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The Higher-Education Version of the Government-Screws-Up-Everything Chronicles

RMan3 Wrote: Oct 15, 2012 9:30 AM
At my unionized university, we had our annual fall faculty meeting. The higher-ups told us that enrollment is falling, state financial support is declining, federal grants are decreasing, the university is in debt, there are fewer kids graduating from high school in our state so enrollment will continue to decline, and tuition rates went up yet again. Then, a union rep got up and talked about the tough times as well. Then he added, "Still, we got faculty a salary increase last year!" Half of the audience cheered wildly, apparently not hearing a single thing other speakers had just said. If anything, we should have been taking pay cuts to help the university survive. If we were a "real" business, we'd be out of business.

I’ve previously shared an amazing chart that shows how more government spending on public schools has yielded zero positive results.

Well, it seems that government spending on colleges and universities also leaves a lot to be desired.

Three academics investigated the relationship between higher-education spending and economic performance and it turns out that this perverse form of redistribution from poor to rich is counterproductive. Here’s the key sentence from the abstract.

Results from a series of fixed-effects regressions using a 1992-2002 panel of state-level data...