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’
Nov 28, 2025 12:20 AM

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
An advertising stimulus
One sector of the American public that hasn’t missed out on the government’s purpose for the economic stimulus package is the advertising and marketing industry. Savvy marketers are targeting sales and special offers to the federal rebate checks, which start to go out today. One sector of the economy especially banking on how people will spend their stimulus rebates is the automobile industry. Here, for instance, is a local car dealer’s ad specifically targeted to the stimulus package: I’ve seen...
Toward a theological ethic for internet discourse
The relationship of the Christian church and the broader culture has been a perennial question whose genesis antedates the life of the early Church. In his Apology, the church father Tertullian defended Christians as citizens of the Roman empire in the truest and best sense. If all the Christians of the empire were to leave, he wrote, “you would be horror-struck at the solitude in which you would find yourselves, at such an all-prevailing silence, and that stupor as of...
Straight talk on trade
My reaction to any politician claiming to offer “straight talk” is a knowing chuckle (“yeah, right”), and that includes John McCain. So I’ve got to give credit to the so-called Straight Talk Express for a recent campaign stop in Youngstown, Ohio, where the Republican presidential candidate offered some honest and ments on a contentious subject in politically risky circumstances—straight talk, if you will. The subject was trade, and McCain defended it in a region suffering from the real or perceived...
Bullinger on democracy
A statement of the reformer Heinrich Bullinger, an influential second-generation leader in Zurich, on his preferred form of government: God had established through Moses in His law the most excellent, the most admirable and convenient form of republic, depending on the wisest, most powerful and most merciful king of all, God, on the best and fairest senators and not at all on extravagant and arrogant ones, and finally on the people; to which He added the judge, whenever it was...
Oekologie 16
I’m hosting this month’s Oekologie environmental science blog carnival. Lots of interesting stuff if you’ve got a hankering for a little less politics shaken on your greens. ...
Globalized criminal syndicates and political authority
This sounds like a book with pelling narrative: McMafia: A Journey Through the Global Criminal Underworld. I’ve often thought about the connection between organized crime and legitimate governmental structures. In the NPR interview linked above, “Journalist Misha Glenny points out that while globalization may have given the world new opportunities for trade and investments, it also gave rise to global black markets and made it easier for criminal networks to do business.” There’s a lot of cogent analysis of trade...
Returning to the real economy
In the April 24 edition of the Vatican newspaper L’Osservatore Romano, Ettore Gotti Tedeschi focuses on the origins and lessons of the global financial crisis. In a previous article, Gotti Tedeschi argued that the downturn is an opportunity for Italy to reform its economy and cut down on unnecessary public spending. He now examines what the crisis means for the state of international finance and draws some unusual but noteworthy conclusions. In his view, the principal answer for improving global...
Global Warming COOLING Consensus alert: The ice age cometh?
Submitted for your consideration: THE scariest photo I have seen on the internet is , where you will find a real-time image of the sun from the Solar and Heliospheric Observatory, located in deep space at the equilibrium point between solar and terrestrial gravity. What is scary about the picture is that there is only one tiny sunspot. Disconcerting as it may be to true believers in global warming, the average temperature on Earth has remained steady or slowly declined...
Recycled laziness
I know there are some economic arguments against recycling, at least some forms of it. Many of these seem to be based on the fact that there’s no real profit margin, so proponents have to either engage the coercive power of government to get people to recycle (by charging them a fee or by offering city services) or people have to simply donate their recycle-ables gratis. But one “economic” argument I’ve never understood is the on that goes like this:...
Happy Patriots’ Day
Patriots’ Day is a festive memorating the battles of Lexington and Concord. The holiday observes the April 19 anniversary of when the American colonies first took up arms against the British Crown in 1775. Massachusetts and Maine officially recognize the historic anniversary. Recently the holiday has been observed on the third Monday in April to allow for a three day weekend. The Boston Marathon takes place today and the Boston Red Sox are always scheduled to play at home. Historian...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved