Comments (7)

• olmedo

  it is about time!!

  Published: March 25, 2009 12:36 AM

• KY Leong

  Looking at the statistics from Pfeffer & Fong

  "...in 1955-56, graduate business education was virtually nonexistent, with only 3,200 MBA degrees awarded in the U.S. By 1997-98, this number had grown to over 102,000" (Zimmerman, 2001: 3). By the fall of 2000, there were 341 accredited master's programs in business in the United States (U.S. News and World Report, 2002), 900 American universities offered a master's in business (Leonhardt, 2000: 18), and in the spring of 2001, some 1,292 schools, or 92% of all accredited colleges and universities, offered an undergraduate major in business (U.S. News and World Report, 2002). In 1996-1997, more than a quarter million undergraduate degrees in business were awarded (AACSB Newsline, 1999). New business education programs have started, and existing programs have expanded in the U.S. even as business education has grown around the world..."

  I am suspecting that somehow the Alan Greenspan's easy-money reign in the Fed has a lot to do with the rise of the MBA class. Notice the positive correlation between the increase in MBA activities and the Fed funds rates during the period 1999-2002?

  Capital misallocation can take on a myriad of forms - bubbles in business education not excluding.

  Published: March 25, 2009 2:11 AM

• Marco Costa

  Again we see that old prose: incentives don't matter, government intervention is completely ok. Lets fix people instead.

  Published: March 25, 2009 4:40 AM

• banker

  No, education is a huge bubble. Most of it is useless garbage. I would imagine only the very technical disciplines that require years of training (math, engineerings, etc) will survive. The only reason education became bloated was because of the wide availability of low interest rate loans. So, just like the housing bubble created a glut of housing, the education bubble (from the credit bubble) created a glut of universities and education.

  good riddens, America needs productive people.

  Published: March 25, 2009 4:45 AM

• Anne Cleveland

  Thank you for connecting the dots. Oh yes,the melt-down the break-down, the fall-out,and all that is happening to destroy the free-market system, individual freedom and personal property rights,, has been taught in schools beginning in kindergarten thru hi school and on into so-called higher education.I write about it on my blog site, octogenariansblog.com

  Thanks
  Anne Cleveland

  Published: March 25, 2009 6:50 AM

• Nate Y

  banker,

  The word you're looking for is "riddance" not "riddens".

  Anyway, I agree that education (as it is today) is mostly useless garbage. Oh well.

  Published: March 25, 2009 11:40 AM

• Horst Muhlmann

  I think there IS a future for b-schools. Especially after the college bubble bursts.

  Obama has recommended that kids DO NOT major in finance or business. That is the best endoresement for an MBA imaginable.

  Published: March 25, 2009 12:28 PM