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If Even Krugman Says It …

March 8, 2011, 1:32 pm

Paul Krugman, Nobel Prize economist and fixture of the New York Times op-ed page, has been a steadfast supporter of President Obama’s efforts to improve the U.S. economy through massive deficit spending. His only criticisms have been in the direction that the stimulus packages have not been large enough. In his March 7 op-ed, however, Krugman hits an astonishing new note. In effect, he discovers his inner Richard Vedder: He expresses doubt that “education is the key to economic success.”

Krugman’s key observation is that as more and more white-collar, middle-class jobs fall victim to automation, the value of a college education as a means of securing a middle-class income has begun to fade. In addition to automation, Krugman says that telecommunications have “made it possible to provide many services at long range,” and that work performed by highly educated workers is increasingly “offshorable.”

These are hardly new discoveries, but what is news is that Krugman registers what this actually means for higher education—something that public intellectuals on the left have been very reluctant to acknowledge.

Krugman is someone I seldom agree with. He was among the first to blame the attempted assassination of Congresswoman Gabrielle Giffords on “a climate of hate” supposedly created by “the rhetoric of Beck, Limbaugh, etc.,” and even after it became clear that the shooter was a madman with no connection to politics, he repeated and expanded his outrageous blame-Palin-first pseudo-analysis. When social psychologist Jonathan Haidt presented a noteworthy lecture analyzing why conservatives are nearly entirely absent from his field, Krugman rushed in with a dismissive sneer explaining why Professor Haidt’s findings should be ignored. When the revolution that toppled Mubarak in Egypt got underway, Krugman was on hand to explain that its underlying cause was….global warming. There are bloggers who devote themselves to “Krugman Watch” explications of this man’s often wayward relationship with reality.

It is thus a little disconcerting to see him offering a basically accurate assessment of popular error about the role of higher education in the American economy. I take the risk that, by pointing this out, I may move him to modify his views. But I’ll start with the optimistic assumption that what Krugman says is a pretty good bellwether of where conventional leftist opinion is headed. Krugman begins by bowing in the obligatory liberal direction of saying that to fix American education we have to address “the inequalities” between the children of the poor and the children of the affluent, which “aren’t just an outrage” but also a “waste of the nation’s human potential.” Those inequalities are surely not a good thing, but whether you see them as an “outrage” depends on your vision of the country. No nation has more personal and class mobility than the United States, and as for wasting “human potential,” that’s not a not a problem that gets solved merely by spending more public money. The affluent are far more profligate than the poor. But never mind; what comes next in Krugman’s essay is far more interesting:

But there are things education can’t do. In particular, the notion that putting more kids through college can restore the middle-class society we used to have is wishful thinking. It is no longer true that having a college degree guarantees that you’ll get a good job, and it’s becoming less true with each passing decade.

This declaration puts Krugman squarely at odds with President Obama, which he forthrightly acknowledges. Since his first months in office, Obama has continued to call for a massive increase in the percentage of Americans who receive college degrees—an increase of 5 million additional graduates by 2020—and he repeated his call for new “investments” in higher education last week, where he linked the expansion of higher education to “good news on the job front.” The idea that American “competitiveness” can be improved by granting college credentials to millions more students each year, of course, has been endorsed by virtually the whole of the American higher-education establishment. The Lumina Foundation has taken a conspicuous lead by demanding an expansion beyond even the doubling of enrollments called for by Obama, but the College Board and the Carnegie Corporation, among others, aren’t far behind.

What does it mean when someone like Krugman jumps ship from the ideological consensus that usually rules in these matters? It means essentially that the jig is up. Even stalwarts of the left can no longer pretend with a straight face that “college for everyone” is a practical answer to our economic difficulties, or even a constructive step in that direction. Higher education as we know it currently produces a large surplus of “credentialed” graduates who cannot find work in fields for which a college degree is needed. Doubling the number of graduates is not going to change that. Rather, the very effort to jam through college a huge increase in the number of students will mean a lowering of the already derisory standards at many colleges and universities, and will make the college credential even less useful than it already is.

What to do next? Increasingly those who favor continued expansion of higher education sidle away from the “national competitiveness” argument. They have also begun to grow a bit bashful of the “premium in lifetime earnings” argument, though it has the virtue of being true. The problem is that, while college graduates do earn substantially more on average than high-school-diploma-only workers, this pitch has routinely ignored the fate of the large percentage of students who enroll but don’t finish their college programs. As The New York Times reported last year:

While almost 70 percent of high school graduates in the United States enroll in college within two years of graduating, only about 57 percent of students who enroll in a bachelor’s degree program graduate within six years, and fewer than 25 percent of students who begin at a community college graduate with an associate’s degree within three years.

The students who don’t finish their degrees nonetheless often end up with substantial debt in the form of student loans—which casts the “college is the ticket to personal prosperity” argument in a somewhat different light. Prosperity may come, but the road is risky—potentially a lot riskier than getting a job and sticking to it.

If these justifications for going to college aren’t as convincing as they once were, we can still turn to the idea that a college education is personally rewarding and even liberating. It is better to be educated than ignorant, etc. This is surely right—up to a point. College can be intellectually and culturally rewarding, but for over a third of college graduates, the educational value is nearly zero. That’s the finding that the sociologists Richard Arum and Josipa Roksa reported in their recent book, Academically Adrift, and it matches with what most of us who have spent years in front of the classroom already knew. Four to six years of attending college and acquiring a small mountain of debt is not educationally rewarding to a significant portion of college enrollees, though it is possible to imagine other benefits.

It is also possible to imagine subtractions. The one hundred or so college students at Northwestern University last week who got to witness a live demonstration of a man employing a sex toy on a naked woman is the emblem for the moment of how higher education can debase students in the name of liberating them. This incident may be exceptional in its crudity but is hardly exceptional in its underlying spirit. The idea of “transgression” hauled from the bottom of the bag of pedagogical trickery exhausts the repertoire of all too many professors. But it works. You can mesmerize a sizable fraction of any study group with the illusion that they are breaking through stale social conventions by sacrificing their own dignity.

