Why? I can think of a few possible reasons:
- Climbing poverty rates: in 2000, 11.3% of U.S. families lived in poverty; in 2011, it was 15.7%. I've mentioned this before.
- Applicant sophistication: more applicants are using consultants, some of whom know how to maximize discounts.
- Applicant abandonment: 20% applicants have thrown up their hands at the ridiculous complexity and secrecy to get a few thousand dollars, and left the program.
- Entry attractiveness: Among applicants not participating in the E-Rate in 2000, the higher the discount, the more attractive the program.
- Incentive inequalities: Let's face it, 90% applicants increase their spending at a much faster clip than 40% applicants, because it costs them next to nothing to upgrade to ridiculous bandwidth.
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