Scattered high-level musings on higher ed:
It simply no longer works for the vast majority of middle class students who are attending 2nd/3rd rate universities & amassing enormous amounts of debt.
Bubble = Trillion dollar student loan bubble & irrational psychosocial dynamics👇
It simply no longer works for the vast majority of middle class students who are attending 2nd/3rd rate universities & amassing enormous amounts of debt.
Bubble = Trillion dollar student loan bubble & irrational psychosocial dynamics👇
Zooming out: What's the goal of higher ed?
Is it an investment—job training?
Is that a consumption decision—a 4 year party?
It's more of an insurance policy, where it's not worth as much as ppl are paying for it, but ppl are scared of falling through the cracks in our society.
Is it an investment—job training?
Is that a consumption decision—a 4 year party?
It's more of an insurance policy, where it's not worth as much as ppl are paying for it, but ppl are scared of falling through the cracks in our society.
Of course, we should be asking why there's so many big cracks rather than how do I protect myself from them....
And so as the cracks get bigger, we pay more and more for for insurance against it
The reality is that it's a crazy zero sum tournament in which
what really matters is getting into the best schools
Such that a diploma from a third tier University is actually a negative signal
The reality is that it's a crazy zero sum tournament in which
what really matters is getting into the best schools
Such that a diploma from a third tier University is actually a negative signal
It's not insurance—It’s a nightclub
If it were any normal business, w/ the entire world clamoring to get in, you'd increase enrollment
If you're offering a great product, more ppl should benefit from it
But not universities. Because it's not about learning, it's about status
If it were any normal business, w/ the entire world clamoring to get in, you'd increase enrollment
If you're offering a great product, more ppl should benefit from it
But not universities. Because it's not about learning, it's about status
It doesn't gain its power from how many people benefit from it, it gets its power from how many people *can't* benefit from it.
We have a massive velvet rope w/ a long line of people trying to get in, and the more exclusive you make it, the more valuable it is
Like a nightclub.
We have a massive velvet rope w/ a long line of people trying to get in, and the more exclusive you make it, the more valuable it is
Like a nightclub.
Which is ironic because learning itself is infinitely positive sum.
If you learn something, you teach it to me, & then I know it, now we both know it. If we teach others, they know it & can teach others. It's unbounded.
Universities masquerade as positive sum but are zero sum.
If you learn something, you teach it to me, & then I know it, now we both know it. If we teach others, they know it & can teach others. It's unbounded.
Universities masquerade as positive sum but are zero sum.
Paradox: Education has become increasingly a status driven credential, where you simply get it in order to get other things.
Everything is about extending optionality:
Everything is about extending optionality:
And thus higher ed becomes a way to avoid thinking about the future
And we haven't thought about the future of what college should look like: We haven't been able to imagine alternatives
Which is why they can get away w/ endlessly raising the prices without significant pushback
And we haven't thought about the future of what college should look like: We haven't been able to imagine alternatives
Which is why they can get away w/ endlessly raising the prices without significant pushback
Of course, much of the course work itself got commoditized and unbundled a decade ago.
Now it's about network & credentials (a very expensive IQ test.
That too is getting unbundled.
Now it's about network & credentials (a very expensive IQ test.
That too is getting unbundled.
What should people do instead?
To be sure, not suggesting that everyone should be an entrepreneur
People should just have options. If they want to go to the night club, and get into the best ones, it might be worth it today. The point is that you think deliberately about it.
To be sure, not suggesting that everyone should be an entrepreneur
People should just have options. If they want to go to the night club, and get into the best ones, it might be worth it today. The point is that you think deliberately about it.
As for college itself Peter Thiel has a good analogy (he's inspired other points above too):
"The universities face a crisis somewhat similar that of the Catholic Church 500 yrs ago, where.... your salvation consists of getting a college diploma, if you don't, you'll go to hell"
"The universities face a crisis somewhat similar that of the Catholic Church 500 yrs ago, where.... your salvation consists of getting a college diploma, if you don't, you'll go to hell"
"And there's no salvation outside the university system.
We have a system of indulgences, that's costing more and more to support this priestly or professorial class of people.
Like the 16th century reformers, the message is that you have to work out your salvation on your own"
We have a system of indulgences, that's costing more and more to support this priestly or professorial class of people.
Like the 16th century reformers, the message is that you have to work out your salvation on your own"
What else? Subject higher ed to market forces. Enable & encourage new entrants & turnover. Deploy ISAs when appropriate so universities & students are more aligned
This post is quite general. Curious for sentiments. Will get more specific in future posts
This post is quite general. Curious for sentiments. Will get more specific in future posts
