Tag: Education in America

Saturday Soother – August 27, 2022

The Daily Escape:

Super moon over Lake Champlain, Burlington, VT – August 2022 photo by Adam Silverman Photography

Republicans are outraged this week about Biden’s cancellation of student loan debt! Americans now owe a total of more than $1.6 trillion for higher education. From the WaPo: (emphasis by Wrongo)

“The result is one of the most significant changes to American higher education policy in decades — and a new cornerstone of the president’s economic legacy. Biden’s decision will dramatically change the financial circumstances of tens of millions of Americans, fully erasing the student loans of roughly 20 million people.”

Student debt played a minor role in American life through the 1960s when Wrongo accrued his $5k of college debt while attending Georgetown. But it increased during the Reagan administration. It then shot up after the 2007-2009 Great Recession as states made huge cuts to funding for their college systems.

But the argument that “tuition has gone up because public support for higher education has declined” isn’t the only one. While it’s valid for some institutions, it doesn’t explain the “arms race” among colleges and universities to add student amenities and layers of administrative staff over the past 10 years.

Over the last decade, revenue at independent (non-religious) private colleges and universities in the US has increased by 148% on an inflation-adjusted (real) per student basis. At religiously affiliated private colleges and universities revenue has increased by 87% in real per-student terms over the last 10 years.

Meanwhile, at public institutions, revenue has increased by just 23.4% on the same basis. However, this is still 36% greater than per capita GDP growth over the same 10 years.

The headline is that our elite educational institutions have gotten obscenely wealthy. And many of our second tier institutions chased after them, causing education budgets everywhere to explode.

It’s become another example of America’s new gilded age.

Opinions differ about the ethics of loan forgiveness for student debt, and that’s understandable. The general thrust of the Republican railing about the educational loan forgiveness is about how unfair it is when one group of Americans is getting a benefit at the cost of other Americans.

This tweet from former Trump White House press secretary Sarah Huckabee Sanders is on point for most of the GOP:

“Joe Biden wants those who didn’t go to school, didn’t take out loans, or already paid off their loans to pay off $300 billion of other people’s debts…..It’s socialism, it’s un-American, and only makes his record-setting inflation worse.”

But it isn’t socialism when our government bails out one group at the expense of another; it happens all the time. No Republican complained about the Trump tax cuts which were directed at America’s wealthy and its corporations. No Republican complained about the bank bailout in 2008. No Republican objected when Trump gave $16 billion to farmers hurt by the Trump tariffs.

Second, despite what the GOP is saying, the $300 billion in loan forgiveness isn’t inflationary. It’s true that it’s money that student borrowers won’t be paying back. But because of the student debt moratorium, they had already stopped payments in 2020, so there’s no change going forward. They simply won’t have to restart making payments on that $10,000 of debt.

It isn’t clear that there will be much impact to inflation or the Consumer Price Index. Since they weren’t making payments, it’s likely they were already spending those funds that might have gone to loan repayments. So no new spending.

We can have a debate about how much higher education should cost per student. We live in a society that is a whole lot wealthier than it was 40 years ago, but many of our students do not come from those few wealthy families.

The political calculus of Biden’s decision will be seen in November. The WaPo reported that a majority of Americans support limited debt forgiveness. Biden’s pollster, John Anzalone said:

“This is a motivator for young people….It’s a huge issue for young people — the support levels for them are in the high 60s.”

Let’s hope they turn out to vote on November 8.

Now, it’s time for our Saturday Soother, where we decompress from another week of body blows to America and find a few moments to gather ourselves for the week to come.

Here on the Fields of Wrong, we had a day of very satisfying brush clearing although we’re still waiting for rain.

Go get a big mug of decaf cold brew coffee and grab a chair in the shade. Now listen to Schubert’s “Impromptu in G flat Op. 90 No. 3”, written in 1827, and played here in 2012 by Olga Jegunova at the Bishopsgate Institute in London:

Schubert really understood how to capture emotion in his music.

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The Coming Disaster for America’s Colleges

The Daily Escape:

New Navajo Falls, Supai, AZ – 2020 photo by wanderin-wally. These falls were formed by a flash flood in 2008.

Colleges and universities are scrambling to figure out what to do this fall if their students can’t return to campus. Some students are reconsidering going to college. If they don’t return, what will happen to schools that are tuition-dependent?

Even before the pandemic hit, student enrollment for the spring 2020 had fallen for the ninth year in a row. Wolf Richter reports that the number of post-secondary students fell by more than 83,800 students (-.05%) to 17.18 million students. Worse, compared to the spring semester in 2011, enrollment is down by 10.6%, or 2.03 million students. Here’s Wolf’s chart:

Demo Memo says that college enrollment in the United States peaked in 2010 at just over 21 million, and as the chart shows, it has drifted downward ever since. For 2020s spring semester enrollment declined in all sectors compared to spring 2019:

  • Public two-year: -2.3%
  • Private for-profit four-year: -1.9%
  • Private nonprofit four-year: -0.7%
  • Public four-year: -0.6%

Public two-year schools have seen a 25% drop in enrollments since 2011, while enrollment in private for-profit colleges is down 55.2% for the same period.  The drop in for-profit enrollment accounts for 44% of the total drop in enrollment in all institutions since 2011.

