Saturday, November 28, 2015

Accountability Problems of Higher Education

It should be no surprise that higher education institutions are among the poorest run institutions on the planet.  How should they be run?

No one knows?  It is not obvious who the true owners are.  The result is the exact opposite of the famous Coase theorem:  when their is no true owner, the result is, eventually, total chaos.

Inevitably, the administrators take over and their main goal is to fatten their own personal economic pie.  The end result: bloated, drifting institutions looking for a purpose.  It is no surprise that such administrators eventually find politics to their liking.  The politics that become most attractive to administrators is the politics that provides more and more taxpayer funding to fatten the economic pie that they consume.

Unfortunately, for today's administrators, the big government political views of today's administrators inspire revolution, demonstrations, and shouting down of opposing views.  So, what is surprising about all of this.  Nothing.

The big government gang consumes its own.

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