Friday, June 20, 2014

The End of Higher Education’s Golden Age

Interest in using the internet to slash the price of higher education is being driven in part by hope for new methods of teaching, but also by frustration with the existing system. The biggest threat those of us working in colleges and universities face isn’t video lectures or online tests. It’s the fact that we live in institutions perfectly adapted to an environment that no longer exists.

In the first half of the 20th century, higher education was a luxury and a rarity in the U.S. Only 5% or so of adults, overwhelmingly drawn from well-off families, had attended college. That changed with the end of WWII. Waves of discharged soldiers subsidized by the GI Bill, joined by the children of the expanding middle class, wanted or needed a college degree. From 1945 to 1975, the number of undergraduates increased five-fold, and graduate students nine-fold. PhDs graduating one year got jobs teaching the ever-larger cohort of freshman arriving the next.

This growth was enthusiastically subsidized. Between 1960 and 1975, states more than doubled their rate of appropriations for higher education, from four dollars per thousand in state revenue to ten. Post-secondary education extended its previous mission—liberal arts education for elites—to include both more basic research from faculty and more job-specific training for students. Federal research grants quadrupled; at the same time, a Bachelor’s degree became an entry-level certificate for an increasing number of jobs.

This expansion created tensions among the goals of open-ended exploration, training for the workplace, and research, but these tensions were masked by new income. Decades of rising revenue meant we could simultaneously become the research arm of government and industry, the training ground for a rapidly professionalizing workforce, and the preservers of the liberal arts tradition. Even better, we could do all of this while increasing faculty ranks and reducing the time senior professors spent in the classroom. This was the Golden Age of American academia.

As long as the income was incoming, we were happy to trade funding our institutions with our money (tuition and endowment) for funding it with other people’s money (loans and grants.) And so long as college remained a source of cheap and effective job credentials, our new sources of support—students with loans, governments with research agendas—were happy to let us regard ourselves as priests instead of service workers.

Then the 1970s happened. The Vietnam war ended, removing “not getting shot at” as a reason to enroll. The draft ended too, reducing the ranks of future GIs, while the GI bill was altered to shift new costs onto former soldiers. During the oil shock and subsequent recession, demand for education shrank for the first time since 1945, and states began persistently reducing the proportion of tax dollars going to higher education, eventually cutting the previous increase in half. Rising costs and falling subsidies have driven average tuition up over 1000% since the 1970s.

Golden Age economics ended. Golden Age assumptions did not. For 30 wonderful years, we had been unusually flush, and we got used to it, re-designing our institutions to assume unending increases in subsidized demand. This did not happen. The year it started not happening was 1975. Every year since, we tweaked our finances, hiking tuition a bit, taking in a few more students, making large lectures a little larger, hiring a few more adjuncts.

Each of these changes looked small and reversible at the time. Over the decades, though, we’ve behaved like an embezzler who starts by taking only what he means to replace, but ends up extracting so much that embezzlement becomes the system. There is no longer enough income to support a full-time faculty and provide students a reasonably priced education of acceptable quality at most colleges or universities in this country.

Our current difficulties are not the result of current problems. They are the bill coming due for 40 years of trying to preserve a set of practices that have outlived the economics that made them possible.

by Clay Shirky |  Read more:
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