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Friday, July 25, 2025

AI-Driven SAT Prep and the System That Creates It: Savage Inequalities and the Gatekeeping of Opportunity

In the world of elite MBA admissions, companies like Target Test Prep (TTP) represent the newest frontier in test preparation: AI-powered, data-driven, personalized, and promising significant score improvements. With glowing endorsements from top publications and thousands of positive reviews, TTP offers an appealing shortcut through the notoriously difficult GMAT exam. For many, this technology-driven prep is the key to unlocking entry into elite business schools that serve as launchpads for high-status careers.

But that shortcut comes at a price. TTP’s GMAT Focus Edition plans range from $149 for a single month, to $399 for four months, and $499 for six months of access. These plans include detailed analytics, thousands of practice questions, custom study plans, and live support. For those who can afford it, the promise is a dramatic score improvement—and, by extension, a potential gateway into institutions like Wharton, Stanford, or INSEAD.

Yet while these platforms showcase technological innovation and customization, their rise also reveals a deeper and more troubling story about the educational and economic system that created them—a system marked by savage inequalities and barriers that often block large segments of the American population before they even reach the starting line.

Savage Inequalities and Unequal Access
The reality is that preparing for a test like the GMAT—and gaining admission to top MBA programs—is not merely about aptitude or effort. It is shaped by profound inequalities that begin long before students log into an AI tutor. Many American students, especially those from low-income, rural, or under-resourced urban backgrounds, lack access to rigorous K-12 education, advanced math and verbal instruction, or the cultural capital needed to navigate elite academic and professional pathways.

These educational disparities, stark and persistent, create a high barrier to entry that standardized test prep—no matter how advanced—cannot fully overcome. The existence and popularity of platforms like TTP expose the market response to these structural gaps: a lucrative industry designed to help those who can afford it to “hack” a system that is, at its core, deeply unequal.

Immigration and the Competition for Opportunity
Another dimension shaping this landscape is the impact of immigration on educational and professional opportunity in the United States. The influx of highly skilled international students—many of whom use GMAT scores to access top programs—has intensified competition for limited seats in elite institutions and the subsequent career pipelines they feed.

For many native-born Americans, particularly from working-class and marginalized communities, this increased competition, combined with systemic educational inequities, creates a double bind. They face both the structural disadvantages of savage inequality and the pressures of an increasingly globalized admissions environment. This reality complicates the narrative of meritocracy often promoted by test prep companies and elite schools alike.

The Marketization of Educational Gatekeeping
AI-driven platforms like Target Test Prep are designed to navigate and exploit this high-stakes, competitive environment. They offer personalized study plans, infinite practice questions, and real-time analytics to maximize test scores—and by extension, chances of admission and career advancement. Yet, these tools are less about democratizing access and more about optimizing performance within a system that already privileges certain groups.

The marketization of test preparation also deepens existing disparities. Students from wealthier backgrounds can afford premium, AI-enhanced prep, while many Americans from less privileged backgrounds are left with fewer resources, perpetuating cycles of exclusion.

Toward a More Equitable Conversation
Target Test Prep’s rise is a symptom of a system that places enormous weight on standardized testing as a gatekeeper to opportunity—one that disproportionately disadvantages many native-born Americans while welcoming a surge of international applicants competing for scarce spots.

As society grapples with these realities, it is critical to question not just how to better prepare for tests, but why such high-stakes exams hold so much power in shaping futures. Addressing savage inequalities in K-12 education, rethinking immigration’s role in admissions, and challenging the dominant credentialing system are necessary steps toward a more equitable educational landscape.

Until then, AI-powered prep companies like TTP will continue to thrive—offering vital tools for some, while spotlighting the systemic barriers faced by many.

Source:
Target Test Prep GMAT Plans & Pricing

Wednesday, July 23, 2025

The Digital Dark Ages of Higher Education: Greed, Myth, and the Ghosts of Lost Knowledge

In a time of unprecedented data collection, artificial intelligence, and networked access to information, it seems unthinkable that we could be slipping into a new Dark Age. But that is precisely what is unfolding in American higher education—a Digital Dark Age marked not just by the disappearance of records, but by the disappearance of truth.

This is not a passive erosion of information. It is a systemic, coordinated effort to conceal institutional failure, to commodify public knowledge, and to weaponize mythology. It is a collapse not of technology, but of ethics and memory.

A Dark Age in Plain Sight

Digital decay is usually associated with vanishing files and outdated formats. In higher education, it takes the more sinister form of intentional erasure. Data that once offered accountability—graduation rates, job placement figures, loan default data, even course materials—have become reputational liabilities. When inconvenient, they vanish.

Gainful Employment data disappeared from federal websites under the Trump administration. Student outcomes from for-profit conversions are obscured through accounting tricks. Internal audits and consultant reports sit behind NDAs and paywalls. And when institutions close or rebrand, their failures are scrubbed from the record like Soviet photographs.

This is a higher education system consumed by image management, where inconvenient truths are buried under branded mythologies.

The Robocolleges and the Rise of the Algorithm

No phenomenon illustrates this transformation more starkly than the rise of robocolleges—fully online institutions like Southern New Hampshire University, University of Phoenix, and Liberty University Online. These institutions, driven more by enrollment growth than educational mission, are built to scale, surveil, and extract.

Their architecture is not intellectual but algorithmic: automated learning systems, outsourced instructors, and AI-driven behavioral analytics replace human-centered pedagogy. Data replaces dialogue. And all of it happens behind proprietary systems controlled by Online Program Managers (OPMs)—for-profit companies like 2U, Academic Partnerships, and Wiley that handle recruitment, curriculum design, and marketing for universities, often taking a majority cut of tuition revenue.

These robocolleges aren’t built to educate; they’re built to profit. They are credential vending machines with advertising budgets, protected by political lobbying and obscured by branding.

And they are perfectly suited to a Digital Dark Age, where metrics are manipulated, failures are hidden, and education is indistinguishable from a subscription service.

Myth #1: The College Degree as Guaranteed Mobility

The dominant myth still peddled by these institutions—and many traditional ones—is that a college degree is a golden ticket to upward mobility. But in an economy of stagnant wages, rising tuition, and unpayable debt, this narrative is a weapon.

Robocolleges and their OPM partners sell dreams on Instagram and YouTube—“Success stories,” “first-gen pride,” and inflated salary stats—while ignoring the mountains of debt, dropout rates, and lifelong economic precarity their students face. And when those stories come to light? They disappear behind legal threats, settlements, and strategic rebranding.

The dream has become a trap, and the myth has become a means of extraction.

Myth #2: Innovation Through EdTech

“Tech will save us” is the second great myth. EdTech companies promise to revolutionize learning through adaptive platforms, AI tutors, and automated assessments. But what they really offer is surveillance, cost-cutting, and outsourcing.

