Neo-liberal policies and programs regarding higher education operate to fulfill either one of two main goals. The first is the privatization of public education. The second objective is the creation of an "iron cage" of economic rationality and standardization, which functions to regulate the production of human capital in the public education system. Overall, institutions of higher education are operating more and more like for-profit corporations, with governance and curriculum structures also being re-organized to correspond with management principles and budget techniques adopted from private businesses. These changes in revenue sources and administrative processes are causes for alarm because they prompt a transformation of the core functions of the university. In this article, the author discusses how neo-liberal educational reforms are eroding the conditions in universities that have allowed for democratic research and education. (Contains 12 notes.)