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Tuesday, May 5, 2020

The US Working-Class Depression: "Let's all pretend we couldn't see it coming."

How is the working-class Depression of 2020 similar to the other 47 financial downturns in US history? 

Downturns are frequently precipitated by poor economic and cultural practices and preceded by lots of signals: over-speculation, overuse of resources, oversupplies of goods, and exploitation of labor. What I see are many poor practices brought on by corruption--with overconsumption, climate change, growing inequality, and moral degeneration at the root.

The "disrupters" (21st century robber barons) have enabled an alienating and anomic system that is highly dysfunctional for most of the planet, using "algorithms of oppression." And this cannot be solved with data alchemy, marketing, and other forms of sophistry.

Put down your iPhone for a minute and ponder these rhetorical questions:

Warm Koolaid (2016) signified corporate America's use of myths and distractions to sedate the masses. 

How long have we known about all of this dysfunction? Academics have known about the effects of global climate change and growing US inequality since at least the 1980s. The Panic of 2020 should be a lesson so that we don't have a larger economic, social and environmental collapse in the future.

Who will hear the warnings and do something constructive for our future? Or is this Covid crisis another opportunity for the rich to cash in on the tragedy?

The answer lies, in part, to an ignorance of history and science, and oversupply of low-grade information, poor critical thinking skills, and lots of distractions. That's in addition to the massive greed and ill will by the rich and powerful.

US downturns are baked into this oppressive system. And crises are used to further exploit working families. With climate change and a half century of increasing inequality, these situations are likely to worsen.


Workers will resist and fight oppression; they always do, but will they have a voice as the US faces another self-induced crisis, as trillions are doled out to those who already have trillions?

Here are the dates of the largest economic downturns.
1797-1800
1807–1814
1819–1824
1857–1860
1873–1879 (The Long Depression)
1893–1896 (The Long Depression)
1907–1908
1918–1921 (World War I, Spanish Flu, Panic of 1920-21)
1929–1933 (Stock Market Crash, Great Depression)
1937–1938 (Great Depression)
Feb-Oct 1945
Nov 1948–Oct 1949
July 1953–May 1954
Aug 1957–April 1958
April 1960–Feb 1961
Dec 1969–Nov 1970
Nov. 1973– March 1975
Jan-July 1980
July 1981–Nov 1982
July 1990–March 1991
Mar-Nov 2001
December 2007 – June 2009 (The Great Recession)
March 2020-

We live in an economic system that is unsustainable, unjust, and exploitative. While many of us in academia and the thought industry have known this for decades, those with greater wisdom have known for centuries. Techies and disrupters think it can all be solved with technology, not with profound wisdom. The ultimate in hubris and reductionism. We have to change the system politically, socially, and culturally. We have to be wiser.

How do we do that, radically change society, when our economic system has driven us in the wrong direction for so long? Some of these lessons can be learned from working class history, but they have to be applied with wisdom.

Tuesday, May 6, 2025

Santa Ono: Take the Money and Run

In a stunning development that has sent ripples through the world of higher education, University of Michigan President Santa J. Ono announced he will step down this summer to take the helm at the University of Florida. The announcement comes just seven months after he signed a lucrative contract extension at U-M—one that brought his salary to $1.3 million per year and was among the most generous in the nation.

Ono’s exit will mark the shortest presidential tenure in University of Michigan history—just two and a half years. And it’s happening at a moment of profound political and institutional tension, with many in Ann Arbor voicing frustration at what they perceive as the university's muted resistance to a suite of controversial measures emanating from the Trump administration.

From Rising Star to Abrupt Exit

When Santa Ono arrived in Ann Arbor in late 2022, he brought with him a sterling academic pedigree and a reputation as a charismatic, student-focused leader. His hiring was seen as a stabilizing move after years of controversy surrounding his predecessor.

But beneath the surface, Ono’s relationship with the university community frayed. Faculty members and students alike cite his increasing absence from public discourse in 2024, particularly as the federal government—under a resurgent Trump administration—moved to slash research funding, roll back diversity, equity and inclusion (DEI) programs, and scrutinize university partnerships, including U-M’s involvement with The PhD Project, which aims to diversify business faculty.

“He’s been more or less invisible particularly this year,” said Faculty Senate Chair Derek Peterson. “What we need is a fighter, not a conformer.”

