A recent analysis showed that the median family income in America, adjusted for inflation, has fallen to levels not seen since 1995. The median inflation-adjusted tuition sticker price at America’s private colleges and universities, however, has grown by more than 50 percent since 1995. The consequence, even with increases in institutional aid, is that a substantially smaller fraction of the population is able to afford today’s prices than was true in 1994.

How have we arrived at this undesirable – and, I would suggest, unacceptable – outcome?

Well, there are several reasons. Higher education is an inherently costly enterprise, and there are few economies of scale: doubling class size, for example, would save money, but it would come at the expense of a personalized learning environment – the primary selling point of private higher education.