Institutions are increasingly beholden to opaque algorithms and third-party platforms that strip faculty of agency and students of privacy. Assessment becomes analytics. Learning becomes labor. And the metrics these systems produce—completion rates, engagement data—are as easily manipulated as they are misunderstood.

Far from democratizing education, EdTech has helped turn it into a digital panopticon, where every click is monetized, and every action is tracked.

Myth #3: The Digital Campus as a Public Good

Universities love to claim that their digital campuses are open and inclusive. But in truth, access is restricted, commercialized, and disappearing.

Libraries are gutted. Archives are defunded. Publicly funded research is locked behind publisher paywalls. Historical documents, administrative records, even syllabi are now ephemeral—stored on private platforms, subject to deletion at will. The digital campus is a gated community, and the public is locked out.

Third-party vendors now control what students read, how they’re taught, and who can access the past. Memory is no longer a public good—it is a leased service.

Greed, Cheating, and Digital Amnesia

This is not simply a story about decay—it is a story about cheating. Not just by students, but by institutions themselves.

Colleges cheat by manipulating data to mislead accreditors and prospective students. OPMs cheat by obscuring their contracts and revenue-sharing models. Robocolleges cheat by prioritizing growth over learning. And all of them cheat when they hide the truth, delete the data, or suppress the whistleblowers.

Faculty are silenced through non-disclosure agreements. Archivists are laid off. Historians and librarians are told to “streamline” and “rebrand” rather than preserve and inform. The keepers of memory are being dismissed, just when we need them most.

Myth as Memory Hole

The Digital Dark Ages are not merely a result of failing tech—they are the logical outcome of a system that values profit over truth, optics over integrity, and compliance over inquiry.

Greed isn’t incidental. It’s the design. And the myths propagated by robocolleges, OPMs, and traditional universities alike are the cover stories that keep the public sedated and the money flowing.

American higher education once aspired to be a sanctuary of memory, a force for social mobility, and a guardian of public knowledge. But it is now drifting toward becoming a black box—a mythologized, monetized shadow of its former self, accessible only through marketing and controlled by vendors.

Without intervention—legal, financial, and intellectual—we risk becoming a society where education is an illusion, memory is curated, and truth is whatever survives the deletion script.


Sources and References:

  • Savage Inequalities, Jonathan Kozol

  • Tressie McMillan Cottom, Lower Ed

  • Christopher Newfield, The Great Mistake

  • Nancy MacLean, Democracy in Chains

  • U.S. Department of Education archives (missing Gainful Employment data)

  • “Paywall: The Business of Scholarship” (2018)

  • SPARC (Scholarly Publishing and Academic Resources Coalition)

  • Internet Archive reports on digital preservation

  • ProPublica and The Century Foundation on OPMs and robocolleges

  • Faculty union reports on librarian and archivist layoffs

  • Inside Higher Ed and The Chronicle of Higher Education coverage of data manipulation, robocolleges, and institutional opacity

Why are men so obsessed with pornography? (Robert Jensen)

[Editor's note: This article previously appeared at Julie Bindel's writing and podcasts.]








A young Andrea Dworkin, 1965

With a sense of both joy and grief, I offer as my text for today Andrea Dworkin’s “I Want a Twenty-Four-Hour Truce During Which There Is No Rape,” a speech she gave to the National Organization for Changing Men in 1983 in St. Paul, MN. The joy comes from remembering how her words helped me understand feminism, the first step in understanding myself. The grief comes from how relevant her analysis remains in today’s broken world.

So, let’s start with a story to remind us of the state of contemporary sexual politics.

In my last five years at the University of Texas at Austin, I taught a course that I designed called “Freedom: Philosophy, History, Law.” We reviewed philosophers’ conceptions of freedom and then studied how the term has been defined and deployed politically throughout U.S. history. The course concluded with the radical feminist critique of the contemporary pornography industry, set in the context of the feminist critique of men’s violence, as a case study in the complexity of conflicting claims about freedom.

In the fall of 2016, I delivered that lecture on men’s violence right after the election of Donald Trump. Despite the tense political environment, I thought it would have been irresponsible to avoid the obvious. Without commentary, I summed up the uncontested facts. The president-elect had bragged about being sexually aggressive and treating women like sexual objects, and several women had testified about behavior that—depending on one’s evaluation of the evidence—could constitute sexual assault. Does it seem fair, I asked the class, to describe him as a sexual predator? No one disagreed.

Trump sometimes responded by contending that Bill Clinton was even worse. Citing someone else’s bad behavior to avoid accountability is a weak defense, and of course Trump wasn’t running against Bill, but I suggested that we take that claim seriously. As president, Clinton took advantage of his powerful position by having sex with a much younger woman who was first an intern and then a junior employee. He settled a sexual harassment lawsuit out of court, and he had been accused of rape. Does it seem fair to describe him as a sexual predator? No one disagreed.

I asked students to reflect. A former president, a Democrat, had been outed as a sexual predator but continued to be treated as a respected statesman and philanthropist. The incoming president, a Republican, was elected with the widespread understanding that he was an unapologetic sexual predator.

That day has been on my mind since Clinton endorsed Andrew Cuomo, who was running for mayor of New York City after having resigned the governor’s office on the heels of multiple complaints of sexual harassment. More women have given accounts of Trump’s sexual misconduct, and a year before his reelection a jury had found that he had sexually assaulted a woman.

Between 2016 and today, the #MeToo movement emerged, forcing a cultural reckoning of sorts about men’s sexual exploitation of women. For a while. That movement can claim some gains, just as the decades of feminist work against rape, harassment, and violence changed the culture in many ways—rape shield and marital rape laws, sexual harassment lawsuits, domestic violence shelters and rape crisis centers.

But Donald Trump is president again, and Bill Clinton is still applauded in public. I am not suggesting that the two men and their political projects present the same threat—to women, democracy, or the larger living world. I am suggesting that we be honest about the sexual politics of the United States.

Andrea Dworkin died in 2005. I don’t know what she would say if she were alive today, but I know what she wrote in her first book, published in 1974:

The commitment to ending male dominance as the fundamental psychological, political, and cultural reality of earth-lived life is the fundamental revolutionary commitment. It is a commitment to transformation of the self and transformation of the social reality on every level. [Andrea Dworkin, Woman Hating (New York: E.P. Dutton, 1974), p. 17].

In my lifetime, the United States has never been a revolutionary society, even during the fabled 1960s. Change has come much slower. Three steps forward, four steps back? Or maybe three steps forward, a step to the side, then back a couple of steps? Only in hindsight can we see how much permanent progress was made. But whatever that future assessment may be, we can both be grateful to feminists for their work and recognize that attempts to make revolutionary change have failed. Sometimes, even attempts to make minor reforms have failed. And sometimes even holding the ground to protect small changes is difficult.

