Home
/
RELIGION & LIBERTY ONLINE
/
Coffee and Cronyism: Guess Who’s Really Paying for Starbucks ‘Free Tuition’
Coffee and Cronyism: Guess Who’s Really Paying for Starbucks ‘Free Tuition’
May 19, 2025 10:38 PM

When most people think of Starbucks they think of overpriced coffee, free wifi, and omnipresence. Starbucks are everywhere. pany was founded in 1971 and since 1987 they’ve opened an average of two new stores every day. In the U.S. alone there are 12,973 locations.

When most people think of “big business”, though, they don’t often think of the Seattle-based pany. But they should. Starbucks has 151,000 fulltime employees, $15 billion in annual revenues, and three times as many locations as Walmart. Starbucks is one of the biggest of big businesses. And, not surprisingly, a big proponent of cronyist policies.

Cronyism occurs when an individual or organization colludes with government officials to create legislation or regulations that give them forced benefits they could not have otherwise obtained voluntarily. Those e at the expense of consumers, taxpayers, and everyone working hard pete in the marketplace. A prime example is minimum wage laws. Almost without fail, big businesses tend to support higher minimum wages.

Since they could just choose to pay higher wages, why would they support federal mandated wage floors? One reason is because it helps to eliminate petition from small business who don’t have the size and scale to absorb higher-than-market wage increases.

In a recent interview with CNN, Starbucks CEO Howard Schultz said he supports an increase to federal minimum wage even though he admits the $15 wage in Seattle could have “traumatic effects” on small business owners and employees.

But notice what else Mr. Schultz says. He mentions that pany surveyed employees and asked what the “number one benefit” they wanted from Starbucks. The overwhelming request was for access to college education. He claims they now offer “free tuition for college” as part of their total benefits package. But is that true?

Last week pany unveiled a program that included a scholarship it described as “an investment” between Starbucks and Arizona State University. The program is designed to allow Starbucks workers to earn an online degree at the school at a steeply discounted rate. But the “free tuition” is based on the federal government picking up most of the tab:

Initially, Starbucks said that workers would be able to offset the costs through an upfront scholarship it was providing with Arizona State, but declined to say exactly how much of the cost it was shouldering. The chain estimated that the scholarship would average about $6,500 over two years to cover tuition of about $20,000.

Following the announcement, however, Arizona State University president Michael Crow told The Chronicle of Higher Education that Starbucks is not contributing any money toward the scholarship. Instead, Arizona State will essentially charge workers less than the sticker price for online tuition. Much of the remainder would likely be covered by federal aid since most Starbucks workers don’t earn a lot of money.

Workers would pay whatever costs remained out of pocket for the first two years, and Starbucks would bear no costs.

Starbucks had previously declined to say how much it was contributing to the scholarship. But in a subsequent email Wednesday evening, Starbucks said that the scholarship is being “funded by ASU.”

The “free tuition” is based mostly on students getting federal aid in the form of Pell Grants and federal student loans. Starbucks may eventually pay some of the out-of-pocket expenses of the student (perhaps even up to $1,000 a year) but they aren’t directly paying for tuition.

Overall, it’s a great deal for both Starbucks and for ASU. The school gets federal money for students who would not normally be enticed by their online programs. And Starbucks gets to claim a “benefit” that cost them almost nothing. The primary people who will be paying are American taxpayers (though they would have likely foot the bill anyway), the taxpayers in Arizona, and students who attend ASU.

Students who don’t work for Starbucks will be paying the normal tuition rates in order to subsidize the education for out-of-state baristas. That “free tuition” Starbucks claims as a “benefit” is actually being paid for not by coffee profits but by the students in Phoenix who don’t get the benefit of working for a crony in Seattle.

