Has any institution fallen in esteem faster and further than higher education?

Back in 2010, three-quarters of Americans rated having a college degree as “very important.” Today, only about a third (35%) believe that. A quarter of people believe it’s “not too important.”

And skepticism is growing strongest among people aged 18-34 and those who have college degrees, a signal that the status of college will fall further in the years ahead.

The factors behind the fall include the soaring cost of college, better-performing trade schools and the growth of alternatives from online learning to AI and competency-based “microcredentials.”

Bryan Caplan, an economist at George Mason University, says his work indicates that college is still worth pursuing for “A” students in high school. “B” students should focus on economics, engineering and other majors that deliver a strong return on investment.

It’s high time for us to insist that normal economic return calculations apply to higher education. Education expert Richard Vedder of Ohio University says that no industry/profession has had lower productivity gains than universities – with the possible exception of prostitution.

Reform should start with limiting tax-deductible donations to the 100 most well endowed elite universities, which today act more like investment banks that happen to have classrooms and students. Open the Books, a watchdog group, reports that “American taxpayers contribute more to these universities than the students and their families do through tuition payments.”