Why Does College Cost So Much?

Our technology story rests on three strong pillars. First, like many personal services, including much of health care, the law and banking, higher education remains essentially an artisanal industry. These are industries in which technological progress has not reduced the number of labor hours needed to “produce” the service. By contrast, labor productivity in basic manufacturing has soared, and this is why the cost of a year of college has gone up compared with the purchase price of a basic car or a basket of groceries.
Students interacting directly with professors and other students in small groups remain a benchmark of quality in education. Ask any family if they want their son or daughter to learn in small group seminars taught by tenured professors, or if they prefer giant impersonal lectures or online chat rooms monitored by adjunct teachers who answer lots of e-mail questions. —Archibald and Feldman, Forbes