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Ironically, the one cohort that utterly failed to benefit from the boom times was the professors, who are really the only people adding value and remain vastly underpaid. When the cuts come, they won’t come for the administration or the diversity staff. Academic programs will be the first to go, which raises some interesting questions about what the purpose of a university is.
The bull market was awesome. New academic buildings, new athletic facilities, new residence halls with swimming pools, climbing walls, and recreation facilities. Lots of administration and diversity staff. Ironically, the one cohort that utterly failed to benefit from the boom times was the professors, who are really the only people adding value and remain vastly underpaid. When the cuts come, they won’t come for the administration or the diversity staff. Academic programs will be the first to go, which raises some interesting questions about what the purpose of a university is.
Online education can replace a huge cgkhunk of current education.
And if feds ever stop throwing money away n it, stupid classes will disappear because no one would pay for garbage with their own money.
Online education can replace a huge chunk of current education.
There is a paradigm shift in education. A world of knowledge is a mouse click away.
May be computer programmers do not need face-to-face classes, but engineers, chemists, biologists etc need real classes/labs/etc.
Universities,
"It's the price,stupid!"
https://www.mauldineconomics.com/the-10th-man/it-was-a-good-run
I predict that 20% of colleges and universities will shut down or merge in the next 10 years, and probably more.
What comes next will pulverize nearly every institution of higher learning in the country, private and public.
The reason: demographics. Basically, an echo of the baby bust of the early seventies.... My small generation hatched a small generation, which is now making its way through college. Enrollment will drop 15% on average, on top of the eight-year correction that schools have already experienced. This may not seem like much, but finances at colleges and universities have deteriorated sharply, and many of them will not even be able to withstand a drop of a few percent.
The demand for higher education has been relatively inelastic, but demand elasticity is starting to set in. Today, 45% fewer 18- to 29-year-olds say going to college is “very important” than in 2013. A 45% drop in just seven years. I talk about it incessantly on my radio show. Higher education has become so expensive that it makes practically no sense for anyone, except as a luxury purchase for the idle rich.
The bull market was awesome. New academic buildings, new athletic facilities, new residence halls with swimming pools, climbing walls, and recreation facilities. Lots of administration and diversity staff. Ironically, the one cohort that utterly failed to benefit from the boom times was the professors, who are really the only people adding value and remain vastly underpaid. When the cuts come, they won’t come for the administration or the diversity staff. Academic programs will be the first to go, which raises some interesting questions about what the purpose of a university is.
A discussion on higher education would not be complete without a discussion of college football, which is a drain on resources in 99% of cases. Yes, Alabama is wildly profitable. Only a handful of football programs are, and hundreds of schools have tried to replicate what Alabama is doing. .... Some people complain that football is a source of alumni support, but it really isn’t. It’s popular among alumni, yes, but financially speaking, the vast majority of schools would be better off without it.
As an investor who came of age in a bear market, I tend to look for bear markets.... This one will be up there, with pretty profound economic effects. Colleges and universities employ a lot of people and in many cases are the lifeblood of a single town. You’ve probably noticed that the nicest buildings in your town are the academic buildings. Wait until they are all empty.