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Tuesday, July 29, 2025

The Hiroshima Remake: Clayton Christensen, AI, and the Educational Apocalypse (Glen McGhee)

In 2013, Harvard Business School professor Clayton Christensen made a dramatic prediction: “In 10 to 15 years, 50 percent of colleges and universities will be bankrupt.” Grounded in his celebrated theory of disruptive innovation, Christensen imagined a future where online learning would gradually displace traditional institutions. Supported by co-author Michael Horn and the Clayton Christensen Institute, this vision rested on a core belief that technological innovation would creep in from the margins, slowly forcing the higher education sector to adapt or die.

But 2025 has not brought the slow-motion disruption Christensen foresaw. It has delivered something far more devastating: a collapse so rapid and total that it renders the theory itself obsolete. What we are witnessing is not disruptive innovation—it is educational annihilation. It is, in effect, a Hiroshima moment for higher education, where the landscape has been scorched so thoroughly by artificial intelligence that there is no longer a recognizable battlefield.

Christensen’s model depended on institutions surviving long enough to be gradually disrupted. But AI has bypassed that timeline and obliterated the very foundations of traditional education. Instead of online learning rising up through the ranks, we now have a student body increasingly dependent on generative AI for every aspect of their academic experience. One student recently summed it up by saying, “College is just how well I can use ChatGPT at this point.” That statement isn’t an exaggeration—it’s the new norm.

Universities aren’t being challenged in slow increments. They are being wiped out. Since 2020, at least 80 nonprofit or public colleges have closed, merged, or announced closures. The Federal Reserve Bank of Philadelphia forecasts as many as 80 more colleges could collapse in 2025 alone. Even flagship institutions like the University of Arizona are reporting deficits in the hundreds of millions, while West Virginia University has undertaken massive cuts to academic programs and faculty. DePaul University is projecting a $56 million shortfall. The collapse is system-wide, not isolated to struggling outliers.

The impact extends beyond institutional budgets. It touches the core of what education is supposed to be. The widespread use of AI by students to complete their coursework has created an invisible yet devastating consequence: cultural debt. This is not simply a matter of plagiarism or cheating. It’s a loss of intellectual development, critical thinking, and meaningful engagement. We are producing graduates who may hold credentials, but lack the capacity for independent analysis. We are entering a world where degrees are increasingly decoupled from knowledge, and where assessment is rapidly losing all credibility.

Christensen never accounted for the possibility that a technology would be so powerful, so universally adopted, that it would destroy the institutional context his theory depended on. His disruption model assumed time—time for adaptation, time for hybrid models to form, time for competition to play out in a recognizable marketplace. But AI has left no time. It has created a moonscape, a terrain so decimated that rebuilding on it seems nearly impossible. There is no “University 2.0” waiting in the wings. There is only confusion, cost-cutting, and chaos.

The metaphor of Hiroshima is not used lightly. Just as nuclear weapons rendered conventional military strategy irrelevant, AI has rendered conventional education strategy meaningless. This isn’t Schumpeterian creative destruction—it’s creative annihilation. Christensen and Horn imagined a reformed and responsive university sector. What we have instead is a hollowed-out system where students learn to game the machine, faculty burn out trying to preserve integrity, and administrators chase tech partnerships while gutting their academic cores.

The movie is already being made. It isn’t a Hollywood fantasy. It’s the lived reality of students wondering why they’re still paying five figures for an education they can automate. It’s the story of adjuncts discarded in cost-cutting purges. It’s the grim resignation of faculty who know their lectures are being fed into the same machine that replaces them. And it’s the slow recognition among lawmakers and funders that the 200-year-old institution of American higher education may not survive the decade.

Christensen’s theory pointed a loaded gun at higher education. AI pulled the trigger. What comes next is unclear, but it won’t be disruption in the old sense. It will be a reckoning with what happens when the ground beneath you no longer exists. The educational Hiroshima has already happened. Now we must decide whether to rebuild—or retreat into the ruins.

Sources

Clayton Christensen and Henry Eyring, The Innovative University: Changing the DNA of Higher Education from the Inside Out, Jossey-Bass, 2011
Christensen Institute: https://www.christenseninstitute.org/theory/disruptive-innovation/
Michael B. Horn, “Bringing Disruptive Innovations to Education,” 2024 — https://michaelbhorn.com
Business Insider, “Half of US Colleges Will Be Bankrupt,” 2013 — https://www.businessinsider.com/clay-christensen-higher-education-on-the-edge-2013-2
Inside Higher Ed, “University of Arizona's $240 Million Deficit,” 2024 — https://www.insidehighered.com
Inside Higher Ed, “WVU Academic Cuts,” 2023 — https://www.insidehighered.com/news/2023/09/19/wvu-begins-largest-academic-purge-its-history
Federal Reserve Bank of Philadelphia, Higher Education Risk Index, 2024
BestColleges, “Major College Closures Since 2020” — https://www.bestcolleges.com/research/closed-colleges-list-statistics-major-closures/
AACU Research on AI in Higher Ed — https://www.aacu.org/research/leading-through-disruption
Marketing AI Institute, “AI Cheating in Higher Ed” — https://www.marketingaiinstitute.com/blog/ai-cheating-schools-universities
CNBC, “College Closures Could Jump Amid Financial Challenges,” 2024 — https://www.cnbc.com/2024/12/11/college-closures-could-jump-amid-financial-challenges-fed-research.html
SR.ITHAKA.org, “Making AI Generative for Higher Education” — https://sr.ithaka.org/publications/making-ai-generative-for-higher-education/
The Bulletin of the Atomic Scientists, “Today’s AI Threat More Like Nuclear Winter Than Nuclear War,” 2024 — https://thebulletin.org/2024/02/todays-ai-threat-more-like-nuclear-winter-than-nuclear-war/
Hackeducation.com, “The Education Apocalypse,” 2013 — http://hackeducation.com/2013/11/07/the-education-apocalypse
NBER Working Paper No. 33867, “Generative AI and Labor Market Impact,” 2024 — https://www.nber.org/papers/w33867

Tuesday, December 9, 2025

Preston Cooper Is Wrong: Enrollment Is Only One of Higher Education’s Many Crises

In a recent American Enterprise Institute article, Preston Cooper insists that the post-2010 collapse in college enrollment is “a correction, not a crisis.” According to Cooper, students are becoming more discerning consumers, abandoning low-value colleges and low-ROI degrees while flocking to higher-quality institutions and more lucrative majors. In this narrative, the system is simply shedding inefficiencies. The market is working.

But this argument is incomplete to the point of distortion. Enrollment decline is not a tidy market correction. It is a symptom of profound structural problems: affordability, inequality, political interference, labor exploitation, deteriorating academic quality, widespread cheating, and the growing reliance on “robocolleges” and automated learning platforms with questionable educational value. Cooper’s analysis ignores all of this and reduces higher education to a single variable—student choices—when the system is being reshaped by forces far larger and more corrosive than consumer preference.

Affordability remains the biggest barrier to access. Surveys repeatedly show that adults who never enrolled or who dropped out cite cost as their primary obstacle, and higher education leaders themselves acknowledge that families often do not understand the real price until they are already overwhelmed. Tuition, fees, housing, food, and transportation are enough to make college inaccessible for millions. This is not a sign of students shopping wisely; it is evidence of a system that has priced out vast segments of the population.

Cooper’s argument also ignores how structural inequalities determine who even reaches the point of decision-making. Research from multiple institutions shows that disparities in academic preparation—rooted in racial segregation, school funding inequity, socioeconomic status, and access to quality teachers—heavily influence college-going patterns. Students from under-resourced schools or low-income families do not have equal access to information, support systems, or opportunities. The idea that they are “choosing” not to attend low-value schools disregards the constraints that shape those choices.

Meanwhile, colleges themselves are destabilizing. Shrinking enrollments and stagnant public funding have produced financial crises across the sector. Even reputable institutions rely on aggressive discounting, program cuts, hiring freezes, and dependence on contingent faculty. Student support services shrink while administrative costs continue to rise. Cooper’s framing of “let the weak fail” overlooks the collateral damage: students denied needed resources, programs eliminated, and entire communities harmed when regional colleges collapse.

The crisis extends beyond finances. Students’ freedom of speech is increasingly under pressure as state legislatures, governors, and politically reactive boards restrict curricula, censor faculty, and monitor student organizations. Expression around race, inequality, gender, and geopolitical issues is under surveillance or actively punished. Whether driven by conservative politics, donor pressure, or administrative fear of controversy, the suppression of student and faculty voices undermines the university’s democratic mission.

