Credentials are Killing the Classroom

(A slightly tighter, probably better version of this was published for the Freeman.)

I’ve been to a lot of educational seminars put on by organizations like the Foundation for Economic Education and the Institute for Humane Studies, among others.  One thing these events have in common is incredibly high quality participants and deep discussions late into the night.  They tend to be multi-day intellectual feasts that leave you as tired as invigorated, and always challenged in the best of ways.

Nearly every time you hear one or more participants say something like, “This is what I wish college was like!”  The attendees are blown away by the caliber of the content, the professors willingness to engage amicably even in free time, and the intelligence and interest level of the other participants.  Faculty and students alike talk about how these seminars are far better than typical college classes.  This is no accident.

The obvious explanation most people give for this quality differential is self-selection.  Those who choose to give up a week of their summer to discuss ideas – both faculty and students – are high caliber and highly engaged.  This is true so far as it goes, but if we stop there we miss something even more fundamental and profound.  After all, college has self-selection too.  Shouldn’t it be full of professors and students who are earnest truth and knowledge seekers of the finest quality?  Yet college is nothing close to this, but for extremely rare exceptions in one or two classes.  Why does the self-selection only produce quality learning in these seminars?  The reason is right in front of us.

It’s because college offers an official credential and educational experiences outside of college do not.

That’s it.  Everything else is minor compared to this causal factor.  It’s easy to see when you look.  Imagine one of these summer seminars if they offered an official, government-approved piece of paper at the end that most HR departments used as a baseline screen, without which you couldn’t get past the first wave of job applications?  A summer seminar selling a magical ticket to a job that mom, dad, and society would feel proud of would be overwhelmed with attendees.  And most of them wouldn’t give a hoot about what they had to do to get the paper at the end.  Demand for faculty would spike, and most of them would do whatever it took to get the paycheck and quickly retreat to quiet corridors where they could be with their books and the few colleagues that actually care.  It would become, in a word, college.

The evidence is everywhere that the credential is killing the classroom.  I’ve guest taught entry level college classes before.  It’s pretty painful.  Most of the students are half asleep, grumpy, forlorn, texting, and generally inattentive.  I like to joke that if aliens from another planet came down and observed a typical class at a typical university and were asked what they witnessed, they would scan the cinder block and fluorescent room, ponder the pained look on student faces, and conclude it was a penal colony.  Imagine their surprise when told these people are not only here of their own free will, but paying tens of thousands for the suffering!

Not every classroom is that painful, but it’s the rule not the exception.  If you need further proof consider the fact that when class is cancelled everyone is happy, student and professor alike.  What other good can you think of where you pay in advance and are excited when it’s not delivered?  That’s because, much to the confusion of most faculty, the good being sold is not their lectures or the knowledge therein.  None of the students are buying that.  Sure, it’s nice if they get a little enjoyment and knowledge out of the deal, but that’s not why they’re there.  After all, if that’s what they wanted they could simply sit in on classes at will without registering or paying.

They are there for the credential because the credential is a signal to the working world that they are at least slightly better on average than those without it.  That’s it.  In some fields the credential is legally required, and in many others alternative ways to measure competence are illegal, so the signal of a degree retains artificially enhanced value.  Even so, that value is fading.

Large institutions form because transaction costs are high with tons of individuals exchanging goods, services, and information separately.  This is why family name mattered so much in times past.  Economist Ronald Coase famously explained the existence of firms using this basic logic.  It works for universities too.  When it’s hard to prove your worth alone, you get a trusted institution to vouch for you.  It’s s shortcut that reduces risk on the part of those who want to hire you.  But each passing year the value of this institutional reputation-backer declines compared to the available alternatives.  Technology has dramatically reduced information costs so it is now easier than ever to be your own resume.  You can vouch for yourself and create results easily seen by others that can speak for you.  It’s Yelp reviews instead of a few food critics determining whose steak is good.  You can build a better signal than what college is selling.

So long as legal and cultural (we might almost say religious) norms continue to see the degree as the primary signal of value in the marketplace the classroom will continue to decline in quality.  When the majority of students are purchasing one good (the credential) but are made to endure another (the classroom) they will continue to see it as a cost more than a benefit, and behave accordingly, sliding through with minimal pain and suffering.