Those who say ‘never mind the economic picture or the personal financial rewards, a college education is to be valued in its own right’ are thus faced with the additional challenges of making a contemporary college education look better than it is, both intellectually and morally. And indeed they try. The intellectual barrenness can be dismissed in the tone of ‘thus was it ever,’ and the moral objections can be turned aside as Comstockery. It is never all that difficult for a settled elite to find compelling reasons for its own complacency. The question is whether those to whom they appeal to pay their bills find these reasons compelling. This seems inexorably to bring us back to those economic and financial arguments.

Or maybe not quite. College has functions beyond education. It is an initiation that creates a dividing line between those who graduated and those who didn’t. We imagine the dividing line represents some real achievement, but often it is just the line itself: a nearly arbitrary social marker. College also serves Americans as a preliminary for graduate and professional programs. Again, the content may matter less than the mere fact. And college provides a mechanism of social assortment:  the student mixes with others of similar standing and emerges with shared experience, even if it is largely shared experience of trivialities. I don’t want to underrate these factors. They have analogues in hundreds of societies around the world, from village initiation rites to systems of organized warfare. Contemporary America has made college education a tribal initiation rite and that’s important in its own way.

But it isn’t going to solve the problem that Paul Krugman has named. “If we want a society of broadly shared prosperity, education isn’t the answer.” For Krugman, the answer is unions, collective bargaining, and guaranteed health care. Well, maybe. It isn’t instantly clear to me that these are answers that will repair what amounts to a breakdown in the way our society is managing the stewardship of intellectual and cultural capital in its transmission from generation to generation.

Not that there are any easy or simple answers. But getting the diagnosis right would be a good first step. Krugman surely has part of the diagnosis. He is right that we are learning to digitize and automate many tasks that used to require moderately expert human judgment, and as we do this, we are eliminating a large sector of jobs for which the college degree was formerly a reliable credential. And he is right that many of the surviving college-credentialed jobs are vulnerable to the forces of globalization.  They can be done just as well and less expensively in India or elsewhere.

What’s missing from this picture, however, is a crowd of factors that bear on how young men and women approach and make use of the opportunities at hand. Why is it that so many students enroll in college only to treat it as a four (or more) year vacation from responsibility? A college degree in the right subject pursued with the right level of intensity can still open the door to a good and prosperous career. But a very large number—an actual preponderance—of college graduates de-select that approach to undergraduate education. Some do so because they lack the motivation to begin with, and it is a fair question to put to social scientists, “Why?” Patterns of motivation (or its lack) are not arbitrary. They have something to do with the family, and a great deal to do with matters like religion, culture, and emotional maturity.

No one is “in charge” of factors like these and they are difficult if not impossible to reach by policy prescription. We can’t simply undo high divorce rates and single-parent families—although these are major risk factors for academic under-performance and social anomie. The trend of our culture towards mass banality is likewise something can’t be ameliorated by mere policy. Yet it isn’t entirely beyond reach. Higher education did its part in creating it and may have some capacity, if it chose, to push past it. At the moment our system of collegiate study is shot through with antagonism to the principles of the American republic, the free market, aspiration to high culture, traditional religious faith, and so on; and it is often aglow with admiration for the imagined alternatives:  international institutions, economies built on economic redistribution, sustainatopia, etc.

We stand in need of the kind of analysis Max Weber might have brought. In an age of expressive individualism, college provides a majority of students the occasion to define themselves against their own civilization or cultural inheritance. The basic emotional stance written into today’s curriculum is alienation from the ways of the past coupled with utopian longing for some inexpressible combination of absolute freedom and profound subjection. We want to escape the trammels of ascribed identity but uphold a diversity doctrine that conjures a perpetual cult of ascribed identities based on the legacy of oppression. We want to banish the logic of the relentless marketplace but are eager to try out the even more relentless logic of “global citizenship” and other softly packaged forfeitures of individual rights and liberties.

Only a relative handful become deep adepts of this emancipatory dream but it diffusely influences all. I encounter marketing and advertising majors who confess their sense of guilt that they are not fully living up to the implied mandate to transform their society into a post-national, re-distributionist paradise.

It isn’t hard to see that a system of higher education that cultivates such ambivalence in students isn’t likely to produce large numbers of graduates who are capable of adroitly adapting themselves to the economic realities of our time. The routinized jobs, as Krugman observes, are disappearing into the matrices of artificial intelligence and the comparative advantages of international labor markets. Educating people to live on the cusp of creative change is difficult, but especially so if you approach that world peevishly, as though it isn’t worthy of your efforts.

This may go a considerable distance toward explaining why students from abroad are often better able to take advantage of American higher education than their American-born counterparts. Globalization works in more than one way.

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  • Dr.K.Prabhakar

    As Krugman has pointed out there is a tendency to shift to Hour Glass Economy with high paying Mac jobs and low paying McDonald jobs.In the process the middle jobs are lost and America has no more stronger middle class, which is responsible for bringing large work force that is capable of innovations. Andy Groove has pointed out this phenomena. America is having approximately 162000 computer manufacturing jobs, which is same as in 1980. Most of the jobs are shifted to China and other countries. While US remains to be a greatest consumer with insatiable demand, what happens to the sociological ecosystem that helps the system of growth? It is under constant threat. Will the policy makers work on this?

