In certain quarters of the right-wing blogosphere, people dream about a future in which the higher education oligopoly is broken. But the right-wingers have an incorrect understanding of the problem and what’s needed for there to be a solution.
In a column from last weekend’s NY Times, Robert Frank explains that college costs are rising because of a prestige race:
But there’s a second major source of tuition growth that universities are less able to ameliorate on their own: the escalating competition for academic prestige.
This phenomenon is rooted in the growing disparities in graduates’ starting salaries, which resemble those we’ve seen for the country as a whole. After adjusting for inflation, starting salaries for most graduates have remained essentially stagnant for several decades, while those at the bottom of the group have actually declined. Only the highest-paid graduates have enjoyed significant salary growth, and among those a very thin slice at the top has seen truly spectacular increases.
Because of the bitter competition for those premium salaries, elite educational credentials are often a precondition for even landing a job interview. With so many applications for every vacancy, many consulting firms and investment banks, for example, now consider only candidates from a short list of top-ranked schools.
Degrees from those schools clearly open doors. For example, more than 40 percent of the 2007 graduating class at Princeton landed one of the most highly sought prizes: a position in the lucrative financial services industry.
Universities have responded vigorously to escalating student demands for elite degrees. Their main strategy has been to bid more aggressively for the most distinguished researchers, which explains not only the rapid salary growth for top faculty members in the last several decades, but also the fact that teaching loads at many elite schools have decreased by more than 25 percent. Similar, albeit smaller, changes in salaries and workloads have percolated throughout higher education.
Yet no matter how much universities might spend in pursuit of elite status, only 10 percent at any moment can end up in the top 10 percent.
We should also note that it’s private industry that’s pushing along the status quo. Elite financial services and professional services firms, the firms that pay the highest salaries, only want to hire from the best schools. And it’s not simply about hiring people with the highest IQs; they don’t seek out candidates with high IQs from non-elite schools. They don’t think about IQ as much as people reading HBD blogs think about it, and certainly not in the same way. To the extent they want to hire smart people, they most likely subscribe to the belief that Harvard education makes people smart, and not the other way around.
Alt-right suggestions, such as Randall Parker’s ideas about online education, are not going to take off as long as the best employers are just going to laugh at the idea.
If the status quo is going to change, it needs to come from, the government. That’s right, only the evil government can do something about the problem.
Let’s note how the government currently subsidizes the higher-education racket:
1. Federal financial aid to students.
2. Federal financial aid to universities.
3. Federally guaranteed student loans which can’t be discharged in bankruptcy.
4. Colleges are “non-profit” so they don’t pay taxes.
5. Donations to colleges are tax deductible.
6. Federal government hiring practices which require educational credentials.
7. Government bans IQ tests and other employee testing in certain situations which creates the perception among some that it’s altogether forbidden. On the other hand, no one has ever lost a disparate impact lawsuit for requiring job applicants to have college degree.
Government, however, has the power to fix the problem using the following methods:
1. Create a government-approved alternate credential method. So you can get a government-issued degree in business or engineering or what-not by passing a series of exams. There would be no “residency” requirement for getting this government-issued degree. If someone has the willpower to study for the tests without ever taking a formal class, then great for them.
2. The government must use this new credential as the only basis for government hiring. This will create prestige around the new credential, and as the nation’s biggest employer, the government has the ability to make a lot of jobs available for holders of the new credential.
3. The government grants immunity from disparate impact lawsuits when using the new credential to make hiring decisions.
4. Eliminate government aid to schools and students and eliminate student loans. This will force poor people to use the new less expensive credential method. The only government aid should be in the form of government-sponsored test-prep schools, although people would be free to attend private test-prep (which of course they will).
Will my ideas ever happen? Not very likely. The elite, the people who control everything, are happy with the status quo and have no desire to change it.
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