Nathan Grawe says in the Harvard Business Review that demographics will not be a friend to higher education in the future:

“….since the onset of the Great Recession in 2008, the total fertility rate…has fallen by almost 20%….Tracing forward 18 years from the 2008 recession, we can anticipate a sizable decline in prospective college students beginning in 2026.”

He says that two-year colleges and non-selective four-year schools can expect to see falling enrollments, because these schools serve a demographically representative subset of students, so they will face the inevitable demographic arithmetic. This will be true particularly in the Northeast and Midwest, where declines are already well underway.

This will lead to price competition, which is precisely what Scott Galloway, professor at NYU’s Stern business school said on CNN recently. Galloway points out that schools in the top tier (Like Stanford, Oxford, Harvard and MIT) have deep waiting lists, and therefore will not be damaged by a smaller pool of college-age students. This means that the top-20 universities globally are going to become even stronger, as will universities between numbers 20 to 50.

At the other limit, for the Tier III schools who are tuition-dependent and who have no wait list, there will be carnage. The Upshot wrote about a college consultancy called Edmit that follows financial solvency of colleges:

“Edmit examined financial trends at 937 private universities and added a conservative estimate of the Covid-19 impact: tuition losses of 10% in 2020 and 20% in 2021, a 20% decline in endowment earnings, and an offsetting 10% reduction in spending on salaries.”

Their work shows that the number of colleges ranked with “Low” financial health (defined as being on track to run out of money within six years) was 345, more than one-third of all private colleges studied.

Beyond demographics, the fundamental question is today’s perceived value of a college degree. An MIT degree may be worth $250k in tuition, but is a Boston College degree worth that?

Since 1998, overall inflation is up 54%, while college education costs are up 150%. There’s now more student loan debt than credit card debt. Former students are in the hole for $2 trillion in student loan debt, a lot of which may eventually need to be written off. And the average price of a textbook has increased 812% in the last 30 years.

Galloway says that higher education has raised its prices at a faster rate than the health care industry! This, for a product/experience that is substantially unchanged in the past four decades.

The four-year public schools will survive, because they provide a better price-to-value proposition than the mid-tier private schools.

Dozens, maybe hundreds, of private middle tier schools will close, or partner with other schools, or possibly with businesses. They face huge price pressure, with many competitive alternatives available to the dwindling pool of students.

Many of the third-tier private, tuition-driven schools will simply shut down, continuing a trend that is already under way.

Change is sometimes the only way to make a service more efficient and affordable. The physical store is on the verge of disappearing. The physical office is disappearing. Similarly, colleges and universities need to understand the economic logic they’re facing, or else Mr. Market will educate them.

The questions to wrestle with are:

  • Is the statement “everyone should/needs to go to college” still true?
  • Does higher education still require a physical presence to be effective?

If the paradigm changes, what should it change to?

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“We Don’t Need No Education” – Part II

The Daily Escape:

Dr. Bhau Dajii Lad Mumbai City Museum, Mumbai India

Yesterday, we detailed a Pew Survey that showed a stark divide between Republicans and Democrats on the value of higher education. Only 36% of GOP respondents thought that higher education was a positive force in our country, while 72% of Democrats felt that higher education was positive for our Republic.

How could America be so divided about the value of higher education? Education is becoming less about learning and more about doing, this day in age you can even pay to have someone else write an emergency essay for you. That’s not to say that education still isn’t as important today as it has been in previous years for giving everyone a chance to learn and get an education. You can’t get a higher education without first going to school and gaining qualifications from there, so if you’re looking for school education, you can click here to apply now.

Today, we look at another survey that offers insight into the economic views of Americans by educational level. The survey is by the global PR firm Burson-Marsteller (B-M), working with the survey firm, PSB, an affiliate of B-M. It shows that education level drives a big divide in Americans’ expectations for the future.

According to B-M’s “Making it in America: The View from America“:

  • 42% of Americans with a high school education or less say they have the right skills to succeed in the 21st century, while 71% with a college education or more, say they do.
  • Americans with high school or less education are 25% less likely to say they are optimistic about the future US economy than those with a college education or more. And they are 50% more likely to feel scared about the future of the US economy.
  • 38% of Americans with a college education or more think the American economy is headed in the right direction compared to 30% of those with a high school education or less.
  • 30% of Americans with a high school education or less say automation could replace their job within five years. Only 14% of those with a college education or more said a machine will do their job in the next five years.

Here is a slide from the B-M slide deck:

Only 13% of those with high school or less think that reading comprehension and critical thinking skills are important to future manufacturing jobs, a thought decidedly at odds with business leaders. 58% of business leaders say spending more on infrastructure is the public policy action that will most support job creation in the US. 31% with college or more agree, while just 15% of those with high school or less agree.

