The 2020 Dems

The two Democratic presidential debates were performed against a broad background of consecrated untruths and the debates gave them new life. Mostly, I don’t use the word “lies” because pseudo-facts eventually become facts in the mind of those who hear them repeated many times. And, to lie, you have to know that what you are saying isn’t true. Also, it seems to me that most of the candidates are more like my B- undergraduates than like A students. They lack the criticality to separate the superficially plausible from the true. Or, they don’t care.

So, it’s hard to tell who really believes the untruths below and who just let’s them pass for a variety of reasons, none of which speaks well of their intellectual integrity. There are also some down-and-out lies that none of the candidates has denounced, even ever so softly. Here is a medley of untruths.

Untruths and lies

I begin with a theme that’s not obviously an untruth, just very questionable. Economic inequality is rising in America or, (alt.) it has reached a new high point. I could easily use official data to demonstrate either. I could also – I am confident – use official figures to show that it’s shrinking or at a new low. Why do we care anyway? There may be good reasons. The Dems should give them. Otherwise, it’s the same old politics of envy. Boring!

Women need equal pay for equal work finally. But it’s been the law of the land for about forty years. Any company that does not obey that particular law is asking for a vast class action suit. Where are the class action suits?

What do you call a “half-truth” that’s only 10% true? Continue reading

The Admissions Scandal Will Improve Universities

I would have been annoyed, I would have felt frustrated if my alma matter, Stanford, had been left out of the university admissions scandal. After all, what does it say about your school if it’s not worth bribing anyone to get your child admitted to it? Fortunately, it’s right in the mix.

I spent ten years in American universities as a student, and thirty as a professor. You might say that they are my milieu, that I am close to being an expert on them, or perhaps, just a native informant. Accordingly, reactions to the March 2019 admissions scandal seem a bit overwrought to me. That’s except for the delight of encountering the names among the line cutters of famous and successful people one usually associates with a good deal of sanctimoniousness. The main concern seems to be that the cheating is a violation of the meritocratic character of universities.

In fact, American universities have never been frankly or unambiguously meritocratic. They have always fulfilled simultaneously several social functions and served different and only partially overlapping constituencies. Sure enough, there is some transmission of knowledge taking place in almost all of them. I don’t mean to belittle this. I am even persuaded that there is a palpable difference between intelligent people who have attended college and those who have not. In addition, it should be obvious that some of the knowledge transmitted in higher education organizations is directly instrumental to obtaining a job (most engineering courses of study, accounting). That, although, in general, it was never expressly the primary role of undergraduate education in the US to procure employment.

The best of universities also contribute to the production of new knowledge to a considerable extent. University research is probably the bulk of the considerable body of American research in all fields. (Incidentally, I believe that the dual function of American faculty members as both researchers and teachers largely accounts for the superior international reputation of American higher education. More on this on demand.) The remainder of schools of higher education imitate the big guys and pretend to be engaged in research or in other scholarly pursuits. Many succeed some of the time. Some fail completely in that area. In fact most university professors are well aware of the degree to which each individual college or university offers conditions propitious to the conduct of research and such, and demands them. But teaching and research are not the whole story of American academia by a long shot. Those in the general public who think otherwise are deluded or, largely misinformed.

Most American universities are obviously superb sports venues; a few are world-grade in that area. In some schools, football financially supports learning rather than being an adjunct activity. Some, such as Indiana University where I taught, make do with basketball which can also be quite lucrative. It’s obvious too that residential universities- which include almost all the top names – are reasonably good adolescent-sitting services: Yes, they get drunk there but there is a fair chance they will do it on campus and not drive afterwards. If they do too much of anything else that’s objectionable – at least this was true until quite recently – there is a fair chance the story will get squashed on campus and remain there forever.

