From Public Good to Private Profit: The Dangerous Implications of the ACT Acquisition
In a recent development that has sent shockwaves through the education sector, ACT, the second-largest college prep testing company in the US, has been acquired by private equity firm Nexus Capital Management. This acquisition marks a significant shift in the landscape of college admissions and has raised concerns about the increasing consolidation of wealth and power in the hands of a few. As an autistic individual who regularly critiques capitalism, I find this development particularly troubling, as it exemplifies the ways in which our current economic system fails to create a space for neurodivergent individuals and instead prioritises profit over people.
The US operates under a neo-colonial and neo-liberal version of capitalism that often leaves marginalised communities behind. This system places a heavy emphasis on competition, individualism, and the pursuit of profit, often at the expense of social welfare, equity, and inclusion. Autistic individuals often find themselves at a disadvantage in such a system. The acquisition of ACT by Nexus Capital Management serves as a stark reminder of how the concentration of wealth and power in the hands of a few can further exacerbate these challenges and limit opportunities for those who do not fit the mold of the “ideal” capitalist subject. Let’s dive into why this is.
The Consolidation of Wealth
Nexus Capital Management, the private equity firm behind the acquisition of ACT, boasts a diverse portfolio that spans across various industries. From flower delivery giant FTD to the popular Dollar Shave Club, Nexus has demonstrated a keen eye for profitable ventures. However, it is the firm’s foray into the education sector that raises particular concerns. In 2019, Nexus acquired Pearson’s U.S. K12 Education business for $250 million, rebranding it as Savvas Learning Company. This acquisition granted Nexus a significant stake in the educational materials and curriculum market, with Pearson set to receive 20% of future profits and the eventual sale price.
The acquisition of ACT by Nexus Capital Management is not an isolated incident but rather part of a growing trend of private equity firms acquiring education-related companies. This trend has seen the likes of McGraw-Hill Education, Houghton Mifflin Harcourt, and now ACT being taken over by private equity giants. The infusion of private capital into the education sector has led to a focus on maximising returns for investors, often at the expense of students, teachers, and the overall quality of education. Private equity firms’ emphasis on cost-cutting measures, such as layoffs and the reduction of student support services, can have detrimental effects on the learning experience and outcomes for students.
The concentration of wealth and power in the hands of a few private equity firms has far-reaching consequences that extend beyond the education sector. As these firms continue to acquire and consolidate companies across various industries, they gain unprecedented influence over the economy and society as a whole. This concentration of power can lead to reduced competition, higher prices for consumers, and a widening wealth gap between the elite and the rest of the population. Moreover, the lack of transparency and accountability in private equity firms’ operations can make it difficult for the public to hold them accountable for their actions and decisions, further entrenching their power and influence.
In the context of the education sector, the consolidation of wealth and power by private equity firms can have particularly dire consequences. Education is a public good that plays a crucial role in fostering social mobility, equity, and the overall well-being of society. When the education sector becomes beholden to the interests of private equity firms and their investors, it risks losing sight of its core mission of providing accessible, high-quality education to all students, regardless of their background or financial means. We autistics already face significant barriers in a capitalist system that values conformity and neurotypical norms. The increasing privatisation and consolidation of the education sector is a deeply concerning trend that threatens to further marginalise and exclude us from opportunities for growth and success.
Impact on Students
The acquisition of ACT by Nexus and its transition to a for-profit entity raises significant concerns about the potential changes to ACT’s services and priorities. As a for-profit company, ACT will now be accountable to its investors and shareholders, who will expect a return on their investment. This shift in priorities may lead to a greater emphasis on generating revenue and cutting costs, potentially at the expense of the quality and accessibility of ACT’s services. For example, ACT may introduce new fees for services that were previously free or included in the base price, or they may reduce the number of test dates and locations to minimise expenses. These changes can create additional barriers for students, particularly those from disadvantaged backgrounds, who may struggle to afford the increased costs or travel to distant test centers.
Despite ACT’s claims that the costs of taking the test will not increase, there are valid reasons to be skeptical. Private corporations are not bound by the same obligations as public entities, such as providing a Free and Appropriate Public Education (FAPE) or honoring a student's Individualised Education Program (IEP). This means that ACT, under the ownership of Nexus Capital Management, may not be required to provide accommodations or support services for students with disabilities, including autistic students, unless it is deemed profitable to do so. Furthermore, the pressure to generate profits may lead to subtle or overt price increases over time, making the ACT less accessible to students from low-income families.