The Florida Move

Ono’s move to the University of Florida has sparked speculation about his motivations. On paper, Michigan is more prestigious, enjoys greater autonomy thanks to a unique governance structure, and has a massive $19.2 billion endowment. Florida, by contrast, is under the thumb of a politically active governor and a centralized board that has exerted pressure on universities to conform to ideological mandates.

Yet the financial allure may have been too great to ignore: reports suggest Florida’s presidential compensation could total $3 million annually—more than double Ono’s current pay.

Brendan Cantwell, a professor of higher education policy at Michigan State University, noted the irony: “He’s leaving a more prestigious, more autonomous institution. That says a lot about the pressures he faced.”

A State Under Fire: The Regressive Politics of Higher Education in Florida

For those familiar with the political climate in Florida, Ono’s move to the University of Florida is far from surprising. Over the past few years, Florida has become a hotbed for right-wing political maneuvering in higher education, with Governor Ron DeSantis spearheading efforts to reshape universities in line with his conservative agenda.

From banning certain books to defunding DEI programs and trying to control academic curriculum, DeSantis has made it clear that higher education in Florida is now a battleground for ideological warfare. His administration has launched aggressive campaigns against what he describes as “woke” politics in academia, citing the need to root out “liberal indoctrination” and promote “freedom” from progressive influences.

Florida’s approach to higher education has included an unprecedented wave of budget cuts to diversity programs, particularly those aimed at supporting historically underrepresented students. The state’s universities are now grappling with the loss of funding for programs designed to increase access for Black, Latino, and Indigenous students. DeSantis has also pushed for "anti-woke" laws that bar universities from offering certain courses or diversity-related initiatives. This is not only affecting the curriculum, but also the very way in which faculty and staff are hired and evaluated.

In 2023, the University of Florida eliminated many of its DEI programs under pressure from the state. The state’s Board of Governors is now actively involved in scrutinizing university curriculums, and its influence extends even to hiring practices, where faculty members are increasingly expected to align with a more conservative view of American history and culture. These moves have drawn ire from academics nationwide, who argue that Florida’s political leadership is attempting to stifle intellectual freedom and academic independence.

Moreover, Florida’s universities face a severe erosion of academic freedom, as DeSantis has sought to impose strict guidelines on speech and research. This includes revising what can and cannot be taught in classrooms and restricting discussions around race, gender, and political identity. The state's newly imposed curriculum laws have made it more difficult for universities to engage in meaningful discourse about topics such as climate change, systemic racism, and gender equality.

For Ono, stepping into this highly charged, politicized environment will represent a dramatic shift from his more moderate, research-focused tenure at Michigan. His leadership will likely be tested not just by university-level challenges but also by the state's political apparatus, which has shown a willingness to intervene in nearly every facet of higher education.

Institutional Challenges Ahead

Ono’s departure leaves U-M with significant challenges. The Board of Regents announced that he will remain in Ann Arbor until an interim president is named—a process that may take weeks. But finding a long-term leader capable of navigating the rapidly shifting higher education landscape could take much longer.

The next president will have to address:

  • Federal Research Cuts: The loss of federal contracts—particularly from agencies like the National Institutes of Health—has cost Michigan and its peer institutions hundreds of millions of dollars. A $15 million Social Security study was among the casualties. U-M is using endowment funds to plug gaps, but that is not a sustainable strategy.

  • DEI Backlash and Retrenchment: The university recently shuttered two DEI offices and scaled back programming, citing political and legal risks. While Ono promised to bolster financial aid and mental health support, many faculty and students felt betrayed by the move.

  • Campus Unrest and Free Speech: Protests over the Gaza war led to harsh disciplinary action against student groups, including the suspension of Students Allied for Freedom and Equality (SAFE). Critics say the campus has become increasingly authoritarian, and several lawsuits have been filed by terminated employees alleging First Amendment violations.

  • Board Relations and Governance: U-M’s elected Board of Regents is ideologically divided. While five Democratic regents penned a passionate op-ed in defense of academic independence, the board’s stance on DEI and other political flashpoints appears fractured.

A Bigger Crisis in Public Higher Ed?

Beyond the immediate concerns, the university’s upheaval reflects deeper anxieties about the future of public higher education in America. Declining public trust, rising tuition, and the politicization of universities—especially around issues of race, gender, and free speech—have created an atmosphere of volatility.

