Joel Kotkin

The Coming of Neo-Feudalism


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      The Control Tower

      Universities have long served as gatekeepers for the upper classes, but they are doing less well at what was arguably their greatest twentieth-century triumph: expanding opportunities for the many.1 The reach of higher education grew dramatically in the last century, and so did the importance of academic credentials for getting good jobs. Elite degrees have become more crucial for access to the most lucrative positions, even as the top schools have grown more socially exclusive.

      This is not just an American story. In China, for example, the regime has greatly expanded higher education, especially in technical subjects, in a drive to achieve economic and technological preeminence. The number of college teachers in China has risen by one million in the past two decades.2 But higher education also serves as a key to entrance into the nation’s ruling class, and an elite degree is highly prized. By 2012, at least five of the nine members of the Politburo Standing Committee, China’s top decision-making body, had children or grandchildren who had studied at elite American universities in a program launched ten years ago by the Communist Party to train the next generation of Mandarins.3

      Looking at the question globally, David Rothkopf, author of Superclass: The Global Power Elite and the World They Are Making, compiled a list of more than six thousand members of what he calls the global “superclass”: leaders of corporations, banks and investment firms, governments, the military, the media, and religious groups. From this list, Rothkopf and his colleagues drew a “globally and sectorally representative sample” of three hundred randomly selected names, and found that nearly three in ten had attended one of twenty elite universities, particularly Stanford, Harvard, and the University of Chicago.4

      Universities have also been seen as reinforcing the preeminence of what John Sexton, president of New York University, calls the “idea capitals” of the world, such as New York, Boston, London, Paris, and Beijing—all having universities and their graduates as a major part of their economic growth engine.5

       Forging the New Elite

      Perhaps nothing has so defined or enhanced the role of the clerisy in American society as the expansion of universities. Enrollment in colleges and universities in the United States increased threefold between 1910 and 1940.6 Another great expansion began as the postwar baby boomers were reaching college age. The total number of people enrolled in college in the United States grew from 5 million in 1964 to over 7.6 million in 1970, and then to some 20 million today.7 The percentage of college graduates in the labor force soared from under 11 percent in 1970 to over 30 percent in 2010—a proportion that has remained about the same since then.8

      The increase in college attendance is even greater globally. Across the world, the number of enrollments in higher education was expected to grow from 214.1 million in 2015 to 250.7 million by 2020, and may rise to 377.4 million by 2030 and 594.1 million by 2040. Some 40 percent of college students will then be in East Asia and the Pacific, while South and West Asia will be home to more than a quarter of all college students.9

      Cutting against this democratizing trend in the United States, however, is the soaring cost of a university education: it more than tripled as a proportion of the national median salary between 1963 and 2013.10 This has made the top universities more socially exclusive, even as they have become more important for success. The elite universities have grown richer both in their endowments and in the academic qualifications of the students they admit, relative to less well-positioned institutions.11

      Harvard, Princeton, Stanford, and Yale collectively enroll more students from households in the top 1 percent of the income distribution than from households in the bottom 60 percent.12 Well-to-do families can better afford not only the high tuition costs of elite universities but also the expense of excellent primary and secondary schools. Only 2.2 percent of the nation’s students graduate from nonsectarian private high schools, yet these graduates account for 26 percent of students at Harvard and 28 percent at Princeton.13 High-income parents can also give their children such advantages as museum trips, SAT coaching classes, and unpaid internships. Robert Reich, a lion of the left and a former Harvard professor, characterizes the modern elite universities as being designed mainly “to educate children of the wealthy and upper-middle class.”14

      Today’s leading universities are filling the role envisioned by Charles Eliot, who became Harvard’s president in 1869: taking the lead in creating an enlightened national ruling class—the Alphas, if you will.15 A National Journal survey of 250 top American public sector decision makers found that 40 percent of them were Ivy League graduates. Only a quarter had earned a graduate degree from a public university.16

      Top universities have considerable power over access to the best jobs in the private sector. Nitin Nohria, dean of the Harvard Business School, has shown how corporate leaders in the second half of the twentieth century shifted away from reliance on family networks or religious communities in hiring, toward a preference for an MBA or similar credentials from a business school. This change might have had a democratizing effect, but the intense competition for jobs effectively winnows down the pool to graduates of the most select institutions. Those without an elite degree may find a corporate niche, but often as a contractor or in a low-level position that offers little chance of climbing the ladder through hard work and experience.17

      In Britain likewise, the expansion of higher education was once regarded as a means of breaking down class barriers, but university degrees now accentuate these divisions instead. As the emphasis on academic credentials grew, notes David Goodhart, so did the advantage of the graduates from elite schools, who are mostly upper-class. These schools account for 7 percent of all college graduates, but 50 percent of the nation’s print journalists and 70 percent of the senior judiciary.18

      There are not only class divisions between elite schools and the rest, but even a growing class divide within universities in the United States. Administrators, deans, and tenured faculty live in what one writer compares to a modern form of manorialism, where luxury and leisure come as of right.19 Yet much of the actual academic work is done by a class that more closely resembles the impoverished parish priests of medieval times. Teaching adjuncts now constitute 70 percent of the U.S. academic workforce—up from 55 percent four decades ago—and one in four of this group lives on some form of public assistance. Some of them actually see their commitment to the academy as akin to a monk’s “vow of poverty.”20

       Redefining Knowledge

      The historian J. B. Bury, in 1913, described the Middle Ages as a time when “a large field was covered by beliefs which authority claimed to impose as true, and reason was warned off the ground.”21 The relationship between reason and revelation was a challenging question in medieval universities, which all had a liberal arts curriculum in addition to one or more of the advanced professional faculties: law, medicine, and theology. Church authorities wanted to have clergy trained in the defense of orthodox doctrine after heretical movements had arisen, and they were watchful over the teaching of theology in the universities. Theology was the dominant field at Paris, where scholars were licensed to teach by the bishop. The University of Paris became a staunch guardian of orthodoxy, and in the 1300s it held a conclave to affirm the reality of demons that were supposedly infecting society.22

      At the same time, medieval scholars regularly debated contrary propositions, and tried to reconcile reason with revelation, or the natural philosophy of Aristotle with Christian doctrine. Church authorities attempted to suppress ideas considered heretical, with condemnations and sometimes imprisonment, though in the long run they were not successful.23 John Wycliff espoused heretical doctrines at the University of Oxford in the fourteenth century, and Jan Hus did likewise at the University of Prague in the early fifteenth century. In other fields, the idea of an expanding body of knowledge gradually began to displace a focus on learning what had already been said by “authorities.”

      Over the centuries, the university gradually emerged as a beacon of open inquiry and