And, of course, of course, the big universities, especially the residential version but not only it, are incomparable devices to channel lust. They take young people at approximately mating age and maximize the chance that they will come out four, or more likely, five years later, either suitably matched, or appropriately unmatched. It’s a big relief for the parents that their darling daughter may become pregnant out of wedlock but it will be through the deeds of a young person from their own social class. For some parents, universities would be well worth the cost, if they limited themselves to staving off what the French call: “mésalliances.” (Go ahead, don’t be shy; you know more French than you think.)

Naturally, universities could not have been better designed to promote networking, offering at once numerous opportunities to meet new people (but not too new), and plenty of leisure time to take advantage of them, all in a conveniently limited space. As is well known the results of this networking often last a lifetime. For some, campus networking constitutes an investment that keeps paying dividends forever.

And, I kept the most important university function for last. I think that from the earliest times in America, universities served the purpose of certifying upper-class, then, middle-class status. This credentialing function is usually in two parts. The young person gets social points for being accepted in whatever college or university the parents consider prestigious enough, nationally, internationally, or even locally. The student gets more points for actually graduating from the same school or one equivalent to it.

This idea that higher education organizations publicly certify social status is so attractive that it has spread downward in my lifetime, from the best known schools, Ivy League and better (such as Stanford), down to all state universities, and then, to all lower admission-standards state colleges, and even down to two-year community colleges. In my neighborhood of California, possessors of a community college Associate of Arts degree are considered sort of upper lower-class. This small degree influences marriage choices, for example. I used to know a man of a sort of hillbilly extraction who was very intelligent and extremely eager to learn and who attended community college pretty much for twenty years. He kept faithful to his origins by never even earning an AA degree. (True story. Some other time, of course.)

Merit recruitment of faculty and students

I, and the academics I know are not very troubled by the cheating news, only by the crudeness involved, especially in the raw exchange of cash for illicit help. I suppose most of us realized, even if in a sort of subliminal way, that admission was never thoroughly or even mainly based on merit as measured, for example by high school achievement and by test results. My own undergraduate experience is limited but varied. I spent two years in a good community college where pretty much everyone who could read was accepted. Then, I transferred to Stanford with a full tuition scholarship. Academic merit did not loom very large in either school, and perhaps a bit more in the community college than it did at Stanford.

In order to preserve a reputation for intellectual excellence that contributes to their ability to credentialize without subsuming it at all, universities and colleges must actively recruit. They have first to attract faculty with a sufficient supply of their own (academic) credentials in relation to the status the universities seek to achieve, or to keep. Often, regularly for many, they also reach down to recruit as students promising young people outside of their regular socioeconomic catchment area. Their own motives are not always clear to those who make the corresponding decisions. One is do-gooding, of course completely in line with the great charitable American tradition (that this immigrant personally admires).

At the same time, colleges and universities don’t select scholarship recipients for their moral merit but for their grades, and for other desirable features. The latter include, of course, high athletic performance. Additionally, in my observation, many, or at least, some, also recruit poor undergraduates the way a good hostess composes a menu. When Stanford plucked me out of my young single immigrant poverty, it was not only for my good community college GPA, I was also an interesting case, an interesting story. (There were no French undergrads at all on campus at the time. Being French does not have cachet only for foolish young women.) Another transfer student they recruited at the same time, was a Turkish Jew whose mother tongue was 16th century Spanish (Ladino). How is this for being interesting? I am speaking about diversity, before this excellent word was kidnapped by an unlovable crowd.

Attendance, grades and merit

At Stanford, I realized after a couple of quarters that many undergraduates did not care to go to class and did not care much about grades either. I discovered a little later (I never claimed to be the sharpest knife in the drawer!) that few were preoccupied with receiving good grades. That was because it was quite difficult to get a really bad grade so long as you went through the motions.

