About this Video

• Video Title: Broken Ivy League University System, How to Fix It- Scott Galloway NYU Professor with Andrew Yang
• Channel: The Houston Time
• Speakers: Scott Galloway, Andrew Yang
• Duration: 00:06:12

Introduction

This video features NYU Professor Scott Galloway and Andrew Yang discussing the high cost and exclusivity of the Ivy League university system. Galloway argues that these institutions have become essentially hedge funds prioritizing the children of wealthy investors, leading to a broken system that disadvantages many deserving students. The conversation centers on potential solutions to make higher education more accessible and affordable.

Key Takeaways

• High cost and exclusivity: Ivy League universities have become prohibitively expensive, pricing out many middle- and lower-income students despite their academic merit. This is driven by a focus on exclusivity rather than public service, which leads to an artificially constrained supply and inflated prices.
• Universities as hedge funds: Elite universities function like hedge funds, prioritizing the children of wealthy investors. This reinforces inequality and limits access for students from less privileged backgrounds.
• Lack of cost-cutting: Universities are largely resistant to cost-cutting measures due to entrenched interests and a long history of price increases exceeding inflation.
• Proposed solution: Grand Bargain: Galloway proposes a "grand bargain" involving increased state funding and a dramatic expansion of capacity through online learning to make universities more accessible. This would involve a shift from exclusivity to serving the public good.
• Technology as a solution: The speakers suggest that incorporating online learning can significantly increase capacity and lower costs per student, thus addressing accessibility challenges.

Here's the transcript broken down into one-minute intervals, with grammatical corrections. Note that the timestamps are approximations based on the provided data, and slight variations are possible due to the limitations of the transcription data. Exact word counts and perfect synchronization within each minute are not guaranteed.

Minute 1 (0:00-0:59):

We live in a capitalist society, and having more money means more opportunity for your children: better healthcare, a broader selection of partners—it's advantageous. More versus less money in a capitalist society affects us all. We prioritize our own needs first, believing universities are noble institutions where money is secondary. However, professors and administrators seek economic security, too. A combination of the belief that everyone needs college and the constraint of supply transforms universities into luxury brands instead of public servants. Consequently, prices consistently rise, exceeding inflation, justifying it as morally right while in reality, many elite universities function as hedge funds. They cater to the children of their investors.

Minute 2 (1:00-1:59):

They essentially provide classes to the children of their investors. They gloss over the problematic aspects of the higher education structure. Higher education has become exclusive, only including exceptionally successful middle-class and lower-income students. This is a morally corrupt attempt to alleviate guilt. Spring used to bring excitement about college; now, it's anxiety over affordability. Many parents struggle to explain to their children that they cannot afford top universities due to financial limitations. This makes them feel like they are failing the American Dream because they cannot afford college despite working hard. Worse, if their child doesn't get into a top school because of high rejection rates, they might attend a second-tier institution with less return on investment.

Minute 3 (2:00-2:59):

Corporations still consider university prestige when evaluating job candidates' worth. This means incurring high debt for a potentially lower-than-expected return. This is a significant societal problem that has worsened gradually. University administrators and professors desire the same comfortable lives as others. I have been working with Chancellor Block of UCLA, which receives the most applications globally, and concluded that these institutions struggle to cut costs due to factors like tenure and extensive facilities. They haven't had to cut costs in 40 years. This makes effective cost reduction challenging. We could potentially use a mix of small and large tech solutions to dramatically expand capacity.

Minute 4 (3:00-3:59):

For example, moving 50% of courses online could effectively double campus size. Many courses could function well online, reducing the need for physical resources. I hope that individuals in positions of authority will consider a grand bargain. We can increase the University of California budget by 20% to significantly lower costs per student using technology and expanded capacity. UCLA could return to its former higher admission rate (20-25%). We need to dramatically increase the capacity of our public universities.

Minute 5 (4:00-4:59):

We need to ensure that students who are not exceptionally gifted still have remarkable opportunities through higher education. I'm speaking to you today because UCLA once accepted a third of its applicants. They could afford to accept less remarkable students— even someone like me who benefited from that opportunity. Now, with higher competition, they only let in the remarkable. This problem needs to be addressed by expanding capacity through technology and breaking the cycle of exclusivity. Academics and administrators have become focused on exclusivity. Each year, deans boast about their high rejection rates.

Minute 6 (5:00-6:09):

This is akin to a housing shelter director bragging about turning away most applicants. We have lost our focus and must return to being public servants instead of luxury brands, embracing technology and taking decisive action to expand capacity in public university systems, such as the University of Texas, Michigan, California, and Florida. I believe this crisis presents an opportunity to return to a system that provides opportunities to all, regardless of exceptional talent, through the upward mobility provided by higher education. I used to run the nation's largest GMAT prep company.