Coyote Blog

In the college admissions bribery scandal that is unfolding (with almost certainly more to come), parents were willing to spend up to $500,000 for something whose list price is like $50 (ie the application fee).  When I see this happen, I immediately think that there must be some sort of artificial shortage.  After all, why wouldn't new suppliers jump into the market when such demand is apparently going unmet?

For years I have been pestering my alma mater to spend more of its endowment increasing capacity.  For example, several years ago I wrote:

...the Ivy League needs to find a way to increase capacity.  The number of kids that are "ivy-ready" has exploded over the last decades, but the class sizes at Ivy schools have remained flat.    For years I have been campaigning at Princeton for this, and I am happy to see they are increasing the class size, but only by a small amount.  Princeton has an endowment larger than the GNP of most countries.  To date, it has spent that money both well and poorly.  Well, because Princeton is one of just a handful of schools that guarantee that if you get in, they will make sure you can pay for it, and they do it with grants, leaving every student debt free at graduation.  Poorly, because they have been overly focused on increasingly what I call the "educational intensity" or the amount of physical plant and equipment and stuff per student.  In this latter case, we have got to be near the limit of spending an incremental $10 million to increase the education quality by .01%.  We should instead be looking for ways to offer this very high quality of education to more people, since so many more are qualified today.

To illustrate this point I used this example in another post on the same topic

Let's say an Ivy has 5,000 students and a 10 point (on some arbitrary scale) education advantage over other schools.  Let's consider two investments.  One would increase their educational advantage by 10% from 10 to 11 (an increase I would argue that is way larger than the increase from investments they have recently made).  The other investment would double the size of the school from 5,000 to 10,000 but let's say that through dilution and distraction it dropped the educational advantage by 10% from 10 to 9.   The first investment adds something like 5,000 education points to the world (5,000 kids x 11 minus 5,000 kids x 10).  The second adds  40,000  points to the world (10,000 x 9 minus 5,000 x 10).  It's not even close.  In fact, the expansion option is still favored even if the education advantage drops by 40%.

Here is a test.  Quick:  Name a well-known liberal arts college or university with a high academic reputation that was founded in the last 100 years.  Tick tick.  Give up?  The only one I can come up with is Claremont-McKenna.  When I started asking this question 10 years ago the answer also included Rice University, but it is now out of the window.  Compare that to top art schools -- some like RISD go back to the 19th century but CalArts and ArtCenter are both less than 75 years old and probably the hottest current art school SCAD is less than 50 years old.  SCAD is a great example.  SCAD is growing like crazy -- it owns half of downtown Savannah, it seems -- and has a great reputation despite its youth and despite its admissions policies that are far less restrictive than other colleges or even other art schools.   It is innovative and responsive to students in a way that few liberal arts colleges are.  It has clearly tapped into a huge unmet demand.  Why can't anyone do this in the liberal arts world??

The cynical view, which I lean towards more as I age, is that Ivy-type university degrees are all about signalling and not the education itself, and thus expansion just defeats the purpose because it dilutes the signalling value.  For years when I met gung ho kids who were impressed that I went to Princeton and depressed that they likely would not, I would tell them that Princeton differed from their state school in this way:  At your state school, you can get a really good education but you may have to work for it;  if you choose to slack, you won't get it.  In contrast, at an Ivy League school, you are going to get challenged whether you want to or not.  At least that is what I used to say.  I am not sure that is true any more of the Ivies, if it was ever true (I may have just been fooling myself).  We used to use "went to college" as a synonym for "educated", but I think that relationship is gone.  It's very clear you can go anywhere, Ivy League included, and fail to leave educated.

Some of my thinking on this was fast-forwarded given the experience of one of my kids.  We had classic suburban expectations for our smart kids, and were proud our daughter got into a top 20 university.  She really even then wanted to go to art school, but we worried she would end up living in a refrigerator box on the street with an art degree (well, not literally, but that was the family joke).  But after a year she hated the university**.  She did fine academically, but it wasn't what she wanted to do.  And after she took the reigns and worked on a do-over for herself at art school, I started thinking a bit more about it.  She works really hard at art school -- way harder than I or her brother worked in college -- and she is learning an actual craft that people value and pay for.  She has a heck of a lot more prospects on graduating than the Brown grad who majored in Ecuadorian feminist poetry.

I don't want to be disingenuous here -- I traded on the value of my degrees and the schools they came from until I was 40 (after that I was running on my business and they became largely irrelevant, even a bit of a handicap). But when I think back on what I gained most in my education, I would list these three things first:

• The ability to clearly define a problem -- drawing a box around the system, defining inputs and outputs, etc
• The ability to write (some examples on this blog notwithstanding)
• The joy of learning -- at last count I have complete about 85 Teaching Company courses of an average 36 lectures each and 13 Pimsleur language courses of 30 lessons each.

By the way, if I had to define my main privilege in all of this, Princeton would not be first, because in fact I really developed the three above in a great private high school my parents were able to afford.

Postscript: Many have assumed these kids who got in fraudulently displaced some low income minority.  I find that hard to believe, knowing how admissions offices work and the general philosophical outlook of universities.  Much more likely that the marginal candidate cut was a midle class Asian-American.

** One of the interesting features of top schools is that it may be hard to get in, but they work to get every kid over the finish line.  That is why the real credential of an Ivy League school is as much admission as graduation.  To illustrate this, my daughter is in her third year at art school but her university she started at is still sending her emails saying that its not too late to come back.

If you plotted my "certainty" curve over time, it probably hit a low point in high school, climbed to peaks during college and just afterwards, slid over time as my face got pressed up against the glass of the real world, and dropped even lower when I discovered RSS readers and put a wide variety of feeds into it.  That is not to say I am not confident -- at least as long as we are talking about intellectual and not social skills -- but I am more open to being wrong than I have been since I was about 18.  I am fairly sure I still greatly overestimate my own correctness.

I was thinking a while back about why I perceived myself to have had this period in high school when I was less certain of my infallibility.  One reason had to be my finally coming to terms with nagging questions about the religion I grew up with.  Another was probably due to high school debate, where after vociferously defending a policy position for an hour one immediately had to walk into another room and defend the opposite side.  Even then high school debate was becoming broken, but being forced to argue both sides of every issue was a great experience.

All this is an introduction to a nice work by Charles Chu called "The Ideological Turing Test: How to Be Less Wrong."  It is hard to excerpt, because it covers a lot of ground, but I wish in retrospect my high school had printed something like this on my locker door.  If I had a billion dollars and wanted to found a new university**, I would make the ideological Turing test the core of the educational philosophy.  Think of what goes on in colleges nowadays and being a professor and saying "OK, class half over.  Nice discussion.  Now everyone switch sides."***

** Name a major private university with a national reputation or that your friends' kids have considered attending that was founded after 1900.  I can come up with only a couple: Rice University in Houston and several of the Claremont Colleges (e.g. Claremont-McKenna) in California.  Only one school in the Ivy League is less than 250 years old. Most folks can perhaps name one in their local city (ie Grand Canyon University here in Phoenix) that is newer but does not have a national reputation.  I guess that it could take a while to develop a national reputation, but 100 years?  Really?  In the art school world (which aren't generally considered universities) I can name at least 4 schools with a national reputation (at least in the art world) that were founded much more recently, several in my lifetime (SCAD, Ringling, Art Center, Cal Arts).

*** I did very well at Harvard Business School, better than I have done at anything else in my life (they did not have class ranks but I was pretty damn close to #1 out of 900, after being literally the last person they let in off the waiting list).  It helped that I love the format and loved the subject matter.  Also, to be honest it helped that I could do math (which held back half the class but led to my marrying someone I was tutoring) and that English was my first language (I had great respect for foreign students who even attempted to survive the case method in a second language).  But the real trick to success was to shine in the discussions, which were 70% or so of the grade.  And I did so with a simple trick.  I watched the discussion, and jumped in on whatever side was losing or had the fewest supporters, irregardless of what I might believe.  Not only was this a ton of fun, but it was appreciated by the professors -- they did not want to intervene in a discussion but felt like they had to if the argument got too unbalanced.  I took all kinds of positions against my true beliefs.  I argued that the only mistake "neutron" Jack Welch made at GE was not firing more people.  I slammed Steinway for ignoring new technology and fetishizing hand craftsmanship.  And I convinced everyone I must hate Canada when I opened a rant on the nation with "Canada is like a whole other state," riffing off the then-current Texas travel ad that said "Texas: It's Like A Whole Other Country."  I am not sure how one would do such a thing today when comments in class are seen more as virtue-signalling to your crowd than they are thought-out policy positions, and when taking the "wrong" side, even as an intellectual exercise, can lead to nationwide social media shaming.  By the way, my keys to succeeding at HBS are embedded in my novel BMOC, currently free on Kindle.