Cooper also fails to address the degrading working conditions of adjunct faculty, who now make up the majority of instructors. Adjuncts often earn poverty-level wages, lack health insurance, and have no job security. Many teach at multiple institutions simply to survive. The system Cooper describes as “self-correcting” rests on the exploitation of the people responsible for delivering the education students are supposedly choosing.

Then there are the emerging problems he completely ignores: robocolleges and AI-driven instruction. As institutions cut costs, many outsource teaching to automated platforms, online mega-providers, and algorithmic tutoring systems. These “robocolleges” promise efficiency but often deliver shallow instruction, predatory recruitment, weakened student support, and minimal human interaction. They generate revenue, but not always learning. Cooper assumes that students are leaving low-value institutions, yet many of these automated systems are themselves low-value—and increasingly difficult to regulate or evaluate.

The rise of automated education connects directly to another crisis: academic integrity. AI-assisted cheating is now widespread across campuses. Students, overwhelmed by cost pressures, mental health struggles, large class sizes, and insufficient support, increasingly rely on AI tools to complete assignments without understanding the material. Instructors struggle to identify misconduct, institutions scramble to respond, and genuine learning becomes harder to guarantee. This is not the sign of a system “correcting” itself. It is evidence of a sector that has lost its footing and is failing to uphold educational standards.

Cooper’s argument rests on the assumption that higher education should primarily be judged by short-term labor-market returns. But higher education is more than a job-training pipeline. It is a public good that supports social mobility, civic participation, community development, scientific and cultural advancement, and democratic life. A system that suppresses speech, exploits faculty, overrelies on automated instruction, and cannot distinguish real learning from AI-generated work is not corrected. It is in crisis.

The enrollment decline is real, but it is only the surface. Beneath it lies a system plagued by affordability barriers, entrenched inequality, political intrusion, labor precarity, academic degradation, technological misuse, and rising distrust. To call this a “correction” is to look away from the deeper rot. For students, educators, and communities, it is a crisis—one that demands urgent structural reform rather than market-based optimism.

Sources
National Association of Student Financial Aid Administrators (NASFAA). “The Biggest Barriers to Higher Education Enrollment Are Cost and Lack of Financial Aid.”
Inside Higher Ed. “Student Success Leaders Worry About Affordability, AI, and DEI.”
Brookings Institution. “Persistent Gaps in Academic Preparation Generate College Enrollment Disparities.”
Deloitte Insights. “Top Risks in Higher Education.”
Independent Institute. “Higher Education’s Triple Crisis.”
PEN America. “Tracking Campus Free Speech Legislation and Suppression.”
American Federation of Teachers / AAUP. “The Gig Academy: Precarity and the Exploitation of Adjunct Labor.”
The Century Foundation. Analyses of Online Program Management (OPM) and automated higher education risks.
Inside Higher Ed and Times Higher Education reporting on AI-driven cheating and academic integrity.

Friday, August 22, 2025

LSAT Suspended in China (Derek Newton*)

A friend of The Cheat Sheet sent us this important development — delivery of the LSAT, the Law School Admissions Test — has been suspended in China.

Go ahead, guess why.

According to the announcement from the test provider:

We have been increasingly concerned about organized efforts by individuals and companies in mainland China to promote test misconduct.

They continue:

While security is always a concern, these enterprises are becoming increasingly aggressive.

Yup.

I don’t mean to single out China. It’s one of a handful of countries in which test fraud is incredibly common and incredibly profitable. It’s so bad that any test delivered online in China is, in my view, compromised beyond validity.

To be clear as well, this is not a new problem (see Issue 232). In Issue 137, we noted that organized criminal gangs in India were giving up selling drugs because selling test fraud was more profitable.

More from the announcement:

This type of [cheating] activity is not limited to the LSAT; these enterprises purport to offer cheating services for virtually every standardized test.

True. Again — this is not a China problem or an LSAT problem. But this is a gigantic problem.

The announcement again:

After careful consideration, we have decided to take the additional step of suspending online testing in mainland China following the upcoming October international administration of the LSAT. We will be taking a variety of steps to enhance the security of the October LSAT. Because we do not currently offer in-person testing in China, the October test will be the last LSAT administration in mainland China until further notice.

And — round of applause.

This was not an easy decision. The LSAT in China must be a cash machine. Pulling it off the shelves involves more than just money, it raises real questions of fairness and access. So, seeing a company put the validity of their assessment and the sanctity of its scores ahead of money and ahead of awkward questions, is great.

It’s great.

If people keep stealing your lunch money, quit carrying your lunch money until you can figure out a better way. Like this:

We will continue to monitor and respond to this situation and will continue to evolve our security measures and employ a wide range of tools to protect the integrity of the test both in the U.S. and internationally.

Integrity is not cheap. But it is worth more than whatever it costs. Good for LSAC, the test provider.

And I know this is crazy, but every standardized test ought to hold themselves to the same standard. Give a secure, valid assessment or don’t give one at all. Colleges and universities, I’m looking at you.

Anyway, this is big news, and I do hope that others recognize the leadership this takes.

*This article first appeared at The Cheat Sheet.  

Friday, November 22, 2024

Accreditor ACCSC Again Grants Maximum Renewal To Troubled For-Profit Colleges (David Halperin)

College accreditor ACCSC has renewed approval of four for-profit colleges owned by California-based International Education Corp. (IEC), a company that was forced to shut down many of its campuses in the past year after a U.S. Department of Education investigation revealed the schools were rigging student entrance exams and engaging in other fraudulent conduct.

By memo dated November 15, ACCSC noticed the public that it had renewed accreditation of four IEC-owned schools for five years, which is the maximum period of renewal that ACCSC grants to colleges. Three of the schools — in Gardena, Riverside, and Sacramento, California — are branded as UEI College, while the fourth, called United Education Institute, is in Las Vegas.

Abuses at IEC schools

In February, the Department of Education terminated financial aid eligibility to another IEC-owned chain called Florida Career College, and the school closed. As part of the resolution of that matter, the CEO of IEC, Fardad Fateri, stepped down. The Department acted because it found, as described in a detailed 38-page letter sent to FCC in April 2023, blatant cheating at FCC on “ability-to-benefit” entrance exams for students without a high school diploma.

Republic Report, relying on interviews with numerous FCC staff, had first exposed that long-running rampant misconduct, along with other blatant recruiting and financial abuses, at FCC. FCC’s misbehavior lured numerous students — veterans, single parents, immigrants, and other struggling Americans — into low-quality school programs that left them deep in debt and without the career advancement they sought.

The Department’s February settlement agreement with IEC indicated that the Department had an open investigation of potential violations at UEI similar to those found at FCC. The settlement barred UEI from administering ATB tests going forward. As part of the settlement, the Department agreed to end its investigation of UEI, if UEI complied with the settlement agreement. That investigation of UEI is apparently now over.

However, a September 2023 letter from ACCSC to IEC revealed that the company was also under investigation by California’s attorney general. It’s unclear whether that investigation remains open.

ACCSC was not the accreditor of Florida Career College, but it does accredit some of the UEI campuses. Soon after the Department announced in April 2023 that it was moving to cut off federal student aid to FCC, ACCSC placed UEI College and International Education Corp. on “System-Wide Warning” status, citing the Department’s findings that senior IEC leaders knew of and encouraged the cheating, and also citing IEC’s alleged failure to inform ACCSC of the Department’s investigation in a timely manner. ACCSC also noted that IEC had voluntarily halted ability-to-benefit testing and enrollment at UEI; the accreditor’s May 2023 order included a requirement that such testing and enrollment be suspended — suggesting already that there might be questions about ATB testing at UEI.

Yet now ACCSC has renewed accreditation for IEC/UEI schools for the maximum period, the same renewal that it would grant to the best-behaving schools. The renewals are effective back to dates in 2020 and 2022, reflecting in part that ACCSC delayed decisions on renewal while the schools were being evaluated, so the schools must seek renewal again soon. But it’s fair to ask whether the full five-year renewals were appropriate, or whether, instead, ACCSC continues to tolerate college abuses, to the detriment of both students and of the U.S. taxpayers who support the hundreds of millions in federal financial aid that have flowed to ACCSC schools.

ACCSC executive director Michale McComis did not respond to a request for comment regarding the renewal for the IEC schools.

Abuses at other ACCSC-accredited schools

The question of ACCSC’s tolerance for predatory college abuses is again squarely presented as ACCSC faces its own next review: its application to be renewed in 2026 by the Department of Education as a recognized accreditor, a status that allows schools it accredits to be eligible for federal student grants and loans. The maximum renewal period for this gatekeeper status is also five years. That review process is already underway at the Department.

