Thomas Carlyle might have dubbed economics the “dismal science,” but Richard Vedder is a witty and humorous guest. In this episode, we have a lively conversation about the high cost of college and what we can do about it.
Rich is the foremost economist of higher education and a Distinguished Professor of Economics Emeritus at the University of Ohio. He is a member of the board of directors of the National Association of Scholars and the author of a first-rate new book Restoring the Promise: Higher Education in America. I highly recommend it as the single best new book on higher education for years.
Show Notes
3:31 How much did college cost when Rich was a freshman?
6:51 Rich says colleges are embarrassed at how little their students know—and that’s why they hide the details on what their students learn. At Yale, seniors scored lower on a civic literacy test than freshmen!
13:12 Rich tells the story of how he shifted his career to focus on college costs. It all started with a request for a Wall Street Journal op-ed, and soon Rich was flooded with requests to write more about the economics of higher education, establish a think tank, and advise government officials.
20:50 We dive into Rich’s new book Restoring the Promise. It’s full of quantitative data and charts—but not limited strictly to economics.
23:49 Rich calls the Morrill Act the “most overrated legislation in the history of planet earth.”
25:30 We talk about the history of the federal government’s growing role in funding higher education—and Rich tells the story of how he shocked Senator Claire McCaskill by testifying on behalf of abolishing the Department of Education.
32:32 Rich describes the “excessive vocationalization” of higher education, and we discuss the mid-career earnings of philosophy majors and business majors.
38:56 Colleges should host public debates—and Rich has an idea for Charles Koch and George Soros to jointly fund them. Did you know Rich has gotten funding from both Koch and Soros?
46:39 Peter quizzes Rich on some economic terms—regulatory capture and rent seeking—and asks what they have to do with higher education.
49:01 Does government funding make college more affordable? Rich says the percentage of poor students attending college today is lower than in the 1960s, and Peter shares a story from his days in higher education administration, where “don’t leave money on the table” was the mantra.
52:19 We talk about some radical policies. What would happen if the Department of Education were abolished, or the federal government ceased offering student loans?
57:42 There’s a mystery: recent graduates are underemployed but the economy is booming. How can both be true?
1:00:15 Can we really restore the promise of higher education? Rich offers some closing thoughts.
Resources
- Richard Vedder, Going Broke by Degree: Why College Costs Too Much
- Richard Vedder, Restoring the Promise: Higher Education in America
- Richard Vedder, “College Wouldn’t Cost So Much If Students and Faculty Worked Harder,” Wall Street Journal
- Bryan Caplan, The Case Against Education
- George La Noue, Silenced Stages: The Loss of Academic Freedom and Campus Policy Debates
