Colleges facing financial distress often cannot undertake the deep operational changes businesses use because faculty incentives (career/status tied to research and citations) prioritize personal prestige over institutional viability. That misalignment favors defensive rhetoric and preserves costly programs, accelerating closures for cash‑strapped small colleges.
— If governance and hiring rules entrench incentive misalignment, states and accreditors may need policy levers to protect students, taxpayers, and labor market pipelines from cascading campus failures.
Arnold Kling
2026.04.19
100% relevant
Arnold Kling’s claim that faculty have a “remarkable gift for putting their egos and status above everything else,” cited Hampshire College’s closure, and the Horn/Christensen 25% closure prediction and recent 15% shutdown statistic illustrate the pattern.
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