The last time ACCSC was up for renewal, in 2021, the Department, citing failures by ACCSC in curbing long-running abuses at another awful predatory college operation, the Center for Excellence in Higher Education (owner of now-shuttered Independence University), delayed renewal of recognition, required ACCSC to explain its conduct, and ultimately extended ACCSC f0r three years instead of five — although the way the process went forward, the practical effect, disappointingly, was a five year renewal.

Data shows many ACCSC schools have left students worse off than when they started.

Since ACCSC’s last review, the accreditor has engaged in other troubling behavior.

Most notably, as Republic Report first reported, in July 2023, ACCSC had watched while Atlantis University, a Miami-based for-profit school, acted in blatant violation of an ACCSC rule governing the use of “branch campuses” tied to a school’s central campus. Atlantis’s executive director was, at the time, the chair of ACCSC.

The Atlantis branch campus, called Florida Palms University, shut down soon after our report. ACCSC then put Atlantis on warning status, via a letter that, as we noted at the time, was heavily redacted in the version released to the public. Whatever problems the many blacked-out passages of the October 2023 letter concealed stood in sharp contrast to ACCSC’s unconditional five-year renewal of Atlantis in December 2022. ACCSC removed Atlantis from warning status by February 2024.

This year, after Republic Report had repeatedly been able to learn valuable information about the bad behavior of some ACCSC-accredited schools through the public release of detailed letters from the accreditor to schools like UEI and Atlantis — at least the unredacted portions — ACCSC moved away from transparency and accountability. It started releasing, instead of the actual letters to schools, vague summaries that keep the public in the dark about what is actually happening.

ACCSC is also the accreditor of troubled Connecticut-based for-profit Paier College, which faces possible closure after losing access to federal student aid and having been sued for deceptive practices by the state’s attorney general. ACCSC placed Paier on warning status in June, citing low graduation rates and weak validation of faculty credentials. But that action by ACCSC came six months after the school, facing scrutiny from the U.S. Department of Education, voluntarily withdrew from eligibility for federal student grants and loans.

Another ACCSC school, Career College of Northern Nevada (CCNN), abruptly closed in February, replacing its website with a closure notice and literally locking students out of the building.

In June 2023, yet another ACCSC-accredited school, Hussian College, suddenly shut down. In June 2022, ACCSC had put Hussian on system-wide warning, citing concerns about student achievement at the schools. But ACCSC removed the warning and renewed Hussian’s accreditation in December 2022.

ACCSC also accredits Florida’s for-profit Southeastern College. There is much evidence suggesting that that school, owned by ultra-rich Floridians Arthur and Belinda Keiser, effectively receives improper subsidies from Keiser University, a non-profit college controlled by the Keisers.

ACCSC’s renewal application and the new Trump administration

Members of the public have until December 6 to submit written comments to the Department of Education regarding ACCSC’s bid for renewal.

The Biden administration, and U.S. Secretary of Education Miguel Cardona, to their credit, took much more seriously the Department’s obligation to review accreditors for their vigilance in guarding against predatory college abuses than the first Trump administration and Secretary Betsy DeVos did. If the second Trump administration, and new education secretary pick Linda McMahon, truly want to help students, and truly want to implement the incoming administration’s professed commitment to rooting out waste, fraud, and abuse in federal government programs, then it should continue the Biden team’s work of holding predatory colleges accountable — and also holding accountable the accreditors that allow such abuses to persist.

[Editor's note: This article originally appeared on Republic Report.] 

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

Sunday, November 2, 2025

When Educators Back the Cheating Platform: The Strange Case of Chegg (Glen McGhee)

Chegg — once a poster child for pandemic-era edtech growth — is now in free fall. In 2025 the company announced it would slash 45 % of its workforce, citing plunging web traffic, collapsing revenue, and the onslaught of AI tools that let students bypass paid homework help altogether.

It’s a dramatic reversal for a company that sold itself as a learning aid. But behind that collapse lies an even more troubling paradox: many teacher pension funds and public retirement systems — in whose names educators put decades of trust — hold millions in Chegg stock. Why would those funds invest in a company whose business model many of their own beneficiaries see as unethical, even corrosive?

We’ve seen this pattern before. In the early 2000s, retirement funds like these were major institutional investors in for-profit higher education companies such as EDMC, ITT Tech, and the University of Phoenix. Those institutions promised strong returns but ultimately collapsed under fraud allegations, predatory practices, and declining enrollments. Many public-sector workers indirectly suffered as the funds lost money. Chegg’s story looks eerily similar: high growth promises, an ethically contested business model, and exposure of public retirement funds to extreme financial risk. The repetition suggests a structural pattern: when education is financialized and commodified, the people meant to serve it — educators and students — are exposed to both moral and economic hazards.


The Downward Spiral: Why Chegg Is Crashing

Chegg’s decline didn’t begin yesterday. It was seeded by technological disruption and a fragile business model dependent on volume, content access, and student compliance. Generative AI tools such as ChatGPT and Bard have undercut Chegg’s core service: paid homework help and explanations. Students can often get free answers faster and more flexibly. Google’s “AI overviews,” which display answer snippets directly in search results, divert traffic away from Chegg’s site, reducing ad and subscription conversions. Chegg has even sued Google, alleging unfair competition.

Earlier in 2025, Chegg laid off 22 % of its staff and closed its U.S. and Canada offices to cut costs. That was supposed to be a stabilization move, but it foreshadowed deeper troubles. The more recent 45 % layoff is sweeping: 388 jobs are being cut, $15–19 million in severance charges are expected, and $100–110 million in cost savings are projected for 2026. Chegg’s stock has lost approximately 99 % of its value since its 2021 peak. Yet the company is still pursuing a pivot toward B2B “skilling” markets, though skeptics doubt whether this can make up for the erosion of its original model. In short, Chegg is facing structural obsolescence. The ecosystem that once made its growth plausible is collapsing around it.


Pension Funds and the Strange Attraction to Chegg

Several public pension and teachers’ retirement systems hold millions in Chegg: Kentucky Teachers’ Retirement System owns $4.5 million, California State Teachers’ Retirement System owns $4 million, New York State Common Retirement Fund owns $13 million, Colorado Public Employees’ Retirement Fund owns $9.3 million, California Public Employees’ Retirement Fund owns $5.3 million, a Florida retirement fund owns $3.3 million, Ohio Public Employees Retirement owns $1.5 million, and the Teacher Retirement System of Texas owns $630,000.

These investments raise hard questions. Do pension fund managers assume Chegg will survive its technological disruption? Are they prioritizing short-term returns over long-term reputational or ethical risk? Do they believe the stock is undervalued and thus a “contrarian bet”? Are they following passive index allocations rather than making deliberate choices? Some fund managers defend such investments as fulfilling fiduciary duty: to maximize returns for their beneficiaries within acceptable risk parameters. Ethical considerations, they argue, should not trump financial sustainability — especially in a system underfunded and under stress. But when the bet fails, the consequences fall hardest on retirees, educators, and the public who trusted those funds to safeguard their futures.


Do We Owe Them Sympathy?

It’s tempting to feel a bit sorry: pension funds losing money is a headline nobody wants. But sympathy is complicated. These funds store and grow the life savings of public-sector workers — teachers, librarians, and staff. A poorly timed speculative investment can damage retiree security and erode public trust. On the other hand, this is no innocent failure; it is a foreseeable risk in backing a business facing existential challenges. It reflects a broader pattern of financialization in education: turning learning into a profit-seeking venture, exposing it to wild swings, and treating educators and students as market participants. Losses are regrettable, especially at the human level, but they also demand accountability. Institutions must explain why they placed trust in Chegg when its vulnerabilities were visible.


What This Reveals: Institutional Contradiction

This episode exposes several deeper contradictions at the intersection of education, finance, and values. Many educators see Chegg as a threat to academic integrity, yet the institutions managing their retirement funds believed in its upside. Some investors are attracted to the “turnaround bet,” seeing potential in a company trading at a fraction of its former value, though the risk is very high. Some funds may hold Chegg because their portfolios track broad indices, ceding moral discretion to the market. Education has become infrastructure built on venture logic, and the Chegg collapse is a warning: when learning becomes a commodity, its institutions become as unstable as any tech startup. Finally, if pension funds backed a cheating-enabled platform, what else might their capital support, and how does that affect trust in those institutions?


A Moral and Institutional Reckoning 

Chegg’s collapse is not just a market drama; it’s a moral and institutional reckoning. A company built on a questionable model is now evaporating under AI pressure. Meanwhile, public pension funds — meant to safeguard the futures of educators — placed bets on that very evaporation.