The Pew results tell us that if America is sharply divided about the value of higher education, there is little hope for our democracy. When we factor in the top line results for the B-M survey, we see that less educated Americans are fundamentally more pessimistic about their economic future.

So, higher education has little value, and yet, those without degrees are insecure about their current jobs and their economic future. More and more are looking into clep exam prep://www.instantcert.com/”>clep exam prep to find a way to get a degree that may suit them better because of this.

How does this compute for the GOP? They say that they want more economic growth, and more jobs for Americans. How does having an anti-education worldview support making America great again?

Why isn’t more/better education the top priority for both political parties?

And private, for-profit GOP educational alternatives shouldn’t be favored by anyone seriously interested in a better-educated society.

Today’s music: The Kinks did a concept album about education called “Schoolboys in Disgrace” in 1977. Here they are performing “Education” from the album:

Takeaway Lyric:

Everybody needs education
Open Universities, education
Every race every creed, education
And every little half-breed, education
Every nationality, education
All the little people need education
Eskimos and pygmies need
And even aborigines, education

Well, physics and geography,

Education
Philosophy and history,

Education
Science and biology,

Education
Geometry and poetry,

Education
Well, education, education, education, education

Those who read the Wrongologist in email can view the video here.

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“We Don’t Need No Education”

The Daily Escape:

Antarctic Relic, 2017 – photo by Daniel Kordan

Pink Floyd’s big mainstream hit has new relevance today, since Pew Research produced these interesting findings on US attitudes towards higher education: (emphasis by the Wrongologist)

While a majority of the public (55%) continues to say that colleges and universities have a positive effect on the way things are going in the country these days, Republicans express increasingly negative views.

A majority of Republicans and Republican-leaning independents (58%) now say that colleges and universities have a negative effect on the country, up from 45% last year. By contrast, most Democrats and Democratic leaners (72%) say colleges and universities have a positive effect, which is little changed from recent years.

The Pew study, conducted from June 8 to 18 among more than 2,000 respondents, found that Democrats and Republicans are growing substantially more divided in their opinions on public institutions, including higher education.

According to the survey that Pew released on Monday, this is the first time that a majority of Republicans have thought that higher education is bad for the country. As recently as 2015, 54% of Republicans said colleges and universities had a positive impact on the way things were going in the country, but by 2016, those results split to 43% positive and 45% negative. On the other side of the aisle, 72% of Democrats continue to think colleges and universities have a positive effect on the country, holding steady with past years’ results. Here is a chart with the study’s top findings:

And if we get granular about the viewpoints, we see the positive view by Republicans has declined dramatically in just three years:

Only 1/3 of Republicans who have graduated from college now believe that college is a positive contributor to the way things are in America today. In fact, Republicans over age 50 support college and universities the least (28%). Even a majority of GOP Millennials do not see higher education as a positive force in our society.

While Pew doesn’t speculate on the reasons for the shift in thinking, it is clear that the last few years have not been kind to higher education. Elite colleges have made headlines for a series of controversies and protests around racism, free speech, and civil rights. We hear constant debate about “trigger warnings”, and “safe zones” for students who can’t be exposed to uncomfortable ideas or situations.

In 2015, the football team at the University of Missouri went on strike to protest the handling of racist incidents on campus, and Yale was rocked by controversy about the proper way to address insensitive Halloween costumes.

More recently, students have protested and sometimes disrupted appearances from controversial figures. But only 28% of college-educated GOP’ers support higher education? From Booman:

It’s really not compatible with being a country club Republican to have a negative view of a college education. A college degree confers respectability and signals status.

Booman makes the point that more and more of them home school their kids to protect them from the opinions of educated people who might have different views, and fewer of them want their children to go to a college where those religious and political views may be undermined.

Perhaps it also says that college is NOW no longer a good thing, either due to economic factors, or all the strict social/cultural paths people want their kids to follow. But, in America today, the unemployment rate for college grads is 2.4%, while it is 4.6% for those without a degree.

Why would Republicans want to deny their children the opportunity to earn a living?

And there is our PISA ranking. PISA rankings are produced by the OECD based on tests taken by 15-year-olds in more than 70 countries every three years. Comparing the US ranking in both 2012 (the last time the test was administered) and 2015, the US fell to 38th from 28th in math out of 71 countries. We ranked 24th in science. For whatever reasons, we just don’t do a good job educating our kids.

But to the larger point, perceptions of college’s value/non-value is symptomatic of a much deeper and very dangerous schism, the devaluation of facts and scientific evidence. The GOP discredits facts and reality. They emphasize school choice (although it is the only thing that they are pro-choice about).

Resentment and fantasy based on ideology drives our discussion of education. So education has become a low priority for the young and old alike.

Today’s tune is appropriately, “The Wall” by Pink Floyd. It was their 11th studio album, released as a double album in November 1979:

Takeaway Lyric:

We don’t need no education

We don’t need no thought control

No dark sarcasm in the classroom

Teachers leave them kids alone

Hey! Teacher!

Leave them kids alone!

All in all, it’s just another brick in the wall

All in all, you’re just another brick in the wall

 Those who read the Wrongologist in email can view the video here.

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