The risk of reduced access to college prep resources is particularly concerning for disadvantaged students, including those from low-income families, students of color, and students with disabilities. These students often rely on free or low-cost resources provided by non-profit organisations like ACT to help them prepare for college admissions tests and navigate the application process. If ACT were to cut back on these resources or make them more expensive, it could widen the already significant gap in college access and success between advantaged and disadvantaged students. This, in turn, could have long-lasting impacts on social mobility and the perpetuation of systemic inequalities.
Moreover, the increased pressure and financial strain that may result from ACT’s transition to a for-profit entity could have detrimental effects on students' mental health and well-being. The college admissions process is already a highly stressful and anxiety-inducing experience for many students, and the added pressure of higher costs and reduced support services could exacerbate these challenges. For autistic students, who may already struggle with anxiety, social communication, and adapting to change, these pressures can be particularly overwhelming. The lack of guaranteed accommodations and support services under a for-profit ACT could further compound these difficulties, leaving autistic students and others at a significant disadvantage in the college admissions process.
Me being me, I am deeply concerned about the potential impact of ACT's acquisition on students, particularly those from marginalized communities. The privatisation and consolidation of the education sector, exemplified by this acquisition, threatens to create a two-tiered system in which access to high-quality college prep resources and accommodations is determined by one’s ability to pay, rather than by their potential and right to an equitable education. It is crucial that we advocate for greater transparency, accountability, and regulation in the education sector to ensure that the needs and well-being of all students, including autistic students and others with disabilities, are prioritized over the pursuit of profit.
Implications for the Country
The acquisition has far-reaching implications for the United States as a whole, extending beyond the immediate impact on students and the education sector. One of the most significant consequences of this move is the erosion of public trust in educational institutions and services. As private equity firms continue to acquire and consolidate companies in the education sector, the public may increasingly view these institutions as prioritising profit over the well-being and success of students. This erosion of trust can lead to a breakdown in the social contract between educational institutions and the communities they serve, undermining the very foundation of public education as a means of fostering an informed and engaged citizenry.
Moreover, the consolidation of wealth and power in the hands of a few private equity firms can exacerbate the already widening gap between the wealthy and the rest of the population. This phenomenon, known as the Matthew Effect, refers to the concept that advantage breeds further advantage, whilst disadvantage leads to further disadvantage. In the context of the ACT acquisition, this means that students from wealthy families, who can afford the increased costs and have access to private tutoring and other resources, will be better positioned to succeed in the college admissions process and beyond. Meanwhile, students from disadvantaged backgrounds, who may already struggle to access high-quality education and support services, will face even greater barriers to success, further entrenching the cycle of poverty and inequality.
The long-term effects of this widening gap on social mobility and equal opportunities cannot be overstated. Education has long been viewed as the great equaliser, a means by which individuals from all backgrounds can improve their socioeconomic status and achieve their full potential. However, as the education sector becomes increasingly privatised and consolidated, with access to high-quality resources and support services determined by one's ability to pay, the promise of education as a pathway to social mobility becomes increasingly hollow. This, in turn, can lead to a further stratification of society, with the wealthy and privileged consolidating their power and influence, while the disadvantaged see their trajectories flatten out and their opportunities for advancement diminish.
To address these concerning trends, there is an urgent need for greater transparency and accountability in the education sector. Private equity firms and the companies they acquire must be held to the same standards and regulations as public entities, ensuring that they prioritise the needs and well-being of all students, regardless of their background or ability to pay. This includes mandating the provision of accommodations and support services for students with disabilities, including autistic students, and ensuring that these services are not contingent upon profitability. Furthermore, there must be greater public oversight and input in the decision-making processes of these companies, to ensure that the voices and needs of students, families, and communities are heard and addressed.
Having already faced such discrimination and disadvantage from their main competitor in a high-stakes testing scenario, I am acutely aware of how the consolidation of wealth and power in the education sector can disproportionately impact those who are already marginalised and disadvantaged. The flattening trajectories and diminishing opportunities that result from these moves by the capitalist class are not merely abstract concepts, but lived realities for countless individuals and communities across the country. It is imperative that we resist the privatisation and consolidation of the education sector and demand a system that prioritises equity, accessibility, and the well-being of all students. Only then can we hope to build a society in which every individual, regardless of their background or neurotype, has the opportunity to thrive and reach their full potential.