We might feel a pang of sympathy for the financial losses. But our greater duty is to probe the judgment of those entrusted with public capital, and to demand coherence between values and investment. If the administrators of teacher retirement funds cannot align ethics with asset allocation, then their claims to serving the public good are weakened — and so is the trust on which the idea of public education depends.


Sources

Barron’s: “Chegg Is Suing Google. The Stock Is Sinking.”
Reuters: “Chegg to lay off 22% of workforce as AI tools shake up edtech industry.”
SF Chronicle: “Bay Area educational tech company slashes 248 jobs as students turn to AI tools for learning.”
The Cheatsheet Substack: “Meet Chegg’s Biggest Backers.”
The Chronicle of Higher Education: “Work in Public Education and Hate Chegg? You Might Be an Investor.”
Wikipedia: “Chegg”

Thursday, July 1, 2021

The Growth of "RoboColleges" and "Robostudents"


In a previous Higher Education Inquirer article, I presented frightening full-time faculty numbers at some large online universities which I call "robocolleges."  Full-time faculty at these robocolleges, in fact, are nearly nonexistent. Bear in mind that all of them are regionally accredited, the highest level of institutional accreditation, and the list includes well-known public university systems as well as for-profit ones.  

Robocolleges have de-skilled instruction by paying teams of workers, some qualified and some not, to write content, while computer programs perform instructional and management tasks. Learning management systems with automated instruction programs are known by different names and their mechanisms are proprietary.  As professor jobs are deskilled, tasks can be farmed out at reduced costs.  

Besides the human content creators who may be given instructional titles, other staff members at robocolleges are paid to communicate with students regarding their progress. The assumption is that managing work this way significantly reduces costs, and it does, at least in the short and medium terms.  However, instructional costs are frequently replaced by marketing and advertising expenses to pitch the schools to prospective students and their families.  Companies like EducationDynamics and Guild Education have filled the niche of promoting robocolleges to workers at a reduced cost but their overall impact is minimal.  

Meanwhile,  companies like Chegg profit from this form of learning, helping students game the system in greater numbers, in essence creating robostudents.  

The business model in higher education for reducing labor power and faculty costs is not reserved to for-profit colleges.  Community colleges also rely on a small number of full-time faculty and armies of low-wage contingent labor.  

In some cases, colleges and universities, including many brand name schools, utilize outside companies, online program managers (OPMs), to run their online programs, with OPMs like 2U taking up as much as 60 percent of the revenues.  OPMs can perform a variety of jobs, but are best known for their work in enrollment and retention.  Prospective students may believe they are talking to representatives of a particular university when in fact they are talking to someone from an outside source.  Noodle has disrupted the OPM model by selling their services ala carte, but only time will tell whether it has an impact, or whether schools will merely find less costly outsourced servicers.  

Outsourcing higher education has been a reality in US higher education for decades. And automation is also part of education, as it should, when it performs menial tasks, such as taking roll and doing preliminary work to determine student cheating.  It's likely that more schools will become more robotic in nature to reduce organizational expenses.  But what are the long-term consequences with long-term student outcomes, when automation is used to perform higher level tasks, and when outsourced individuals act in the name of brand name colleges?  

To get a small glimpse of this robocollege phenomenon, these schools cumulatively have about 3000 full-time instructors for more than a half-million students.  

American Intercontinental University: 51 full-time instructors for about 8,700 students.
American Public University System has 345 F/T instructors for more than 50,000 students. 
Aspen University has 34 F/T instructors for about 9,500 students.  
Capella University: 216 F/T for about 38,000 students.
Colorado State University Global: 34 F/T instructors for 12,000 students.
Colorado Technical University: 59 F/T instructors for 26,000 students.
Devry University online: 53 F/T instructors for about 17,000 students.
Grand Canyon University has 461 F/T instructors for 103,000 students.*  
Liberty University: 1072 F/T for more than 85,000 students.*
Purdue University Global: 346 F/T instructors for 38,000 students.
South University: 0 F/T instructors for more than 6000 students.
Southern New Hampshire University: 164 F/T for 104,000 students.
University of Arizona Global Campus: 194 F/T instructors for about 35,000 students.
University of Maryland Global: 193 F/T instructors for 60,000 students.
University of Phoenix: 127 F/T instructors for 96,000 students.
Walden University: 206 F/T for more than 50,000 students.

*Most of these full-time instructors are faculty at the physical campuses.  

Saturday, February 1, 2025

Higher Education Inquirer: Increasingly Relevant

The Higher Education Inquirer continues to grow.  Last month the number of views rose to more than 45,000.  And our total number of views has increased to more than 440,000. While we had added advertisements, we have not received any SEO help, and we do not pay Google for ads. 

We believe our growth stems largely from our increasing relevance and in our truth telling, which other higher education news outlets are unwilling to do in these times.

Our devotion to transparency, accountability, and value for our readers guides us. 

We invite a diverse group of guest authors who are willing to share their truths. The list includes academics from various disciplines, advocates, activists, journalists, consultants, and whistleblowers. We back up all of this work with data and critical analysis, irrespective of politics and social conventions. We are willing to challenge the higher education establishment, including trustees, donors, and university presidents.

Our articles covering student loan debt, academic labor, nonviolent methods of protest, and freedom of speech are unparalleled. And we are unafraid about including other issues that matter to our readers, including stories and videos about mental health, student safety, technology (such as artificial intelligence), academic cheating, and the nature of work.  And matters of war, peace, democracy, and climate change

Our focus, though mainly on US higher education, also has an international appeal

Some of our work takes years to produce, through careful documentation of primary and secondary sources, database analysis, and Freedom of Information Act (FOIA) requests. We share all of this information for everyone to see at no cost.  

Of course, we could not operate without all your voices. We welcome all your voices. Something few other sources are willing to do.    




Saturday, October 12, 2024

Rehumanization in Higher Education: An Alternative to Maximizing Panic and Profit

It's questionable whether the Earth's tech bros (e.g. Gates, Musk, Bezos, Thiel, Zuckerberg) really believe in democracy, but they do believe in enriching themselves, like the robber barons of the 19th century, or going back even further, to myths of flawed rulers and gods of ancient times. A few of these bros, believing mostly in themselves, have suggested that democracy is incompatible with progress. There are probably more of these elites (and their backers) who agree, but on the back stage. 

Today, there are apps for just about everything, and there are some good ones. But there are few signs that the most recent technological innovations have improved the overall existence of humans, the planet we live on, or the many other species with share the planet with. Life is great for some, good for many, and not as happy for many more. Folks feel anxious, alienated, and dehumanized and for good reason.

Rehumanization: An Alternative to Maximizing Panic and Profit 

Despite all this new technology, climate change is an existential threat and its consequences are looming. Wars and conflicts are raging around the world and there are threats of more war. Stock prices have risen, but American Quality of Life (QOL) has not improved significantly. Information for the masses is laced with toxic propaganda. Mental illness is rising. US life expectancy has plateaued. Debt is a normal part of middle class life. People are more sedentary and obese. 

For many in this new tech world, sh*t jobs are plentiful and good jobs are hard to find. Bitcoin is an alternative (and speculative) currency used for illegal and predatory activity. Online teachers and content creators are throwaway items. You can have prepared food, of varying quality, delivered to your door. Pornography is omnipresent. Mass surveillance is accepted and normalized. Brutality and genocide can be watched like entertainment, to be played over and over or swept away at the touch of a finger. Online robocollege education is available 24/7/365 and cheating is rampant, but for many a degree is just a ticket to be punched in a world of hypercredentialism.   

Some of us are half-conscious of the algorithms of oppression and those who dictate the code, but we have enough faith in technology and the tech bros that it will be ok if we accept certain social realities--and don't fight it or challenge it. If we just go along. However sick, pathological, or evil it is, no matter how greedy these tech bros and their enablers are, "it is what it is." 

How is this progress? And does it have to be this way? We don't think so. There are even models to bring light into the approaching darkness.

That's why we want to highlight the bright spots in higher education in a series called the Rehumanization of Higher Ed. Stay tuned. 

Wednesday, January 22, 2025

Where do we go from here? (Martin Luther King, 1967)

16 August 1967

Atlanta, Georgia

Dr. Abernathy, our distinguished vice president, fellow delegates to this, the tenth annual session of the Southern Christian Leadership Conference, my brothers and sisters from not only all over the South, but from all over the United States of America: ten years ago during the piercing chill of a January day and on the heels of the year-long Montgomery bus boycott, a group of approximately one hundred Negro leaders from across the South assembled in this church and agreed on the need for an organization to be formed that could serve as a channel through which local protest organizations in the South could coordinate their protest activities. It was this meeting that gave birth to the Southern Christian Leadership Conference.