I was puzzled that several professors took an instant liking to me. I realized later, when I was teaching myself, that it was largely because I was afraid of bad grades, greedy for good grades, and I displayed corresponding diligence. I thought later that many of the relaxed students were legacy admissions (I did not know the term then) who had good things coming to them pretty much irrespective of their GPA. Soon, I perceived my own poor boy conventional academic striving as possibly a tad vulgar in context. I did not resent my relaxed fellow students however. I kind of knew they paid the freight, including mine. Incidentally, I am reporting here, not complaining. I received a great education at Stanford, which changed my life. I was taught by professors – including a Nobel Prize winner – that I richly did not deserve. The experience transformed and improved my brain architecture.

About ten years after graduating, I became a university teacher myself, in several interesting places. One was a denominational university that was also pricey. I remember that there were always there well dressed young women around, smiley, with good manners, and vacant eyes. (I don’t recall any males of the same breed; I don’t know why.) They would do little of the modest work required. Come pop-quiz time, they would just write their name neatly on a piece of blank paper. I gave them the lowest grade locally possible, a C, of course. Same grade I gave without comment to a bright-faced, likable black athlete who turned in the best written essay I had ever seen in my life. There were no protests, from any party. We had a tacit understanding. I speculate the young women and the star athletes had the same understanding with all other faculty members. I don’t know this for fact but I don’t see how else they could have remained enrolled.

And then, there always were always cohorts of students bearing a big sticker on their forehead that said, “I am not here because of my grades but in spite of my grades.” OK, it was not on their forehead but on their skin. That was damned unfair to those minority students who had gained admission under their own power if you ask me. Nobody asked me. And then, especially in California, there has been for a long time the tiny issue of many students whose parents come from countries where they eat rice with chopsticks. Many of those couldn’t gain admission to the school of their choice if they had invented a universal cure for cancer before age eighteen. As I write, this issue is still being litigated. I doubt there is anyone in academia who believes the plaintiffs don’t have a case.

Meritocracy!

Virtue out of evil

The mid-March 2019 admissions scandal might paradoxically make universities better, from a meritocratic standpoint. By throwing a crude light on their admission process and turning part of the public cynical about it, the scandal may undermines seriously their credentialing function. It will be transformed, or at least, it may well be watered down. I mean that if you can’t trust anymore that the fact that Johnny was admitted to UnivX is proof of Johnny’s worth, then, you might develop a greater interest in what Johnny actually accomplished while he was attending UnivX. You might become curious about John’s course of study, his choice of classes, even his grades, for example. That wouldn’t be all bad.

Some schools, possibly many schools because universities are like sheep, may well respond by strengthening their transmission of knowledge function, advertising the fact loudly and, with luck, becoming trapped in their own virtuous snare. Some universities, possibly those that are now second-tiers rather than the famous ones (those could well prove immune to any scandal, indestructible) may actually become more of the learning centers they have long pretended to be.

I can envision a scenario where the US has a first kind of good universities, good for intellectual reasons, to an extent, but mostly good for continued social credentialing. And next to the first kind, would be higher education establishments mainly dedicated to studying and learning. The latter, if they were successful, would unavoidably and eventually grow a credentialing function of sorts. That would be fine. The two categories might compete for students. That would be fine too. It would be good for recruiters to have a clear choice of qualities. I think that university professors, or some of them, many of them, would easily move between the two categories of schools. There would be a single labor market but different vocations, perhaps serialized in time. Above all, students would have more choice and more sharply defined choices. Everyone could stop pretending. Actual intellectual merit and grit would find a bigger place in the higher education enterprise.

This is all wool-gathering of course. It depends on one of my big predictions being false. I mean none of the above matters if American universities are committing suicide before our eyes. I refer to unjustified and unjustifiable tuition raises over thirty years, to their collaborating in the moral horror that student loans have become; I am thinking of their capture by a monolithic tribe of ideologues clinging to an old, defeated utopianism. I refer even more to their current inability or unwillingness to protect free speech and the spirit of inquiry.

Nightcap

  1. Will Mexico get the populist “full package”? Alberto Mingardi, EconLog
  2. What is populism? Christopher Caldwell, Claremont Review of Books
  3. The poverty of the Brexit debate Oliver Wiseman, CapX
  4. Jews revolutionized the university. Will Asians do the same? Barbara Kay, Quillette

Nightcap

  1. The day MIT won the Harvard-Yale game Kyle Bonagura, ESPN
  2. The short, brutish career of the Lion of Punjab Robert Carver, Spectator
  3. The idea of a borderless world Achille Mbembe, Africa is a Country
  4. Organised crime and oligarchy in Putin’s Russia Louise Shelley, War on the Rocks

Nightcap

  1. Identity: the lies that bind Laura Miller, Slate
  2. Puzzles about college Javier Hidalgo, Bleeding Heart Libertarians
  3. Nike is winning the culture war David French, National Review
  4. Oslo is dead. Long live Oslo! Martin Indyk, the Atlantic

Are Swedish University Tuitions Fees Really Free?

University tuition fees are always popular talking points in politics, media, and over family dinner tables: higher education is some kind of right; it’s life-changing for the individual and super-beneficial for society, thus governments ought to pay for them on economic as well as equity grounds (please read with sarcasm). In general, the arguments for entirely government-funded universities is popular way beyond the Bernie Sanders wing of American politics. It’s a heated debate in the UK and Australia, whose universities typically charge students tuition fees, and a no-brainer in most Scandinavian countries, whose universities have long had up-front tuition fees of zero.

Many people in the English-speaking world idolize Scandinavia, always selectively and always for the wrong reasons. One example is the university-aged cohort enviously drooling over Sweden’s generous support for students in higher education and, naturally, its tradition of not charging tuition fees even for top universities. These people are seldom as well informed about what it actually means – or that costs of attending university is probably lower in both England and Australia. Let me show you some vital differences between these three countries, and thereby shedding some much-needed light on the shallow debate over tution fees:

The entire idea with university education is that it pays off – not just socially, but economically – from the individual’s point of view: better jobs, higher lifetime earnings or lower risks of unemployment (there’s some dispute here, and insofar as it ever existed, the wage premium from a university degree has definitely shrunk over the last decades). The bottom line remains: if a university education increases your lifetime earnings and thus acts as an investment that yield individual benefits down the line, then individuals can appropriately and equitably finance that investment with debt. As an individual you have the financial means to pay back your loan with interest; as a lender, you have a market to earn money – neither of which is much different from, say, a small business borrowing money to invest and build-up his business. This is not controversial, and indeed naturally follows from the very common sense principle that those who enjoy the benefits ought to at least contribute towards its costs.

Another general reason for why we wouldn’t want to artificially price a service such as university education at zero is strictly economical; it bumps up demand above what is economically-warranted. University educations are scarce economic goods with all the properties we’re normally concerned about (has an opportunity cost in its use of rivalrous resources, with benefits accruing primarily to the individuals involved in the transaction), the use and distribution of which needs to be subject to the same market-test as every other good. Prices serve a socially-beneficial purpose, and that mechanism applies even in sectors people mistakenly believe to be public or social, access to which forms some kind of special “human right.”

From a political or social-justice point of view, such arguments tend to carry very little weight, which is why the funding-side matters so much. Because of debt-aversion or cultural reasons, lower socioeconomic stratas of societies tend not to go to university as much as progressives want them to – scrapping tuition fees thus seems like a benefit to those sectors of society. When the financing of those fees come out of general taxation however, they can easily turn regressive in their correct economic meaning, disproportionately benefiting those well off rather than the poor and under-privileged they intended to help:

The idea that graduates should make no contribution towards the tertiary education they will significantly benefit from it, while expecting the minimum wage hairdresser in Hull, or waiter in Wokingham to pick up the bill by paying higher taxes (or that their unborn children and grandchildren should have to pay them due to higher borrowing) is highly regressive.

