America's Constantly Shifting Mixed Economy

In Chapter Three (“Education and Training”) we are introduced to the world of private nonprofit education including K-12, higher education and workforce training and development. While I found the entire chapter interesting enough, I was especially drawn into the authors’ discussions about private, nonprofit higher education. Perhaps this is because I’ve worked in public higher education, both in a professional administrative capacity in the past and presently as a visiting university professor.

I particularly agree with the “constantly shifting mixed economy” concept that seems to be the recurring thread throughout this chapter. This concept is critically important to the continued strength of our country and is one of the things that make America great and powerful. The authors remind us that we consistently seek to balance private for-profit enterprise, public governance and nonprofit activity in an effort to serve both the public and private good. Clearly, our educational system (comprised of public and private institutions, nonprofit and for-profit, and supported by a menu of resources) reflects this same desire to achieve a balance that will serve the needs of all.

Before the Declaration of Independence has been written, America had institutions of higher education (colonial colleges). And much like that famous document penned by our founding fathers, many of the early colleges and universities also declared an independence from state subsidies so that they could enjoy institutional autonomy.

Throughout the history of higher education in America we continue to see our country’s dedication to a “constantly shifting mixed economy” as laws, bills and federal resources are reshaped to accommodate women, blacks, war veterans, individuals from families with exceptional needs, and more. One of the challenges inherent in a society that allows a mixed economy is that the consumer has the luxury of shopping for the educational opportunity that is best suited for them.

Over time, as the menu of choices for a higher educational experience becomes more extensive, the consumer has questioned the higher costs that are typically associated with private nonprofit institutions. Many are not convinced that the exclusivity of private education is worth the dollars spent. This is particularly evident in the “middle-class-melt”; a phrase coined by the authors to indicate families who can clearly afford a private education but choose a lower-priced public institution instead.

In addition to the affordability factor, there are other challenges as well including the questionable relevance of liberal arts colleges today, dwindling research support from the federal government, competition from for-profit entities and philanthropy’s growing interest in K-12.

The private nonprofit higher education response to these challenges mirrors the tried and true path that we continue to honor in this country; the constantly shifting mixed economy. When I look at the way private institutions are now reengineering their platforms to address the 21st century consumer as well as the 21st century workplace, I see an important element of our educational system shifting and exploring new ways to ‘mix’ their components so that they can continue to thrive. They are a vital player in the balancing act that serves the public and private good.