The federal government has only two ways to encourage change: money and mandate. When it uses the money lever, it incentivizes behavior through a monetary reward. In Obama’s college plan, this would mean flooding colleges with grant money to pay for innovation. Colleges would propose an inventive scheme, apply for the money and then implement the plan. But with the federal government as the judge, these so-called innovations will be whatever looks good on a federal grant request, not what would actually be helpful in a university classroom.
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