Monday, April 20, 2026

THE CRISIS OF HIGHER EDUCATION IN THE 21ST CENTURY

Harry Targ

Filmmaker Ken Burns graduated from small liberal arts Hampshire College in 1971. The college announced its permanent closure next fall. "Hampshire College is woven into the very fabric of who I am," Burns said. "This is an incalculable loss, the reverberations of which will be felt in ways none of us can imagine" (CBS Boston, April 14, 2026)

While Hampshire College is a small liberal arts college its demise, the warnings of the closing of other private universities (almost a fourth of some 1,700 are expected to close within the next decade), and the radical reconfigurations of major public universities, such as the state universities in Indiana, suggest a fundamental crisis in higher education. This crisis today is one in which narrow business and political interests replace hundreds of years of the development of wholistic knowledge (science, technology, philosophy, literature, and social science). The knowledge, wisdom, and value systems of whole generations of young people will be lost as powerful economic and political actors transform the worldwide valued resource of the United States, its educational system.

                                 AAUP University of Pennsylvania

  Historical Analyses

According to Clyde Barrow, (Universities and the Capitalist State: Corporate Liberalism and the Reconstruction of American Higher Education. 1894-1928, The University of Wisconsin Press, 1990) the modern university had its roots in the period of rising capitalism after the Great Depression of the 1870s to the 1890. Mergers created an economic system in which a few hundred corporations and banks came to dominate the entire U.S. economy. Interlocking directorates of corporations and banks created a system of financial speculation, concentrated wealth, and a capitalist state. The capitalist state through pro-corporate and banking regulations, the allocation of tax and other benefits for the wealthy and powerful, and military mobilizations, such as President Cleveland’s use of the United States army to crush workers during the Pullman strike of 1894, helped create twentieth century monopoly capitalism. 

Higher education, once dominated by theological pursuits, was refashioned to serve the needs of modern capitalist society. The need for scientific and technical skills coupled with a trained work force stimulated the establishment of educational institutions that could produce credentialed graduates who would serve the capitalist system. Also, theoretical work and classroom education were required to educate the young to celebrate the blessings of the economic system and the conduct of the government. Young people learned about the desirability of market economies, the country’s long tradition of democratic institutions, and the manifest destiny of the United States as it conquered the North American continent and established a global empire from the Philippine Islands to Cuba, to Central and South America.

Barrow provides data to show that members of university Boards of Trustees, the key decision makers in these institutions, came largely from big corporations, huge banks, and law firms which served big business. Some universities from the Midwest and South were led by trustees who represented regional manufacturing and finance capital, but their outlook and interests paralleled those from the major universities of the Northeast and the major state universities. There were never representatives of broader citizens groups such as labor unions on these boards.

During the early twentieth century, Trustees worked to establish an administrative class that could carry out the day-to-day operations of the university and manage the faculty who were the producers of the mental products the university was assigned to produce. Managerial procedures were adopted to control mental labor in the classroom and the laboratory. Metrics were institutionalized to evaluate the rates of productivity of the faculty, from measuring enrollments, publications, and the rankings of the university.

Federal and state governments and foundations funded the construction of a national university system that would serve the interests of twentieth century capitalism. Major foundations generated studies, did surveys, and made recommendations that found their way into institutions and policies of both public and private universities. During periods when domestic crises, such as depressions, and international ones, such as World War I, stimulated critical analyses from universities, faculty were disciplined or fired for challenging the economic system or state policy. The educational mission was to serve the interests of the capitalist elites and the state, not to provide a venue for critical thinking and debate about issues important to society.

Barrow summarized his findings about higher education:

“Individual institutions were developing into centralized corporate bureaucracies administered according to nationally standardized measurements of productivity and rates of return on investment. The entire educational enterprise was being restructured within these standards as a production process that was increasingly integrated into local or regional markets for labor, information, research and professional expertise. The process was more and more a planned undertaking directed by the federal government. The construction of a national ideological state apparatus oriented toward solving the problems of capitalist infrastructure, capital accumulation, and political leadership within a capitalist democracy was well under way.” (123)

The Crisis of Higher Education


 After the significant debates and ferment on college campuses from the 1960s on the crisis of higher education today involves the efforts of economic elites and politicians seeking to transform once again  education to serve the twenty-first century needs of the larger economy and polity, and not necessarily, the citizenry at large. Barrow provides us with a useful paradigm from which to assess developments in all public institutions including colleges and universities today. Power and control one again  reside in Boards of Trustees and political elites and to a lesser extent university administrators. Their lens on educational policy once again involve subordinating educational policies to  economic and political interests.

