Foundational Problems

Abstract

This chapter explores economic problems that plague contemporary universities. The traditional university model that emerged in the USA over the past half-century depended upon governmental assistance and philanthropy to make it affordable. A middle-class lifestyle (or better) was considered more assured by a college degree. Because of cost-push inflation and attacks on inefficient structures and operation, like “The Bennett Hypothesis,” the traditional university model is now showing cracks that need repair. It is an inescapable fact that higher education has moved from the status of unique social institution to that of an industry. Other fundamental problems include: waning public confidence, increasing student debt load, shrinking state financial support, regulatory compliance, and escalating costs of the traditional college model.