For a lesson in how crony capitalism works, ASU students don’t even need to take Econ 101; they just need to look at their tuition bill.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Explainer: What is Earth Day?
What is Earth Day? Earth Day is an annual event, celebrated on April 22, on which events are held worldwide to demonstrate support for environmental protection. It was first celebrated in 1970, the anniversary of what many consider the birth of the modern environmental movement. How did Earth Day get started? Earth Day was started by Gaylord Nelson, a U.S. Senator from Wisconsin. Nelson originally tried to bring political attention to environmental issues in 1962-63, when he convinced President Kennedy...
Remembering Chuck Colson
Yesterday was the third anniversary of Chuck Colson’s passing. The Acton Institute had the privilege of conducting the last public interview with Chuck before his death. It serves as a wonderful introduction to and reminder of Chuck’s love for Christ and his world. ...
Going Back to the Grammar of Creation
“The primacy of God, which Pope Benedict XVI made a priority of his pontificate, reminds us that reality is intelligible and human reason must be used,” says Bishop Dominique Rey in this week’s Acton Commentary, “reason that is able to recognize the logos, the objective reason that manifests itself in nature.” Some radical environmental movements (such as those who embrace what is often called “deep ecology”) clearly derive their inspiration from a pagan pantheism, which leads to a deification of...
The Calling of the Christian Scholar
In the latest issue of Themelios, Robert Covolo reviews Abraham Kuyper’s newly translated Scholarship alongside Richard Mouw’s Called to the Life of the Mind, examining mon traits that emerge from two perspectiveson scholarship fromthe “Kuyperian strain.” Outside of the differences in tone and audience that one might expect fromauthors separated by a century (and an ocean, for that matter), Covolo notices each author’s emphasis on scholarship as a distinct “sphere,” thus involvinga distinct calling. “It is hard not to recognize...
Jayabalan: Upcoming Encyclical On Environment May Not Be Helpful
In an interview with the National Catholic Reporter, the director of Acton’s Rome office, Kishore Jayabalan, offered his thoughts on the ing papal encyclical on the environment. Jayabalan told the Reporter’s Brian Roewe that he did not deny that climate change exists, since it indeed changes all the time. Jayabalan’s concern is that the ing encyclical won’t be based on sound scientific research. To say that the science requires us to do X, Y and Z, I’m skeptical about that...
The Real Zombie Lies on Earth Day
Earth Day has arrived once again, and all those nasty predictions about the environment made since the inaugural event in 1970 have yet to pass. In fact, many of the threats themselves have passed entirely. The population bomb never exploded, the Earth didn’t experience another Ice Age and we’ve managed to avoid a Malthusian dystopia. In fact, we’re doing quite well, thank you very much. Mother Earth is cleaner while, at the same time, the planet’s population living in poverty...
Coptic Bishop on the Islamist Murder of 30 Ethiopian Christians in Libya
Bishop AngaelosThe nation of Ethiopia has declared a state of mourning following confirmation that Islamic State terrorists have murdered more Christians in Libya. Numerous statements have been issued by religious leaders, including those from Patriarch Kirill, Pope Francis, Archbishop Justin Welby, in Egypt for a “visit of condolence,” and al-Azhar, Egypt’s top Muslim authority. The following statement, published here in full, is from by Bishop Angaelos, General Bishop of the Coptic Orthodox Church in the United Kingdom: The confirmation of...
‘Who Would Dare To Love ISIS?’
We want to take revenge. We want an eye for an eye. But the people of the Cross are called to love. Even for ISIS, there is healing and forgiveness. ...
What a Teen with Down Syndrome Can Teach Us About the Joy of Work
In an enthusiastic reaction to his first job offer, Ben Sunderman, a 19-year-old with Down syndrome, has spread lots of smiles across the internet. In doing so, he reminds us of the power of work to bring joy to human lives, and ofthe gift-giving capacityGod has givento each of us, including those we often dismiss as“disabled.” Caught on video by his mother, Sunderman literally jumps for joy after reading about his acceptance to aninternship atEmbassy Suites. “I did it!” he...
What Would Lord Acton Think of Superman?
“Power tends to corrupt, and absolute power corrupts absolutely,” is the most famous quote by the English Catholic historian Sir John Dalberg-Acton. It also appears to be the overriding theme of the recent teaser-trailer for the movie Batman v. Superman: Dawn of Justice. The quote is even stated directly in the trailer in a voiceover (by actress Holly Hunter). Is it applicable in this context? Would Lord Acton agree that absolute power has corrupted Superman? I think he would. That...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved