Yes. For the technological and scientific future of the country, it is a bad thing.
Having said that, and being a former English & history major myself, I don't know why people get PhDs in these areas anymore. The fields are terrifically overcrowded and wages in them are low.
In my field, there are still jobs and the wages are high. In addition, almost everyone is completely funded, so there is little doctoral debt (that happens at the lower levels). Worse comes to worse, I can take my PhD to industry. Hard to do that w/a doctorate in early 17th century Englsih women writers.
I've known many bioscience candidates, and nearly all of them had to quit and take their masters instead. The reasons- burnout, babies, and bank accounts (they need to start working to support their new family).
But more than any other factor- low morale. They are surrounded by folks with more brains than manners or personality, including professors, underlings, and co-equal lab partners... very unpleasant people.
History fell apart after 1970, because the departments had failed to hold students to high standards. The PHD had become a "union card" for teaching in colleges. We need remember, howeever, that befpre WWII, the PHd was not needed for college work.