Understanding The Higher Education Bubble

In May 2011, Peter Thiel, PayPal co-founder, venture capitalist, and a member of Facebook’s board of directors, predicted that higher education would be the next bubble to burst. Thiel argues that higher education is destined for disaster. Thiel’s remarks have generated a great deal of controversy: comparing universities and colleges to commercial markets seems simply preposterous to some. The idea, however, resonates with economists.