For-Profits and the Market Paradox Privatizing the Public Good: Emerging Trends in K-16 Education 48 Wake Forest Law Review 2013

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48 Wake Forest L. Rev. 333 (2013)
For-Profits and the Market Paradox

handle is hein.journals/wflr48 and id is 345 raw text is: FOR-PROFITS AND THE MARKET PARADOX
Omari Scott Simmons
[W]e do not think it unreasonable for appellant to conclude
that the desire for personal profit might influence education
goals in subtle ways difficult to detect, but destructive, in the
long run, of that atmosphere of academic inquiry. . .
INTRODUCTION
On November 7, 2012, the day following the re-election of
President Barack Obama, the stocks of publicly traded For-Profit
Colleges & Universities (FPCUs) plummeted 1.6% to 12%.2
Several of the largest publicly traded FPCUs announced layoffs,
school closings, and other operational decisions.3 Career Education
Corporation announced it was closing twenty-three campuses and
eliminating nine hundred jobs following a 23% drop in student
enrollment and a $33 million net loss in quarterly performance.4
Also, Apollo Group, the largest FPCU operator, announced that its
quarterly net income plummeted 60%.5 In the wake of this poor
performance, particularly at its University of Phoenix campuses,
* Professor of Law, Wake Forest University School of Law; Executive
Director, Simmons Memorial Foundation, Inc.; LL.M., University of Cambridge;
J.D., University of Pennsylvania; B.A., Wake Forest University. I would like to
thank all participants in the 2012 Wake Forest Law Review Fall Symposium
and give special thanks to the members of the Wake Forest Law Review. Also, I
want to thank Candace Johnson, Nicholas Illuminati, and Sally Irvin for their
valuable research assistance.
1. Marjorie Webster Junior Coll., Inc. v. Middle States Ass'n of Colls. &
Secondary Sch., Inc., 432 F.2d 650, 652 (D.C. Cir. 1970).
2. For-Profit College Shares Tumble After President Obama Reelected,
HUFF POST C. (Nov. 7, 2012, 12:50 PM), http://www.huffingtonpost.com/2012/11
/07/for-profit-school-shares-_n_2088339.html.
3. See Erica Perez, For-Profit Career Education Corp. to Close 23
Campuses, NBC BAY AREA (Nov. 13, 2012, 7:39 AM),
http://www.nbcbayarea.com/news/local/For-profitCareerEducation Corpto
close_23_campuses-179058281.html; Alex Veiga, University of Phoenix
Closing 115 Locations, YAHOO! FIN. (Oct. 16, 2012, 8:22 PM),
http://finance.yahoo.comlnews/university-phoenix-closing-115-locations
-213128283-finance.html.
4. Perez, supra note 3.
5. Veiga, supra note 3.

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