My topic today is the one project on which we clearly have lost ground since the initial feminist critique—the harms of pornography.

That brings me back to “I Want a Twenty-Four-Hour Truce During Which There Is No Rape.” My thesis can be stated simply: Andrea Dworkin was right, specifically about pornography and more generally about patriarchy, feminism, and men. And more than ever, we need that analysis.

But first, a bit more autobiography. In 1983, when Andrea delivered that speech, I was living about an hour north of the Twin Cities, working at a small Catholic college, where I got my first lessons in the sex/gender system and power. But as a professor of mine said when he realized he was sliding into a digression, “That’s another story for another course.”


I had no idea the men’s conference was taking place, but I wouldn’t have attended. At that point in my life, I was sure I knew everything I needed to know about feminism: Feminists were ugly women who were angry because they couldn’t get dates. I wasn’t a tough guy, but at that time I believed what I had been told by other men and had no idea of what feminism was or could mean to me. If I had been in the audience, I doubt I would have been able to understand what Andrea had to say.

But five years later, when I started graduate school at the University of Minnesota and began studying the feminist critique of pornography, I got a second chance. That year, Andrea published her book Letters from a War Zone, which included that speech, and this time I was paying attention.


One additional biographical note. That change in my assessment of feminism was due in part to the influence of a friend, Jim Koplin, who had been a volunteer in the antipornography movement in Minneapolis that Andrea had helped lead. The power of Andrea’s writing opened a door, and Jim helped me get past my fear and walk through it. It’s a reminder of how important we men can be in helping each other understand and embrace feminism. After Jim died in 2012, I wrote a book about my life with him, Plain Radical: Living, Loving, and Learning to Leave the Planet Gracefully, in which I described how his quiet commitment to radical politics changed me. That book was my attempt to describe how love between men changed me.

A few years later I met Gail Dines, who had been working to understand pornography in her UK graduate program. As we were getting established in our faculty jobs in the early 1990s, pro-porn ideology was becoming dominant in academic feminism and I’ll never forget the day I met Gail, watching her stand up at a conference and challenge that ideology. That’s also another story for another course. As the so-called “sex positive” approach become dogma in women’s studies, Gail’s fierce commitment, along with Jim’s ongoing support, helped keep me going.

Now, finally, back to my thesis, point #1.

Andrea was right about pornography. When I say “Andrea,” I really mean all the feminists who developed the critique of pornography and the other sexual-exploitation industries, including street prostitution, escorts, stripping, massage parlors, and now the online sex industry. Andrea was one of the most prominent of those critics but she was not alone. I focus on her writing because it influenced me the most dramatically.

In 1979, Andrea published the book Pornography: Men Possessing Women, which helped expand the political conversation about obscenity law from a liberal-versus-conservative framing about moral judgment to include a feminist critique of harm to women, which led to a civil-rights ordinance that was the basis for the Minneapolis organizing. Think back to the most common pornography of the 1970s, when she was developing her analysis: Playboy, Penthouse, and Hustler magazines, and the movies “Deep Throat,” “Behind the Green Door,” and “The Devil in Miss Jones.” All were sexually explicit, sometimes depicting coercion and force, but remarkably tame compared with the sexual degradation and violence that is readily available on the internet today. Yet even then, Andrea saw that pornography was not just sex on the page and screen but sex presented in a domination/subordination dynamic, sex that eroticized power. Male domination/female subordination was the core pornographic power dynamic, but any social hierarchy—race, ethnicity, class, nationality, disability—could be eroticized for the primarily male viewers.

Fast-forward a half century, and the images that anyone of any age with a smartphone or computer today can access easily in seconds illustrate the accuracy of that analysis. Pornography has become more intensely cruel and degrading to women. Pornography is without question the most openly racist mass media genre. Scenes of rough sex that pornographers once considered too dangerous to market are now considered unremarkable. Girls report that the boys they date want to replicate those scenes during sex, including strangulation. Young women report abandoning the hope of a male partner who doesn’t use pornography. Women in relationships with men report a sense of betrayal when partners refuse to give up pornographic pleasures.

And then there are the women used in the production of pornography, the women Andrea demanded that we never forget. I don’t mean the “porn stars” who explain how they are empowered by the pornography industry. I’m not mocking those women but simply pointing out that they are not representative of an industry that, as one pornography producer told me, “chews up and spits out women.”

Andrea was right, but I doubt that she could have predicted the intensity of the misogyny in today’s pornography. Multiple penetrations, gang bangs, ass-to-mouth are standard practices. I won’t bother making an argument that these sexual practices are degrading, because even pornography producers acknowledge that. When I asked producers back in the early 2000s what trends to expect in the coming years, they said that couldn’t predict. During the filming of the documentary “The Price of Pleasure,” one producer responded rhetorically: “How many dicks can you stick in a girl at one time?” Producers told me that they didn’t know how to devise sexual scenes more extreme than what was already being filmed. That’s what we call “mainstream pornography,” which is presumed to be legal. Beyond the mainstream is more disturbing. The industry long denied it profited from filmed rape until a journalist documented the practice, and of course far more brutal material exists in the darker corners of the internet.


If a political movement offered an insightful analysis of a destructive social phenomenon and, decades later, that analysis proved to be more accurate than anyone could have predicted, it would make sense for the culture to pay attention. It would make sense for politicians to devise public policies to respond to the harm being done. It would make sense for scholars to pursue research to deepen our understanding of the power dynamics. It would make sense for journalists to report on the crisis. It would make sense for educators to include this analysis in health curricula. Indeed, a few people in those positions have done those things, but rarely do they even mention the foundational feminist critique. For the most part, the dominant culture has not paid attention. Why?

Let’s move to point #2.

Andrea was right in challenging men to care more about the well-being of women than about their own sexual pleasure. She was right to point out that in societies characterized by institutionalized male dominance—that is, patriarchal societies—men would find ways to avert their eyes, not only from the harms of pornography and the other sexual-exploitation industries, but also from rape, battery, sexual harassment. It was no surprise that the backlash to the #MeToo movement was almost immediate.

But why has such a compelling feminist critique of pornography been so ignored? The seemingly endless expansion of the pornography industry is partly a story about economics forces and technological developments. The profit motive in capitalism drives pornographers just as in any other business. VCRs, DVDs, computers, smartphones, and the internet have made distribution much easier. But behind those factors, pornography and the sexual-exploitation industries are fueled by men’s demand for sexual access to women. Liberal-left/secular men call it “sexual freedom,” by which they mean the freedom to pursue sexual pleasure without constraints from other men and without concern for the consequences for women. Conservative-right/religious men reject that libertarian ideology, preferring “traditional family values” that give them control over “their” women at home, but right-wing men are patrons of the industry all the same.