On the flip side the classroom isn’t doing the credential any favors either.  Even though many still lack the imagination to see the alternatives right in front of them, most employers now admit that a degree signals very little these days.  Everyone has one.  Though there are still sometimes significant qualitative differences, most universities sell as many as they possibly can.  Cases of professors passing bad students and universities passing bad professors are well known, and the clout of the institutions is waning.  Even those who still require a degree ask for much more on top of it, because sitting through a bunch of classes you didn’t care about and doing the minimum amount of passionless hoop-jumping doesn’t convey much about your energy, eagerness, and ability to create value in a dynamic market.

A number of my professor friends sometimes chastise me for what they think are unfair criticisms of college.  Yet what I’m suggesting, that the credential be separated from the classroom, reflects my respect for great professors and the value of their style of education.  It is precisely because classroom learning at its best, like I’ve experienced so many times in those seminars, is so powerful and valuable that I wish to see it no longer destroyed and diminished by artificial attachment to a supposed magic job paper.  The subsidies, loans, restrictions, requirements, licensure laws, as well as the parental and societal worship of college as the great economic security blanket have filled the classroom with so much clutter it’s a rarity for quality interaction to occur.

The exciting thing is that a cleavage between the credential and the classroom is happening right in front of us.  It’s not MOOC’s that will fundamentally change college in countries like the US where access to information is already rich.  That’s just a new delivery system for a current good, and one that most American’s aren’t buying anyway.  The real shift is occurring as fewer and fewer employers look to the degree as the dominant signal, and as more and more young people build their own.

When the dust settles I’d love to see every great teacher and researcher doing their thing with eager audiences who are actually there to purchase that unique product, rather than suffer through it on their way to getting something else they really want.  The host of mediocre faculty will lose, but the good ones will win big, both in economic opportunity and quality of the craft.  So will the young customers who wish to learn from them.

You Have Permission to Use Ideas

A good friend told me when he was younger he would dive deep into all kinds of topics, from philosophy to physics.  His dad was an intelligent guy who took some interest in these subjects, but also a practical man focused on results.  He was a businessman and a pastor, and looked for direct application of ideas.

My friend had a book on quantum mechanics sitting in the house, and his dad asked him what it was all about.  A minute or two in to giving a breakdown, his dad said, “That sounds really interesting”, then moved on to whatever he was doing next.  My friend assumed his dad was just humoring him.  The next Sunday during the sermon his dad worked in some profound points relating concepts of quantum mechanics to the topic at hand.  My friend was amused, impressed, and also a little frustrated.

How could his dad hear two minutes on the concept and then start using it to illustrate a point?  My friend had read dozens of books on it and still did not feel the permission to write or speak on it with laypeople, or attempt to draw life lessons.

Here’s the thing.  You don’t need anyone’s permission to use ideas.  You can dive into new concepts and start playing with them and putting them to use the way a kid might if he discovered a new type of Lego block.  It’s true, you may misunderstand or misuse them, but isn’t that what you did when you first jumped on a bike or first picked up a baseball bat?

Ideas people are so passionate about truth and understanding that they sometimes become slaves to expertise and fear any efforts to describe or utilize ideas.  What if they’re wrong?  It’s prudent to desire a firm grasp of something before you start spouting off, but there is a real danger in believing you can’t act until your understanding is complete.  It’s a paradoxical kind of arrogance to keep your nose in books until you’ve mastered every angle of an idea, because it assumes that you can master every angle of an idea.  You can’t.  It doesn’t mean you shouldn’t try, but it does mean you can give yourself permission to play with ideas, discuss them, test them, implement them even while you’re exploring them.

Yes, if you read the book instead of watching the movie version, or worse yet the preview alone, you will understand the story better.  Still, a great many stories can be understood enough to be useful based on just the trailer.  As long as you believe only experts can engage certain ideas you will operate with an extremely limited paradigm.

Go ahead, tackle a new topic and see how you can use it right away.  Sometimes the novice understanding opens up new avenues the experts are blind to.

What I Tell Myself When I’m Tempted to Not Be Myself

Today I will live free.

 

“Today I will live free.”

I wrote those words out by hand this morning and felt an immediate release.  I wrote them because I needed to.  I just got back from some time off to deliberately do little but rest and reflect, and immediately I felt the pressing weight of the Other upon me.

The Other is anything and everything that does not come from within.  It’s all the great ideas and people and tasks and activities that bombard me from without.  They’re all wonderful things, and nothing but expressions of the agency of others.  Yet they’re not me, and if I internalize them, or interact with them in any way that has a responsive orientation, I become trapped.