And when our organization was formed ten years ago, racial segregation was still a structured part of the architecture of southern society. Negroes with the pangs of hunger and the anguish of thirst were denied access to the average lunch counter. The downtown restaurants were still off-limits for the black man. Negroes, burdened with the fatigue of travel, were still barred from the motels of the highways and the hotels of the cities. Negro boys and girls in dire need of recreational activities were not allowed to inhale the fresh air of the big city parks. Negroes in desperate need of allowing their mental buckets to sink deep into the wells of knowledge were confronted with a firm “no” when they sought to use the city libraries. Ten years ago, legislative halls of the South were still ringing loud with such words as “interposition” and “nullification.” All types of conniving methods were still being used to keep the Negro from becoming a registered voter. A decade ago, not a single Negro entered the legislative chambers of the South except as a porter or a chauffeur. Ten years ago, all too many Negroes were still harried by day and haunted by night by a corroding sense of fear and a nagging sense of nobody-ness. (Yeah)

But things are different now. In assault after assault, we caused the sagging walls of segregation to come tumbling down. During this era the entire edifice of segregation was profoundly shaken. This is an accomplishment whose consequences are deeply felt by every southern Negro in his daily life. (Oh yeah) It is no longer possible to count the number of public establishments that are open to Negroes. Ten years ago, Negroes seemed almost invisible to the larger society, and the facts of their harsh lives were unknown to the majority of the nation. But today, civil rights is a dominating issue in every state, crowding the pages of the press and the daily conversation of white Americans. In this decade of change, the Negro stood up and confronted his oppressor. He faced the bullies and the guns, and the dogs and the tear gas. He put himself squarely before the vicious mobs and moved with strength and dignity toward them and decisively defeated them. (Yes) And the courage with which he confronted enraged mobs dissolved the stereotype of the grinning, submissive Uncle Tom. (Yes) He came out of his struggle integrated only slightly in the external society, but powerfully integrated within. This was a victory that had to precede all other gains.

In short, over the last ten years the Negro decided to straighten his back up (Yes), realizing that a man cannot ride your back unless it is bent. (Yes, That’s right) We made our government write new laws to alter some of the cruelest injustices that affected us. We made an indifferent and unconcerned nation rise from lethargy and subpoenaed its conscience to appear before the judgment seat of morality on the whole question of civil rights. We gained manhood in the nation that had always called us “boy.” It would be hypocritical indeed if I allowed modesty to forbid my saying that SCLC stood at the forefront of all of the watershed movements that brought these monumental changes in the South. For this, we can feel a legitimate pride. But in spite of a decade of significant progress, the problem is far from solved. The deep rumbling of discontent in our cities is indicative of the fact that the plant of freedom has grown only a bud and not yet a flower.

And before discussing the awesome responsibilities that we face in the days ahead, let us take an inventory of our programmatic action and activities over the past year. Last year as we met in Jackson, Mississippi, we were painfully aware of the struggle of our brothers in Grenada, Mississippi. After living for a hundred or more years under the yoke of total segregation, the Negro citizens of this northern Delta hamlet banded together in nonviolent warfare against racial discrimination under the leadership of our affiliate chapter and organization there. The fact of this non-destructive rebellion was as spectacular as were its results. In a few short weeks the Grenada County Movement challenged every aspect of the society’s exploitative life. Stores which denied employment were boycotted; voter registration increased by thousands. We can never forget the courageous action of the people of Grenada who moved our nation and its federal courts to powerful action in behalf of school integration, giving Grenada one of the most integrated school systems in America. The battle is far from over, but the black people of Grenada have achieved forty of fifty-three demands through their persistent nonviolent efforts.

Slowly but surely, our southern affiliates continued their building and organizing. Seventy-nine counties conducted voter registration drives, while double that number carried on political education and get-out-the-vote efforts. In spite of press opinions, our staff is still overwhelmingly a southern-based staff. One hundred and five persons have worked across the South under the direction of Hosea Williams. What used to be primarily a voter registration staff is actually a multifaceted program dealing with the total life of the community, from farm cooperatives, business development, tutorials, credit unions, etcetera. Especially to be commended are those ninety-nine communities and their staffs which maintain regular mass meetings throughout the year.

Our Citizenship Education Program continues to lay the solid foundation of adult education and community organization upon which all social change must ultimately rest. This year, five hundred local leaders received training at Dorchester and ten community centers through our Citizenship Education Program. They were trained in literacy, consumer education, planned parenthood, and many other things. And this program, so ably directed by Mrs. Dorothy Cotton, Mrs. Septima Clark, and their staff of eight persons, continues to cover ten southern states. Our auxiliary feature of C.E.P. is the aid which they have given to poor communities, poor counties in receiving and establishing O.E.O. projects. With the competent professional guidance of our marvelous staff member, Miss Mew Soong-Li, Lowndes and Wilcox counties in Alabama have pioneered in developing outstanding poverty programs totally controlled and operated by residents of the area.

Perhaps the area of greatest concentration of my efforts has been in the cities of Chicago and Cleveland. Chicago has been a wonderful proving ground for our work in the North. There have been no earth-shaking victories, but neither has there been failure. Our open housing marches, which finally brought about an agreement which actually calls the power structure of Chicago to capitulate to the civil rights movement, these marches and the agreement have finally begun to pay off. After the season of delay around election periods, the Leadership Conference, organized to meet our demands for an open city, has finally begun to implement the programs agreed to last summer.

But this is not the most important aspect of our work. As a result of our tenant union organizing, we have begun a four million dollar rehabilitation project, which will renovate deteriorating buildings and allow their tenants the opportunity to own their own homes. This pilot project was the inspiration for the new home ownership bill, which Senator Percy introduced in Congress only recently.

The most dramatic success in Chicago has been Operation Breadbasket. Through Operation Breadbasket we have now achieved for the Negro community of Chicago more than twenty-two hundred new jobs with an income of approximately eighteen million dollars a year, new income to the Negro community. [Applause] But not only have we gotten jobs through Operation Breadbasket in Chicago; there was another area through this economic program, and that was the development of financial institutions which were controlled by Negroes and which were sensitive to problems of economic deprivation of the Negro community. The two banks in Chicago that were interested in helping Negro businessmen were largely unable to loan much because of limited assets. Hi-Lo, one of the chain stores in Chicago, agreed to maintain substantial accounts in the two banks, thus increasing their ability to serve the needs of the Negro community. And I can say to you today that as a result of Operation Breadbasket in Chicago, both of these Negro-operated banks have now more than double their assets, and this has been done in less than a year by the work of Operation Breadbasket. [applause]

In addition, the ministers learned that Negro scavengers had been deprived of significant accounts in the ghetto. Whites controlled even the garbage of Negroes. Consequently, the chain stores agreed to contract with Negro scavengers to service at least the stores in Negro areas. Negro insect and rodent exterminators, as well as janitorial services, were likewise excluded from major contracts with chain stores. The chain stores also agreed to utilize these services. It also became apparent that chain stores advertised only rarely in Negro-owned community newspapers. This area of neglect was also negotiated, giving community newspapers regular, substantial accounts. And finally, the ministers found that Negro contractors, from painters to masons, from electricians to excavators, had also been forced to remain small by the monopolies of white contractors. Breadbasket negotiated agreements on new construction and rehabilitation work for the chain stores. These several interrelated aspects of economic development, all based on the power of organized consumers, hold great possibilities for dealing with the problems of Negroes in other northern cities. The kinds of requests made by Breadbasket in Chicago can be made not only of chain stores, but of almost any major industry in any city in the country.

And so Operation Breadbasket has a very simple program, but a powerful one. It simply says, “If you respect my dollar, you must respect my person.” It simply says that we will no longer spend our money where we can not get substantial jobs. [applause]

In Cleveland, Ohio, a group of ministers have formed an Operation Breadbasket through our program there and have moved against a major dairy company. Their requests include jobs, advertising in Negro newspapers, and depositing funds in Negro financial institutions. This effort resulted in something marvelous. I went to Cleveland just last week to sign the agreement with Sealtest. We went to get the facts about their employment; we discovered that they had 442 employees and only forty-three were Negroes, yet the Negro population of Cleveland is thirty-five percent of the total population. They refused to give us all of the information that we requested, and we said in substance, “Mr. Sealtest, we’re sorry. We aren’t going to burn your store down. We aren’t going to throw any bricks in the window. But we are going to put picket signs around and we are going to put leaflets out and we are going to our pulpits and tell them not to sell Sealtest products, and not to purchase Sealtest products.”

