Milton Friedman said in 1980: "The free market system distributes the fruits of economic progress among all people."
College grads took a 19% pay cut in the two years after the recession. By 2013 over half of employed black recent college graduates were working in occupations that typically do not require a four-year college degree. For those still in school, tuition has risen much faster than any other living expense, and the average student loan balance has risen 91% over the past ten years.
At the other extreme is the winner-take-all free-market version of education, with a steady flow of compensation towards the top. Remarkably, and not coincidentally, as inequality has surged since the 1980s, the number of administrators at private universities has doubled. Administrators now outnumber faculty on every campus across the country.
These administrators are taking the big money. As detailed by Lawrence Wittner, the 25 highest-paid presidents increased their salaries by a third between 2009 and 2012, to nearly a million dollars each. For every million-dollar public university president in 2011, there were fourteen such presidents at private universities, and dozens of lower-level administrators aspiring to be paid like their bosses.
At the for-profit colleges, according to a Senate report on 2009 expenses, education companies spent about 23% of all revenue on marketing and advertising, and almost 20% of revenue on pre-tax profits for their shareholders. They spent just 17.2% of their revenue on instruction.
At the corporate end, drugmakers are at times getting up to $100 for every $1 spent. That's true at Gilead Sciences, the manufacturer of the drug Sovaldi, which charges about $10 a pill to its customers in Egypt, then comes home to charge $1,000 a pill to its American customers.
The extremes of capitalist greed are evident in the corporate lobbying of Congress to keep Medicare from negotiating better drug prices for the American consumer. Americans are cheated further when corporations pay off generic drug manufacturers to delay entry of their products into the market, thereby ensuring inflated profits for the big firms for the durations of their shady deals.
And the greed is getting worse. Perhaps it's our irrational fear of socialism, peaking in the years after World War 2, that has inspired our winner-take-all culture. In the Reagan era we listened to Margaret Thatcher proclaim that "There is no such thing as society."
In a more socially-conscious time, in 1955, after Dr. Jonas Salk had developed the polio vaccine, he was asked by reporter Edward R. Murrow: "Who owns the patent on this vaccine?" Responded Salk, "Well, the people, I would say. There is no patent. Could you patent the sun?"
A free-market capitalist might remind us that a skillful hedge fund manager can make as much as a thousand Jonas Salks.