There is so much information out there.  If my life is only to collect it, gather, sort, label, react, and respond to it, I am an automaton.  But I’m not an automaton.  I live and breath passionate freedom.  I can’t afford to play my life in response mode.

I had to commit to myself and to the world that I will live free today.  Just one day.  Anyone can do that, right?

So today I don’t care about anyone else’s information.  I don’t care about opinions.  I don’t care about any ‘shoulds’ or ‘oughts’ flying my way.  I care about living my journey for truth, freely and with abandon.  Only then will I have the excess creative capacity to engage fully the wide world of the Other.

Published
Categorized as Commentary

Why Innovation Beats Politics in Reforming Higher Education

(The following article is adapted from a speech given on July 31 at the Pope Center’s Friedman Legacy Day event in Pinehurst, North Carolina.)

There is a powerful lesson in the emergence of companies like Uber for those who wish to reform higher education. All the focus tends to be on political and policy debates, but meanwhile innovators are busy working around the status quo without waiting for permission or consensus. 

Government granted monopolies are inefficient and unfair. The cartel structure of the taxi industry is a clear instance of the economic losses, higher prices, and lower quality that results. Policy wonks and would-be political reformers have been writing papers about this for decades.

All the arguments and efforts of reformers largely fell on deaf ears.

Then Uber came along. A startup completely outside of the political system and not interested in winning economic arguments or policy battles simply put a better experience into the hands of consumers. No academic or bureaucrat had to be convinced, and no politician had to fight union interests to pass a bill.

The status quo never saw it coming, and by the time they caught on, it was too late. Uber is here to stay.

This is a powerful case contrasting two approaches to changing backward institutions. Cab customers don’t care about economic arguments or cartel regulations. They just want to get from point A to point B. They may complain about the experience, but dissatisfaction won’t be enough to warrant hours spent educating, lobbying, or protesting.

The status quo persists because the regulatory regime concentrates the benefits on a few special interests while the costs are spread over millions of individuals with busy lives.

Uber, by providing an alternative experience directly to the consumers, made them the beneficiaries of a better system. Alternative experiences are a powerful force for change, even more feared by the status quo than critical ideas and theories. That’s why the Soviet Union banned not just free-market textbooks, but blue jeans, jazz, and Marlboro. When citizens experience the alternative, suddenly they are dissatisfied with the stagnant options on the table.

So what does innovation look like in higher education? How can alternative experiences be created to force academia to get in shape and better serve customers?

To answer this we need to first establish what the actual good being sold is. Taxis and Uber sell the same basic service, transportation from A to B. What are people buying from college?

Contrary to what many people—including professors—assume, students aren’t buying knowledge or skill. They’re not buying a network or even a social experience for the most part either.

To prove this you can simply ask why anyone would pay tuition. You can move to a college town, go to parties, hang around the campus bookstore and student union, and even sit in on classes and do assignments for free without enrolling.

The reason students don’t do this is because none of those experiences are the product they are purchasing. In fact, class is often seen as an additional cost that they must endure to get the product, which is why they are excited when it’s cancelled.

The product being bought is the credential. The credential drives the entire industry and is what causes millions to go deep into debt for an experience they often don’t love and admit doesn’t make them any more valuable in terms of tangible skills.

College credentials are valuable due to their signalling value. Your degree sends a signal to the world that you are, ostensibly, better than a similar person without the credential. This signal has some meaning; making it through college means you’re probably better than someone who lacked the intelligence or drive to do so–but it’s a shockingly low bar.

The proliferation of degreed people and the decline in ability among incoming freshman has turned college into little more than what high school once was.

I remember sitting in a classroom and having an epiphany as I overheard the hungover conversation of some classmates. Those people, I realized, were going to walk out of the university with the same credential as me. So all I was really buying was a piece of paper that said I’m no worse than that guy with his half-sober head on the desk.

Employers readily admit that degrees tell them little these days. Everyone seems to have one but few have relevant skills and experiences. Many, especially small businesses and startups, don’t even use it as a baseline anymore. Even those that still do require something more on top of it to signal who is really high quality.

Getting back to our Uber example, until the alternative was created and made accessible to consumers, no one was dissatisfied enough to demand taxi reform. Students today are in a similar place. A growing number are dissatisfied with the product.

The problem is that most students don’t become dissatisfied until they’re already in college and realize it’s not all that valuable. Or worse, they only realize that after they’ve graduated with a load of debt but little knowledge, skill, or ability to create value.