We did that. We went through the churches. Reverend Dr. Hoover, who pastors the largest church in Cleveland, who’s here today, and all of the ministers got together and got behind this program. We went to every store in the ghetto and said, “You must take Sealtest products off of your counters. If not, we’re going to boycott your whole store.” (That’s right) A&P refused. We put picket lines around A&P; they have a hundred and some stores in Cleveland, and we picketed A&P and closed down eighteen of them in one day. Nobody went in A&P. [applause] The next day Mr. A&P was calling on us, and Bob Brown, who is here on our board and who is a public relations man representing a number of firms, came in. They called him in because he worked for A&P, also; and they didn’t know he worked for us, too. [laughter] Bob Brown sat down with A&P, and he said, they said, “Now, Mr. Brown, what would you advise us to do.” He said, “I would advise you to take Sealtest products off of all of your counters.” A&P agreed next day not only to take Sealtest products off of the counters in the ghetto, but off of the counters of every A&P store in Cleveland, and they said to Sealtest, “If you don’t reach an agreement with SCLC and Operation Breadbasket, we will take Sealtest products off of every A&P store in the state of Ohio.”

The next day [applause], the next day the Sealtest people were talking nice [laughter], they were very humble. And I am proud to say that I went to Cleveland just last Tuesday, and I sat down with the Sealtest people and some seventy ministers from Cleveland, and we signed the agreement. This effort resulted in a number of jobs, which will bring almost five hundred thousand dollars of new income to the Negro community a year. [applause] We also said to Sealtest, “The problem that we face is that the ghetto is a domestic colony that’s constantly drained without being replenished. And you are always telling us to lift ourselves by our own bootstraps, and yet we are being robbed every day. Put something back in the ghetto.” So along with our demand for jobs, we said, “We also demand that you put money in the Negro savings and loan association and that you take ads, advertise, in the Cleveland Call & Post, the Negro newspaper.” So along with the new jobs, Sealtest has now deposited thousands of dollars in the Negro bank of Cleveland and has already started taking ads in the Negro newspaper in that city. This is the power of Operation Breadbasket. [applause]

Now, for fear that you may feel that it’s limited to Chicago and Cleveland, let me say to you that we’ve gotten even more than that. In Atlanta, Georgia, Breadbasket has been equally successful in the South. Here the emphasis has been divided between governmental employment and private industry. And while I do not have time to go into the details, I want to commend the men who have been working with it here: the Reverend Bennett, the Reverend Joe Boone, the Reverend J. C. Ward, Reverend Dorsey, Reverend Greer, and I could go on down the line, and they have stood up along with all of the other ministers. But here is the story that’s not printed in the newspapers in Atlanta: as a result of Operation Breadbasket, over the last three years, we have added about twenty-five million dollars of new income to the Negro community every year. [applause]

Now as you know, Operation Breadbasket has now gone national in the sense that we had a national conference in Chicago and agreed to launch a nationwide program, which you will hear more about.

Finally, SCLC has entered the field of housing. Under the leadership of attorney James Robinson, we have already contracted to build 152 units of low-income housing with apartments for the elderly on a choice downtown Atlanta site under the sponsorship of Ebenezer Baptist Church. This is the first project [applause], this is the first project of a proposed southwide Housing Development Corporation which we hope to develop in conjunction with SCLC, and through this corporation we hope to build housing from Mississippi to North Carolina using Negro workmen, Negro architects, Negro attorneys, and Negro financial institutions throughout. And it is our feeling that in the next two or three years, we can build right here in the South forty million dollars worth of new housing for Negroes, and with millions and millions of dollars in income coming to the Negro community. [applause]

Now there are many other things that I could tell you, but time is passing. This, in short, is an account of SCLC’s work over the last year. It is a record of which we can all be proud.

With all the struggle and all the achievements, we must face the fact, however, that the Negro still lives in the basement of the Great Society. He is still at the bottom, despite the few who have penetrated to slightly higher levels. Even where the door has been forced partially open, mobility for the Negro is still sharply restricted. There is often no bottom at which to start, and when there is there’s almost no room at the top. In consequence, Negroes are still impoverished aliens in an affluent society. They are too poor even to rise with the society, too impoverished by the ages to be able to ascend by using their own resources. And the Negro did not do this himself; it was done to him. For more than half of his American history, he was enslaved. Yet, he built the spanning bridges and the grand mansions, the sturdy docks and stout factories of the South. His unpaid labor made cotton “King” and established America as a significant nation in international commerce. Even after his release from chattel slavery, the nation grew over him, submerging him. It became the richest, most powerful society in the history of man, but it left the Negro far behind.

And so we still have a long, long way to go before we reach the promised land of freedom. Yes, we have left the dusty soils of Egypt, and we have crossed a Red Sea that had for years been hardened by a long and piercing winter of massive resistance, but before we reach the majestic shores of the promised land, there will still be gigantic mountains of opposition ahead and prodigious hilltops of injustice. (Yes, That’s right) We still need some Paul Revere of conscience to alert every hamlet and every village of America that revolution is still at hand. Yes, we need a chart; we need a compass; indeed, we need some North Star to guide us into a future shrouded with impenetrable uncertainties.

Now, in order to answer the question, “Where do we go from here?” which is our theme, we must first honestly recognize where we are now. When the Constitution was written, a strange formula to determine taxes and representation declared that the Negro was sixty percent of a person. Today another curious formula seems to declare he is fifty percent of a person. Of the good things in life, the Negro has approximately one half those of whites. Of the bad things of life, he has twice those of whites. Thus, half of all Negroes live in substandard housing. And Negroes have half the income of whites. When we turn to the negative experiences of life, the Negro has a double share: There are twice as many unemployed; the rate of infant mortality among Negroes is double that of whites; and there are twice as many Negroes dying in Vietnam as whites in proportion to their size in the population. (Yes) [applause]

In other spheres, the figures are equally alarming. In elementary schools, Negroes lag one to three years behind whites, and their segregated schools (Yeah) receive substantially less money per student than the white schools. (Those schools) One-twentieth as many Negroes as whites attend college. Of employed Negroes, seventy-five percent hold menial jobs. This is where we are.

Where do we go from here? First, we must massively assert our dignity and worth. We must stand up amid a system that still oppresses us and develop an unassailable and majestic sense of values. We must no longer be ashamed of being black. (All right) The job of arousing manhood within a people that have been taught for so many centuries that they are nobody is not easy.

Even semantics have conspired to make that which is black seem ugly and degrading. (Yes) In Roget’s Thesaurusthere are some 120 synonyms for blackness and at least sixty of them are offensive, such words as blot, soot, grim, devil, and foul. And there are some 134 synonyms for whiteness and all are favorable, expressed in such words as purity, cleanliness, chastity, and innocence. A white lie is better than a black lie. (Yes) The most degenerate member of a family is the “black sheep.” (Yes) Ossie Davis has suggested that maybe the English language should be reconstructed so that teachers will not be forced to teach the Negro child sixty ways to despise himself, and thereby perpetuate his false sense of inferiority, and the white child 134 ways to adore himself, and thereby perpetuate his false sense of superiority. [applause] The tendency to ignore the Negro’s contribution to American life and strip him of his personhood is as old as the earliest history books and as contemporary as the morning’s newspaper. (Yes)

To offset this cultural homicide, the Negro must rise up with an affirmation of his own Olympian manhood. (Yes) Any movement for the Negro’s freedom that overlooks this necessity is only waiting to be buried. (Yes) As long as the mind is enslaved, the body can never be free. (Yes) Psychological freedom, a firm sense of self-esteem, is the most powerful weapon against the long night of physical slavery. No Lincolnian Emancipation Proclamation, no Johnsonian civil rights bill can totally bring this kind of freedom. The Negro will only be free when he reaches down to the inner depths of his own being and signs with the pen and ink of assertive manhood his own emancipation proclamation. And with a spirit straining toward true self-esteem, the Negro must boldly throw off the manacles of self-abnegation and say to himself and to the world, “I am somebody. (Oh yeah) I am a person. I am a man with dignity and honor. (Go ahead) I have a rich and noble history, however painful and exploited that history has been. Yes, I was a slave through my foreparents (That’s right), and now I’m not ashamed of that. I’m ashamed of the people who were so sinful to make me a slave.” (Yes sir) Yes [applause], yes, we must stand up and say, “I’m black (Yes sir), but I’m black and beautiful.” (Yes) This [applause], this self-affirmation is the black man’s need, made compelling (All right) by the white man’s crimes against him. (Yes)

Now another basic challenge is to discover how to organize our strength in to economic and political power. Now no one can deny that the Negro is in dire need of this kind of legitimate power. Indeed, one of the great problems that the Negro confronts is his lack of power. From the old plantations of the South to the newer ghettos of the North, the Negro has been confined to a life of voicelessness (That’s true) and powerlessness. (So true) Stripped of the right to make decisions concerning his life and destiny he has been subject to the authoritarian and sometimes whimsical decisions of the white power structure. The plantation and the ghetto were created by those who had power, both to confine those who had no power and to perpetuate their powerlessness. Now the problem of transforming the ghetto, therefore, is a problem of power, a confrontation between the forces of power demanding change and the forces of power dedicated to the preserving of the status quo. Now, power properly understood is nothing but the ability to achieve purpose. It is the strength required to bring about social, political, and economic change. Walter Reuther defined power one day. He said, “Power is the ability of a labor union like UAW to make the most powerful corporation in the world, General Motors, say, ‘Yes’ when it wants to say ‘No.’ That’s power.” [applause]

Now a lot of us are preachers, and all of us have our moral convictions and concerns, and so often we have problems with power. But there is nothing wrong with power if power is used correctly.