When I began speaking and writing in support of this critique, men constantly asked me, “Why are radical feminists are so obsessed with pornography?” My question in response has always been, “Why are men so obsessed with pornography?” The simple answer, of course, is that pornography works—it provides quick and easy sexual stimulation without any emotional investment in another person.

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But after lots of self-reflection about my years of using pornography as a young man and conversations with many men, I think it’s about more than just the demand for sexual access. Men use pornography to shore up a sense of power over women—women who never talk back, never challenge men or men’s desires. That illusion of control helps men evade our fears. Real men are not supposed to be afraid, of course, but I have never met a man who wasn’t at some point in his life afraid of at least one thing: The fear that he is not “man enough.” In patriarchy, men are trained not only to control women but to fear being controlled by other men if we aren’t strong enough to dominate. Men routinely fear that we are not capable of living up to the pathological profile of a “real man.” Pornography shores up illusions about male power.

Before I conclude, an important clarification. I realize I have been talking about heterosexual practices, but this is not solely a question for straight men. Gay men are targets in patriarchy, but they are implicated in patriarchy as well. Chris Kendall's book Gay Male Pornography: An Issue of Sex Discrimination is a good place to start to understand the complexity in the context of pornography. And, I should make it clear that when I talk about gay men, I include myself. Most of my intimate relationships have been heterosexual, but some have been with men. That’s also another story for another course, but it’s important to mark that many straight men have some gay experience and our often fumbling attempts to make sense of that is another example of how patriarchy constrains men.

Andrea asked men to embrace feminism for women’s sake, but she also knew that feminism was men’s only hope of escaping what some call “the man box.” She challenged us to renounce our sexual prerogatives, let go of our fears, and help women and ourselves. I’ll conclude with her words from that speech, starting with evidence that, in spite of the stereotypes, feminists indeed have a sense of humor and do not hate men.

I came here today because I don’t believe that rape is inevitable or natural. If I did, I would have no reason to be here. If I did, my political practice would be different than it is. Have you ever wondered why we are not just in armed combat against you? It’s not because there’s a shortage of kitchen knives in this country. It is because we believe in your humanity, against all the evidence.

Next are the words of Andrea that I have quoted most often. When I first read them, I felt their power in my body. Every time I re-read them, I feel that same power.

We do not want to do the work of helping you to believe in your humanity. We cannot do it anymore. We have always tried. We have been repaid with systematic exploitation and systematic abuse. You are going to have to do this yourselves from now on and you know it. [Andrea Dworkin, Letters from a War Zone: Writings 1976-1987 (London: Secker & Warburg, 1988/Chicago: Lawrence Hill Books 1993), pp. 169-170.]

Many of us have tried to meet that challenge, with varying degrees of success, but as a movement we have failed. We are living through another “crisis of masculinity,” which periodically appear when social movements threaten change. In this period of male panic, the conservative case for a benevolent sexism has been pushed aside by the hostile sexism of the manosphere. Liberals concerned with the problems of boys and men reject a radical feminist analysis, or often any feminist analysis. Instead of looking to feminism, men too often blame women and feminism, explicitly or implicitly.


That’s why I keep saying, over and over, as often as possible—that radical feminism is not a threat to men but a gift to us. If we take feminism seriously, it offers us a way to let go of that fear of inadequacy, which creates the possibility that we can let go of our obsession with being real men and instead try to be fully human.

This is where most speakers offer the upbeat ending, the reminder that social change takes time, that others before us kept struggling after defeats, that we have no right to give up. I agree we have no right to give up, but I don’t think that platitudes help. My assessment is that things are going to get worse before they get better and that there is no guarantee they will get better. In addition to the many failures of human beings to treat each other with respect and compassion, we face unprecedented ecological collapse for which there are no simple solutions, and perhaps no solutions at all. Progressive social change is likely to be more difficult against that background.

Fifteen years ago when I wrote “pornography is what the end of the world looks like,” I meant that in pornography we can see what a world without empathy looks like, and societies devoid of empathy couldn’t continue indefinitely. Today, the high-energy/high-technology systems we take for granted are closer to the end than I could have imagined. Fear often keeps us from confronting both social hierarchies and ecological collapse, but failing to confront crises does not resolve crises.

I’ll end with one more personal experience, not exactly upbeat but honest. I now live in rural New Mexico, and one of my new friends is a young man who shares many of my concerns. Because I didn’t want to be the old guy who annoys young people with unwanted advice, I was at first hesitant to offer too many stories from my life. But I finally realized that he wanted those conversations, that he feels cut off from most men in his own generation as he and his partner try to craft a life that is humane and ecologically sane. That got me thinking about my late friend Koplin, and how more important to me than his analysis were his stories about his life choices, which had given me a sense that I could let go of trying to be a real man and find a way to be a decent person. His example of how to face harsh realities and yet live a fulfilling life was crucial to my embrace of radical feminism.

That’s a reminder that while it is good for men to practice humility—to talk less and listen more, to remember we don’t have all the answers—we have to open up to each other, both to hold each other accountable and to help each other deal with our lives. We have to talk more about ourselves, not out of self-indulgence but out of a commitment to challenge and care for each other.

Andrea was right: We have to do it ourselves.

-------------------------

Robert Jensen, an Emeritus Professor in the School of Journalism and Media at the University of Texas at Austin, is the author of It’s Debatable: Talking Authentically about Tricky Topics from Olive Branch Press. His previous book, co-written with Wes Jackson, was An Inconvenient Apocalypse: Environmental Collapse, Climate Crisis, and the Fate of Humanity. To subscribe to his mailing list, go to http://www.thirdcoastactivist.org/jensenupdates-info.html or visit

https://robertwjensen.org/


Email him at rjensen@austin.utexas.edu.

*A version of this essay was presented to the National Organization for Men Against Sexism’s 50th anniversary conference on July 17, 2025.*

Tuesday, July 22, 2025

Crisis Talk as Business Strategy: A Review of a Chronicle of Higher Education Mass Email

On July 22, 2025, The Chronicle of Higher Education distributed a mass email promoting an upcoming online event titled “The Path Ahead for Higher Ed”. The message, signed by Deputy Managing Editor Ian Wilhelm, framed the event as a vital opportunity for “higher ed’s business and nonprofit partners” to better understand the current challenges colleges face and how they might “help and provide value.”

While presented as a call for collaboration, the subtext of the message suggests a commercial logic that raises deeper questions about the Chronicle’s position in the higher education ecosystem. The email is not aimed at students, educators, or the broader public, but rather at vendors and consultants — those who stand to profit from institutional volatility.

Key Themes: Crisis and Commerce

Wilhelm identifies a list of familiar problems: demographic shifts, declining admissions, skepticism about the value of a degree, student protests, and political upheaval. These issues are real. According to data from the National Student Clearinghouse, total postsecondary enrollment in the U.S. has declined by more than 10 percent since 2012, with sharper drops among community colleges and for-profit institutions.