Most college students still believe that the credential it gives them is the one and only way to get from point A to point B. They thoughtlessly apply like New Yorkers used to hail cabs.  That’s where competition comes in. Today, it’s possible for young people to build their own signal that is more valuable than a degree.

No longer do you have to rely solely on an institution to vouch for you and open doors. You can let your product, your reputation, your individual ability and brand speak for themselves.

Consider the popular story of the woman who couldn’t get through the application process for the fast-growing tech startup AirBnB. She had a great degree, but so did all the other applicants. So she built a better signal. She researched the industry and built a basic website describing her take and how she’d add value to the company.

It turned into an internet sensation—infinitely more valuable than a generic resume listing a degree like everyone else.

LinkedIn pages, GitHub profiles for coders, personal websites, and modern communication tools make it easier than ever for young people to create value, build a network, and make it easily accessible and verifiable to the world. No longer are they confined to purchasing prefabricated credentials from large institutions.

Competition in higher education means competing ways to signal value to the world. The alternatives are limited only by imagination.

The force of government loans, grants, subsidies, and laws that artificially enhance the value of degrees, along with the force of the public religion that the college degree is the only way to a respectable, successful life, have made it hard for most to see the opportunity to create alternatives. Yet they are emerging.

Sometimes they emerge with great fanfare, like tech investor Peter Thiel’s fellowship program that pays kids under 20 $100,000 to dropout and start a company. Sometimes with less notice, like the many coding schools, online courses, and combination work/education/professional development programs.

As this proliferation of alternatives continues, it spells nothing but good for young people, employers, the economy, and yes even for some professors and universities. Really good schools that offer a truly valuable experience will thrive while colleges that function mostly as credential mills lose market share.

What’s left when the credential ceases to be the magic ticket is anyone’s guess, but we do know only those providing real value to the educational consumer will survive. That’s a good thing.

Episode 25: Lehla Eldridge on Unschooling in Italy

Author, illustrator, cafe owner, world traveler, and unschool mom Lehla Eldridge joins me to talk about raising kids in another country and taking big, adventurous leaps.

Lehla and her husband run the website unschoolingthekids.com and are the authors the book Unschooling: The 6 Keys to Our Children’s Future. They are both from England, but spent 15 years in South Africa working in the film industry then owning their own cafe and raising kids before eventually settling (for now) in Italy.

We discuss the challenges of making big life and career moves, how they discovered alternative education, and what it’s like unschooling three kids on a daily basis.

This and all episodes are available on SoundCloud, iTunes, and Stitcher.

Taking a Week (Almost) Off

I’m taking a brief hiatus from daily blogging while my wife and I celebrate our anniversary with a little getaway.

I have an article going up tomorrow for the Pope Center for Higher Education, and Tuesday for The Freeman, and my Monday podcast post will still go live here. Otherwise I’m off until next Thursday!

Published
Categorized as Commentary

Demanding Too Much of Unconventional Wisdom

We place very high demands on wisdom, ideas, or advice that bucks convention.  There is certainly some logic behind this, in that ideas widely held might be more likely to be useful, otherwise they wouldn’t be so popular.  Yet usefulness, longevity, and popularity certainly do not equal validity or truth.  An idea may be widely adopted because it is useful in making one less of a pariah, even if it is in fact false, or even evil.  The belief that bloodletting was the best cure for many illnesses was common.  So were beliefs in the necessity of slavery.

In other words, I think the logic that common ideas are more likely to be correct is only one small part of our reason for being less demanding of them compared to uncommon ideas.  Our desire to imitate others and be perceived as “normal” (even, sometimes, normal in misery) also drives us to demand far more of unconventional ideas than conventional ones.

One of the more popular demands made of unconventional ideas is that the believer in them must be rich, happy, and super successful.  If some unconventional idea about how to succeed in life is true, it goes, those who espouse it had better be rich and famous or else their lives are living testimony to the falsehood of their ideas.  Let’s just take an absurd example.  If you heard someone claim that planting all your dollar bills in the ground would cause them to grow into money trees you’d immediately look to see if this person was rich.  If not, you’d be ready to mock and dismiss the idea.

The unconventional idea of burying dollars in the ground is stupid for a lot of good reasons that are easy to discover.  But to argue against it because the person espousing it is not himself rich is not a very good reason or a sound approach.  Why not?  Let’s look at what would happen if we used the same standard to analyze conventional ideas.

