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’
Jan 27, 2026 5:05 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
Socialism, Venezuela And The Art Of The Queue
According to Daniel Pardo, citizens of Venezuela have figured out the fine art of queuing (that’s “waiting in line” for Americans.) It’s a good thing, too, since things like milk, sugar, soap, toilet paper and other essentials are always in short supply in this socialist country. The government regulates the price of these goods. It doesn’t subsidise them – it tells the producer what they can charge. That might just about make sense in a buoyant economy but with inflation...
Will An EU Ban On Thailand’s Slavery-Dependent Fishing Industry Make A Difference?
It is no secret that Thailand is rife with human trafficking. It is the world’s number one destination for sex travel. (Yes, that means people travel to Thailand solely for the purpose of having sex with men, women and children who are trafficked.) Thailand’s fishing industry is also dependent on human trafficking, often using young boys at sea for long periods of time, sometimes working them to death. Quartz is reporting today that the EU is considering a ban of...
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...
The Armenian Day of Remembrance
Armenian Orphans, 1918. At the end of this week, on April 24, many will recall the Armenian Genocide by observing the “The Armenian Day of Remembrance.” This day remembers the more than one million Armenians who were slaughtered by the Ottoman government during and after World War I. Patriarch of the Armenian Apostolic Church, Catholicos Karekin II, describes the genocide: Centuries of honest plishments and creativity were swiftly plundered…Thousands of monasteries and churches were desecrated and destroyed. National institutions and...
Why Property Rights Lead to Peace
Why are property rights important, even for those who own the least? Professor Tom W. Bell of Chapman University School of Law explains that property rights allow people to live together in peace, prosperity, and freedom. ...
Detroit: ‘It Didn’t Have To Be This Way’
Both my parents grew up in Detroit, and my childhood was filled with great trips to visit family for holidays and in the summer. The downtown Hudson’s store was always a destination. One of my aunts worked there, and it was the place to shop. Our trips always included a stop for a Sander’s hot fudge ice cream puff as well. My sisters and I played endless games on the stoop of my grandmother’s home, and a few miles away,...
‘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. ...
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 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...
Can Human Ecology Harm Humans?
That’s one of the questions es to mind when reading Bill McGurn’s op-ed in today’s Wall Street Journal. Many free-market advocates, including yours truly, have already expressed concern over what may appear in the papal encyclical due this summer. McGurn concurs but, like a good entrepreneur, also sees an opportunity: The fears are not without cause. There are many signs that do not augur well, from the muddled section on economics in the pope’s first encyclical [Actually, it was an...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved