1) If you crack down on student performance, students can give you bad reviews and the dept. can frown on you in a race to the bottom.
2) You're half-incentivized to improve courses; you want to do a good job so you get re-hired, but it's not like you'll take risks or spend time massively redesigning a course, since it's not clear how long you'll be there like would happen if you were a tenure-track prof.
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