It is widely accepted that eating healthy foods leads to a better life.  It’s common wisdom.  Again, whatever other good and bad arguments can be made to demonstrate the truth of this knowledge, one poor approach would be to demand that everyone making the claim themselves be fit and healthy.  If an overweight person claims that a healthy diet low in sugar is a key to health, most of us (wisely) do not dismiss it simply because the person does not exemplify the outcome they claim is likely.

There are several good reasons to not demand that the bearers of truth themselves exemplify it in order for us to believe.  Knowing and doing are two different things.  I may know full well that shooting 100 free throws a day will make me a good free throw shooter.  But I may not value free-throw percentages enough to make the necessary sacrifices to implement this bit of wisdom, even if I espouse it.  In addition to not having an intense enough desire to implement the idea given the costs involved, I may also have an upward limit on my own improvement.  No matter how many free-throws I shoot, I’m probably not going to be as good a shooter as Stephan Curry.  If I had lost both my arms in an accident, my free-throw shooting ability might be zero, yet that makes the piece of knowledge I hold about practice making one better no less true.

We overlook potentially powerful and valuable ideas when we dismiss (or accept) them based entirely on the lives lived by those who espouse them.  This is a poor standard of proof that would destroy all conventional wisdom if we applied it equally.  The life of the preacher doesn’t necessarily prove or disprove the validity of the sermon.  We’ve got to do more work and examine ideas for their logical validity, experimental validity in a wide variety of situations, and most of all their applicability and usefulness to our own lives.

Why Do We Have to Pick Sides?

Not long ago I was discussing the famous Sons of Liberty who sparked the events leading to the American Revolution.  We grow up hearing of their exploits as heroic, bold, and founded on the highest principles.  Yet there is an alternative account too.  If their deeds are described devoid of historical context they have all the attributes we would associate with terrorists.  It was violent, destructive, thuggish, and as fueled by hate as principle.

The traditional historian will tend to whitewash these historical figures and focus only on the ultimate outcome, an independent nation, and assume that because it exists it is good, and therefore whatever led to it was also good.  The radical revisionist will brand them as evil and by extension whatever their deeds may have helped to accomplish must be bad and the right thing would have been no revolution at all.

Something about the history of whatever political jurisdiction we grow up in makes us incredibly dumb when it comes to analyzing actions and individuals.  If your dysfunctional neighbors had a nasty divorce that you knew about only through the grapevine, would you immediately proclaim one side just and the other unjust?  You’d be smart enough and staid enough to stay out of it and understand that both sides are equally likely to be in the right, if there even is a right at all.  Yet people few centuries ago with whom we share little in common got into complex conflicts and we feel the need to come down hard for or against one side or the other.

Free yourself from the patriotic reading of history which demands good guys and bad guys.  You don’t need to pick sides.  You can admire or be repulsed by all sides in historical epochs, or simply admit ignorance and have no feelings whatsoever.  The need to find the “right” side always results in fact-bending and uncomfortable association.  It makes you dumber and less happy, as there is always some alternative version you feel the need to respond to or stamp out.

History is not a football game where your team either wins or loses based on what the textbooks say.  It’s a bunch of messy stuff that already happened, and who was more or less wrong or right has no bearing on your life today unless you let it.  Don’t shackle yourself to the deeds of dead strangers.  If you want to understand history, move beyond good and evil.

Episode 24: Thaddeus Russell on Renegades, Puritanism, and Pleasure

Historian and author of “A Renegade History of the United States” Thaddeus Russell joins me to discuss his work and the notion that the “renegades” might be the ones to thank for our freedom, not the puritanical political busybodies.

Russell’s work is anything but typical history.  It exposes the great moral reformers and champions of left and right as primarily power brokers who sought to control common impulses, and the renegades who resisted them – from slaves to prostitutes to poor immigrants – as the source of most of our social and political freedoms.

We discuss his life, his work, the main themes, how it’s been received, and what he’s working on next.  Thaddeus is certain to challenge some of your cherished notions!

This episode and all others are available on SoundCloud, iTunes, and Stitcher.

Against Life Plans

Life plans seem pretty daunting to me.  I know people who feel stressed and depressed because they don’t have a clear one.  There are incredibly rare people who know beyond the shadow of a doubt what they want to do in great detail.  If you are one of them, don’t let anything stop you.  For the rest of us, I suggest we drop the notion of a life plan altogether.

I often talk about why trying to find what you love is not the best idea.  How can you know with so many options?  It might not even exist yet.  Instead, I recommend making a list of what you know you don’t like.  Don’t do those things, and everything else is fair game and moving you closer to the things you love.

