[lbo-talk] education bubble

Gail Brock gbrock_dca at yahoo.com
Fri Sep 10 08:57:31 PDT 2010


I think you're somewhat overestimating academics' commitment to economic efficiency in their institutions and underestimating academics' status anxiety. Even without the economic market competition, you'd see status market competition. In fact, I think you have seen it over the past twenty years in public institutions. In part it's a justification of high salaries for administrators and star faculty, but everyone goes along because the amenities are part of the image of a world-class institution, and even the teaching adjuncts seem to get a psychological reward from that.

________________________________ Wojtek S <wsoko52 at gmail.com>(Fri, September 10, 2010 9:04:51 AM):

And do not forget the effect of market competition. The competition for students can be fierce - which forces individual institutions to woo prospective tuition paying clients ..errr students with lavish perks and amenities, like recreational and athletic facilities, newer and bigger buildings, exclusive transportation system (which is often a necessity due to the dearth of public transportation in most localities outside New York, Chicago, DC and Boston) as well as offering various forms of financial assistance (which must be offset by tuition payments either current or deferred.)

I am pretty sure that making education "free" to everyone (i.e. paid for by public funds) wold eliminate much of that competition for paying clients and the "transaction costs" associated with it, thus reducing the overall cost of education independently of other factors (such as bloated administration.)

Wojtek



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