  • mbelvadi

    It’s a myth that “No nation has more personal and class mobility than the United States” – the data is now widespread that this is just not true any more, if it ever was. See for example the graphs on this blog: http://rajpatel.org/2010/01/29/class-mobility-in-the-united-states/

    HIgher ed as a ticket to middle class income is suffering from the proxy problem – where once having a degree was a proxy for a certain amount of education that leads to more money, that created enormous incentives on students to obtain the degree while avoiding the learning (which requires a lot more work), in effect “gaming the system”. Obama’s rhetoric seems to fall right into this trap – I haven’t yet heard him talk about the substance of what should be learned along the way to getting a degree. “Get a college education” sounds like code for “get the piece of paper” in the absence of that substance and I have no doubt that many of the American people who are the desired targets of that message (i.e. those who might not otherwise have gone to college) are understanding it that way too.

  • whitakal

    Wood’s analysis of Krugman nicely distinguishes the economic arguments for increasing college attendance (which don’t seem to hold much water) from the social arguments, which get scanter attention but seem more powerful. College graduation or at least attendance has come to exert tremendous power as an initiating and sorting ritual. Within the business world–apart from a handful of high-profile, hi-tech company founders–it would be odd to the point of bizarre to find a manager who had not graduated from college. Likewise within most political circles. Behind the economic gestures, in Obama’s and others’ praise of college, one senses almost a belief that without attending college one cannot become a full member of the American polity. I would trace the roots of this phenomenon, at least in part, to the post-War recasting of college not just as the gateway to the middle class but, even more overtly, as the preeminent method for freeing the American people from ignorance, error, and unsound beliefs. See the language of the President’s Commission on Higher Education, in 1946, which recommend expanding access to college in exactly these terms. Those commissioners and their political backers rightly saw the conflict the United States faced as an ideological one, requiring right belief as well as economic and military might. But to see college as the main means for fostering such social unity was to take a huge risk of handing the country’s future over to a tiny fraction of its citizenry and simultaneously to devalue and eventually undermine other institutions. Then, to paraphrase Henry Clay Frick’s angry comment about Teddy Roosevelt, the founders of college’s new role in American life could rightly complain, having bought the professors, “the sons of bitches didn’t stay bought!”

  • mark_r_harris

    Although politically I am more in line with Krugman than with Professor Wood, I am in agreement with a surprising amount of what the latter has written here. I second mbelvadi’s comment on the social mobility issue, however. I don’t think the claim that social mobility is uniquely or continuingly an American strength will bear close scrutiny.

    I have seen close up how American college students avoid the difficult majors. When I was a corporate education director for a vitamin manufacturing company, in charge of an internship program that hired students into every division of the company from R&D to IT, I was besieged with “soft” marketing majors. Marketing is perceived to be sexy, cool, easy, and fun; but there is a limit to how many marketers we need, and most marketing students are as fluffy and unimpressive as their major. On the other hand, when I encountered a rare “hard” business student with a concentration in logistics and the supply chain, the company snapped him up but fast, first for an internship, then for a full-time job upon his graduation.

    However, students majoring in harder subjects is not a complete solution; there still need to be jobs for them. The hourglass model is troubling. I am currently teaching in Korea, where the men all seem to major in engineering, but these days only half of Korean university graduates are finding a full-time job within two years of graduation. I read recently in the New York Times that Chinese university grads are encountering the same problem. So we are probably at the point where we need to comprehensively re-think the relation between jobs, careers, education, and income; and I worry that we are not up to such a daunting problem.

  • quidditas

    “What does it mean when someone like Krugman jumps ship from the ideological consensus that usually rules in these matters? It means essentially that the jig is up.”

    Krugman, free trader and High Priest purveyor of liberal conventional wisdom in the NY Times, *is* acknowledging that the “education as economic cure-all” jig is indeed up. He’s only 10 years too late–the jig was up when the tech bubble burst in 2001, the spectacular end of the nation’s generation long technology driven growth engine.

    A nice “Year 2000″ millenial send off to something that began in the 60s, when the baby boomers who drove it didn’t even need college degrees to work in high tech.

    (Gasp! How did they ever do that without us?) Wait–do we still teach history in the corporate university?

    Anyway, now that technology is no longer providing work for even technology graduates, as well as revolutionizing every form of content delivery coveted by the arts and liberal arts, and undermining income from creative copyright and etc, what the US needs is a new industrial policy for the 21st century.

    This new industrial policy should do SOMETHING other than print money and pour it into zombie banks that are permitted to nevertheless engage in high stakes gambling in the global casino–only to stick the US taxpayer with the bill for its repeated losses–which is our current default industrial policy.

    I predict Krugman is going to prove much more consistent than you think in the end. Which for him, as High Priest purveyor of liberal conventional wisdom in the NY Times, will likely once again arrive about 10 years too late.

  • drgarysgoodman

    I am a self-employed, professional consultant.

    I market myself, continuously. I adjust my “products” incessantly, to create, sustain, and recover competitive advantage.

    Whenever there are gaps, discontinuities between the value I think I am offering, and the value I am actually delivering, from the client’s point of view, my income suffers. I have to recalibrate, invest in R & D, hoping that the next client will help me to recover the costs of my downtime.

    After I create a breakthrough, I am imitated. Cheaper clones come forth. Instead of defending my ego and existing products, I have to phase them out, and develop new ones.

    I have been broke. I have also prospered.

    But my true wealth, as my grandfather sagely said, “Is under my hat.”

    I think, therefore, I earn.

    If a college education helps people to think, they too, can adjust, create value, market themselves, and become and remain productive. If it fails to achieve this purpose, and people can learn to do what I just enumerated by alternative means, then that’s fine, too.

    My five college degrees, all earned after I was employed, have been a net plus.

    However, I had an advantage. I didn’t suffer from the delusion my degrees were or are an entitlement.

    It’s one thing to say our society needs to focus on job creation–a proposition I endorse. Jobs-and-dignity are conjoined. What is missing from the dialogue, including Krugman’s input, is a practical understanding of how jobs are created.

    Inevitably, this leads to the question: What is “value?” This is, simultaneously, one of the most philosophical and practical questions one will ever ponder.