But it’s not just about narrowing down and finding the things you most enjoy.  It’s about enjoying the process.  Try a bunch of stuff.  But don’t waste time once you know for sure something makes you unhappy.  Not only do you want to drop it because it’s not likely to be your long term sweet spot, but also because it’s not fulfilling right now.

Every day do your best to avoid things that truly make you unhappy and crush your spirit.  Every day show up, create, work and do things that are fulfilling, even if (especially if) they are really hard work.  You don’t have to plan your life, but you should live it.  Fully alive.  Fully awake.

If you’re not in a spot where you’re enjoying life right now, why not?  Can you change it?  Not two or ten year from now, but today.  Every day get a little bit closer to only doing things you really enjoy.  You’ll end up with a life better than what you would plan if you could.

Be Patient, Keep Producing

I was listening to entrepreneur and social media maven Gary Vaynerchuk say that the most important thing for building an audience is patience when it occurred to me…

I’ve been writing pretty consistently for about eight years, and really consistently for three. I didn’t set out to build an audience and I write because I’m happy when I do, but I still get kicks out of seeing stuff I write get traction.

In July I had one post get 50k views and another get 70k. For the previous near-decade I don’t think I ever hit five figures with any post. This month’s views eclipse the view total for the first three years I wrote combined.

The point is this: if you show up every day and keep producing, there is no guarantee you’ll get quick traction. Keep doing it anyway. Do it for you. Then, possibly when least expected and for pieces you didn’t even imagine were great, something might click.

How Change Happens – Higher Ed. Edition

The current higher education model is flawed.  If we’re serious about changing it, first we need to get serious about understanding how social change happens.  Intentions and action are not enough to bring about desired ends.  We need an understanding of the causal relationships involved in order to effectively bring about change.

The great truth that flies in the face of civics textbooks and popular myth is that politics is not the source of social change.  It’s more like the last in a line of indicators of cultural shifts that have already occurred.  Politicians and the policies they create only change after the new approach is sufficiently beneficial to the right interests, and sufficiently tolerable to the public at large to help, or at least not harm, political careers.  Of course some politicians guess wrong and suffer accordingly, but by and large the political marketplace tends toward preservation of the status quo until a new direction is imperative for survival.

An entire, and entirely fascinating, branch of political economy called Public Choice Theory examines the incentives at work in the political marketplace in depth, and I highly encourage anyone attracted to political action to gain a working knowledge of this field.  It reveals, in short, that incentives baked into the democratic system create and perpetuate policies that are bad for the public at large, and good for particular concentrated interests.  What Public Choice has a difficult time accounting for is the role of changing beliefs.  There are countless policies that, based purely on the incentives of various interests, ought to be in place but are not, or vice versa.  Some things are simply out of bounds, no matter how much a particular group might benefit and be willing to lobby, because the general public finds them unacceptable.

Contrary to the seemingly ironclad rule of interest driven politics, public beliefs can and do change, and dramatically sometimes, putting parameters around the area within which political actors can ply their trade.  Slavery is a striking example.  At one point, it would’ve been hard to get elected, at least in some areas, if you publicly supported abolition.  Not too many decades later, it’s unthinkable to get elected anywhere if you’ve ever even joked about supporting slavery.  There is certainly a complex relationship between changing economic incentives and public beliefs, but it is undeniable that the about-face on the ethics of slavery was more than a mere shift in power among competing interests.  What most of the public found tolerable they now find reprehensible.

Our institutions are formed by incentives, and incentives are constrained by beliefs.  That makes the beliefs of the public the ultimate key to change.  Smaller changes might occur within the window of things already publicly acceptable, but major change requires a shift in that window.  How to change those beliefs?  There are two primary drivers, both of which feed each other; ideas and experiences.

Ideas are the raw data that form beliefs.  If you accept the idea that minimum wage laws make lower skilled individuals less employable, and you accept the idea that a society with fewer unemployed persons is desirable, then you will have the belief that minimum wage laws are bad.  If, on the other hand, you’ve never really thought about the economics behind minimum wage at all, but your low skilled neighbor lost his job when minimum wage increased, that experience might also cause you to believe minimum wage laws are bad.

I spent a good part of my life focusing entirely on disseminating ideas as a way of changing belief.  It was fulfilling and, I think, valuable work.  But it wasn’t until relatively recently that I began to understand the immense value of experience as a vital second prong when it comes to changing beliefs and the world.

