Eric Cantor's surprise loss to fellow Republican David Brat in the Virginia primary elections Tuesday will reshape the leadership in the House, and it will have effects that reverberate into upcoming legislative fights. Here are three takeaways:
Money is something in politics, but it isn't the only thing. Cantor raised more than $5 million, compared to about $200,000 for Brat. Consider this idea: having so little money may have helped Brat. He didn't have the money to do major televsion advertising, so he didn't get the scrutiny that comes with that.
The coming fight over the debt limit has taken on a new element. The U.S. has the borrowing authority to keep paying its bills, but only until March 2015. Cantor's loss may make some Republicans less willing to support an increase in the debt ceiling. As lobbyist Steve Ryan put it, "It unsettles the firmament. There is a ripple in The Force, as we would say. And it's just totally unpredictable now what's going to happen out of that."
It's a new environment for businesses and lobbyists. One of the things that made Cantor so effective in the House was that Tea Party Republicans trusted him, and so did Wall Street. He was accessible to lobbyists, and he was seen as a good fundraiser for his party.
Graphic by Shea Huffman/Marketplace
Authorities say Jared Michael Padgett stole an "AR-15-type" rifle that was locked up in his home, as well as a semi-automatic handgun and nine magazines of ammunition.
Pro athletes and duffers alike are trying injections of platelet-rich plasma to treat chronic injuries like tennis elbow. But despite thousands of studies, it's not clear that the treatment works.
The Pentagon's lawyer said the deal to swap the Army sergeant for Taliban prisoners wasn't a first, citing the release of an Army pilot in Somalia. But the man who engineered that release disagrees.
Cabbies from London to Berlin are protesting the smartphone-based, on-demand car service Uber. They say Uber should be subject to the same rules as taxis; many fear they'll be driven out of business.
It has been just over a year since Georgia Tech grabbed national headlines by annoucing it would offer an online Master's degree in computer science for less than $7,000.
Many prestigious universities are starting to offer graduate programs online. The difference between Georgia Tech and many of the others is price. In many cases, learning online does not come with a discount.
Online programs can also present challenges of a different kind to top schools. In our piece on Harvard's new online pre-MBA courses, we explore how elite schools are struggling to expand without damaging their luxury brands.
Multiple news outlets are reporting that Rep. Eric Cantor has decided to resign from his post as House Majority Leader, one day after a stunning GOP primary upset in his Virginia district.
Harvard Business School is launching an online program today. And , no, you’re not going to be able to get your MBA for free.
The school is rolling out something it calls HBX Core. For $1,500, students take three basic business classes. The program is being billed as a pre-MBA.
And it's the latest attempt by an elite university to open up classes to more people—without diluting its brand. It’s a trick the fashion industry has gotten very good at over the years.
You may not remember French designer Pierre Cardin. But in the '60s and '70s, his name was synonymous with very high fashion. Models in Vogue posed in his futuristic dresses. He dressed The Beatles.
These days, you can walk into Sears and find Pierre Cardin men’s shirts stacked on a table. Poly-cotton blends; marked down to $17.99.
You see, Cardin's haute- couture was not his only claim to fame. He was also the first high-end designer to expand his brand to the masses. Over the years, he put his name on everything, from baseball caps to toilet-seat covers.
“He took a very powerful, designer, marquee brand and diluted it to the point it had no value and no meaning,” said Mark Cohen, a professor of retail marketing at Columbia Business School.
This is the stuff of nightmares for elite universities. The fate they want to avoid: Becoming the Pierre Cardin of colleges.
Turns out, the challenges in fashion and education are similar. How to expand without losing what makes Versace, Versace, Gucci, Gucci and Harvard, Harvard?
“The parallels hold up,” said Cohen, “They have to retain their exclusivity and retain the basis through which they are held to be elite.”
“There are colleges that are very concerned about diluting their brand,” said Ben Wildavsky, director of Higher Ed studies at the Rockefeller Institute of Government at the State University of New York.
It’s not only going online that has schools nervous. “Just the idea of setting up a campus in a different country where you give degrees is something that places like Harvard, Yale, Princeton worry about a lot,” Wildavsky said.
Part of the value of top-tier degrees is that they’re exclusive. They’re expensive.
Elite schools can’t afford to hurt their relationships with past and future students by becoming common.
But, schools like Harvard also need to grow.
“Our mission at Harvard Business School is to train and educate leaders who make a difference in the world,” said Bharat Anand, a professor the B-School and faculty chair of the new HBX program, “It would be a perfect coincidence if there were only 900 individuals every year who fell into this category and could come to our physical campus.”
He says there are a ton of talented students out there whom Harvard’s not reaching.
Enter: the new pre-MBA. Online.