  • quidditas

    Although, to be fair. Krugman did say, repeatedly, that we needed to bust up the “too big to fail” banks that held up the US Treasury while threatening total economic meltdown and which continue to hold the entire country captive BOTH to the next catastrophe from continuing risk taking AND with its deficit mongering around the country.

    Only Obama, the candidate of liberal academia, just couldn’t muster the integrity–or the proper administrative team– to do what every independent economist not bought up by the financial industry and outside the Chicago School and Harvard Business was telling him *to* do.

  • quidditas

    “As Krugman has pointed out there is a tendency to shift to Hour Glass Economy with high paying Mac jobs and low paying McDonald jobs.In the process the middle jobs are lost and America has no more stronger middle class”

    If you read him closely, that’s NOT what Krugman is saying. He’s saying that there is no need to employ lots of “symbolic analysts.” This too, can be obtained through technology or obtained on the cheap elsewhere:

    The discovery process in law can be done through technology not through countless paid legal hours. Engineers salaried at $45,000 in the US work for $7,000 in India.

    In other words, the floor is also falling out from under the top floors.

    For that matter, the floor fell out from under Wall Street, just as it fell out from under construction and real estate. But Wall Street was propped up by the US Treasury– and bankers on the public dole haven’t taken a pay cut and don’t intend to.

    Thus, deficit mongering in Washington DC and across the nation.

    “Will the policy makers work on this?”

    As far as they’re concerned, they are working on it.

  • mainiac

    I agree with Krugman concerning banks running Congress: end it.

    “In an age of expressive individualism, college provides a majority of students the occasion to define themselves against their own civilization or cultural inheritance”….Charlie Sheen made 1.9 million an episode without finishing high school, and of course, college.

    Perhaps the US needs a “Trades” option in the academic circuit.

  • edwoof

    I know I risk being repetative from my comments on other articles, but the main problem in the US is that students leaving highschool have no alternative–and believe that they have no alternative– but to go to college or university if they want a system of structured learning. Unlike many other countries, in the US there is no comprehensive trainee/apprentice system that combines practical industry training with theory introduced in classes. Quite frankly, we need to bring back the guilds.

    We also have a serious case of latent adolescence in this country which means that even though college students are “adults” in age they have social and coping skills more in common with adolescents and therefore are not prepared to seriously consider occupational preparation or undertake highereducation at 18, 19, or 20. I have a theory why this is case in the US compared with other countries. In most societies, there is a single age and associated rite of passage that defines adulthood. In the US, we parcel out the priviledges of adulthood over a five year period. The legal age for driving is 16, voting is 18 and drinking is 21. The age of consent varies between 16 and 18, depending on the state. This prolonged adolescent state certainly has a correlational relationship to retention levels. As Wood says, “…students from abroad are often better able to take advantage of American higher eucation than their American counterparts…” This is because they are adults rather than adolescents when they attend university.

  • maw57

    “What is missing from the dialogue, including Krugman’s input, is a practical understanding of how jobs are created. Inevitably, this leads to the question: What is “value?” This is, simultaneously, one of the most philosophical and practical questions one will ever ponder.”

    Yes, this really gets to the heart of the matter. I was surprised to read Krugman’s piece, then disappointed that he seemed not to offer any sense of a remedy or a direction. But then, on further reflection, one realizes that doing so is a huge challenge, one articulated well by the post above. It’s very easy for faculty to keep their heads down and just do what we’ve been doing, but that will only make the value of what we hope to offer continue to decline over time. Coincidentally, before reading this I was exploring the React to the Past pedagogy explored elsewhere in this issue of the Chron, wondering if it could be adapted to literary study (if so, I haven’t figured out how). Granted, this sort of thing alone won’t be enough to transform higher education to meet new challenges, but simple steps at the level of pedagogy and curriculum are nevertheless necessary.

  • mjopling

    Good article and a topic that deserves far more attention, especially by our politicians. However, there are three points of context that are ignored.

    1) Higher education was originally designed for society’s elite and its basic design has not changed much even though the necessity of higher education for the vast majority of society (regardless of individual capability or interest) is widely embraced.

    2) The basic education model was developed when getting an education outside of university was very difficult. Remember, originally books were scarce and information and discussion was not available through the internet and other media. Many would argue that today it is possible to get quite an education without going to college.

    3) Having a more educated citizenry does not per se lead to more jobs or better jobs; it just leads to greater competition for the jobs that exist.

    It is hard to be optimistic about positive change in higher education given the dearth of meaningful market segmentation, lack of transparency as to outcomes (most universities have no good way of measuring true accomplishment and don’t even attempt to track post graduate success, much less make any attempt at making sure that matriculating students make informed and considered choices) and lack of competition amongst institutions. The reduction in state funding underway may force some positive change, painful as it may be.

  • unemployedacademic

    This is ludicrous. Produce-little elites colluded with oppressive governments like those in China and Saudi Arabia to steal wealth from workers across the world then threw millions of Americans out of work, and unemployed Americans are to blame because they are immoral and decadent? How stupid do conservatives think we are?

    The solution to our economic collapse is simple: take the stolen wealth from the wealthy and use it to invest in sustainable growth for everyone. If automation reduces the need for human labor, then spread the gains to all workers, not just the tiny, unproductive minority of the population that happens to own things.

  • sand6432

    The obsession with mass education in this country at the collegiate level has long been counterproductive. I like the suggestion by “edwoof” about bringing back the guilds. There is still need for skilled crafts workers in this country doing work that cannot be outsourced, like carpentry and auto mechanics. My son spent two years at a public university and then opted to go to a technical school for training as an auto mechanic and has been happily employed ever since. (And this is a skill that requires training; no longer can the average Joe repair a car engine since so much depends on computerization.)