You see, what happened is that some of our philosophers got off base. And one of the great problems of history is that the concepts of love and power have usually been contrasted as opposites, polar opposites, so that love is identified with a resignation of power, and power with a denial of love. It was this misinterpretation that caused the philosopher Nietzsche, who was a philosopher of the will to power, to reject the Christian concept of love. It was this same misinterpretation which induced Christian theologians to reject Nietzsche’s philosophy of the will to power in the name of the Christian idea of love.

Now, we got to get this thing right. What is needed is a realization that power without love is reckless and abusive, and that love without power is sentimental and anemic. (Yes) Power at its best [applause], power at its best is love (Yes) implementing the demands of justice, and justice at its best is love correcting everything that stands against love. (Speak) And this is what we must see as we move on.

Now what has happened is that we’ve had it wrong and mixed up in our country, and this has led Negro Americans in the past to seek their goals through love and moral suasion devoid of power, and white Americans to seek their goals through power devoid of love and conscience. It is leading a few extremists today to advocate for Negroes the same destructive and conscienceless power that they have justly abhorred in whites. It is precisely this collision of immoral power with powerless morality which constitutes the major crisis of our times. (Yes)

Now we must develop progress, or rather, a program—and I can’t stay on this long—that will drive the nation to a guaranteed annual income. Now, early in the century this proposal would have been greeted with ridicule and denunciation as destructive of initiative and responsibility. At that time economic status was considered the measure of the individual’s abilities and talents. And in the thinking of that day, the absence of worldly goods indicated a want of industrious habits and moral fiber. We’ve come a long way in our understanding of human motivation and of the blind operation of our economic system. Now we realize that dislocations in the market operation of our economy and the prevalence of discrimination thrust people into idleness and bind them in constant or frequent unemployment against their will. The poor are less often dismissed, I hope, from our conscience today by being branded as inferior and incompetent. We also know that no matter how dynamically the economy develops and expands, it does not eliminate all poverty.

The problem indicates that our emphasis must be twofold: We must create full employment, or we must create incomes. People must be made consumers by one method or the other. Once they are placed in this position, we need to be concerned that the potential of the individual is not wasted. New forms of work that enhance the social good will have to be devised for those for whom traditional jobs are not available. In 1879 Henry George anticipated this state of affairs when he wrote in Progress and Poverty:

The fact is that the work which improves the condition of mankind, the work which extends knowledge and increases power and enriches literature and elevates thought, is not done to secure a living. It is not the work of slaves driven to their tasks either by the, that of a taskmaster or by animal necessities. It is the work of men who somehow find a form of work that brings a security for its own sake and a state of society where want is abolished.

Work of this sort could be enormously increased, and we are likely to find that the problem of housing, education, instead of preceding the elimination of poverty, will themselves be affected if poverty is first abolished. The poor, transformed into purchasers, will do a great deal on their own to alter housing decay. Negroes, who have a double disability, will have a greater effect on discrimination when they have the additional weapon of cash to use in their struggle.

Beyond these advantages, a host of positive psychological changes inevitably will result from widespread economic security. The dignity of the individual will flourish when the decisions concerning his life are in his own hands, when he has the assurance that his income is stable and certain, and when he knows that he has the means to seek self-improvement. Personal conflicts between husband, wife, and children will diminish when the unjust measurement of human worth on a scale of dollars is eliminated.

Now, our country can do this. John Kenneth Galbraith said that a guaranteed annual income could be done for about twenty billion dollars a year. And I say to you today, that if our nation can spend thirty-five billion dollars a year to fight an unjust, evil war in Vietnam, and twenty billion dollars to put a man on the moon, it can spend billions of dollars to put God’s children on their own two feet right here on earth. [applause]

Now, let me rush on to say we must reaffirm our commitment to nonviolence. And I want to stress this. The futility of violence in the struggle for racial justice has been tragically etched in all the recent Negro riots. Now, yesterday, I tried to analyze the riots and deal with the causes for them. Today I want to give the other side. There is something painfully sad about a riot. One sees screaming youngsters and angry adults fighting hopelessly and aimlessly against impossible odds. (Yeah) And deep down within them, you perceive a desire for self-destruction, a kind of suicidal longing. (Yes)

Occasionally, Negroes contend that the 1965 Watts riot and the other riots in various cities represented effective civil rights action. But those who express this view always end up with stumbling words when asked what concrete gains have been won as a result. At best, the riots have produced a little additional anti-poverty money allotted by frightened government officials and a few water sprinklers to cool the children of the ghettos. It is something like improving the food in the prison while the people remain securely incarcerated behind bars. (That’s right) Nowhere have the riots won any concrete improvement such as have the organized protest demonstrations.

And when one tries to pin down advocates of violence as to what acts would be effective, the answers are blatantly illogical. Sometimes they talk of overthrowing racist state and local governments and they talk about guerrilla warfare. They fail to see that no internal revolution has ever succeeded in overthrowing a government by violence unless the government had already lost the allegiance and effective control of its armed forces. Anyone in his right mind knows that this will not happen in the United States. In a violent racial situation, the power structure has the local police, the state troopers, the National Guard, and finally, the army to call on, all of which are predominantly white. (Yes) Furthermore, few, if any, violent revolutions have been successful unless the violent minority had the sympathy and support of the non-resisting majority. Castro may have had only a few Cubans actually fighting with him and up in the hills (Yes), but he would have never overthrown the Batista regime unless he had had the sympathy of the vast majority of Cuban people. It is perfectly clear that a violent revolution on the part of American blacks would find no sympathy and support from the white population and very little from the majority of the Negroes themselves.

This is no time for romantic illusions and empty philosophical debates about freedom. This is a time for action. (All right) What is needed is a strategy for change, a tactical program that will bring the Negro into the mainstream of American life as quickly as possible. So far, this has only been offered by the nonviolent movement. Without recognizing this we will end up with solutions that don’t solve, answers that don’t answer, and explanations that don’t explain. [applause]

And so I say to you today that I still stand by nonviolence. (Yes) And I am still convinced [applause], and I’m still convinced that it is the most potent weapon available to the Negro in his struggle for justice in this country.

And the other thing is, I’m concerned about a better world. I’m concerned about justice; I’m concerned about brotherhood; I’m concerned about truth. (That’s right) And when one is concerned about that, he can never advocate violence. For through violence you may murder a murderer, but you can’t murder murder. (Yes) Through violence you may murder a liar, but you can’t establish truth. (That’s right) Through violence you may murder a hater, but you can’t murder hate through violence. (All right, That’s right) Darkness cannot put out darkness; only light can do that. [applause]

And I say to you, I have also decided to stick with love, for I know that love is ultimately the only answer to mankind’s problems. (Yes) And I’m going to talk about it everywhere I go. I know it isn’t popular to talk about it in some circles today. (No) And I’m not talking about emotional bosh when I talk about love; I’m talking about a strong, demanding love. (Yes) For I have seen too much hate. (Yes) I’ve seen too much hate on the faces of sheriffs in the South. (Yeah) I’ve seen hate on the faces of too many Klansmen and too many White Citizens Councilors in the South to want to hate, myself, because every time I see it, I know that it does something to their faces and their personalities, and I say to myself that hate is too great a burden to bear. (Yes, That’s right) I have decided to love. [applause] If you are seeking the highest good, I think you can find it through love. And the beautiful thing is that we aren’t moving wrong when we do it, because John was right, God is love. (Yes) He who hates does not know God, but he who loves has the key that unlocks the door to the meaning of ultimate reality.

