The University of Chicago has the best business school in the world. So why are they broke?
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- Опубликовано: 6 июн 2024
- Universities in the US are under severe financial stress, as enrollment is plunging. Students from wealthy Chinese families are choosing to study closer to home, and enrollment from US students is falling. Universities across the country are slashing professor positions and administrative staff jobs, and even closing campuses. This all comes at a time of collapsing public confidence in higher education among the general public.
None of this is a problem at the University of Chicago, however, where enrollment is rising, students are applying in record numbers, and they are pushing up tuition costs. But soaring expenses, administrative bloat, and a capital structure that is too dependent on floating-rate loans have left the university with huge deficits. The same institution that is ironically home to the "Chicago Thought" school of economics and is where Barack Obama once held a position as instructor of Constitutional Law, has painful choices to make.
Resources and links:
University of Chicago under severe financial pressures
maroon.com/40872/news/expect-growing-pains-university-presentation-reveals-severe-financial-pressures/
www.chicagobusiness.com/educa...
Chart, cost of education vs inflation rate
www.personalfinanceclub.com/i...
Survey: Americans' confidence in higher education fall sharply news.gallup.com/poll/508352/a...
www.chronicle.com/article/pub...
University of Chicago rankings
www.bloomberg.com/business-sc...
www.usnews.com/best-graduate-...
National universities under severe strain
www.insidehighered.com/news/b...
University of Arizona www.nytimes.com/2024/02/21/us...
Big 10 www.forbes.com/sites/michaelt...
Wisconsin www.wpr.org/economy/most-univ...
UConn www.highereddive.com/news/uni...
UNH www.forbes.com/sites/michaelt...
SUNY Potsdam www.northcountrypublicradio.o...
Penn State www.spotlightpa.org/statecoll...
CUNY www.thecity.nyc/2024/01/12/cu...
Can Indian students offset Chinese losses?
www.bloomberg.com/news/articl... 
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If the best business school can't pay its bill. Then it's not the best.
I can not trust a skinny cook😆
Trump School educate people how to make money. lol..
Jack Ma runs a college to accommodate billionaires , to form an alliance to make profits, and get blamed, eventually this Jack Ma college is transformed into innovation center to develop cloud computing and Ai.
They didn’t see Trump coming…then Biden.
@@serriajohn He was trying to infect the Chinese financial system with the Western financial virus and got stopped. Now he is back to contributing to society and that's good.
Let's admit it. Not too many Indian parents can afford to send their kids to study overseas except for a few Indian elites. But the Chinese students are paying full tuitions in the US universities.
because no curry in university canteens !!
Show India government are damn corrupt population poor and a lot of slum area citizens still struggling for three meals
Boasting to whole world India have a lot rich billionaire and no 1 superpower with high literature
The West must invest in the toddy industry in order to attract Indians; no toddy no Indian tourists or students.
Great irony! Financial mismanagement in the supposedly best MBA university in the world. I guess they are not able to take theory from the classroom to practice in the real world.
New class being introduced- how to fire people 101
Aside from what we know of the Chinese. They are also sitting on an estimated 3 trillion in hidden FX reserves. Estimated double the US Gold holdings
While most of our western pundits graduates of the best schools in the world think that China is about to crash
As they intentionally slowed down their own economy
We have no chance….
Our western pundits are still intentionally lumping all Chinese debt in as the same
while taking great pains to separate and make sure to exclude US internal debt from that 34 trillion in external Sovereign debt when they make caparisons of the two countries debts
A business school 🏫 that can not manage their money end of story...
I have met many university professors who did not spend a day in business teaching students about business. The tenured ones cannot be sacked. That is totally different in the real business world
My brother I learn more from you than fron FT, Bloomberg, CNBC etc. thank you very much. Cheers from a Caribbean guy.
You’re very naive to think you can learn the principles of finance or business reading these tabloids. Good luck.
@@sciagurrato1831 These are the practical lessons that the Universities don't teach and it's free, so, much better!
My background and career is in medicine so I read on many topics or watch videos to learn. However I get your point 😅😅😅😅
@@sciagurrato1831He did not say he learn the principles of finance. You are very judgmental.
Kevin is giving information that western fnanancial media won't.
It was nice to watch your videos, but I can hear another conversation in the background in this video, It makes it really stressful to listen to, especially when I am wearing earphones to watch it.