    Prof. Wood focuses on higher education, but where equal opportunity needs to be the focus is in K-12. If equal opportunity exists at that level, then there is no injustice in having some students prefer careers that do not demand a college education.

    The value of a college education comes not only or even primarily from its content, however, but from the network of contacts that this experience affords. This is true not only for entry-level jobs but for C-suite jobs as well. My college classmate Mark Granovetter wrote about this many years ago, and it remains true today.

    Prof. Wood seems to think that higher education maintains a bias against the free market and its associated values. Then how does he explain the phenomenon that has come to be known as the corporatization of higher education? If anything, as people like Bill Gates have emphasized, higher education has become viewed as mainly preparation for a job, and the ideal of a broad liberal education has been fading (though there are those like Steve Jobs who still defend it even on utilitarian grounds). There has always existed a tension within higher education between its functioning as a support for the market economy and its functioning as a training ground for democratic citizenship. The latter has been losing ground a lot lately.

    —Sandy Thatcher

  • tgroleau

    As far as I know, most Chronicle readers are employed in higher education. As I read these comments that largely say “a college education is a poor investment”, I wonder – what are all of you are doing with your own children?

    My oldest son is a lot like the students I see daily who probably don’t belong in college. He does well on most standardized tests but his grades aren’t very good. He’s simply not interested in what they’re trying to teach him in high school and I don’t think he’ll suddenly turn into a great student just by stepping foot onto a college campus.

    However, we live in a largely white collar community where the culture has convinced him that skilled trades are for losers and the military is for super-losers so he’s ignored my efforts to get him to consider non-college options. Since he wants to go to college I’m going to do what I can to help him get into one. While I think I agree with Krugman’s assessment of a college education, my actions seem to say something else.

    Then there’s our very jobs. Many, many PhD’s are already unemployed or underemployed. Do we really want to divert the masses from pursuing a college education? How many of us would be laid off if nationwide college enrollments dropped by 40-50%?

    If college isn’t the answer, then what is? We have Krugman’s prescription but I’d like to know what my fellow educators recommend.

  • dhubin

    Wood says, ” No nation has more personal and class mobility than the United States…”

    It’s time to stop lying to ourselves about ourselves. It is NOT true that no nation has more personal and class mobility than the United States. See, for example:
    (http://futureofchildren.org/futureofchildren/publications/journals/article/index.xml?journalid=35&articleid=85&sectionid=515) and (http://www.economicmobility.org/assets/pdfs/EMP_InternationalComparisons_ChapterIII.pdf).

  • bolmanl

    College might not cause trgroleau’s son to fall in love with the life of the mind, but it could, and it’s likely to serve him well in other ways.

    As Wood acknowledges, college graduates earn more than non-graduates. People with some college earn more than people with none. At least from 1980 to 2006, the education premium was increasing, not decreasing. It was also larger for minorities than whites. Since overall real incomes were fairly stagnant in that period, it meant that the less educated were getting poorer while the better educated were getting richer. Across the 50 states, there is a strong correlation between levels of education and personal income. Income isn’t the only, nor necessarily the most important, argument for higher education. But until that premium starts to disappear, I’ll continue to believe that better higher education options for more people would be a very good thing.

  • quidditas

    “If college isn’t the answer, then what is? We have Krugman’s prescription but I’d like to know what my fellow educators recommend.”

    This is where that education for citizenship everyone is allegedly giving should come in handy…

  • unemployedacademic

    The answer is “none of the above.” The question you are asking is posed in a multiple-choice exam, the answers for which have artificially been limited by the composers of the test (free-market economists). First, they encouraged systemic unemployment so that they would have a pool of free labor to sink wages. Then, they encouraged us to see education as a private good so that individuals would foot the entire bill. Then, they encouraged us to see education as training so that they could dip into the pool of unemployed, but trained, workers to purchase skills on demand and slough them off when those skills were no longer in immediate demand (cue retraining at community colleges). Why, after all, should they pay for any “down time”? Now, they don’t even need American consumers anymore — there are 500 million middle-class Chinese, a figure larger than the entire population of the US. If it weren’t for the American military, which serves the interests of American elites and balances out the tyrannical power of the Chinese government, all of the corporations would have pulled up stakes and gone long ago.

    Your son can’t win by educating himself for a disintegrating economy. He has to educate himself for the aftermath, and a university is one of the few places left with a diversity of knowledge and values concentrated on a personal level.

  • peterwwood

    Dear dhubin, thanks for the link to the article on economic mobility in the U.S. It makes the point that we have less of it than we once did, but it also shows we still have an extraordinary degree of it. Indications that there is more mobility elsewhere need to be read circumspectly.

    Peter Wood

  • Dr.K.Prabhakar

    Thanks for your posting. I have gone through Raj Patel’s Blog and the data indicates that there is a clear class stratification. However, one has pointed out that through there is no class mobility, there is no reverse class mobility! and he wanted us to be happy about it. With continued shipping of jobs and accumulating paper money by wall street robbers at the cost of working class of America~ What is your suggestion to Americans ~ stay and watch their own downfall to please GOP?

  • Dr.K.Prabhakar

    But to see college as the main means for fostering such social unity was to take a huge risk of handing the country’s future over to a tiny fraction of its citizenry and simultaneously to devalue and eventually undermine other institutions. Then, to paraphrase Henry Clay Frick’s angry comment about Teddy Roosevelt, the founders of college’s new role in American life could rightly complain, having bought the professors, “the sons of bitches didn’t stay bought!”
    I do understand the anger. Please see Sir Ken’s arguments. http://www.thersa.org/events/vision/animate/rsa-animate-changing-paradigms
    We are so much enthused about Ford Assembly line model and Deming’s Principles that are applicable to cheap production of goods and services~ We think that are universally applicable phenomena which can be applied education. We need to educate our children not according to the state policy but according to their needs. Why our policy makers are just not listening or acting?