Autistic Perspective
Being an autistic gestalt processor (aka., non-verbal), I am of course concerned about how the consolidation of wealth and power in the education sector may disproportionately affect autistic students . Autistic folks often face significant challenges in navigating the neurotypical world, including difficulties with social communication, sensory processing, and adapting to change. In the context of college admissions and preparation, these challenges can be further compounded by the high-stakes, high-pressure environment and the lack of accommodations and support services tailored to our unique needs. The privatisation and consolidation of the education sector, as exemplified by the ACT acquisition, threatens to exacerbate these challenges by prioritising profit over the well-being and success of neurodivergent students.
Moreover, the increasing standardisation and homogenisation of educational policies and practices that often accompany neo-liberal privatisation can further marginalise autistic individuals and others who do not conform to neurotypical norms. The importance of diverse perspectives and experiences in shaping educational policies and practices cannot be overstated. Autistic people bring unique strengths, insights, and ways of thinking to the table, and our perspectives must be included in the decision-making processes that shape our educational experiences. By prioritising diversity and inclusion in education, we can create a more equitable and effective system that benefits all students, regardless of their neurotype or background.
To address these challenges and create a more inclusive and accessible education system, we must look to alternative approaches to college prep and admissions. One promising example can be found in countries where college is considered a public good and university education is free or heavily subsidised. In Germany, for instance, public universities are tuition-free for both domestic and international students, and the country has a long-standing tradition of valuing education as a fundamental right and a means of promoting social equity. Similarly, in Finland, which is renowned for its high-performing education system, all levels of education, including university, are free of charge, and the country places a strong emphasis on individualised support and accommodations for students with special needs.
By treating education as a public good and a fundamental right, these countries have created systems that are more accessible, equitable, and inclusive for all students, including those with disabilities and neurodivergent individuals. In contrast, the privatisation and consolidation of the education sector in the United States, driven by the pursuit of profit and the concentration of wealth and power, threatens to further marginalise and exclude autistic individuals and others who do not fit the mold of the “ideal” student.
As we move forward, it is crucial that we advocate for alternative approaches to education that prioritise the needs and well-being of all students, including autistic individuals. This may involve pushing for greater public investment in education, resisting the privatisation and consolidation of the sector, and demanding policies and practices that are more inclusive, accessible, and responsive to the diverse needs and experiences of all students. By working towards a more equitable and inclusive education system, we can create a society in which every individual, regardless of their neurotype or background, has the opportunity to thrive and reach their full potential.
Wrapping up
To wrap up, the acquisition of ACT serves as a stark reminder of the dangers posed by the consolidation of wealth and power in the hands of a few, particularly in the education sector. As we have seen, this neo-liberal trend towards privatisation and consolidation threatens to exacerbate inequalities, marginalise disadvantaged students, and undermine the very foundation of education as a means of promoting social mobility and equity.
Throughout this critique, we have explored the various ways in which the concentration of wealth and power in the education sector can disproportionately impact people who do not conform to society’s norms. From the erosion of public trust in educational institutions to the widening gap between the wealthy and the rest of the population, the long-term consequences of these capitalist practices are far-reaching and deeply concerning.
Ironically, this very phenomenon was predicted by Karl Marx in his seminal work, “Das Kapital.” Marx argued that the concentration of wealth and power in the hands of a few would inevitably lead to the exploitation of the working class and the perpetuation of inequality. He warned that the pursuit of profit and the consolidation of capital would ultimately undermine the very foundations of a just and equitable society.
As we reflect on the implications of the ACT acquisition and the broader trends towards privatisation and consolidation in the education sector, it is clear that we must take action to advocate for more equitable and accessible education. This means resisting the encroachment of private equity firms and other capitalist interests in the sector, and instead pushing for policies and practices that prioritise the needs and well-being of all students, regardless of their background or neurotype.
To achieve this, we must engage in continued vigilance and critique of the neo-liberal / neo-colonial capitalist practices in the United States. We must demand greater transparency, accountability, and regulation in the education sector, and work towards alternative approaches that treat education as a public good and a fundamental right. By doing so, we can create a more inclusive, accessible, and equitable education system that benefits all students and promotes a more just and prosperous society.
As autistic individuals, we have a unique perspective and a vital role to play in this struggle. By bringing our voices and experiences to the forefront, we can challenge the dominant narratives and assumptions that perpetuate inequality and exclusion in education and beyond. Together, we can work towards a future in which every individual, regardless of their neurotype or background, has the opportunity to thrive and reach their full potential.