(This is Part 2 in a series of blogs I am doing entitled “Why It Doesn’t Make Economic Sense to Run Education like a Business.”)
We’ve all been students, so we recognize this scenario: a professor announces that the next class will be cancelled. Our reaction?
Of course, if we students are really “customers” and education is a “product,” then we are just pretty stupid consumers. Think about it. If we had purchased an 8-day package vacation in Aruba and the travel agent called us up on the beach and told us that one day of the vacation had been cancelled and we would have to fly back early, we would not be happy campers. Or sun-bathers, as it were.
Then why are we so happy to miss a day of education, especially when higher education is so expensive?
Education is a different animal.
Students don’t want to get their money’s worth. Barlow’s Law seems so common-sensically obvious (at least in American culture) that I probably ought to call it Barlow’s axiom, which would make it a self-evident truth.
Teachers know that they can please their students by giving them less instruction or less demanding education. If a professor cuts an assignment, reduces reading, or eases up in any way, many students are happy. Many students will try to sign up for easy professors. Many figure out ways to get a decent grade with the smallest amount of work. Many cheat. If we are let out of class early, we are happy. Meanwhile, if extra reading and writing is required, we “customers” will complain and protest that the professor is being unfair.
Imagine striking a deal for a new Lexus and getting excited when the dealer says he will have to cut out the heated seats or the air conditioning. Imagine complaining and protesting that the dealer is being unfair if he throws in a sun roof at no extra cost.
According to Adam Smith, society benefits under capitalism because self-interest leads businesses to produce better and cheaper products which is what customers, in their self-interest, want. The problem is that self-interest is a complicated thing. Yes, we know it is in our self-interest to get a good education. But we also have immediate self-interests that run counter to the long-term habits required to obtain a good education: we would rather play video games or hang with friends or eat nachos or check Facebook or sleep than study. A truly stupid show on Comedy Central suddenly becomes absolutely fascinating when we have a paper to write. Socialized from childhood as a consumer (see “Trix: cereal”), what’s a “customer” to do?
Now, it is true that there are students who sincerely want the very best that an academic course can give them. Many do not want easy professors or classes where they learn little. In fact, most of us have probably gone back and forth between desiring a good, challenging class and wishing it were cancelled. Usually, though, true academic desires and virtues are cultivated over time from parents or a great teacher along the way, but not from our economic system. The desires for a challenging class stem from impulses opposite of those intensified by consumerism, such as immediate gratification, entertainment, comfort and self-indulgence.
You might point out that the economic desire for a well-paying job motivates many students to do well. True, but I would question whether this is really the best kind of education one can get. In fact, not all ambitious, highly motivated students deeply desire the best education they can get. An undefinable number of hard-working, ambitious students highly desire the status or connections or economic opportunities that an education can give them, as opposed to the education itself. In other words, many are more interested in a diploma from a prestigious institution or good grades than they are in what a given course will actually teach them. And they will pay a lot of money for this. A few years ago, a college in Pennsylvania did nothing but increase its tuition by a significant amount (several thousands of dollars) under the theory that students would perceive the school to have more prestige with an increased price. Their applications from high-achieving students went up.
That points to another unsettling possibility: treating students as customers may actually be increasing the cost of higher education. In their competition for “customers,” colleges feel the pressure to build single-person dorm rooms, lavish student centers, hip dining halls, and numerous support services to attract students. Sometimes I ask non-athletes if they would be willing to have our college cut all intercollegiate athletics, if it would save them $1500/year on their tuition. Most would not want to change – they would rather pay more to have athletics on campus, even if they are not competing themselves. Socialized from childhood as consumers, (see “Trix: cereal”), students want a particular lifestyle in college.
When we treat education as a consumer item, we end up with an inferior product at a higher price. This seems to be what “customers” want.
So, does it really make economic sense to run education on a business model?
Besides the clear observation here that 18 yr olds are not very savvy consumers when it comes to big-ticket items like education, the second question is whether students are the customer. The customer is usually who pays – with higher ed. this is largely parents,
taxpayers, donors and trustees of endowments. Such complexities exist elsewhere – for example many writers note that Google’s “customers” are not Internet users, but the advertisers – the users are the product. I don’ know that college students are truly the “product” but neither are they simply the consumer!
Good point, Earl. I think that points out that we should just ditch terminology of “customer” and “product” — as well as the accompanying economic way of thinking — when it comes to education.
I don’t think we have an option to “ditch an economic way of thinking.” Life is inherently a set of economic decisions. Economics is just an ordered way to think about human behavior. Of course, we get in trouble when we make analogies to other industries and those analogies don’t apply. But the reality is that higher education (and all education) is on an unsustainable path of price rising faster than economic growth. It is as distorted a market as any – maybe on a par with medical care – a byzantine set of subsidies, labor market restrictions, price fixing, price obfuscation, etc. To me the sad thing is that the fundamental act of education is almost lost in this economic nightmare. I think about a small liberal school’s early days (e.g. 1957?) with just faculty and enough facility to hold classes. Faculty to student ratio was similar to today. Tuition could be paid with a decent summer job. I don’t think the “education” is 5 times better today – just the (real) price.
I wasn’t clear here in my response. I didn’t mean to say to we should ditch economic thinking. Just that we should ditch the particular economic way of thinking that ends up with “customers” and “products.” We need a different way of thinking about the economics of higher education, because it operates on fundamentally different economic principles than the capitalistic/consumeristic system we have for other sectors of society. I am even wondering whether it is even accurate to refer to the market when we discuss the economics of education.
I suspected you did not mean to “ditch” the practicalities of economics. But this discussion has made me think a lot about education. I think it is so challenging because education, even higher education, is an extension of child rearing which is part of the large picture of perpetuating civilization. “Pure” short term economic self-interest would not raise children. But God has ordained that we do. So we do things for the long-term greater good. Then I thought back to realize that higher education in the US began as a mission of the church. And the whole idea of the University was largely the same as I understand it. Of course today, with the system mostly government funded and with great interest groups after that funding, we have a really complex mix of customer/provider economics, rent seeking, and altruism. But I think I shall always now read analyses of higher education economics to see if they include the long-term, better good of all, aspect. If not, the analysis will be missing something.
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