The Indian students won't be nearly enough to make up for the shortfall of Chinese students. Chinese students have kept many universities afloat because they pay full price, whereas domestic students get financial aid. With the US's increased hostility toward China, it's a small wonder that Chinese students are staying home.
Same with Australia. Many universities there rely on Chinese students.
The blind leading the blind ... it is all going downhill for the US
It all begins with the blind electing the blind. 😂
Cudos for the Chinese students. Dont spend your money where they abhor you.
A university education used to be a win-win proposition. The climate has shifted and these institutions have become greedy profit raking machines that offer minimal return on investment. Paying exorbitant tuition without any guarantee of landing a job in your field post graduation is a risk that is not worth taking nowadays.
...not only that, U$ regime is pushing anti china hate propaganda, why would anyone invest/study in a country where you are ideologically hated.
Contrast this with China, where the vast majority of Universities are publicly owned and hold a much better reputation than those privately owned. Education should be seen as a service to the citizens of a country and should be provided at minimal costs. Asians parents will always value a good education for their children.
All thanks to trump, china china china china china all day long😂😂😂 thats what happens when you blame china
Soon as a Chinese student show up at the airport they are meet with allegations, accusations, suspicions and some incriminated for just being a Student from China.
Who on earth wants to put up with that.
I think the Chinese students dodged a bullet. They will not be indoctrinated with Western woke ideology.
It is the same here in Canada. Students from China has dropped dramatically.
It was a S*** business model to fleece Chinese or any other students. The decline of the US and West is across the board.
And Biden - Sullivan - Blinken - Raimondo (+ those cohorts in Congress) echoing Trump and adding National Security, National Security, National Security....
All thanks to government subsidizing college costs and administrative greed of colleges.
What a nonsense comment.
Many students from here in the UK have discovered China and its very impressive and affordable universities and are making tracks to China.
Some of the most advanced physics and chemistry are being done at a very small chemical plant in the north west of England and are rotating many students through this small plant to teach students for nothing well you have to give a presentation on your subject with a demonstration in your subject. These students are very much sought after.
I'm currently living in Arkansas and every other town has a state university. The school system encourages students to go to these colleges. Many that graduate these colleges are barely literate.
Terminal degree here. Schools are bloated with administration. I was an adjunct prof for 6 years and there were five layers of hierarchy above me. I went to the private sector and never looked back. My Masters in business at a 2nd tier university cost me $45K and worked out just fine. Kids now pay as much from their BA/BS as I did for my PhD .... ridiculous pricing today.
5:40 A premier Business School, broke because of failure of management... how ironic.
American business has been parasiting on foreigners for far too long.
So Chicagois financially incompetent ! 😂😂😂😂😂😂
How ironic that the best business school in the world cant balance its' own finances. LOL
it is a reflection on the sad state of a decaying nation that is U$A.
We have enjoyed for a long time good quality products made by Chinese people. We owe them alot of gratitude because they work very hard in very difficult conditions.
You have been incredible with your restraint in pointing out the irony with the situation! You’re a real professional. I would’ve laughed, gasped and been visibly frustrated 😅
Loading the young people with massive debt, was never a good move 😢
Michael Hudson says so also. Tuned in!
Nice content. Thank you.
This is ridiculous, how many people can afford this rate? 🤭
Can you do a video on Chinese universities and the number of degrees that are offered in English, the price, and is it attracting enough foreign students into China. Thanks!
$2000 per year
Great update thank you!
Merci beaucoup pour toutes vos vidéos très intéressantes
0:37 Indian Students dont have the money to pay for the expensive tuition, lodging and food. . . More likely they apply for scholarship breaking the bank more. . .
Wall Street dream of fast buck.
I am just glad that I went to a community college and then transferred to a state university and graduated in the early 2000s.
Imagine a business school that runs a course in finance and economics and runs a deficit 😂
The world's best university that teaches business acumen can not even pay its bills..What a joke
.
well every industry that runs into these issues has to adjust: cut unprofitable programs, lay off staff, implement cost savings , sell off assets
52% US graduates are landing jobs requiring only a high school certificate-Richard Wolff program last week.
many universities do charge different tuition rates for different programs. at the undergrad level the cost per unit for the Arts compared to the Sciences would be the same or very close, but for professional programs like medicine, business, etc are highly differentiated. perhaps it is the time to differentiate per unit costs at the undergrad level as well now
Bet one should check out their Administrative staffing. Lots of savings in many schools these days.