A recent ECMC Foundation survey (2024) shows that just 39 percent of teenagers believe education beyond high school is necessary — down from 60 percent in 2019. Public trust in higher education has also declined. A 2023 Gallup poll showed that only 36 percent of Americans had a “great deal” or “quite a lot” of confidence in colleges and universities, down from 57 percent in 2015.

What’s less clear is how a marketing webinar for outside vendors will meaningfully address these structural issues. The Chronicle’s event is positioned not as a public forum or investigative inquiry, but as a networking and insight session for firms involved in “technology, student services, consulting, design, or another function.” The framing shifts the conversation from public good to private opportunity.

The Chronicle’s Role: Observer or Participant?

For decades, The Chronicle of Higher Education has maintained a reputation as a leading source of news and analysis on academia. But it also functions as a platform for advertisers and vendors to access a lucrative market of institutional clients. In 2023, The Chronicle earned an estimated 65 percent of its revenue from advertising and sponsored content, according to industry data aggregated by MediaRadar.

This business model complicates its journalistic neutrality, especially when the publication hosts events that blur the line between reporting and consulting. The July email does not disclose whether the August 13 session is sponsored, or which companies may be involved. Nor does it acknowledge the Chronicle’s role in promoting firms that may contribute to the very instability being discussed — including online program managers (OPMs), edtech platforms, and private equity–backed service providers.

The Missing Voices

Absent from the message are the voices of students, contingent faculty, and debt-burdened alumni — those most impacted by the policies and market strategies shaping higher education. Nearly 70 percent of instructional staff in U.S. colleges are now non-tenure-track, often working without benefits or job security. Student loan debt remains at $1.7 trillion, with over 5 million borrowers in default as of early 2025, according to Federal Student Aid.

These constituencies are not addressed in the email. Instead, the implicit audience is those with the capital and infrastructure to offer “solutions” to the crisis — many of whom have historically benefited from that very crisis.

Chronicle of Higher Ed Business

The Chronicle’s invitation reflects a common pattern in U.S. higher education: the packaging of systemic decline as a service opportunity. Whether the August 13 event delivers meaningful insight or simply reinforces the revolving door between higher education institutions and their vendors remains to be seen.

But the framing is clear. This is not a convening to discuss how to reduce tuition, reinvest in teaching, or restore public trust. It is a pitch to business partners on how to better position themselves in a distressed but still profitable sector.


Sources:

National Student Clearinghouse Research Center, “Current Term Enrollment Estimates,” Spring 2024
ECMC Foundation, “Question the Quo Survey,” 2024
Gallup, “Confidence in Institutions,” 2023
MediaRadar, “Education Media Ad Spend Trends,” 2023
U.S. Department of Education, Federal Student Aid Portfolio, Q1 2025
American Association of University Professors (AAUP), “Annual Report on the Economic Status of the Profession,” 2024

Monday, July 21, 2025

Caltech Settlement Spotlights Critical Need for OPM Transparency and Oversight in Higher Education

A recent Republic Report article by Jeremy Bauer-Wolf outlines the terms of a legal settlement between the California Institute of Technology and students enrolled in its Simplilearn-run cybersecurity bootcamp. The case and its resolution reveal larger systemic risks associated with university partnerships with Online Program Managers (OPMs), particularly those involving aggressive marketing, limited academic oversight, and questionable student outcomes.

The Caltech-Simplilearn bootcamp, launched under Caltech’s Center for Technology and Management Education, was marketed heavily using the university's brand. Students enrolled in the program alleged that Caltech misrepresented its level of involvement. The program was, in fact, designed and operated by Simplilearn, a for-profit OPM controlled by Blackstone and backed by GSV Ventures. The university seal and branding were used extensively in recruitment materials, leading some students to believe they were enrolling in a Caltech-created and Caltech-taught program. The class-action lawsuit contended that the program failed to live up to the expectations created by this branding.

As part of the settlement, Caltech and Simplilearn agreed to provide refunds to more than 260 students, totaling about $400,000. In addition to financial relief, the agreement requires clear disclosures that the bootcamp is “in collaboration with Simplilearn” and mandates that recruiters use Simplilearn email addresses rather than appearing to represent Caltech. The university must also ensure instructors possess verifiable professional credentials, not just certificates from prior bootcamp participation. Caltech is scheduled to wind down the program by the end of November 2025.

The Higher Education Inquirer previously reported in September 2024 that the Caltech-Simplilearn partnership was a case study in what can go wrong with white-labeled OPM programs. Simplilearn, which reported 35–45 percent annual revenue growth, had entered similar arrangements with Purdue, UMass, Brown, and UC San Diego. In many of these cases, the university’s brand was being used to sell pre-packaged courses created and delivered by the OPM. In Reddit forums and independent consumer reviews, former students regularly cited misleading marketing, lack of academic rigor, and poor support services. HEI's reporting raised concerns about the involvement of GSV Ventures, whose investors include high-profile education reformers like Arne Duncan and Michael Horn, as well as the private equity backing of Blackstone.

John Katzman, founder of the Noodle OPM, publicly warned about this model in 2024, saying, “White labeling is done everywhere… Still, I wouldn’t put my university’s name on other peoples’ programs without clear disclosure.” The Caltech case confirms that the reputational risks of such arrangements are real and can result in legal and financial liability.

The broader implications are significant. Since the onset of the COVID-19 pandemic, universities have increasingly turned to OPMs to expand their online offerings quickly and with limited internal resources. These partnerships often involve tuition-share agreements in which the OPM receives a large percentage of student revenue—sometimes as much as 80 percent. In return, the OPM provides marketing, recruitment, course development, and instructional support. However, as Caltech’s case illustrates, this model can easily sideline university faculty, diminish educational quality, and mislead students.

Policy makers have begun to respond. Minnesota has banned tuition-share arrangements in its public colleges. Ohio now requires OPM disclosure on university websites. A 2023 California state audit found that several public institutions were engaging in misleading marketing through their OPM partners. Yet federal regulations around OPMs remain limited and largely unenforced, despite calls for greater oversight.

The Caltech settlement reinforces the need for strong institutional governance over OPM partnerships. Universities must ensure full transparency in marketing, maintain academic control over curriculum and instruction, and build systems of accountability that protect students from misleading practices. Caltech’s retreat from its bootcamp partnership may serve as a warning to other elite institutions that have outsourced large portions of their online education operations with minimal oversight.

This episode also underscores the importance of investigative journalism in higher education. The Higher Education Inquirer’s early reporting on the Caltech-Simplilearn relationship helped expose a pattern of questionable practices that extend far beyond one institution. With private equity and venture capital deeply embedded in the OPM sector, the risks of commodifying higher education continue to grow.

