According to Bain between 1995 and 2010 universities are proportionately spending significantly less on instruction and more on admin and support, and many of the universities spending is unsustainable.
https://news.ycombinator.com/item?id=11337193
This parallels the healthcare sector, where administrative costs have outpaced the cost of actual care. Both are markets heavily distorted by the federal government.
I worry that there's no solution to these problems that won't displace very many workers. One man's cost is another man's salary.
Both are markets heavily distorted by the federal government.
That's one way to look at it. Another way to look at it is that those "markets" are fundamentally distorted by the in-elasticity of demand. People generally need education and healthcare.
Coincidentally, that's the way almost all of the non-US world chooses to look at it.