If we continue the narrative from the period Barrow studies, we can identify the growth in higher education in the post-war United States economy, sometimes referred to as the “golden age.” After World War II economic priorities shifted to stimulating manufacturing, mass production and consumption, creating consumer and military demand, the expansion of education, and the provisioning of opportunities for higher education.

Higher education became affordable for middle class Americans. War veterans had access to education via the GI Bill. Whole educational systems were constructed in big states like New York and California. Systems of community colleges were established to provide opportunities for poorer and part-time students. The size of faculties increased dramatically. Professional associations and journals increased to facilitate credentialing of new generations of faculty.

And in response to uprisings in the 1960s over war, racism, and student rights, universities expanded educational programs to overcome traditional “canons” of scholarship and education that left out the examination of the experiences of masses of people (particularly native people, people of color, women, workers, immigrants). The post-war economy boomed and so did higher education.

However, economic stagnation (nationally and globally) began in the 1970s. Rates of profit declined. Consumption could not match production. Governments no longer could allocate sufficient resources to fund public programs (a political problem) and those who were critics of modern social democracies marshalled their wealth and political muscle to challenge the vary premises of public policy.

By the late 1970s, Democrats as well as Republicans began to endorse government policies (internationally and domestically) that called for declining government support for social programs; deregulating finance, manufacturing, and markets; the privatization of public institutions and programs and reducing support for higher education and tuition costs. The policy agenda and this latest phase of capitalism was called neoliberalism. Some commentators refer to the economic policies adopted in the era of neoliberalism as “austerity.”

Below the political radar the billionaire Koch Brothers established The American Legislative Exchange Council (ALEC) in the early 1970s to support client state legislators, create “expert” think tanks on various policy issues, write model legislation on subjects as varied as health care, labor issues, creating charter schools, and transforming higher education. The neoliberal agenda, as was said, was endorsed to varying degrees by both political parties, and was most effectively institutionalized in state governments.

(Sometime in the late 1980s I heard Rush Limbaugh celebrate on his radio show the neoliberal victories that had been achieved but he declared that the one institution “we” had not been able to shape and control was the university. And that has been the project endorsed by ALEC, state legislators, rightwing advocacy groups, and university administrators all across the nation).

As an essay by Anthony Paul Farley in an issue of Academe suggests:

“Recent struggles over higher education have taken place on the terrain of austerity, where a new ‘business’ model of higher education has called for the dramatic reduction of labor costs through such means as the elimination of tenure and the replacement of full-time academics with adjuncts. The idea of higher education as a public good has, it seems, very little purchase in the discourse of austerity.  

Everything that can be measured is measured. Money becomes the measure of all things. This metaphysics of austerity has consequences for things not measurable in monetary terms. If the value of academic discipline cannot be measured in such terms, then it does not exist.” (https://www.aaup.org/article/austerity-and-academic-freedom).

Starving the Beast: Cutting Support for Higher Education

Naomi Klein, author of The Shock Doctrine: The Rise of Disaster Capitalism, argued that during periods of economic or political crisis, changes have been introduced to weaken government and the maintenance of public services. The Center for Budget and Policy Priorities documented years ago that  the deep recession of 2008-2011 was an occasion for ALEC and the politicians and educators they support to reduce resources available for higher education. Despite the long history of government support for higher education, public schools from kindergarten through high school, libraries, roads, and police and fire-fighting services, the recession offered the occasion for influential and wealthy elites to pressure for policies that reduced state financial support for public services and a shift toward their privatization.

In addition, universities became even more dependent on big corporations, banks, and the military.  Finally, tuition increased and students had to pay a higher share of the cost of their education. The austerity programs supported by both parties which began in the 1970s, were expanded in the 1980s and 90s (both Reagan and Clinton eras), and have deepened dramatically in the era of Trump and his allies in state governments today.

This brief history contradicts the articulated history of public education, including higher education. Traditionally education has been deemed a public good. The land grant system of public higher education was instituted in 1862. From then until the recent recession, public colleges and universities educated large percentages of the young and generated much of the scientific and technical knowledge that stimulated the U.S. economy, based on substantial public support and low student tuition. Without a return to affordable publicly supported higher education, large proportions of young, intellectually curious, and talented students may be deterred from pursuing higher education which will have negative consequences for the entire society.

Impacts on Faculty

Along with putting roadblocks in place for faculty to form unions, there has been a growing attack on the tenure system. Tenure means job security. Tenure means that faculty cannot be arbitrarily fired. Tenure means that after going through a period of performance and rigorous review, faculty have some job protection. And tenure means that faculty, in a work setting in which the free flow of ideas is vital, are protected from controversy in their teaching and research. Abolishing tenure is a high priority in higher education. The attack on the tenure system is both an attack on job security and on the academic freedom of instructors to teach materials they regard as relevant to their fields, irrespective of how controversial the materials appear to politicians and pressure groups.

