Let Colleges Fail: The Power of Creative Destruction in Higher Education

Let Colleges Fail: The Power of Creative Destruction in Higher Education by Richard K. Vedder

Colleges tend to expose liberal ideologies, but institutionally they are extremely conservative. The organizational structure and institutions are very slow to change. Huge amounts of money flow through colleges with little validation of the value returned. Perhaps the only significant crack down has been on for-profit players. These players realized there was money to be made by making some small improvements. However, there is much more that needs to be done. The government provides fast subsidies through various routes. This may be justified for educating the populace and preparing people for careers. However, much of college is an early adulthood social experience. If government subsidizes this, should it also subsidize cruises and other social experiences for different populations? For education, the government has little validation of the value of a degree. The government may spend much more subsidizing a liberal arts degree at a low-tier private college than an engineering degree at a public university, despite the engineering degree enabling much greater career prospects. Schools are incentivized to invest more in "experience" rather than job prospects. College attendance costs have increased at a rate much greater than inflation. Colleges have significant facilities, much of which are highly underutilized. A dose of the free market may be best for colleges. The smaller schools could fail. Loans and other funding can be based on value returned. Innovation can be encouraged rather than letting accreditation bodies focus on sameness. (Why do all degrees take 4 years?) Universities are essentially government entities without regular elections. There are competing goals and missions. Improvements can be made, but will require some gradual approach.