  • Dr.K.Prabhakar

    I think we need to analyze better. Looking at US alone may not be sufficient. In 1950′s and 1960′s the Education systems in countries like India, China and other countries are not evolved and gave a distinct advantage even if they do not have college degree. It is not the case now as a person can obtain more or less same education from India at a fraction of cost and willing to work for a fraction of cost. Now how do we face this? The graduate are there but they are not employable, not because of their own making~ it is because some where some one is willing to work for less. Does it mean he or she need not study or what we suggest?

  • mainiac

    Education is only one part of the issue. “Globalization works in more than one way,” and is complex. There simply have to be restrictions on offshoring of durable goods manufacturing. The US needs to reclaim enough of a component of domestic industry again to create wealth. China’s (and others) theft of American intellectual property and patents desperately needs to be addressed, how, with no legal apparatus in China I don’t know. The currency farce must be remedied through punitive tariffs, until the Chinese respect law, if that is possible. As I have said before, the Ivy league quacks who posited a viable service based economy, like Paulson, Summers et al, need to be deasseted.

  • richardtaborgreene

    I am glad Mr. wood is righter than Mr. krugman. May Mr. wood continue until he is the only right person in the entire universe.

  • scintern

    I wonder sometimes if search committees go too far in researching the *candidate*, finding odd tidbits that have nothing to do with their work experience and holding that against them.  I remember being on a search committee for a VP of Student Affairs and… well let’s just say a valid candidate may have been trashed by what I considered a minor private matter that should not have been considered.

  • 11161452

     Sad? Yes. Creepy? To be sure. But desperate times breed desperate measures!

  • clarinetsarethebest

    A lot of it, I don’t actually care about.  It’s more of an exercise in how much I can find out ONLY through what you make available to the public.  Professional academics put their whole life stories on the internet without even thinking about it, and I find that, in itself, to be really interesting.  I also find interesting the number of people who claim that accessing this information is creepy and yet publish it anyway.  (I should note that plenty of professors ARE very private on the internet – but a not-insignificant number are exhibitionists)

    The information I actually care about are your academic interests, which I do think is my business if I’m taking your class.  I’ll read your dissertation because it’s cheaper than buying the monograph and gives me an idea of what you think is important.

  • badger74

    No, what is wrong is that we now expect politicians with money to act like they don’t have it. And this has nothing to do with the auto makers or anything else. Can’t you understand that not everything one does is just more grist for the political news cycle? As long as he was using his own money I don’t care if he was lighting cigars with $100 bills or giving it to street people. It’s none of my business nor yours  nor do I care one iota. So no, it’s nothing like the automakers one little bit. 
    And  do believe the auto industry is well covered with government oversight from safety standards to CAFE rules and much in between.

  • 5768

    Pinot noir is America’s vain attempt to mimic Bourgogne wines? Correction: Pinot noir is the exclusive grape variety used for making French red burgundy wines. French white burgundies are made from the chardonnay grape.

  • http://twitter.com/GerardHarbison Gerard Harbison

    We’ve been calling it Burgundy at least since Shakespeare’s time. If you don’t say Muenchen or Athina, there’s no reason you should call it Bourgogne.

    Besides, if we start letting the French name their own locations, they’ll start thinking they’re better than us. :-)

  • bigtwin

    What an embarrassment to her school – she had no business doing that.  And professors wonder why politicians do not take them seriously. 

  • mhigbee

    So a politician was drinking expensive booze in the company of a man who is prominent for managing hedge funds….which is another way of saying he’s big in the financial industry which nearly wrecked the economy in 2008. The politician was not hanging out with ordinary citizens (and probably wasn’t going to buy his drinks until after the fact).    Then, a normal citizen sees the politician, confronts him and his drinking pals with that very, very dangerous thing — words! ideas! an exchange of views!  The politician is offended and insults the citizen. And the citizen is condemned by some, for her alleged bad taste — daring to ask questions of powerful men in a public space.  She dared to have informed opinions of that politician’s public positions on major issues, and to ask him about apparent inconsistencies in his behavior.   In a democracy, isn’t it desirable for elected officials to be confronted with ideas from the citizens?   Especially a member of the House of Representatives, the one half of one third of the constitutionally established branches of the US government that is supposed to be closest to the people.

    Good for Professor Feinberg.   She seems to know what Mr. Madison had in mind in 1787, even if Rep. Ryan does not.  Too many elected officials now live entirely in a bubble made up of millionaires and carefully staged “public events,” and democracy suffers as a result. 

  • cwinton

    Those so eager to criticize Ms. Feinberg are guilty of shooting the messenger for exposing the hypocrisy of one of the rich and powerful.  This tale simply exposes Mr. Ryan as yet another example of a noblesse oblige member of the monied elite who claims to know what is best for the country while evidently living high on the hog himself.  I don’t care what Ms. Feinberg’s financial status is since she is not in a position of power over the body politic, something which clearly distinguishes her from Mr. Ryan.  Whatever precipitated her bad behavior is irrelevant.  The fact that Mr. Ryan was exposed for hobnobbing with others of his ilk in a  posh restaurant simply underscoring his evident arrogance regarding the very negative impact his proposed policies will have on many who were convinced it was a good idea to vote for him in the first place.

