Universities: Dysfunctional Incubators of Socialism
27th February 2025
Ludwig von Mises called the universities of his day “nurseries of socialism” because of the inevitable socialist bias of all government-funded universities. He also said that there is always a remnant of students, however, that does not buy into the endless drumbeat about the alleged wonders of socialism and the “imperfections” of free-market capitalism. It is this remnant that the Mises Institute devotes so much effort to educating and inspiring in the Misesian/Rothbardian tradition.
The vast majority of today’s American universities have become incubators of socialism to a far greater extent than anything Mises experienced. They have produced generations of students who are well versed in all the left-wing platitudes about just about everything even if they lack the most elementary critical thinking skills. (So-called “critical theory,” invented by Marxist law professors, is not about critical thinking but criticizing the critics of socialism and all the institutions of Western civilization). The unique incentive systems in American universities have made this possible.
Almost all universities are either government funded state universities, or private nonprofit sector universities that receive significant amounts of government subsidies, making them de facto state universities. (Remember: He who takes the king’s shilling becomes the king’s man). As such, they have no real customers in a business sense. Students do not think of themselves as customers in the sense that they are customers of say, Starbucks or a pizza joint. They rarely pay the tuition bills for one thing; mom and dad or the taxpayers do, or the banks that extend to them student loans. Parents may pay the tuition bills but it is the children who receive the primary benefits of higher education, if such benefits even exist. Thus, consumer pressure that leads to consumer sovereignty is very weak.