Just as Donna Karan has DKNY, Michael Kors has MICHAEL, and Marc Jacobs has Marc by Marc Jacobs, Harvard has HBX.
Yes, HBX, is more accessible than a Harvard MBA.
But it's not free like many other online offerings. The tab for three courses is $1,500. And the payoff is a certificate, not Harvard course-credit.
It’s a little like a silver necklace from Tiffany. No diamond ring, but it still comes in the blue box.
“We’re not offering any of our MBA courses online,” said Anand, “This is an entirely new program to an entirely new group of participants.”
The plan is for HBX to expand beyond intro business classes. But, as it does, it runs another risk familiar to retail. That customers will trade down. That the new product will cannibalize the older brand -- a problem Dolce & Gabanna, for instance, ran into with its D&G line.
For business schools, this could mean students abandoning another huge profit center: executive education.
The stakes for schools to get this right are high. “Hundreds of millions of dollars for each elite business school,” said Ezekiel Emanuel, a professor at Wharton. “In particular there are tens of millions of dollars in the executive education and continuing education space, and I think that’s what people fear first.”
He says about a fifth of Wharton’s revenue comes from executive education programs. It makes up a quarter of Harvard Business School’s revenue.
The fear is that companies will tell their execs “to go online instead.”
So far, Emanuel said, that’s not happening at Wharton. People are choosing traditional schools over online classes. “Obviously there will be some challenge going forward differentiating them and making the value of each clear to people.”
It’s a tightrope luxury retail has been walking for a long time.
The goal for elite colleges is not to wind-up with their brand-name products wadded in the sale bin.
Brazil's Catholic Church has threatened a lawsuit against Italian state broadcaster RAI, which has since withdrawn the ad with the famous statue overlooking Rio de Janeiro dressed in "Azzurri" blue.
The bill was shot down days after President Obama urged Congress to help ease the burden of student loan debt. It would have required a higher tax on the wealthy.
Randolph-Macon College in Ashland, Virginia. Ever heard of it?
If you hadn't before, it's likely you did on Wednesday. David Brat, an economics professor who just big-footed Eric Cantor and his Democratic challenger, Jack Trammell, are both on the faculty of this one small school outside of Richmond.
"While this may be short-lived, I think if you were to look at the placement of the 'Randolph Macon College' name in the media it would be a very high number," says Dan Hurley, Associate Vice President for government relations and state policy with the American Association of State Colleges and Universities. He says this kind of marketing is worth millions.
Typically a school would have to have a winning football or basketball team to get this kind of press. Like a few years ago, when Butler University in Indiana, made it to the NCAA Final Four.
"That impacted them in terms of inquiries, applicants and enrollments, for a number of years," says Jim Paskill, president of Paskill, Stapleton & Lord, a higher education marketing firm. Paskill says he agrees having two congressional candidates come out of one college sure can make a school look good, but he says he’s a wary. An eight-month campaign season can be a long time under the microscope.
“You know, if this becomes a very divisive campaign and it’s seen as a mud-slinging between two candidates, I don’t think it’s going to reflect very positively on the college,” he says.
No chance of that, says Randolph Macon’s president Robert Lindgren.
“These are two very principled honest, folks who will debate the issues and not do, some of the typically political things that you might in a congressional campaign," he says.
We’ll find out if his prediction holds up in November.
Joe Cicippio belongs to a very small club of Americans who were held by Islamic radicals for years and lived to tell about it. Here's how he coped as a hostage in Beirut and then rebuilt his life.
In her "Can I Just Tell You" essay, host Michel Martin warns against letting an assumed narrative overtake the facts of a story.
Chrysler, General Motors and Ford offered up a multi-million dollar deal to help the bankrupt city of Detroit. But are there any strings attached to the cash and will it be enough to save the city?
The Beauty Shop ladies continue their discussion of this week's hot news by debating George Will's controversial opinion piece that questions the validity of sexual assault claims on campus.
In a surprising defeat, House Majority Leader Eric Cantor lost his seat to Tea Party challenger David Brat. But what does this mean for Republicans going forward? The Beauty Shop ladies weigh in.
Essence might be the longest-running magazine for black women, but the authors of a new book, The Man From Essence, admit that it was a long road to build the brand.
With the success of the Kickstarter campaign for the erstwhile TV show Reading Rainbow, we draw up a short list of other shows worthy of another whirl.
Dukes of Hazzard alumnus and former Rep. Ben Jones urged Democrats, independents and libertarians to use the open Republican primary to oust Rep. Eric Cantor. He mentioned his 2002 loss to Cantor.
Defense Secretary Chuck Hagel told skeptical lawmakers that a "unique set of dynamics" prevented the White House from telling Congress about the deal to swap Sgt. Bowe Bergdahl for Taliban prisoners.