Higher education in the United States has long been marketed as the great equalizer—a system where hard work and talent supposedly translate into opportunity. But over the last four decades, it has increasingly reinforced and legitimized an American caste system. Through elite gatekeeping, rising tuition, unsustainable student debt, and the erosion of public support, higher education has helped harden economic class divisions, limit social mobility, and deepen inequality across racial and geographic lines.
The backdrop to this shift is a broader trend toward inequality in American society. The U.S. Gini Index—a measure of income inequality where 0 is perfect equality and 1 is maximum inequality—rose from 0.403 in 1980 to 0.494 in 2022, according to the U.S. Census Bureau. This ranks the United States among the most unequal of advanced economies. During this same period, college tuition increased by more than 1,200%—far outpacing both inflation and wage growth. Real wages for most Americans have remained stagnant since the late 1970s, while education has become more expensive and less accessible, especially for low- and middle-income families.
Elite universities have played a critical role in this transformation. Institutions such as Harvard, Princeton, Stanford, and Columbia admit more students from families in the top 1% of the income distribution than from the bottom 60% combined, according to research by economists Raj Chetty and colleagues at Opportunity Insights. Legacy admissions, donor preferences, and access to elite extracurricular activities and expensive test prep services give wealthier applicants clear advantages. Despite growing awareness of these disparities, the gates to elite education remain closed to most Americans. In 2023, the Supreme Court struck down affirmative action policies, further limiting access for underrepresented students of color.
Public colleges and universities, once affordable vehicles for upward mobility, have also become less accessible and more commercialized. State disinvestment in public higher education has been dramatic. Between 1980 and 2020, state funding per student declined by nearly 20% in inflation-adjusted dollars. To make up the shortfall, public universities increased tuition and fees, shifted toward out-of-state and international students who pay more, and invested in revenue-generating activities like athletics, real estate, and research partnerships with private industry. Flagship universities have increasingly mimicked elite privates, while regional public universities—serving the most vulnerable populations—have been neglected, consolidated, or closed.
For-profit colleges, often owned by private equity firms, have targeted low-income, first-generation, and non-traditional students, promising quick credentials and job placement. In reality, many of these institutions deliver poor outcomes, high dropout rates, and outsized debt burdens. According to the U.S. Department of Education, students at for-profit institutions are twice as likely to default on their loans compared to those at public colleges.
The student loan crisis is a defining feature of this caste-like system. Total student loan debt in the U.S. surpassed $1.7 trillion in 2023, with more than 45 million Americans carrying loans. Black borrowers, in particular, face disproportionate burdens. Data from the Brookings Institution show that Black graduates owe an average of $25,000 more than white graduates four years after graduation, due in part to differences in generational wealth and post-college income. Many borrowers spend decades in repayment or fall into default, resulting in ruined credit, wage garnishment, and loss of social mobility.
Meanwhile, the internal labor structure of higher education mirrors the broader erosion of the middle class. Since the 1970s, the percentage of faculty in tenure-track positions has declined from roughly 70% to under 30%. Today, more than 70% of college instructors are contingent workers—adjuncts or lecturers without job security, benefits, or a livable wage. Many earn less than $3,500 per course, forcing them to string together multiple jobs or rely on public assistance. The very institutions that promote education as the path to professional stability are exploiting educated workers at scale.
Credential inflation has also contributed to the caste structure. Jobs that once required a high school diploma now demand a bachelor’s degree, while others that once required a bachelor's now demand a master's or doctorate. This escalation has not always come with higher pay or better conditions but has added years of unpaid or underpaid labor, especially in fields like education, social work, and academia. As employers outsource training responsibilities to colleges, individuals are expected to invest more in credentials—often at their own expense—just to remain competitive.
Cultural narratives of meritocracy continue to legitimize these outcomes. College is still portrayed as a personal investment and a moral obligation—despite clear evidence that structural inequality determines who can afford to attend, who can complete a degree, and who can leverage it into economic stability. The myth that higher education is a universal equalizer serves to obscure how deeply stratified the system has become.
Higher education could be a force for economic justice and democratic renewal. But as it currently functions, it serves as a sorting mechanism that reproduces existing hierarchies. Elite institutions credential the ruling class. Public universities ration opportunity through rising costs. For-profit schools prey on the vulnerable. And the debt system punishes those who try to improve their circumstances through education.
Unless the system is restructured—through robust public funding, tuition-free options, large-scale debt relief, labor protections, and a renewed commitment to equity—higher education will continue to solidify America's caste system rather than dismantle it.
Sources: U.S. Census Bureau (Gini Index), U.S. Department of Education, National Center for Education Statistics, Opportunity Insights, Brookings Institution, Institute for Higher Education Policy, The Century Foundation, “The Merit Myth” by Anthony Carnevale et al., “The Debt Trap” by Josh Mitchell
No comments:
Post a Comment