While the University of Michigan continues to see strong application numbers, including from international students, enrollment of in-state high school graduates is dropping. The university’s Go Blue Guarantee, which offers free tuition to families earning under $125,000, is a step toward addressing affordability concerns. But will it be enough?

Sandy Baruah of the Detroit Regional Chamber sees a broader mission: “Our research universities all have a responsibility to make the case for higher education. The value of higher ed is critical to the state of Michigan.”

What’s Next?

The Faculty Senate has passed resolutions urging the university to join a “mutual defense pact” with other Big Ten schools to resist political interference and defend academic freedom. But U-M is not obligated to act on those resolutions.

Interim leadership will be announced soon, and the search for a permanent successor will follow. Whoever takes the reins next will need to be a deft political operator—someone capable of rebuilding trust internally while weathering mounting external threats.

In the words of Cantwell: “Whoever they hire has to be prepared to be under intense scrutiny—locally, federally, ideologically. The next leader of Michigan must have both a spine and a strategy.”

As the University of Michigan enters this uncertain chapter, one thing is clear: the battle over the soul of public higher education is far from over.

Friday, July 9, 2021

Academic Capitalism and the next phase of the College Meltdown (updated January 26, 2022)

It appears we have entered a new phase of Academic Capitalism and the College Meltdown. The previous phase involved College Mania! and the growth of the "educated underclass" (including gig workers, adjuncts and postdocs), Wall Street over-speculation, the divestment of corporations from employee benefits, and the rise and fall of for-profit colleges: Corinthian Colleges, ITT Tech, Education Management Corporation, Apollo Group, Education Corporation of America, and Laureate Education.  

Enrollment at proprietary schools is down about 40 percent from its peak in 2010 and higher education enrollment has dropped every year for the last decade.  In absolute numbers, community colleges have taken the largest hit.  Regional public universities have also experienced large enrollment declines.

At other schools, student aid has shifted from "needs based" to "merit based" making college choice for low- and moderate income families an even riskier choice

Student loan debt has crippled millions of working families, but neoliberal experts at Goldman Sachs and the Federal Reserve do not see a significant problem. 

According to the Federal Reserve, the student debt problem is ameliorated by the decline in births to people of lower socio-economic status.  The FED has also consistently reported that the debt is not a huge drag on the economy (less than 0.05 percent per year). Those developments, along with an anemic but growing student debt movement, have meant that the chance for progressive and meaningful change is limited under the Biden administration, but possible in the long run.  

This new phase of the College Meltdown has strong roots in the 1980s and involves the continued growth of the educated underclass (including elite overproduction in higher education) and more bulls*t jobs, the privatization of public higher education, the proliferation and consolidation of online program managers (OPMs) working for name brand and lesser known schools, non-profit subprime colleges, robocolleges, continued grade inflation, and the fall of the US federal student loan program. In 2020 and 2021, higher education also received three massive federal bailouts.  

Larger developments include the resurgence of authoritarianism, the hollowing out of America, and the global climate change crisis.  Despite these glaring existential problems, a looming college enrollment cliff in 2026, and growing dismay by working families, irrational exuberance and false optimism continues among most college business officers and middle-class consumers.  

Will austerity and excesses in the system lead to even more dramatic failures? Will the states and federal government ask for more transparency and accountability of the government funds that keep the system afloat?

What should we be observing in this new phase:  

1. The growth (and power) of the "educated underclass"

2. The effects of student loan debt on working families and social institutions (including religion and the economy) 

3. The state of the student loan forgiveness movement and popular opinion about student loan forgiveness

4. The health of the US Department of Education's Student Loan Portfolio

5. The growth of Online Program Managers

6. The degree that public universities are serving their citizens

7. The amount of money spent on marketing and advertising in higher education

8. Analyses of the FED, big banks, and rating agencies about the K-12 pipeline, higher education, student loan debt, and the growth of the educated underclass 

9. Local, state, and federal responses to "savage inequalities" in the K-12 pipeline, student loan debt, and the growth of the "educated underclass"

10. The rise of authoritarianism/neofascism in US education and the US as a whole  (e.g. mass surveillance, anti-intellectualism, hate crimes)

11. In deference to Bryan Alexander and his upcoming book "Universities on Fire" I must include global climate change as a phenomenon that must be observed and dealt with.  Failure to address this existential problem makes the other issues irrelevant.  

References

This article was updated November 11, 2021 to include a link to elite overproduction in higher education and on January 26, 2022 to include a list of recent references.