And, of course, there has been a qualitative decline in the percentage of college and university classes taught by tenure or tenure-track faculty and a concomitant rise in courses taught by graduate students and adjuncts. As state legislatures reduce financial allocations of resources, universities hire low paid adjuncts, often on a course-by-course basis at extraordinary savings. Of course, if an adjunct gets to teach four courses at more than one university, her/his time is spent traveling with little time to keep up with relevant literature and do research which in the long run reduces the chance for securing tenure-track employment.  

On the Substance of Education. Discourse and Contradiction in Higher Education: The University as “Contested Terrain”

It would be a mistake to leave the impression that all that the university does is diabolical, even as it is shaped by and serves the dominant economic and political interests in society.  Within the confines of what Thomas Kuhn, The Structure of Scientific Revolutions, (1962) called "normal science," researchers and educators have made enormous contributions to society.  But even this is not the whole story.

There emerged over the centuries and decades a view that this institution, the university, should have a special place in society.  It should be, in a term Christopher Lasch used to refer to the family, "a haven in a heartless world."  Through its seclusion, professors could reflect critically on their society and develop knowledge that could be productively used by society to solve human puzzles and problems.  This view of higher education conflicts with the reality described above.

Historically, Galileo was punished by the Catholic Church for communicating his knowledge to the broader citizenry of his day.  Hundreds of years later, scholars such as Scott Nearing who was fired for opposing World War I, and over the years hundreds more were fired or censured for being communists, eccentrics, radicals of one sort or another, or for challenging accepted professional paradigms.  Of particular virulence have been periods of "red scares," when faculty who taught and/or engaged in activism outside some mainstreams were labeled "communists," which by definition meant they were traitors to the United States.

In response to the ideal of the free-thinking scholar who must have the freedom to pursue her/his work, professional organizations and unions embraced and defended the idea of "academic freedom."  Academic freedom proclaimed that researchers and teachers had the right to pursue and disseminate knowledge in their field unencumbered by political constraints and various efforts to silence them and their work.  To encourage young scholars to embrace occupations in higher education and to encourage diversity of views, most universities in the United States gave lip service to academic freedom and in the main have sought to protect the principle in the face of attacks on the university in general and controversial scholars in particular.

During periods of controversy and conflict in society at large, universities become "contested terrain."  That is, external pressures on universities lead administrators to act in ways to stifle controversy and dissent.  The targets of that dissent and their supporters, and students and colleagues at large, raise their voices to protest efforts to squelch it.  Interestingly enough, the university, which on the one hand serves outside interests, on the other hand, prizes independence from outside interests

What Next? 

In a 2010 essay in The Chronicle of Higher Education, Andrew Hacker and Claudia Dreifus made a series of proposals to address some of the crises of higher education today. Among the proposals these authors made were the following:

-Institute free higher education for all who seek it.

-Maintain course requirements that lead to knowledge in history, the arts, sciences, and reasoned discourse.

-Provide secure full-time teaching jobs for every classroom. Eliminate the system of staffing classrooms with graduate students and temporary adjuncts who receive one-sixth the pay of the regular faculty.

-Pay presidents and other administrators salaries commensurate with public employees, not CEOs of Wall Street banks and corporations.

In addition, with enduring economic stagnation coupled with rising gaps in the distribution of income and wealth, education is offered as an escape route from poverty. We need to broaden public discussion about our assumptions concerning higher education, assessing its costs, accessibility, educational quality, and workplace security. And we should raise our voices against the increasing control of higher education by CEOs of huge corporations and banks, and politicians.

And for faculty the task is to organize effective political/lobby groups to defend the ideal of the university. In every college and university setting discussion should be organized about the strengths and weaknesses of the neoliberalism policy agenda, with particular emphasis upon its consequences for higher education.

The University in the 21st Century

If the university is conceptualized as the site of “contested terrain,” as a place where ideas are debated and contested, and students and teachers alike connect these ideas to their activity in the world beyond the campus, then conceiving of the impacts only in terms of careers, job satisfaction, and vague references to “well-being” in terms of “purpose, social, physical, financial, and community” dimensions is too limited and simplistic. The university should be a place where traditional and non-traditional students are stimulated to develop a deeper understanding of the world and some sense of how it can be changed for the better.

In addition, the model of the university as “contested terrain” is a communal one, involving teachers and students in the ongoing collective struggle to better understand the world and conceptualize ways to engage in it. AND for a brief time period, the 1960s, and the more creative education that followed to our own day,  the university has been a site for “contested terrain.” That is the model of higher education that politicians and the business class are seeking to eliminate today.

 

 

 

 

 

 

The Bookshelf

CHALLENGING LATE CAPITALISM by Harry R. Targ

Challenging Late Capitalism