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04/18/2010

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I was a professor at a small lirbeal arts college in Japan for sixteen years. We had about two thousand students overall, a faculty of a hundred or so and administrative staff of less than fifty. We received some government support, but tuition and fees for our students are less than ten thousand a year (higher for the new nursing school).A bubble lesson: After attrition and pay cuts amounting to about 20% of our salaries, the personnel costs for faculty were cut by almost 50%. However, mismanagement, deflation and low birth rates meant that we were forced to eat another concession; retirement age was cut by two years (another feature of Japanese employment lets a faculty member retire once and be rehired at half pay second retirement was moved up three years, as well).Savings to the school were enormous I calculated my total loss (real vs. originally promised income) at somewhere around four hundred thousand dollars. Multiply that by a hundred!Salaries were also pegged to the pay scale of public employees. This was great during the boom years; as the CPI rose, so did salaries. Came the budget crunch and salaries began to fall. Soon after I retired, there was a 10% across the board salary cut for public employees in the Prefecture, so my former college peers took another hit. For some of the younger faculty, the lifetime losses will easily amount to seven figures (that's ten figures in Yen).Is this the future for the US?The capture of the universities by administrators is another feature of US higher education that needs to be addressed. Even as more and more faculty are reduced to adjunct status, administrators proliferate. This non-educational burden will eventually sink the entire system.The idea of for-profit education might have shown initial promise, but these school corporations were founded on a flawed premise: profits first, education second. Their growth was in turn fueled by the insane student loan bubble (a part of the mess that Greenspan made) that transformed them into mini financial institutions (or should I say casinos). Instead of lowering costs and providing better education, they proved to be just another method of putting the already disadvantaged further in debt.Sorry for jumping all over the place.

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