grossly distorted market predictably are not very competitive offerings, or that good offerings can nevertheless still exist in heavily distorted markets, both fail to address that

> Current educational incentives caused by how payment is handled in these all-pay systems mean there is very little or no pressure exerted towards promoting an educational arms race towards quality, rather than minimizing cost to service that education.

In a more competitive market, yes, I believe you'd both likely see better European offerings, as well as substantially more compelling American paid offerings than the current batch of cash grab for-profit universities. They exist in their current form almost exclusively because financial lenders in the US have no incentive not to issue loans to students - even if the program is bogus, they are guaranteed re-payment.

This is a commonality shared between both current European offerings (via taxation guaranteeing repayment), and American alternatives (via guaranteed load repayment).