  • http://whytheology.wordpress.com/ Trey Medley

    I’m certainly not a defender of Rep. Ryan (quite frankly I abhor Randian Objectivism), but it is interesting that this was a question of the fact he spent $700 on wine at the same restaurant Ms. Feinberg was dining (and she apparently knew enough about expensive wine to identify it). My question is, where is the line drawn? Clearly purchasing a Buaggatti Veyron on a whim is too far (the car costs more than double most people’s homes), but is dining out at a nice restaurant taboo? What about movies? What about McDonalds, particular when there are people around the world (scratch that, people in the US) who could scarcely afford such a luxury. Are we relegated to all eat Ramen Noodles until the population is fed, clothed, housed, and has access to adequate medical care? Where do we draw this line? It seems somewhat arbitrary. If Ryan hadn’t been proposing massive budget cuts to social programs, would he then be allowed his personal $700 wine tab? What if he personally gave away half his income? Would he be allowed a $350 wine tab then? Again, I can’t stand Ryan’s politics, and some of his statements lead to question him as a person (but as I don’t know him, I must stop myself). While I would never drop $700 on wine with friends (at least I don’t think I would, I’ve never been financially secure to consider such a thing), I don’t know if I necesarily begrudge him that.

  • hanks

    I agree. Let the waiters and waitresses crawl around on the floor and and pick up loose change that falls out of politicians pockets. “Are there not prisons for the poor?”

  • pontificator

    I think the most important thing to be gleened from this tempest in a teapot or wine bottle, is the fact that the Chairman of the House Finance Committee initially got the arithmetic wrong on his credit card receipt. Of course, he UNDERESTIMATED the total!

  • meshabob

    So how come an associate prof. at a public university is living so high on the hog, hmmm?

    Because she was celebrating her birthday? Everybody knows that for Ryan, this was just another night out on the town. For that matter, an $80 bottle of wine at a fancy restaurant is considered mid-range. This is not so much, btw, about spending $350 on a bottle of wine. It is much more about people like Ryan attacking SS, Medicare and Medicaid. If the Republicans were not so openly Marie Antoinette in their politics, people like the prof would not be so angry and willing to confront them.

  • panthernation

    Funny that is the salary we pay Rand is considered “his own,” but the money a student pays to a university for tuition is seemingly not considered their own. IOKIYAR

  • panthernation

    Apparently, you didn’t understand Feinberg’s argument. Thanks!

  • lucapacioli

    Cwinton, would another example be Al Gore flying around in private jets to lectures to hector us that we should save fuel?   Or perhaps Rep. Rangel, lover of the poor, while chairing the committee that writes the nation’s tax laws, omits reporting rental income from his Dominican Republic villa?    

    In general, society is not in much danger when politicians are spending their own money.  It’s when they spend the public’s money that abuse, waste and corruption can take place on a grand scale.

  • jnwoye

    Ms Feinberg should be proud for having the courage to confront the congressman. The congressman’s action with the hedge fund cliques epitomizes hypocritical behavior of our politicians and how their relationship with business cliques tends to undermine our democracy.
    Really, spending $350 for a couple of hours with two people while aggressively working to devastate the lives of our most venerable old and young by attempting to cut them out from the little support they need to exist as humans while providing tax cuts for the billionaires and millionaire; that’s outrageous. The congressman should be ashamed of himself while Ms. Feinberg should be applauded for her courage to speak the truth to the powerful. We certainly need more people like Ms. Feinberg if we are serious about attacking our national problems that are mostly driven by greed.
     

  • lewandowski

    I do not sense here that reviewers see Congressman Ryan is simply a pontificator.  This is not a liberal or conservative issue but another politican who: “Do not do as I do, but do as I say!”  This fiscal congressman does not even know how much he was paid for his wine until questioned???  How about that 1st class seat flight ticket back to his district so he does not have to mix with his common constiuants. 
    I am sorry here but we have here another pompus politican who wants to make his mark and more personal millions on the government dole. He whines and walks out of meetings like a child instead of being an adult who must learn to compromise for the good of his district and the country. 
    We do not need anymore zealots in congress who are either liberal or conservative but americans who are open-minded to change for the greater good not for a hedge-fund manager who is trying to buy his vote. 

  • jimislew

    I mean no disrespect toward tenured professors here (in fact I have great respect for those who have nabbed an increasingly rare post, I’m a bit jealous), or politicians for that matter, but I love the dichotomy in this situation. A politician, whose survival depends upon public opinion is verbally attacked by a tenured professor whose own survival is utterly protected by the vicissitudes of the same.

  • wmartin46

    And what argument did I not understand? Thanks!

  • tgroleau

    “There is something tragic about powerful legislators consuming $700 of any quite discretionary product”

    Is it equally tragic that the Whitehouse served $400 bottles of wine at a state dinner in January? 

  • kozirice

    It is difficult to think of a hedge-fund manager as not a lobbyist, in fact if not in name.  And I agree that Mr Ryan probably had no thought of paying for wine and/or dinner until called out by Professor Feinberg.  I have no problem with Mr Ryan spending his own money anyway he wishes, including his public salary; however, I think his personal priorities do not mesh well with his priorities for the rest of us.

  • skolpan

    Far more troubling than the wine Ryan drinks is the company that Ryan keeps. Dinner with a “prominent hedge fund manager” is code (at least to me) for the caste of Ryan’s politics, and who supports his positions. If Ryan wants to blow a lot of money on wine, so be it, but the political context – a society for the wealthy and to hell with the poor and struggling – cannot be ignored. 

  • murdo004

    Did they?  How do you know? 

  • tgroleau

    This site says the wine was $250 a bottle: http://www.drvino.com/2011/01/19/state-dinner-menu-hu-jintao-quilceda-creek/  (note: this also shows a $50 wine on the menu)

    This site shows the wine at $400 a bottle: http://www.raederswine.com/sku056956.html

  • mxb22

    I’m on Ryan’s side here, but the argument that the production of luxury provides opportunity for the poor was probably made by Louis XVI too.

  • badger74

    Ridiculous. Waiting tables has probably kept more college students, single moms and future actors fed and housed than any other job in the US. The hours are flexible, the money very good per hour at the right place, and co-workers can be a blast.  When any work is beneath you,  you have the problem.