It's Like consulting a divorced relationship expert on how to keep a marriage
When I began my undergraduate studies at the University of Chicago in 1975, tuition was $3,210.00/year (three quarters). Since that time, tuition has increased to $65,619 (20.44 fold increase).
In terms of inflation adjusted dollars $3210 in September 1975 is equivalent to $18,362,38 in March 2024. Put another way, undergraduate tuition at the University of Chicago has increased by 3.57 times the rate of inflation over the time period of 1975 to 2024.
I thought popular colleges like most of the ones you mentioned, generate more revenues from endowments than students tuitions. So to access the well being of colleges finances/balance sheets, one must look at the endowments/donations inflows than tuitions. If I am right.
The Ivy League does really well off endowment monies, but I'm not sure how that translates down to the State Universities. I don't think they have Skull & Bones at Booth or Wharton...
In the Netherlands you can study at the University at a maximum at 4000 dollar yearly!
US universities having campuses in China are doing extremely well, including Duke Kunshan University, New York University - Shanghai, Wenzhou Kean University, etc. So, with this trend, would you believe that the degrading humanities and social sciencens would find an alternative in other countries/continents, like China?
Universities tend to have massive administrative overhead. For decades nothing has impeded their control over the income pie and they take an ever increasing share for themselves.
good stuff.
did UC pull a Larry Summers and misunderstand misforecast Treasury interest rates properly??
I think this guy can give the management of the best business school a lecture on "budgeting" and "financial management"....
Education should never be subjected to the market force, k-16. Now that C&U’s have done it, they are suffering from a typical business cycle. Few countries with a big population also enjoys a rapid growing economy like China that can afford sending their kids to American colleges in droves. Fearing the loss of its No.1 position, now U.S. wants to stall China’s growth by decoupling two highly intertwined economies , high education is inevitably one of the first casualties. Can you name more sectors that will be seriously affected by the decoupling, derisking or whatever it’s called?
would a potential student with a trace of business acumen enrol at the University of Chicago given its demonstrable business incompetence in practice?
Actually, the only reason that the Chinese students are studying overseas is because they would get a higher salary in China and better overseas prospects.
They speak better English.
Chinese universities are actually really good.
A lot of Malaysian students are now studying in China rather than the western countries.
Don’t these unis have large endowment funds? Or is that only applicable to ivy schools?
A crumbling system
Who rates these Universities? What are the parameters that they are using?
I used to take classes in an auditorium so 10 students or 300 students, it is all the same. Maybe hire a few more TA at minimum wage to grade the tests and office hours. It doesn't require triple the tuition for each student. University is a grift nowaday. They gave themselves a nice salary/raise and hire their buddies.
I think there is a metaphor here between US higher education and the entire US economic structure
they will increase the ticket prices to the collegiate football games
The US National Debt is now over 34 Trillion. Does the U Chicago business grads have anything to do with it?
The educational standards in the US have been dropping steadily over more than the last 100 years. This is not true of Chinese universities.
The basic problem is to treat Education as a business; compounding the problem is to have MBA types managing the school!
Maybe they just don't have enough rich donors for their endowment. The dekabillionaires are mostly from Harvard, Stanford, Princeton etc. Who is the richest graduate from Chicago ?
"Earn back eventually" is why people get sucked in these enormous college dept.
US universities, just like banks and real estate speculators, are speculating if you come to our University you will make it big in this world.
Therefore, price of College cost is due to greed in current system, rather than providing quantity than quality.
Sounds like another opportunity for Chinese universities. They can use case studies of success like Huawei and BYD and study failures like American universities. Costs are significantly less and like the US, foreigners pay full fees if accepted.
The secret word : profit.
@6:40; …”expenses side”…
One factor of ours is never mentioned. As compared to China, the factor of “union” is not in favor of us.
Union used to be helping child laborers and those overworked. Nowadays, unions are overpriced retirement magnets. And no one dares to say anything with the law blindly on their side.
Example, TSMC in Arizona spend a heck of a lot more money to build a similar factory in China. A heck of lot more time to build, and finally, chip costs will be higher by at least 50%.
Big Mac cost more here than there.
How does any USA company needing human help to compete with similar China’s company?