Sources:
https://www.highereducationinquirer.org/2024/09/cal-tech-simplilearn-blackstone-scandal.html
https://www.republicreport.org/2025/caltech-settlement-underscores-need-for-opm-oversight-in-higher-ed/
https://www.govtech.com/education/higher-ed/caltech-settles-lawsuit-over-cybersecurity-boot-camp-marketing
https://newamerica.org/education-policy/edcentral/

Sunday, July 20, 2025

Borrower Defense Story 4: Fashion Gone Bad for Private Student Loan Borrower (Depressed Debtor)

As many high school students start looking for higher education options as graduation approaches, I had no idea what I was looking for. My parents worked in the food/service industry my whole life and no one in my family attended college. I knew I wanted something more. I came across International Academy Of design & Technology (IADT) at a college fair held at my high school. Which was a low income public high school.
 
IADT marketed themselves in a different way than any other university. They prided them self on that we can get hands on experience, work right in the industry, travel around for classes, classes were morning or night and that I can be done with a bachelors degree within 3 years. All while working right in the industry with mentors that the school will help set us up with. This all was perfect, as I had to still work to make money to live. I was so excited that I could do all this hands-on work and get a degree too. I knew that a 4-year university would never work for me.

I started at the Las Vegas campus. Within a few months I noticed that it was nothing that they promised me. I would ask the teachers and they said it was because the campus was NEW. I decided to switch and go to the Chicago, IL campus. When I did transfer, the school did tell me I had to take out private loans because my federal loans were all maxed out. So I did, not knowing this was a scam. 

As the Chicago campus was more “established” all the lies started to come out and seeing the other students and talking to them. Seeing that this school knew who to target and what kind of places to recruit low-income students. Lie to us, tell us we’ll get great jobs, etc. it was all lies. I never had a fashion “mentor” I never worked with major brands, fashion shows. Gosh, I barely learned programs on computers that were to be taught. I knew if I dropped out my parents (not too smart to begin with) would never understand. I stayed and just hoped for the best, working hard and trying to find connections myself. It was hard, I was 19 trying to find my way in life with no guidance. I had a mental breakdown. It caused me many relationships, money struggles, my faith and low confidence that got me into a social life mess.

The past 15 years of having a useless degree and 100k in private student debt. The only job I could ever get was a retail manger making $40,000 a year. I had many interviews with top brands like Nordstrom, Zappos, Macys, ETC, they all pretty much laughed in my face saying I had no degree just debt. I was never qualified for a buyer job, or a marketing manager at the brand. I went to school and all that debt for what? To make $40,000 a year. Being forced to pay $500+ in private student loans a month , that’s all I got. If I miss one payment I start to get threatening calls saying I need to pay or I’ll be sent to a collections agency, and they will start to take my wages. The lender (MOHELA) says they will work with me but they never do. Interest rates on the loans are 5% or higher. 

I cannot save, I have no retirement, I don’t own a house, car, no credit cards.my credit score has never been above 500. 

No American dream for me and my family. 

After paying my loans I barely could survive. I would love to file for bankruptcy, but I can’t, because the “Private loans” are not able to come off. But, When I do ask the lender (MOHELA) they tell me private loans are like a credit card, so why can’t I file for bankruptcy? Doing research on all the private loans, reading other stories of people in the same mess and all saying that we were victims of fraud. it’s a scheme of the poor stays poor and the rich, stays rich.

This loan has caused nothing but mental breakdowns and depression. I have to choose to dress my kids and put food on the table or pay this useless loan. It was all lies. I’m beyond terrify that a marshall will pound my door down when I’m late on payments. Once COVID hit I lost my job in retail and could never get back in at a manager level. Only way was working hours that I could never raise my family. I now clean houses to be able to have a family life. I have thought about going back to school and get more loans but nothing at this point can get me out of the mess I’m in.

I fell for a scam and for that I hate myself for doing it. I lost my faith and life to this loan. It controls me. I am not making anywhere near the money I was promised by IADT.

After doing countless attempts of the Misconduct application and being denied every time. I have read that MOHELA has discharged student loans that were 7+ months or more in default. But nothing for the ones that have been struggling to pay? I am trying to do what’s right. Yet again I was screwed. MOHELA has not worked with me they have just caused me to be terrified of life and a prisoner of this loan while I live paycheck to paycheck with a useless bachelor's degree.

Saturday, July 19, 2025

From EdTech Darling to Distressed Asset — A Post-Bankruptcy Autopsy

The fall of 2U, once a poster child of education technology innovation, is a cautionary tale for investors, policymakers, and students alike. After riding a wave of optimism in the online education bo-m, the company declared Chapter 11 bankruptcy in mid-2024, emerging weeks later as a privately held firm now controlled by distressed asset investors. While many of the company’s top executives have been replaced or reshuffled, the story is far from over—and the damage done to public trust in university–edtech partnerships remains.

Founded in 2008 and based in Lanham, Maryland, 2U positioned itself as a premier Online Program Manager (OPM), contracting with top-tier universities to run their online degree programs. By 2019, the company was a billion-dollar operation, boasting partnerships with USC, Georgetown, and Yale. But cracks began to show as questions about cost, transparency, student outcomes, and aggressive recruiting practices became harder to ignore.

By 2023, 2U was bleeding cash, facing multiple lawsuits, regulatory scrutiny, and plummeting investor confidence. The final blow came when the company defaulted on over $450 million in debt. In July 2024, 2U entered and quickly exited Chapter 11 bankruptcy through a pre-packaged deal. The result: 2U is now a private company, with ownership largely transferred to distressed debt investors—Mudrick Capital Management, Greenvale Capital, and Bayside Capital (an affiliate of H.I.G. Capital).

These firms are known not for a commitment to education but for expertise in distressed asset recovery and aggressive restructuring. Mudrick Capital, for instance, made headlines for its role in the AMC “meme stock” frenzy. Bayside Capital has long operated in the shadows of high-risk debt markets, favoring fast-moving deals in stressed financial environments. Greenvale Capital, a lesser-known but analytically rigorous hedge fund, rounds out the group.

Following the takeover, 2U appointed Kees Bol as its new CEO and installed Brian Napack—a veteran of the education sector and former CEO of Wiley—as Executive Chairman of the Board. Whether this new leadership can turn 2U around remains unclear. For now, they are signaling a pivot toward non-degree credentials and corporate upskilling markets, away from costly master’s degree programs that saddled students with debt and poor returns.

But 2U’s shift is not merely a business story. Its implosion exposes broader flaws in the higher education–tech ecosystem. OPMs like 2U operated in a legal gray area, exploiting Title IV federal student aid without direct regulatory oversight. Critics, including lawmakers and consumer protection advocates, argue that these firms served more as enrollment mills than academic partners. The Department of Education’s efforts to rein in the industry through “bundled services” guidance and potential Gainful Employment rules came too late to prevent massive financial fallout.