Consider the difficulty of convincing your mother that the New York City taxi cartel is inefficient or immoral.  It requires a great deal of economic theory or philosophizing about rights and coercion.  Your mom might have other things she enjoys more than reading books on these subjects.  Even if you convince her, her newfound belief will probably barely register among things she cares about.  Sure, taxis aren’t the greatest.  So what?  She’s never had that bad an experience.  Even if a policy change to end the cartel were possible, your mom mighn’t pay any attention, or she may be concerned about what the new world without cartels would look like in practice.

Now consider recommending your mom use Uber on her next trip in to Manhattan.  She uses it, likes it, and becomes a regular customer.  She may be completely ignorant of the current cab cartel and the problems with it, but she’s now a believer in an alternative system.  If Uber comes under attack from vested interests, she’ll defend it.  If the chance to end the cartel comes up, she won’t fear because she already knows what the world looks like without it.  She can’t easily be convinced out of her experience.

It is for this reason that dictatorial countries not only ban literature that propagates new ideas, but also goods and services that compete with government monopolies and let people experience something better.  The Soviet Union feared blue jeans, jazz, and Marlboro cigarettes as much as free market textbooks.

If we want to break out of the educational rut it requires new ideas and new experiences.  We mustn’t only talk about new approaches, we must build alternatives.  The best part is, you don’t have to wait on anyone.  You can take your own path right now, and by so doing not only improve your life, but serve as an example to others of what’s possible outside the status quo.  Educational entrepreneurs, not just intellectuals, will change the hidebound approach to education.  It’s already happening.

While policymakers, pundits, professors, and provosts squabble about the future of higher education and jockey to secure their position, entrepreneurs are busy creating and delivering alternatives across the globe.  The educational consumer is enjoying new experiences and getting new ideas about education in the process.  The old guard can argue any which way they like, but at the end of the day they’ll have to prove more valuable to the learner than the myriad new options.  All the protections and advantages in the world can’t stop competition now.  Technology has helped break it wide open.

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Excerpted from The Future of School.

Ask Isaac: The Most Awkward Moment

On this episode of Ask Isaac, I got a listener question that was a little odd…”What was your most awkward moment?”  I’m pretty sure the person who asked it on Facebook had heard through the grapevine about one particular story.  I decided to come clean.

This and all “Ask” episodes, as well as all full episodes are available on SoundCloud, iTunes, and Stitcher.

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Categorized as Podcast

How Information Destroys Dictators (Are Demagogues Next?)

I recently saw a presentation by economist Antony Davies on the basics of Public Choice Theory and the predictable problems with democratic systems.  Ant laid out the median voter theorem, then observed that national elections continue to get tighter and tighter as candidates become more and more similar in an effort to win the median voter.

This process is accelerated by the information age.  Candidates don’t have to determine a platform and then go try to sell it, hoping a large chunk of people already agree.  They don’t even have to study opinion research and craft a platform most likely to win.  They can A/B test in real time.  Campaigns can go to Twitter and try out some slogans or positions, they can react immediately and pivot their posture.  The old saw that politicians put their finger in the wind is true as ever, but fingers are no longer necessary when you have a digital weather vane plus anemometer streaming real-time measurements to your smartphone.

In other words, power hungry politicians are more accountable to the shifting moods of the public than ever.  Don’t get too excited.  This is far worse than a free and open market society in terms of decision-making and individual and public good.  People behave differently when voting or tweeting than they do when their own skin is in the game, and a system that caters to the costless whims of the majority is far scarier than a truly free society.

Still, it might be better than a pure dictatorship.  I suspect the days of a charismatic, strong leader who wins over throngs of people with good speeches are numbered.  Absent a better means of communication, societies rally around symbols because they can convey quickly a complex set of feelings and ideas.  They can also be more easily exploited.  Simplistic urges like nationalism, shared hatred of perceived enemies, moral crusades, and other dumbed down tales of us vs. them are the stuff of dreams for power-hungry tyrants.  Whip them up into a sense of unity around a common (often violent, envy-based) cause, and you can own the country.  This is harder than it’s ever been.

More and more citizens around the world can jump online and see pictures of their supposed enemies.  They can see the other side.  Humans seem to have limited compassion, and proximity is one of the rationing mechanisms.  The information age brings the world closer, and therefore makes compassion able to span the globe.  A fine speech about barbarians at the gate can create a wave of support for a hawkish autocrat, but when you can see those ‘barbarians’ with your own eyes, read their stories, and talk with them, it’s harder to get behind.

