America’s top colleges are facing record demand. So why don’t they increase supply? (Part 2 of “Freakonomics Radio Goes Back to School.”)
In 2019, the Department of Justice revealed the findings of an FBI investigation with the codename Operation Varsity Blues here today.
To announce charges in the largest college admissions scam ever prosecuted by the Department of Justice.
The scam involved wealthy parents funneling bribes through a college consultant to get their children into schools where they didn't belong.
There were fake test scores, fake athletic credentials, and cash payments to college coaches.
The actress Lori Laughlin and her fashion designer husband Massimo Giannulli paid half a million dollars to get their two daughters into the University of Southern California as recruits to the highly ranked USC crew team, even though, as the New York Times put it, neither girl participated in the sport.
An applicant to Tulane University was described as an african american tennis whiz, even though she didn't play competitive tennis and was white.
Among the other universities involved were Yale, Stanford, Georgetown, some of the most elite schools in America.
All told, 57 people were charged as a result of operation varsity blues, including coaches, exam administrators and of course parents.
These parents are a catalog of wealth and privilege.
They include, for example, CEO's of private and public companies, successful securities and real estate investors, two well known actresses, a famous fashion designer and the co chairman of a global law firm.
A couple parents even went to prison for a bit, including Laughlin and the other well known actress, Felicity Huffman.
This became a huge story and it led to many questions.
Who knew what at these universities?
How could something like this happen at such esteemed institutions?
And really you can just pretend to row crew to get into college?
But there was one question that answered itself.
Why would the parents do this?
The answer is that slots at these top schools are incredibly scarce and incredibly valuable.
Getting an acceptance letter from them is like that scene from Willy Wonka.
Cause I've got a golden ticket.