Quoting from the article, "it would be relatively easy for a fly-by-night operation to advertise a developer bootcamp, collect tuition, and then provide low-quality education — or skip town before the courses were even set to begin. Even if the current crop of hacker boot camps are perfectly ethical, there’s no guaranteeing the integrity of future entrants into the market."
Your own statement reflects undue optimism. Who says that 1) you actually make it to week 65, that 2) you get a job, and 3) it's not a ringer job paying sub-market rates from a firm which pays recruitment fees to the school?
It's a long history of fraud in human history; education is not a special case.
>there’s no guaranteeing the integrity of future entrants into the market.
There is no guarantee in any market; you survive by the product you provide, you can sell food that tastes bad (but is not rotten) and then change the name of it any amount of times you want, but without appealing to the market you just end up broke.
Is the same way here; if you don't even give the classes that's a scam and if it happens to you then you sue them; if they are "low-quality" you just give everyone involved bad reviews and go on with your life.
Walmart sells millions of very "low-quality" stuff, but people knows that "you get what you pay for", but even if they suddenly increased the prices on their low-quality stuff they would still be legal. Why is different with education?
You need another ">" in the ">" above - I quoted someone else. I was pointing out that the article already covered some of the reasons for regulation, which means the previous poster (that is, you) didn't actually understand the article and its references. I gave one quote. There are others. I've repeated a couple more below.
I myself wouldn't use the word guarantee this way, as you rightly point out, but to be fair, it's part of a hypothetical.
It looks like you didn't understand the last part of my response. It takes time for a feedback mechanism to operate, and in some fields that asymmetric information and time lag can be exploited in ways that are well known, generally considered unethical, and more easily addressed through regulation than lawsuits.
The article even gives examples; of companies which "make bold claims about alumni making six figure salaries upon graduation" but omit that that is a rarity, and "boast of high placement rates" but omit to say that "many students either quit or are kicked out, which inflates placement numbers."
These are obvious cases of information asymmetry, and the companies aren't even lying, so what is there to sue about? Misleading advertising?
Plus, it's disproportionally likely that students will not have the resources to make a legal challenge on their own, or that a lawsuit would be effective. It would require a class action lawsuit, which is more complicated, more expensive, and it's more likely that the school would declare bankruptcy, and the organizers start another school. (Just like some West Virginia water polluting company I've heard about.)
Wal*Mart and the goods they sell are subject to a lot of regulation. I don't understand your point.
Everyone else makes false claims and get away with it; fox news does it all the time, and they get paid for it (commercials)
>It looks like you didn't understand the last part of my response. It takes time for a feedback mechanism to operate, and in some fields that asymmetric information and time lag can be exploited in ways that are well known, generally considered unethical.
That seems to imply that value at some point is completely established and that couldn't farther from the true; this is the same world where you can legally sell dog-haircuts for thousands of dollars, doesn't mean it is a scam or that we have to create a government regulation for dog fashion standards.
About walmart: No they are not; clothes lost their color and integrity pretty quickly; their towels stain everything, etc. Just read their reviews... pretty much anywhere.
I don't understand. Are you arguing that Fox News should be regulated? I'm not. There's no large information asymmetry there, as surely those who can pay $10,000+ for an advertisement know what they are getting into. (You as the viewer are not the customer.)
Or are you arguing that nothing should be regulated?
If the clothes you bought from Wal-Mart violated consumer protection regulations, then sue them. If you think there should be laws in place, then talk to your legislative representatives.
(Edit: Wal-Mart is subject to OSHA, the FSA issues food product regulations, its money order business is regulated by the FDIC, and so on. You confuse, I think, "some regulation" with "completely regulated.")
There's a long history behind the reason for regulations, stretching back to the muck racking journalism of the 1800s. Do you disagree with all of it?
And I really don't understand your "dog fashion standards" issue. Where's the information asymmetry? Where's the time lag which can be exploited by unscrupulous dog hair dressers?
> Quoting from the article, "it would be relatively easy for a fly-by-night operation to advertise a developer bootcamp, collect tuition, and then provide low-quality education — or skip town before the courses were even set to begin."
That's why these bootcamps only charge students after they complete the course and get an industry job.
Quoting that Fast Company article: "With the support of his wife, he sold his 2004 Volvo for the amount of tuition, and his family of four in the suburbs made do as a one-car household."
Quoting http://www.hackbrightacademy.com/faq : Tuition is $15,000. If you receive and accept a full-time job offer from one of the companies in our network then we will refund $3,000 of your tuition. If the program doesn't meet your expectations in the first 2 weeks, we'll give you your money back (less your down payment).
Yes, there are some which do as you suggest. Quoting http://www.appacademy.io/#p-program : App Academy does not charge any tuition. Instead, you pay us a placement fee only if you find a job as a developer after the program. In that case, the fee is 18% of your first year salary, payable over the first 6 months after you start working.
Agreed. And I never said we did. I said that markets with a high degree of asymmetric information and long equilibration times need good regulation to prevent likely but culturally unacceptable practices.