The universities that partnered with 2U are also complicit. Many ceded control of curriculum design, admissions, and marketing to a for-profit company in exchange for a share of the revenue. In doing so, they risked their reputations—and in some cases, knowingly funneled students into programs with dubious value. These relationships, many of which are still active, should now be reexamined in light of 2U’s restructuring.

Students who enrolled in these programs, often with the promise of career advancement and elite credentials, are left with debt and degrees that may not deliver the expected return. As 2U retools its strategy under the control of financial firms, it's unclear whether these students—or future ones—will benefit at all.

Meanwhile, the venture capitalists and financial engineers behind the scenes have already cashed out or secured their positions in the restructured entity. Like so many stories in the for-profit education sector, 2U’s downfall was not just predictable—it was profitable for those who knew how to play the system.

Have you worked with 2U—or been affected by it?

The Higher Education Inquirer is continuing its investigation into 2U and the wider online program management (OPM) industry. If you are a former or current employee of 2U, Trilogy Education, EdX, or a related company, a university staff or faculty member who collaborated with 2U, a student or graduate of a 2U-powered program, a marketing contractor, admissions specialist, or vendor affiliated with 2U or its partners, or someone with knowledge of the company's restructuring or operations—we want to hear from you.

We are especially interested in experiences involving enrollment pressure tactics, misleading marketing, internal operations, financial mismanagement, compliance concerns, and revenue-sharing agreements with universities. If 2U’s collapse or restructuring affected your job, finances, or education, your story matters.

You can share information confidentially by contacting us at gmcghee@aya.yale.edu. Anonymity will be protected upon request.

What the Numbers Say About Anxiety in America

Anxiety is a word we hear a lot these days—online, in classrooms, at the doctor’s office, and in everyday conversations. But how many people actually experience it? And how much has it changed over time?

If you’re between the ages of 16 and 35, chances are you or someone close to you has felt overwhelmed, tense, or stuck in worry. Some people call it stress. Some call it burnout. Others use clinical terms like Generalized Anxiety Disorder. Regardless of the label, it’s clear that anxiety is more visible—and more talked about—than ever before.

So what do the facts say?

Different surveys and studies give different numbers for how many people in the United States are dealing with anxiety. That’s because they don’t all define or measure anxiety in the same way. Some studies ask people how they’ve been feeling lately—whether they’ve felt nervous, on edge, or unable to control worrying. Others ask if someone has ever been diagnosed by a doctor or therapist with an anxiety disorder.

In 2008, about 5 percent of U.S. adults reported feeling anxious on a regular basis. By 2018, that number had increased to nearly 7 percent. The increase was even sharper among young adults. For people ages 18 to 25, anxiety nearly doubled during that time.

Then came the COVID-19 pandemic. In early 2020, anxiety levels in the U.S. shot up dramatically. In April of that year, more than one in five adults said they felt anxious most of the time. Since then, anxiety levels have come down somewhat, but they have not returned to pre-pandemic levels. Today, depending on the survey, roughly one in three adults under 35 report having frequent anxiety symptoms.

The differences in these numbers can be confusing. Some headlines say 10 percent of people have anxiety. Others say it’s closer to 40 percent. The truth is, it depends on how anxiety is defined, who is being asked, and when the data was collected. Studies based on formal diagnoses usually report lower numbers. Studies based on self-reported symptoms often report higher ones. Surveys during the height of the pandemic found much higher rates of anxiety than those done before or after.

Despite the differences, the overall trend is clear. Anxiety has been rising in the U.S., especially among younger people, over the last 15 years.

As for why anxiety is rising, there’s no single answer. Many researchers point to several factors that affect mental health today. These include the constant use of social media, the pressure to stay connected and productive, the rising cost of living, student debt, uncertain job prospects, climate anxiety, political division, and the disruption caused by the COVID-19 pandemic. Longer screen time, less sleep, fewer in-person friendships, and less access to nature may also be part of the problem.

At the same time, it’s not all bad news. Talking about anxiety is less taboo than it used to be. Many people, especially younger adults, are more open to discussing mental health. That openness can make it easier for others to speak up, find help, and feel less alone.

Colleges and universities have expanded access to mental health services, including online counseling and peer support groups. Public health campaigns have helped raise awareness. And new tools like therapy apps and mindfulness programs have made mental health support more accessible.

If you’re feeling anxious on a regular basis, you’re not alone. There’s no shame in struggling. It can help to talk to someone you trust, whether that’s a friend, family member, teacher, or counselor. Taking care of your physical health—through sleep, movement, and good nutrition—can also make a difference. So can setting boundaries with technology and making time for offline activities.

It’s worth remembering that you’re not just a statistic. But the numbers do tell a story. And that story shows that many young people are dealing with a world that feels uncertain, overwhelming, and disconnected. Anxiety is part of the reaction to that reality—not a personal failure.

If you’re in crisis or need someone to talk to, you can call or text the 988 Suicide & Crisis Lifeline. It’s free, confidential, and available 24/7.

The Higher Education Inquirer covers the intersections of education, labor, technology, and justice. If you have a story to share, you can reach out to us securely and anonymously.

Thursday, July 17, 2025

US Higher Education and the Russian Threat

In the shadow of escalating global tensions and an increasingly multipolar world, the U.S. national security apparatus is quietly reassessing risks that extend far beyond the battlefield. One such risk, largely unspoken in polite discourse, is the potential threat posed by some Russian immigrants to the United States—particularly those whose loyalties may lie with Vladimir Putin’s regime or who have deep ties to oligarchic wealth and intelligence networks.

This isn't about xenophobia or painting an entire nationality with a broad brush. Russian Americans contribute enormously to U.S. science, technology, academia, and the arts. But the geopolitical reality demands scrutiny—not silence.

A New Front in a Cold War Revival
The war in Ukraine and the subsequent deterioration of U.S.-Russia relations have reignited Cold War-era anxieties. While the most visible tensions manifest as sanctions, diplomatic expulsions, and cyberwarfare, there’s an insidious undercurrent: the possibility that Russia is using immigration channels—student visas, tech recruitment, business investments—as vehicles for influence, espionage, and destabilization.

U.S. intelligence officials have acknowledged in congressional testimony that Russian intelligence operations remain “one of the most sophisticated and aggressive in the world.” Unlike the overt threats posed by military action, these are threats wrapped in respectability—Ph.D. students at MIT, investors in Silicon Valley, and social media influencers spreading disinformation with Ivy League accents.

The Espionage Pipeline
The FBI and Department of Homeland Security have investigated numerous instances in which Russian nationals—sometimes posing as students or startup founders—were linked to intelligence-gathering operations. The 2010 spy ring that included Anna Chapman, who embedded herself in New York’s financial and academic elite, is just the tip of the iceberg.

