Posted on 09/20/2020 4:27:59 PM PDT by CheshireTheCat
As bad as the COVID-19 lockdown has been in any number of sectors of the US economy, colleges and universities have been hit particularly hard. Restaurants and movie theaters have physical plants that continue to cost them money regardless of whether they are serving food or showing movies. Hotels have it even worse, because they are far more expensive to maintain. But colleges and universities have it worse still. Their physical plants include not only housing and dining facilities, but also recreation areas, classrooms, and expansive grounds. In addition, colleges and universities have staff that often number hundreds of times that of hotels.
Unlike restaurants, movie theaters, and hotels, colleges and universities do have the ability to offer their product remotely. Students with their faces planted firmly into Zoom calls have become the new normal pretty quickly. But when a quarter to almost half of a university’s income comes from room and board, it becomes pretty clear pretty quickly that those Zoom classes are gutting college and university revenue streams.
Making matters worse, foreign students are staying home in droves because of both the virus and US policy. This might not sound like much, but universities obtain more than twice the revenue from the typical foreign student than from the typical American student. Foreign students have been subsidizing American students for years. And now they aren’t.
The upshot of all of this, according to NYU marketing professor Scott Galloway, is rather disconcerting. In examining some 442 US universities, Galloway estimates that more than 20 percent could fail because of the lockdowns, and that another 30 percent will struggle to remain open. That’s 50 percent of US colleges and universities at very serious (or mortal) risk...
(Excerpt) Read more at theohiostar.com ...
It is like what is the significance of 1000 lawyers at the bottom of the sea? It’s a start.
The tuition thing is actually real and will be a killer if this continues on. Due to the time, most were willing to accept it for this year. I foresee if this continues on, parents (who more often than not pay for this) will start demanding cuts.
I have two children in college one, public and one private. In both cases their tuition is the same. When the question was asked why they could not cut tuition, the response was “we have costs”. The idea of costs to sustain a facility no-one is able to be at is ridiculous.
In some ways we stand at the brink of a new world in education - and much like the continuing intrusion of automation into so many parts of the employment world, at some point it cannot be stopped.
That’s 50 percent of US colleges and universities at very serious (or mortal) risk...
mortal used to refer to living things.
Well, that’s a good start... Can’t shed any tears over that stat.
I recently heard that Schrödinger’s cat was buried in the casket along with Richard Feynman.
Actually I think more than 20% are going to go under. The small liberal arts private colleges will be the first to go and many of them will go down.
The community and state colleges will survive. The research universities with major funding, e.g., MIT, they’ll be fine.
Yup, it’s a good start! So many going deep into debt acquiring worthless degrees that serve only to keep incompetent professors receiving high salaries should instead be going to trade schools. There are many high paying trades in need of apprentices and journeymen.
More than 20%? Is Take on the list and Harvard?? Please!!!
Anyone, who does his work in a strip club, is my kind of prof.
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