And so I say to you today, my friends, that you may be able to speak with the tongues of men and angels (All right); you may have the eloquence of articulate speech; but if you have not love, it means nothing. (That’s right) Yes, you may have the gift of prophecy; you may have the gift of scientific prediction (Yes sir) and understand the behavior of molecules (All right); you may break into the storehouse of nature (Yes sir) and bring forth many new insights; yes, you may ascend to the heights of academic achievement (Yes sir) so that you have all knowledge (Yes sir, Yes); and you may boast of your great institutions of learning and the boundless extent of your degrees; but if you have not love, all of these mean absolutely nothing. (Yes) You may even give your goods to feed the poor (Yes sir); you may bestow great gifts to charity (Speak); and you may tower high in philanthropy; but if you have not love, your charity means nothing. (Yes sir) You may even give your body to be burned and die the death of a martyr, and your spilt blood may be a symbol of honor for generations yet unborn, and thousands may praise you as one of history’s greatest heroes; but if you have not love (Yes, All right), your blood was spilt in vain. What I’m trying to get you to see this morning is that a man may be self-centered in his self-denial and self-righteous in his self-sacrifice. His generosity may feed his ego, and his piety may feed his pride. (Speak) So without love, benevolence becomes egotism, and martyrdom becomes spiritual pride.

I want to say to you as I move to my conclusion, as we talk about “Where do we go from here?” that we must honestly face the fact that the movement must address itself to the question of restructuring the whole of American society. (Yes) There are forty million poor people here, and one day we must ask the question, “Why are there forty million poor people in America?” And when you begin to ask that question, you are raising a question about the economic system, about a broader distribution of wealth. When you ask that question, you begin to question the capitalistic economy. (Yes) And I’m simply saying that more and more, we’ve got to begin to ask questions about the whole society. We are called upon to help the discouraged beggars in life’s marketplace. (Yes) But one day we must come to see that an edifice which produces beggars needs restructuring. (All right) It means that questions must be raised. And you see, my friends, when you deal with this you begin to ask the question, “Who owns the oil?” (Yes) You begin to ask the question, “Who owns the iron ore?” (Yes) You begin to ask the question, “Why is it that people have to pay water bills in a world that’s two-thirds water?” (All right) These are words that must be said. (All right)

Now, don’t think you have me in a bind today. I’m not talking about communism. What I’m talking about is far beyond communism. (Yeah) My inspiration didn’t come from Karl Marx (Speak); my inspiration didn’t come from Engels; my inspiration didn’t come from Trotsky; my inspiration didn’t come from Lenin. Yes, I read Communist Manifesto andDas Kapital a long time ago (Well), and I saw that maybe Marx didn’t follow Hegel enough. (All right) He took his dialectics, but he left out his idealism and his spiritualism. And he went over to a German philosopher by the name of Feuerbach, and took his materialism and made it into a system that he called “dialectical materialism.” (Speak) I have to reject that.

What I’m saying to you this morning is communism forgets that life is individual. (Yes) Capitalism forgets that life is social. (Yes, Go ahead) And the kingdom of brotherhood is found neither in the thesis of communism nor the antithesis of capitalism, but in a higher synthesis. (Speak) [applause] It is found in a higher synthesis (Come on) that combines the truths of both. (Yes) Now, when I say questioning the whole society, it means ultimately coming to see that the problem of racism, the problem of economic exploitation, and the problem of war are all tied together. (All right) These are the triple evils that are interrelated.

And if you will let me be a preacher just a little bit. (Speak) One day [applause], one night, a juror came to Jesus (Yes sir) and he wanted to know what he could do to be saved. (Yeah) Jesus didn’t get bogged down on the kind of isolated approach of what you shouldn’t do. Jesus didn’t say, “Now Nicodemus, you must stop lying.” (Oh yeah) He didn’t say, “Nicodemus, now you must not commit adultery.” He didn’t say, “Now Nicodemus, you must stop cheating if you are doing that.” He didn’t say, “Nicodemus, you must stop drinking liquor if you are doing that excessively.” He said something altogether different, because Jesus realized something basic (Yes): that if a man will lie, he will steal. (Yes) And if a man will steal, he will kill. (Yes) So instead of just getting bogged down on one thing, Jesus looked at him and said, “Nicodemus, you must be born again.” [applause]

In other words, “Your whole structure (Yes) must be changed.” [applause] A nation that will keep people in slavery for 244 years will “thingify” them and make them things. (Speak) And therefore, they will exploit them and poor people generally economically. (Yes) And a nation that will exploit economically will have to have foreign investments and everything else, and it will have to use its military might to protect them. All of these problems are tied together. (Yes) [applause]

What I’m saying today is that we must go from this convention and say, “America, you must be born again!” [applause] (Oh yes)

And so, I conclude by saying today that we have a task, and let us go out with a divine dissatisfaction. (Yes)

Let us be dissatisfied until America will no longer have a high blood pressure of creeds and an anemia of deeds. (All right)

Let us be dissatisfied (Yes) until the tragic walls that separate the outer city of wealth and comfort from the inner city of poverty and despair shall be crushed by the battering rams of the forces of justice. (Yes sir)

Let us be dissatisfied (Yes) until those who live on the outskirts of hope are brought into the metropolis of daily security.

Let us be dissatisfied (Yes) until slums are cast into the junk heaps of history (Yes), and every family will live in a decent, sanitary home.

Let us be dissatisfied (Yes) until the dark yesterdays of segregated schools will be transformed into bright tomorrows of quality integrated education.

Let us be dissatisfied until integration is not seen as a problem but as an opportunity to participate in the beauty of diversity.

Let us be dissatisfied (All right) until men and women, however black they may be, will be judged on the basis of the content of their character, not on the basis of the color of their skin. (Yeah) Let us be dissatisfied. [applause]

Let us be dissatisfied (Well) until every state capitol (Yes) will be housed by a governor who will do justly, who will love mercy, and who will walk humbly with his God.

Let us be dissatisfied [applause] until from every city hall, justice will roll down like waters, and righteousness like a mighty stream. (Yes)

Let us be dissatisfied (Yes) until that day when the lion and the lamb shall lie down together (Yes), and every man will sit under his own vine and fig tree, and none shall be afraid.

Let us be dissatisfied (Yes), and men will recognize that out of one blood (Yes) God made all men to dwell upon the face of the earth. (Speak sir)

Let us be dissatisfied until that day when nobody will shout, “White Power!” when nobody will shout, “Black Power!” but everybody will talk about God’s power and human power. [applause]

And I must confess, my friends (Yes sir), that the road ahead will not always be smooth. (Yes) There will still be rocky places of frustration (Yes) and meandering points of bewilderment. There will be inevitable setbacks here and there. (Yes) And there will be those moments when the buoyancy of hope will be transformed into the fatigue of despair. (Well) Our dreams will sometimes be shattered and our ethereal hopes blasted. (Yes) We may again, with tear-drenched eyes, have to stand before the bier of some courageous civil rights worker whose life will be snuffed out by the dastardly acts of bloodthirsty mobs. (Well) But difficult and painful as it is (Well), we must walk on in the days ahead with an audacious faith in the future. (Well) And as we continue our charted course, we may gain consolation from the words so nobly left by that great black bard, who was also a great freedom fighter of yesterday, James Weldon Johnson (Yes):

Stony the road we trod (Yes),

Bitter the chastening rod

Felt in the days

When hope unborn had died. (Yes)

Yet with a steady beat,

Have not our weary feet

Come to the place

For which our fathers sighed?

We have come over a way

That with tears has been watered. (Well)

We have come treading our paths

Through the blood of the slaughtered.

Out from the gloomy past,

Till now we stand at last (Yes)

Where the bright gleam

Of our bright star is cast.

Let this affirmation be our ringing cry. (Well) It will give us the courage to face the uncertainties of the future. It will give our tired feet new strength as we continue our forward stride toward the city of freedom. (Yes) When our days become dreary with low-hovering clouds of despair (Well), and when our nights become darker than a thousand midnights (Well), let us remember (Yes) that there is a creative force in this universe working to pull down the gigantic mountains of evil (Well), a power that is able to make a way out of no way (Yes) and transform dark yesterdays into bright tomorrows. (Speak)

Let us realize that the arc of the moral universe is long, but it bends toward justice. Let us realize that William Cullen Bryant is right: “Truth, crushed to earth, will rise again.” Let us go out realizing that the Bible is right: “Be not deceived. God is not mocked. (Oh yeah) Whatsoever a man soweth (Yes), that (Yes) shall he also reap.” This is our hope for the future, and with this faith we will be able to sing in some not too distant tomorrow, with a cosmic past tense, “We have overcome! (Yes) We have overcome! Deep in my heart, I did believe (Yes) we would overcome.” [applause]