Academic Armageddon Advances

James G. Martin Center for Academic Renewal ^ | May 27, 2026 | Richard K. Vedder

[karpov]

Robert Kelchen of the University of Tennessee, writing in the Chronicle of Higher Education recently, described the most dire problem facing higher education today: “The list of institutions trimming academic programs, implementing furloughs, and laying off employees is long and growing…”

A massive financial crunch has hit many schools because of sagging tuition revenue growth (reflecting falling enrollment or more aggressive discounting of tuition fees) and reduced public financial support in the form of federal and/or state aid and stagnant private philanthropy, all occurring in an environment of heightened inflationary pressures increasing the dollars needed to operate.

While the problem has been the greatest among non-elite institutions with little national reputation, it has been felt nearly everywhere. Take Chicago, for example: its two most prestigious and wealthiest schools, the University of Chicago and Northwestern University, have both been forced to endure meaningful budget cuts requiring staff reductions.

I would argue that the problems of American universities are largely related to just two words: incentives and ownership. I will elaborate on that shortly but first let’s look at some specific reasons for the current financial pressures that many universities face to some degree.

Colleges and universities in America typically have high fixed costs. Every time a school confers tenure on a faculty member, for example, it incurs a financial liability measured typically in the millions of dollars –the present value of a lifetime of salary and fringe benefit payments. Moreover, a typical large university has debt obligations often reaching several hundred million dollars. Unlike in, say, Europe, American schools typically feel obliged to feed and house their students instead of leaving that to entrepreneurs who specialize in those tasks. Moreover, they typically borrow heavily to finance increasingly luxurious dorms and student recreational facilities.

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TOPICS: Education
KEYWORDS: college

[Obadiah]

Right after Hollywood, I hope I live to see the utter decimation of secondary education, and then the teacher’s union.

[hinckley buzzard]

“Massive administrative bloat.” Proliferation of totally meaningless and useless degree programs. Two obvious places to do a DOGE like analysis. Go from there.

[chajin]

they typically borrow heavily to finance increasingly luxurious dorms

I lived on campus at PSU for one year in the early 70s. The dorm rooms at the time were compared to Tan Son Nhut tiger cages. I was lucky enough that my roommate decided to pledge early in the fall term, and was almost never around, so I pretty much had the room to myself.

[packagingguy]

My Alma Mater was featured in a business magazine for having as many administrators as students.

It’s in essence become a make work program more than an agriculture and engineering school.

[catnipman]

“and stagnant private philanthropy,”

1. why should wealthy jewish alumni contribute big bucks to increasingly anti-semitic universities?

2. why should ANY wealthy person contribute big bucks to increasingly DEI, hard-leftist indoctrination so-called “higher education” factories?

[catnipman]

yeah, the dorm rooms were only a little better than prison cells when i went to undergrad school at VaTech ...

[ClearCase_guy]

I believe that On The Job training would work well for just about any serious profession, I include doctors, lawyers and engineers in this. Graduate High School, find an employer, have your employer teach you how to do serious work. Save yourself some money.

For people who wish to be cultured and well-rounded, there ought to be Book-of-the-Month Clubs, or social gatherings. It is NOT hard to educate yourself about the culture of Western Civilization, You do not need to pay a University $60,000 a year in order to read Jane Austen.

[Da Coyote]

One benefit of the present situation is that the respect for our “Ivy League” collection of losers, perverts, and non-productive clowns (STEM mostly excused - save for Med ‘Skoolz’, perhaps) has plummeted to the point that one can accurately compare those institutions to Seattle, Portland, Los Angeles, and San-Pelosishitsco. They are eating what they excreted.

[Brian Griffin]

My neighbor had two huge trees chopped down by three guys in a day.

A Hispanic guy in with a claw truck picked up the debris in about half an hour and probably spent an hour dropping it off at the county landfill.

One guy later came with a remote control stump grinder to grind up the two stumps.

All that probably cost about $4,000, or about $200/manhour.

Brainwork doesn’t pay as well. The US is governed by idiots because brainwork doesn’t pay competitively.

[Brian Griffin]

“American schools typically feel obliged to feed and house their students instead of leaving that to entrepreneurs who specialize in those tasks”

At my university, living in the dorms and taking the meal plan was only required in the first year. I think each was about $850 in 1975-1976.

[Fledermaus]

The good old days. In entered college in 1977.

$235 a semester tuition and about $1,000 a year for both the dorm and cafeteria which was a good cafeteria.

I paid mostly cash. Got a grant and did some campus work study for minimum wade applied to the dorm.

Also got part time work in my next year. I didn’t have time as a freshman since I joined the marching band. U of Ark.

Marched in the 1978 Orange Bowl and parade.

[Brian Griffin]

“$235 a semester tuition”

It was $3,350 for two semesters starting in 1975 (and $4,000 1978-1979) for me.

I think it was about $6/hour per chair hour class time.

They want almost $70,000 for two semesters nowadays.