How Wall Street Took Over Higher Education – Second Thought

Hey how, you can totally be a socialist and think Second Thought is trash.

Here's the LLM summarized transcript:

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• The video discusses how higher education in the US has become increasingly expensive and financialized.
• Over the last 40 years, college costs have tripled, even accounting for inflation.
• The average total cost of a bachelor's degree in the US is now nearly a quarter-million dollars.
• The video focuses on the University of California (UC) system as an example.

Historical Context:

• In the past, higher education existed on a spectrum:

  • Elite private schools were expensive luxury goods.
  • Public education was nearly free in some places.

• The UC system initially charged no tuition, only introducing small fees in 1921.

• Until the 1960s, tuition remained relatively cheap by modern standards.

Two pivotal events changed this:

1. Ronald Reagan becoming governor of California in 1967
2. Lyndon B. Johnson signing the Higher Education Act in 1965

Reagan's Impact:

• Cut public funding for schools in the UC and Cal State systems.
• Forcibly shut down all 28 campuses.
• Started relying on tuition to fund schools.
• Motivation was partly to curb student activism and limit working-class access to higher education.

Higher Education Act (HEA):

• Gave students unprecedented access to federal loans without collateral.
• Intended to increase access to education while costing the government little.
• In practice, it allowed both private and public schools to increase tuition dramatically.

Commodification of Education:

• Education shifted from a public good to a private commodity.
• Colleges began selling the idea that education was necessary to avoid economic stagnation.
• Schools could raise prices without improving quality and still see rising demand.

Financialization:

• In 2009, UC Board of Regents announced a 32% tuition increase.
• Schools began issuing "General Revenue Bonds" to investors.
• Universities use raised tuition as collateral for these bonds.
• Money from bonds often goes to non-educational projects like new buildings and sports centers.
• These projects aim to improve the school's brand and rankings, which in turn improves their credit rating.

Consequences of Financialization:

• Paying back debt takes precedence over educational priorities.
• Schools are required to raise tuition to repay bondholders.
• Job security for educators and staff is reduced.
• More reliance on part-time lecturers and adjuncts (70% of professors are now part-time).
• Outsourcing of dining and custodial jobs.
• University administrators' salaries increase, modeled on private sector compensation.

Vicious Cycle:

• Tuition increases fund non-educational projects.
• These projects increase rankings and wealth inequality.
• This justifies further tuition increases and improves bond ratings.
• The cycle benefits investors and administrators while burdening students and educators.

Conclusion:

• The current system treats education as a financial asset rather than a social good.
• This approach undermines the societal benefits of widespread access to higher education.
• The video argues that this financialization of education is detrimental to society's progress and future preparedness.

The video ends by mentioning that it's funded through viewer support on Patreon due to the controversial nature of its content.

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I mean, it seems fine. I'm waiting for the other shoe to drop somehow. This is the very first Second Thought video I've heard of that seems informative and honest, so you're gonna have to forgive me a certain amount of suspicion.

I believe that the video's main thesis -- that financial commoditization has taken over education and that's it's a problem -- is honest and accurate. And I learned a little bit from the transcript (Reagan's involvement in changing the system way back when in the 70s in California.)

That's what threw me for a loop. Most of what I see come out of Second Thought is "and that's why don't vote for the Democrats" faux-socialism. It's like... hey, are you feeling okay? This video seemed fine and that's not normal.