Today, the lines between academia, tech, and national security are increasingly blurred. Universities and companies working on sensitive technologies such as AI, quantum computing, and aerospace are high-value targets for Russian and Chinese espionage. The growing presence of Russian nationals in these sectors demands vigilance—not in the form of blanket suspicion, but through rigorous security protocols and vetting.

Oligarchs in Silicon Valley and Miami
Beyond espionage, another concern is the role of Russian capital in American business and education. Since the 1990s, waves of Russian oligarchs—many with Kremlin connections—have funneled money into real estate, startups, and even philanthropic ventures in the U.S. This influx of dark money can buy influence, launder reputations, and even shape policy through think tanks, universities, and political donations.

Many Russian émigrés arrive with legitimate reasons—fleeing Putin's repression or seeking opportunity. But the U.S. must distinguish between those seeking refuge and those seeking leverage.

Universities: A Soft Target
Higher education institutions, desperate for tuition and prestige, often fail to scrutinize international applicants and donors. Some institutions, including top-tier universities, have admitted students and accepted donations without fully assessing the geopolitical implications. The Department of Education has issued warnings and begun cracking down on undisclosed foreign funding, but enforcement remains weak.

The danger is twofold: First, sensitive research and intellectual property may be accessed or exfiltrated. Second, universities can unwittingly serve as platforms for soft power, allowing adversarial states to subtly influence campus discourse, research agendas, and even media narratives.

A Call for Smart Policy, Not Scapegoating
The solution isn’t a blanket ban on Russian nationals or a new Red Scare. It’s nuanced policymaking: tougher vetting for visa applicants in sensitive fields, more transparency in university funding, and stricter rules about foreign investments in key sectors. U.S. institutions—from universities to venture capital firms—must understand that openness without discernment can be exploited.

The U.S. has always been a beacon for the world’s best minds. But in a time of hybrid warfare and information manipulation, national security must be balanced with academic freedom and immigrant inclusion. To ignore this challenge is to leave the door open—not just to students and scholars—but potentially, to spies and saboteurs.

The Higher Education Inquirer will continue to investigate the intersection of global power and American academia—where the ideals of open inquiry and democratic values are increasingly under siege from both within and without.

Tuesday, July 15, 2025

When Technology Can’t Outrun Environmental Collapse: The High Cost of Crypto and Other Energy-Hungry Innovations

There is a persistent narrative that technology will save humanity from the mounting environmental crises—climate change, resource depletion, and pollution—that threaten the planet. From clean energy breakthroughs to smart agriculture, the promise is that innovation will outpace destruction. But this optimism overlooks a harsh reality: many of today’s most advanced technologies, especially those that consume vast amounts of energy like cryptocurrencies, exacerbate environmental harm instead of reducing it. The earth’s ecological limits are too strict and immediate for technology alone to fix.

A key factor missing from many discussions is the concept of externalities—costs or damages that are not reflected in the market price of goods or services. Both economic and environmental externalities mean that the true price of technologies is often hidden from consumers, producers, and policymakers alike. When a technology harms the environment but doesn’t pay for that damage, the costs are effectively “externalized” to society and future generations.

Cryptocurrency Mining: An Externality Nightmare

Take cryptocurrency mining, especially Bitcoin, as a striking example. Bitcoin’s “proof of work” system demands enormous computing power, consuming electricity on the scale of entire countries such as Argentina or the Netherlands. However, the market price of Bitcoin does not include the environmental cost of that energy use—carbon emissions, air pollution, and water resource depletion are externalities borne by the planet, not the miners or investors.

Many crypto mining operations cluster in regions with cheap, carbon-intensive electricity. The associated greenhouse gas emissions accelerate climate change, but these environmental costs remain unaccounted for in economic transactions. Similarly, the rapid turnover of specialized mining hardware produces vast amounts of electronic waste that is seldom recycled properly, leaking toxins into ecosystems. These negative externalities are seldom reflected in the price of cryptocurrencies or factored into regulatory frameworks.

Other Technologies and Their Hidden Costs

It’s not only crypto. Artificial intelligence training requires massive computational resources that consume significant electricity, often generated by fossil fuels. Streaming services, cloud data centers, and the explosion of connected devices—collectively the “Internet of Things”—demand continuous power, driving emissions that are not typically included in consumer bills or corporate balance sheets.

The production of smartphones, laptops, and other electronics relies on mining scarce and environmentally damaging materials like lithium, cobalt, and rare earth elements. The social and ecological externalities here include habitat destruction, water pollution, and labor exploitation in vulnerable communities.

Even as companies promote efficiency gains, the rebound effect—where increased efficiency lowers costs and leads to increased consumption—means that total resource use continues to grow, magnifying external environmental harm.

Why Externalities Matter

Externalities are a core reason why technological innovation alone cannot save the environment. Without mechanisms to internalize these costs—through regulations, taxes, or market reforms—businesses and consumers have little incentive to change behavior. Technologies that appear profitable on paper may, in reality, impose devastating costs on ecosystems, human health, and climate stability.

Economic externalities can also distort investment priorities, leading to overinvestment in high-energy, resource-intensive technologies while underfunding sustainable alternatives that carry less hidden damage.

Toward a Holistic Solution

Addressing environmental destruction demands recognizing and correcting these externalities. Policies that tax carbon emissions, regulate electronic waste, and require transparency in supply chains can help internalize the true costs of technologies. Public awareness and ethical consumer choices also play a role in pressuring companies and governments.

Higher education institutions must contribute by researching externalities associated with emerging technologies and educating future leaders about sustainability challenges. Only by confronting the real costs behind innovation can society make wiser choices.

The Tech Future 

Technology is neither a guaranteed savior nor an inherent villain. It reflects the values and systems that shape its creation and deployment. Without reckoning with economic and environmental externalities, technological advances risk deepening rather than alleviating ecological crises. A sustainable future requires systemic change that prioritizes ecological limits and social justice—not just faster chips and smarter algorithms.


Sources:

  • University of Cambridge Bitcoin Electricity Consumption Index (2025)

  • Strubell, Emma, et al. “Energy and Policy Considerations for Deep Learning in NLP.” ACL 2019

  • Carlson, Shawn. “Bitcoin’s Energy Consumption Is a Problem—But It’s Not the Whole Problem.” Scientific American, 2022

  • International Energy Agency (IEA). “Data Centres and Data Transmission Networks,” 2023

  • Ghisellini, Patrizia, et al. “Environmental Sustainability of Rare Earth Elements: A Review.” Journal of Cleaner Production, 2024

  • The Shift Project. “Lean ICT: Towards Digital Sobriety,” 2019

  • Pigou, Arthur C. The Economics of Welfare (1920) — foundational theory on externalities