Let’s hope AI can be here soon and let’s hope AI will equalize “labor” costs across all nations.
When they finally face the reality, they will find scapegoats - probably Asian lackeys like the clueless Taiwanese or Koreans - then sweep the matter under the rug while they stage a false flag event.
then your wrong! it's not very good if it's at risk of bankruptcy! managing money is called finance same but business studies.
*153,755 USD for a 9 month MBA bargain of a life time* you could buy a four bedrooms house round my way for that and then get a rental yield of about 10% plus the rent increases with inflation and so does the price of the house. Or you could go with 72 oz of gold which is what most Asian people would prefer at this stage..
I'll have the house thanks, please let me know how the MBA works out for you
bite the hand that feed you，you know what happen
It's like the best police school but filled with drug problem and gangs
Indian students probably pays 1st semesters fees and then disappear to work in the USA instead of attending college or uni 😂😂😂
Ironic, isn't it? This is what happens when you put the Chicago boys in charge of the U. of Chicago...
If a business school can’t manage its own business, then better not study there.
Too many Chinese students is a national security issue. No Chinese student is a national security issue. The US is fxxx.
A talk show host doesn't recommend any Western universities. He recommended BRI universities.
The people running the University of Chicago's business school obviously didn't graduate from the University of Chicago's business school. LOL.
perhaps they are not the best?
✌️✌️✌️✌️✌️
I have my doubt how these schools are the best school in the worlds. The rating system is based on how success students are after they graduated. Most of the people went to these schools for networking. Yet the west has financial crisis every decades. It is because they have no issues charging whatever they wanted they also spend more money than they have. That is kind of ironic the best business school is run by people who can't run business.
Many Indian parents would prefer Cambridge or Oxford over American
Endians can't pay without debt or scholarship unlike Chinese
Economic crisis is already here
Poor fiscal management in the best business school in the world. lol 😂
Irony of life
Russia has shown us that the most expensive economic schools are not the best. After getting 16000 sanctions imposed on them by the collective West, Russia became the most predominant growing economy in Europe. Russia's economy is sanctions-proof.
Nonsense. The best business schools in the world are in Singapore. This includes the top entrepreneurial universities. Where do you get your data?
😂😂😂
US News and World Report - Best Global Universities for Economics and Business
1) Harvard University
2) Massachusetts Institute of Technology (MIT)
3) Stanford University
4) University of California Berkeley
5) University of Chicago
6) University of Pennsylvania
7) London School Economics & Political Science
8) Columbia University
9) New York University
10) Erasmus University Rotterdam
...
12) National University of Singapore
...
77) Singapore Management University
...
88) Nanyang Technological University
Singapore has respectable positions, but they're not the "best business schools."
I think you are probably right. Lots of good places in the world😅 to study that are better for students than the top US schools.
The Chinese are going elsewhere.
Singapore is one of those tiny little island nation that has enormous ego to match those of USA, not too dissimilar to the UK, something about living on a tiny little island.@@QA-ve6sd
Be smarter if they stayed home or went to Singapore
How is a western education going to guide you through the nuances of a Chinese business
😅😂😂😂
Best US business university can't even manage its financials satisfactorily?? So the decay of American prowess has spread across its society lol.
chicago is very specialized and no where near best. that would be harvard or stanford. btw 5 years ago harvard turned down a 400 million dollar gift because it came from an unsavoury source on wall street.
University education is free in Russia
why not wide open taking in the Indian students.
How many can afford to pay the full tuition plus room and board? If these foreign students are getting scholarship, then they are competing with the American students.
Just say thanks to Donald Trump.
if one knows chicago university that is suppose to be the best business school...and produced obama...
do oneself a fav. STAY FAR AWAY FROM IT
If the education system is failing, the country is failing.
Many US universities have enormous income from endowments. Harvard has an endowment of $51 billion, Yale has more than $41 billion, Princeton has almost $36 billion, University of Chicago has more than $10 billion.... List of colleges and universities in the United States by endowment: en.wikipedia.org/wiki/List_of_colleges_and_universities_in_the_United_States_by_endowment
India’s GDP per capital is only 1/3 of China. They can’t afford the tuition.
Plus, India’s parents are not as serious to education as Chinese parents. So it is not easy.
Actually , the Chinese per capita income is 5 times higher than India.