Hayabusa Rider
Admin Emeritus & Elite Member
- Jan 26, 2000
- 50,879
- 4,268
- 126
Ok you're making some sense. Sounds to me like if you're correct, the education market will basically just correct itself. Some universities will have to downsize or close. This isn't the sort of problem that will send the entire economy into a tailspin like the housing bubble.
- wolf
No, but it will create a tiered system that's more distinct than today, especially in technical fields.
As I said in a prior post, my wife is a biology professor as a small private college and her pay is quite modest by academic standards. She'd make five times or more what she earns now having a PhD. in molecular genetics in industry, however she isn't strongly materialistic. She teaches because she believes it's important to pass what she knows on to others.
Her college as well as many others are in trouble because of the economy. Fewer students, less return on investments etc. Her school gets little money from the various governments, state and federal.
The costs of providing an education have skyrocketed more than the increase of tuition has. Schools are sucking up much of it eroding their reserves in order to stay competitive.
There are many things you cannot learn by watching a video. Labs are not optional because some things have to be taught "hands on". Well the cost of doing one lab has increased five times over two years. Lab fees have not. So overall tuition goes up. BTW, she hasn't has a raise in three years, and the 403b matching has gone away. After all that she makes less than what she now earns after inflation and she's become a full professor in the meantime. Why she does it is beyond me, but she feels it's her calling.
This is being played again and again in colleges and some universities all over the nation. I expect that most institutions will fold over the next twenty years.
What that will do is correct the problem of educational inflation requirements and I understand that's good, but at that time the remainder will have to start charging the true costs of education, and now you are looking at incredible tuition inflation as degrees which require higher education will be competing for fewer seats. Costs won't decrease because no amount of efficiency will decrease the price of a service below it's cost for long. Those who did will already be gone.
So you'll have some funding by an increasingly cash strapped government having to pay more and more. That won't go on forever. In the meantime the best remaining educators (of which there will be fewer and fewer) will go to the surviving prestigious schools and get a superior education which only the wealthy will be able to afford.
The "middle class" of education will evaporate, leaving a poorer society for it.
I'm not sure how it can be avoided, but I'm glad my children have the opportunity for a decent education before the chance evaporates.