Although not nearly enough people say it, university is not for everyone. The price tag confronts students, who perhaps would go to university to fulfill an expectation rather than for any wider economic or societal benefit, with a cost as well as a benefit of attending university.

Having said that, I suggest that attending university is probably more expensive in your utopian Sweden than in England or Australia. The two models these three countries have set up look very different at first: in Sweden the government pays the tuition and subsidies your studies; in England and Australia you have to take out debt in order to cover tuition fees. A cost is always bigger than no cost – how can I claim the reverse?

With the following provision: Australian and English students don’t have to pay back their debts until they earn above a certain income level (UK: £18,330; Australia: $55,874). That is, those students whose yearly earnings never reach these levels will have their university degree paid for by the government regardless. That means that the Scandinavian and Anglophone models are almost identical: no or low costs accrue for students today, in exchange for higher costs in the future provided you earn enough income. Clearly, paying additional income taxes when earning high incomes but not on low incomes (Sweden) or paying back my student debt to the government only if I earn high incomes rather than low (England, Australia) amounts to the same thing. Changing the label of a financial transfer from the individual to the government from “debt-repayment” to “tax” has very little meaning in reality.

In one way, the Aussie-English system is somewhat more efficient since it internalises costs to only those who benefited from the service rather than blanket taxing everyone above a certain income threshold: it allows high-income earners who did not reach such financial success from going to university to avoid paying the general penalty-tax on high-incomes that Swedish high-earners do.

Let me show the more technical aspect: In England, earning above £18,330 places you at a position in the 54th percentile, higher than the majority of income-earners. Similarly, in Australia, $55,874 places you above 52% of Aussie income-earners. For Sweden, with the highest marginal income taxes in the world, a similar statistics is trickier to estimate since there is no official cut-off point above which you need to repay it. Instead, I have to estimate the line at which you “start paying” the relevant tax. What line is then the correct one? Sweden has something like 14 different steps in its effective marginal tax schedule, ranging from 0% for monthly incomes below 18,900 SEK (~$2,070) to 69.8% for incomes above 660,000 SEK (~$72,350) or even 75% in estimations that include sales taxes of top-marginal taxes:


If we would place the income levels at which Australian and English students start paying back the cost of their university education, they’d both find themselves in the middle range facing a 45.8% effective marginal tax – suggesting that they would have greatly exceeded the income level at which Swedish students pay back their tuition fees. Moreover, the Australian threshold would exchange into 367,092 SEK as of today, for a position in the 81st percentile – that is higher than 81% of Swedish income-earners. The U.K., having a somewhat lower threshold, converts to 217,577 SEK and would place them in the 48th percentile, earning more than 48% of Swedish income-earners – we’re clearly not talking about very poor people here.

The fact that income-earners in Sweden face a much-elevated marginal tax schedule as well as the simplified calculations above do indicate that despite its level of tuition fees at zero, it is more expensive to attend university in Sweden than it is in England or Australia. Since Australia’s pay-back threshold is so high relative to the income distribution of Sweden (81%), it’s conceivably much cheaper for Australian students to attend university than for it is for Swedish students, even though the tuition list prices may differ (the American debate is much exaggerated precisely because so few people pay the universities’ official list prices).

Letting governments via general taxation completely fund universities is a regressive measure that probably hurts the poor more than it helps the rich. The solution to this is not some quota-scholarships-encourage-certain-groups-version but rather to a) increase and reinstate tuition fees where applicable or b) cut government funding to universities, or ideally get government out of the sector entirely.

That’s a progressive policy in respect to universities. Accepting that, however, would be anathema for most people in politics, left and right.

Nightcap

  1. The return of Henry George Pierre Lemieux, EconLog
  2. The politics of purity and indigenous rights Grant Havers, Law & Liberty
  3. The Ottoman Empire’s first map of the United States Nick Danforth, the Vault
  4. The age that women have babies: how a gap divides America Bui & Miller, the Upshot