Colleges have serious revenue problems, possibly because they don’t see themselves as businesses in a flexible market. They act as if they are a national necessity. Tyler Cowen writes, “The marketing pitch of many colleges, were it to be honest, would run something like: ‘If you don’t pay us money for our product, your decline will be all the more precipitous.’ That is hardly an inspiring motto.”

He goes on: “A lot of colleges and universities have revenue plans based on the expectation of big tuition hikes stretching into the indefinite future.” Too much money is spent on administration without clear benefits. Too little attention is paid to high-rocketing student debts.

He offers a few recommendations, like focusing on offer fewer great courses to make the college distinct and helping students learn how to teach themselves in the long run.