My daughter and I did the whole college visit thing last week -- 8 colleges in five days.  In doing so, I was struck by the fact that all these great schools we visited, with one exception, were founded by rich people no more recently than the 19th century.  Seriously, can you name a college top students are trying to get into that was founded since 1900?  I think Rice University in Houston was founded in the 20th century but it is still over 100 years old.

The one exception, by the way, was SCAD, an art school in Savannah, Georgia.  SCAD is new enough that it is still being run by its founder.  I am not sure I am totally comfortable in the value proposition of an expensive art school, but I will say that this was -- by far -- the most dynamic school we visited.

So here is what I would do:  Create a new not-for-profit university aimed at competing at the top levels, e.g. with the Ivy League.  I would find a nice bit of land for it in a good climate, avoiding big cities.  The Big Island of Hawaii would be a nice spot, though that may be too remote.   Scottsdale would not be a bad choice since its bad weather is during the summer out of the normal school year and land is relatively cheap.

Then, I would take the top academic kids, period.  No special breaks for athletes or tuba players.  It would have some reasonable school non-academic programs just to remain competitive for students - maybe some intramurals or club sports, but certainly no focus on powerhouse athletics.  We could set a pool of money aside to help fund clubs and let students drive and run most of the extra-curriculars, from singing groups to debate clubs.  If students are passionate enough to form and lead these activities, they would happen.

And now I need a reader promise here - if you are going to read the next sentence, you have to read the whole rest of the article before flying into any tizzies.

And for the most part we would scrap affirmative action and diversity goals.  We are going to take the best students.  This does not mean its pure SAT's - one can certainly look at a transcript and SAT in the context of the school kids went to, so that smart kids are not punished for going to a crap public high school.

Realize I say this with the expectation that the largest group of students who will be getting affirmative action over the next 20 years are... white males.

What?  How can this be?  Well it is already nearly true.  Sure, historically everyone has focused on reverse discrimination against white males when colleges were dealing with having twice as many men than women and they had few qualified black or hispanic candidates.  But my sense is that few white males any more lose their spot in college due to competition from under-qualified minority candidates.

That is because there is an enormous demographic shift going on in college.  In fact there are three:

1. Girls rule high school and higher education.  Yes, I know that women steeped in "Failing at Fairness" will find this hard to believe, but undergraduates are something like 56% women nowadays.  As we toured Ivy League schools, we were on tours with about 6 prospective female students for every one guy.  Back when my son played high school basketball, on the walls of various high schools he played at were pictures of their honor societies.  Time and again I saw pictures of 20 girls and one or two forlorn boys.  If top schools want to keep their gender numbers even, then they are going to have to start affirmative action for boys, if they have not done so already (I suspect they have).
2. Asians are being actively discriminated against.  Schools will never ever admit it, because they are getting sued by Asian prospective students (I know Princeton has been sued) but reverse discrimination against Asian students is becoming more and more intense.  The bar for Asia females already is way higher than the bar for white males in top schools, and it likely will only get worse
3. Foreign students bring in the cash.  Ivy League schools have a ton of international students, which makes sense as they strive to be international institutions.  But one thing they will not tell you is that there is another reason for bringing in foreign students:  For most schools, their need-blind admissions policies and increasingly generous financial aid packages do not apply to foreign students, or apply on a much more limited basis.  The average tuition paid by international students is thus much higher.  I suspect, but cannot prove, that under the cover of diversity these schools are lowering their standards to bring in students who bring the cash.

So we scrap all this.  If the school ends up 80% Asian women, fine.  Every forum in one's life does not have to have perfect diversity (whatever the hell that is), and besides there are plenty of other market choices for students who are seeking different racial and ethnic mixes in their college experience.   We just want the best.  And whatever money we can raise, we make sure  a lot of it goes to financial aid rather than prettier buildings (have you seen what they are building at colleges these days?) so we can make sure the best can afford to attend.  Getting good faculty might be the challenge at first, but tenure tracks have dried up so many places that my gut feel is that there are plenty of great folks out there who can't get tenure where they are and would jump at a chance to move.  You won't have Paul Krugman or Bill McKibben type names at first, but is that so bad?

We know the business community hires from Ivy League schools in part because they can essentially outsource their applicant screening to the University admissions office.  So we will go them one better and really sell this.   Hire any of our graduates and you know you are getting someone hard-working and focused and very smart.

I don't know if it would work, but hell, I am a billionaire, what's the risk in trying?