Creative Destruction: The New Economic Reality in Higher Education
How is higher education changing, and can institutions rise to the challenge of their at-risk status? The answer hinges on how college and university leaders choose to respond. U.S. higher education is now a business enterprise. No longer is it universally considered a unique social institution dedicated to the common good. The recent Great Recession accelerated this transition process, which has been ongoing for at least the past two decades. Complacency will do nothing more than accelerate a troubling change in culture and society, and a call to action is needed in order for higher education to address this new reality. This paper will briefly: I hope this paper will provoke thought and conversation on your campus. Please read and share it with your colleagues. A New Economic Reality Change is constant, both individually and organizationally. But radical change can disrupt an entire economic sector in a relatively short period of time. There are 4 primary reasons that colleges and universities are now being perceived as a commercial industry. 1. Cost-Push InflationThe cost of attending a university has risen by almost 260% since 1980, while the consumer price index increased by only 120%. Compounding the problem is that real average wages (accounting […]
