Most economies advance by simultaneously decreasing costs and increasing quality. Unfortunately, when it comes to higher education, this has been turned on its head. Costs keep rising while quality declines. How has this happened? What can be done?

This exceptional volume looks at the issues facing higher education from the perspective of both economics and history. Each chapter explores how the lessons learned from market competition in other sectors of the economy can be applied to higher education in order to bring about innovation, improved quality, and lower costs.

The opening section offers a history of for-profit education before the Morrill Act—the federal legislation that funded land-grant universities; reviews the Act's impact; and concludes with an exploration of federal student aid and how it prevents new funding options from entering the market.

Section two examines higher education as it stands today—what is driving up college prices; tenure; administrative bloat; and university governance. And, the concluding third section shows how robust competition in higher education can be energized, and takes a deep look at for-profit vs. non-profit institutions.

Unprofitable Schooling provides a sober and informative assessment of the state of higher education, critically covering historical assumptions, increasing government involvement, reflexive aversion to profit, and other, maybe unexpected, conclusions.

Neal McCluskey is the director of Cato's Center for Educational Freedom. He is the author of the book Feds in the Classroom: How Big Government Corrupts, Cripples, and Compromises American Education and is co-editor of Educational Freedom: Remembering Andrew Coulson, Debating His Ideas. He also maintains Cato's Public Schooling Battle Map, an interactive database of values and identity-based conflicts in public schools.

Todd J. Zywicki is a senior fellow at the Cato Institute, George Mason University Foundation Professor of Law at George Mason University School of Law, Senior Scholar of the Mercatus Center at George Mason University, and Senior Fellow at the F.A. Hayek Program for Advanced Study in Philosophy, Politics and Economics.

Acknowledgments

Introduction

By Todd J. Zywicki and Neal P. McCluskey

PART I: Historical Perspectives on Competition and Government's Role in Higher Education

1. What Really Spurred the Morrill Act?

By Jane Shaw

1. The Morrill Land-Grant Act: Fact and Mythology

By Richard K. Vedder

1. Accreditation: Market Regulation, or Government Regulation Revisited?

By Joshua C. Hall

Part II: The Current State of Higher Education in America

1. Understanding the Runaway Tuition Phenomenon: A Soliloquy with Footnotes

By Daniel D. Polsby

1. Academic Tenure and Governance

By Roger E. Meiners

1. The Changing of the Guard: The Political Economy of Administrative Bloat in American Higher Education

By Todd J. Zywicki and Christopher Koopman

1. The Senseless Monstrosity in Our Path: Academic Bargains and the Rise of the American University

By Scott E. Masten

Part III: Competition in Higher Education

1. All Education is For-Profit Education

By Henry G. Manne

1. Assessing For-Profit Colleges

By William F. Shughart and Jayme S. Lemke

1. Public Policy and the Future of For-Profit Education

By Michael E. DeBow

1. Non-Profit and For-Profit Enterprise in Health Care: Birds of a Feather?

By David A. Hyman

About the Contributors

About the Editors

Index