  • midtownlabgeek

    She “showed [her] courage” when “the manager and a waiter came over and Feinberg decided she had said her piece and it was time to leave”.  She “showed courage” when she crowed to a blog about her “confrontation” – selecting one that would applaud her, of course.
    “Courage” suggests that she expected to face disapproval (or worse) from those whose opinions matter to her, or those who are in a position to do her harm.  From the reactions here, she certainly doesn’t face the mass disapproval of the academy, and any potential backlash on her professional career will cause an outcry over “academic freedom”.

  • maw57

    You really don’t care how Ryan is spending his money? Burning it is really OK when he’s considering cutting support for the needy? The more general context for this is that most politicians at the national level these days *must* be wealthy in order to finance out-of-control campaign spending, a necessity created by the Supreme Court with the Citizens United decision. And of course that decision was made possible by George Bush, whose two terms permitted him to appoint so many rightist judges. (I have to give it to Bush: that was my biggest fear after his “re-election,” the power he would have over the court for years to come, and he managed to pack the court with some effective ideologues.) So yes, we have rich politicians (on the right and left) who are increasingly out of touch with the middle class, let along with those less fortunate, downing expensive bottles of wine without really grasping the effect of their policies on those who can’t live a similar lifestyle, even though Republican ideology persuades many income-strapped citizens that someday perhaps they will.

  • cwm4c

    All this story shows is that Representative Ryan and Professor Feinberg are both members of that society for the wealthy you mention.  There is nothing wrong with that, but there is no denying it either. 

  • racmonti

    Three-Buck Chuck works for me!

    Let them drink (cheap) beer!

  • racmonti

    She was out to dinner with her husband, for her birthday. Presumably, he paid. And he knew what the bill would be.

  • racmonti

    Agree. Once in a while I’ll splurge for a $25 bottle of Coppola.

  • racmonti

    She probably read the menu to “know” how much the wine was. We all do it!

  • _perplexed_

    How do we know it was his “own” money and not some plutocrat wannabee’s payoff?

  • minnesotan

    You’re just buying the name with the Coppola, though. Get a Kendall-Jackson Grand Reserve, if you have @25 to blow.

  • minnesotan

    So much for sacrifices. The least they could do is drink generic booze! Worse yet, they double up on their expensive gins: Bombay Sapphire *AND* Beefeater? Who needs virgins when heaven is stocked with this much high-price toddy?

  • minnesotan

    Get drunk and make an ass of oneself? Better we start avoiding seizing those opportunities in this profession. We already have a reputation.

  • jbfjbf

    “People who live in glass houses….”
    Rutger Stats:
    Average salary for a Professor II:  $175,229
    President $550,000 plus an annual bonus of $100,000
    Soon to be former president turned history professor:  $335,000
    Coach:  A little over $2 million

    Dear Ms. Feinberg:  How much do you earn, how much did your bottle of wine cost, and how can you afford to dine at the same restaurants as hedge fund mangers?  Oh, I forgot,  I just quoted some basic salaries. 

    PS:  Did you have the courage to stand up at the Faculty Senate meeting and ask your president the same question.   Guess not, drinking is not allowed on campus.

    SOURCE:  NJ.com

  • http://twitter.com/GerardHarbison Gerard Harbison

    ‘Everyone knows’! ha ha. Must have been left off the cc list on that one.

    $80 is mid range? And $350 is what?

    You, sir, are clearly a capitalist pig. I have never in my life spent $80 on a bottle of wine. Shame on you.

  • 22097984

    I can’t imagine why Ayn Rand is coming back into style with the young.  Geez, Rep. Ryan goes out with some friends and a drunk prof. honestly thinks it is any of her business what they do with their money. 

    Guess what?  When Un. of Chicago finance profs go to a bar, they drink expensive alcohol.  Guess what?  When hedge fund managers go to a bar, they drink expensive alcohol.  Guess what?  When Representatives in Congress go out with their Finance Professor and Hedge Fund Manager friends they drink expensive alcohol.  Guess what?  It is none of my business.  It is none of your business.  It is none of the amazingly arrogant Ms. Feinberg’s business.  I especially love the fact that she is allowed to go this bar and drink a bottle of $80 wine but $350 is too much.  Where, exactly, is the line?  $140, $169? 

    All animals are equal. Some animals are more equal.

  • http://twitter.com/GerardHarbison Gerard Harbison

    “The politician was not hanging out with ordinary citizens (and probably wasn’t going to buy his drinks until after the fact).”

    Gosh, I sure hope President Obama hasn’t been hanging out with the CEOs of Google or GE!

  • _perplexed_

    It will become our business when Rep. Ryan and the hedge fund manger write off the cost of their food and drinks as tax deductible business expenses.

  • badger74

    So big Democrats from FDR to Kennedy to Clinton never associated with their rich friends( or should I say Mark Rich in one case).  Please stay in touch with reality. Every politician has rich friends.  That is how they got elected. They might be Venture Capitalists or Hollywood Royalty but they all know their way around a nice restaurant and a wine list.

  • okieinexile

    This sort of finger-pointing at conspicuous consumption is a dangerous thing.  There are those who tar Ryan and Feinberg with the same brush and line them up against the same wall.

  • pchinow

    This just seems like the continuing push to have more applicants for universities. Why is it a good thing to make it easy for students to apply to more schools? Is this just a response to rankings looking at selectivity. If we allow more applicants, then we can turn down more to look more selective. This may sound cynical, but I really wonder what the benefit is here.

  • deutschw

    Interesting ideas — perhaps new in detail but old in general — but I suspect they too will fade away.  An issue is why the demand for rankings – among students and others.  Students (and their parents and sponsors) — especially international students — often do not have the resources — time, understanding, knowlege, etc. — to dig thru all the information available to make a truly informed decision about a choice of schools.  So the easiest way to pick a school from the plethora of choices is to make ranking an important element.  And as long as that is true, schools (which at least in the U. S. are often competitive) feel thay have little choice but to try to raise their rank — and continue to complain about the system.