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June 30, 2012

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Jon, you are very kind to post to my dissenting view on Bacon's Rebellion. Now that you have done so, brace yourelf for the inevitable response!

You said, "The rising cost of higher education is typically not the result of lazy faculty."

Thats a straw man. Nobody says faculty are lazy. A lack of productivity growth stems from a resistance to innovate, not laziness. Faculty work very hard... often doing the wrong thing... the same way they always have. (Higher ed instruction has changed very little in the 40 years since I was at UVa.)

You also said that rising tuitions are a result of market forces. "The reason schools raised tuition rapidly after the 1990s is because demand rose."

Jon, why did demand rise so strikingly? Because the federal government stoked demand by increasing student grants and loans, that's why! Instead of resisting higher prices, students just took on more debt. Now we have a generation of students whose futures are weighed down by massive indebtedness. But that's not a free market at work -- that's a marketplace distorted by government intervention at work!

Yes, universities do compete with one another. But there is a fundamental difference between the behavior of universities and corporations. Corporations are profit maximizing enterprises. Universities are *status* maximizing enterprises. Status maximizing institutions have less incentive to curtail costs and boost productivity -- as we can plainly see.

One last point: Although the faculty tenure system is part of the problem, the dysfunction in higher education goes much deeper. If the experience of UVa is indicative of other universities, administrative costs are increasing far more rapidly than instructional costs. In other words, administration is bloating at the expense of the faculty. Where's the outrage?

Jim,
Thanks for your excellent comments. I quibble with your interpretation. My main point is that students are demanding more amenities, which is part of the added bloat. I also am not sure how you would wish we evaluated faculty productivity. Is it more students per faculty member? If so, huge classrooms and video learning would be the norm. But in that model what we produce is not critical thinking but rote thinking.

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