The ease with which information flows – what economists would call a reduction in transaction costs – is dramatically reshaping the way we do business, culture, life, and politics.  At first we’ll see political figures that appear more like focus-group generated spokespersons, as they get better at following the trends.  The switch from forceful dictator to savvy demagogue is perhaps a small improvement.  But I don’t think it will stop there.

This reduction in transaction costs also means all the things previously thought to be collective action problems solvable only through the clumsy and corrupt mechanisms of voting and politics can be tackled through voluntary markets.  Imagine your neighborhood HOA, instead of voting on higher fees for a new park, letting residents access a Kickstarter-like app where they can pledge an amount they’re willing to pay and the project only goes forward when it hits its goal?  The political figureheads and representatives can be eliminated just as Bitcoin eliminates financial gatekeepers.

The easier it is for individuals to connect and share ideas and goods with each other, the less powerful political gatekeepers trying to take their cut and regulate our relationships become.  Ultimately, information will beat oppression.

Your Student Debt is Unfair

You hear a lot of complaints about student debt, and how maddening it is to be $40,000 in the hole at age 23 and still not have a job that requires a degree.  The case for the unfairness of student loan debt is that these kids didn’t know better.  It’s kind of a pathetic excuse, but it’s often true.

12 years in an education system where you are constantly pummeled with the promises of higher education and the perils of any deviation will make you overvalue a degree.  You’ll never be warned about the cost, or how debt can limit your options.  You’ll only be told about the magic $1 million in lifetime earnings that is supposed to find you as soon as you find your major and graduate.  It’s a system. Obey it, and the statistics will magically bring you what they bring the average of the past aggregate, as long as your behavior correlates with theirs.

Starry eyed teens get grants, aid, scholarships, loans, and complete a bunch of paperwork with their parents to just get in to the best possible college they can based on rankings they’ve never really studied.  They get endless praise upon graduation and more upon heading off to college.  Finally, they’ve made it!  The rest of life will simply unfold successfully as if on autopilot.  What’s the worst that could happen now?  You’re getting a degree, so you’re set!  You’re on the right side of the data!

Young people get good enough grades, do some extracurriculars, and get the degree.  Once more they are celebrated.  Then, for perhaps the first time in 20 years, they leave the confines of a controlled environment shielded from the world of value creation and exchange.  No one is overly impressed with their ability to fit into the system.  People want to know what they bring to the table.  Can they crunch meaningful numbers without being assigned?  Can they sell?  Can they code?  Can they digest the complexities of markets and customers and make judgments on the fly about how to preempt problems?  Not really.  Those things take experience and context wholly lacking in most educational institutions.

So they struggle.  They don’t like what they do, or they can’t find work much better than what they could have gotten right out of high school.  It’s OK though, they have time to learn from the real world right?  Except they’ve got college debt to pay in addition to living expenses.  That awesome company they were going to volunteer for in order to gain skills?  Not so easy with the need to earn enough to make loan payments.

Grads are in a bind and they feel kind of ripped off.  They feel betrayed.  They feel lied to.  Where is that high school guidance counselor who pushed them to college?  Will she pay the bills?  Where are the parents who were so proud?  Will they want their kid to move back home?  It can be pretty rough.

So yes, it’s unfair.  But the worst possible way to respond and improve things is to say it’s unfair over and over.  Say it once, get it our of your system, move on.  The fairness doesn’t matter.  Sometimes you’ll act on bad information.  Sometimes you’ll have regrets.  Sometimes other people’s plans for you aren’t best and you’ll suffer for following them.  So what?  Talking about how sad or unfair it is does nothing for you but reduce the chances that you’ll actually make things better.

Yeah, you were led to believe this degree would pay for itself immediately and without difficulty.  Yeah, because you were handicapped by the system you were incapable of realizing for yourself what the decision to go into debt might mean and how it could play out.  That’s the past.  What will you do today?

The good news is, it’s not that big of a deal unless you let it be.  Laugh at it, roll up your sleeves, and reboot your expectations about the world while building every day.  Devise a payoff plan and a life improvement plan.  Lots of people have done it, so can you.  The past is past, you are where you are, and no amount of bitterness, protest, or hoping for some political savior to bail you out will do you good.  In fact, it might destroy you.

Oh, and if you have kids of your own someday, let them experience enough of the world outside the walls of schools so that they know better than to blindly follow the advice of authorities seeking to do them good.