Harvard University recently announced that despite deciding to allow only 40 percent of undergraduates to return in the fall, and confirming all classes were to be conducted online, it would still be charging students $50,000 in tuition fees,1 for the 2020-2021 academic year. The news drew incredulity and mockery from around the web.
In his book, The Case Against Education, economist Bryan Caplan argued that, contrary to popular belief, the primary purpose of formal education is not developing skills and acquiring knowledge. Instead, its function is to signal ‘intelligence, work ethic, and conformity’ to potential employers and society at-large.
In the case of Ivy League institutions like Harvard, I would add status to that list. Harvard graduates get to enjoy the lifelong prestige and connections that come from being part of an elite club.
Harvard, Yale, Oxford, Cambridge—these are brands, not unlike Gucci or Prada. They charge a premium for products and services that can be obtained more cheaply elsewhere.
Recognising the value people place on status makes it easier to grasp why someone would be willing to fork over ‘a hundred and fifty grand on a f*****g education you coulda got for a dollar fifty in late charges at the public library’, as Will Hunting so eloquently put it.
Footnotes
- This is without counting fees ($4,315), room ($11,364), board ($7,025), estimated personal expenses ($3,500), and estimated travel costs ($0-$4,150). According to Harvard, billed costs total $72,357, with billed and unbilled costs combined totaling $75,857-$80,007.
