Cole, I think you need to examine changes in the past 50 years.
Simply put, the way a home is built in 2011 is more similar to the way it was in 1960, than the way consumer electronics were manufactured or food was produced in 1960 compared to the way they are today.
Modern technology and globalization has brought efficiency and competitive forces which have driven food and consumer electronic production costs downward. On the other hand, housing remains a labor intensive industry; and I do not believe that the housing industry has experienced the technological efficiencies or the competitive forces of a similar magnitude.
This is to say nothing of the role in which speculation has played in housing.
Again, speculation in housing plays a large role. Also the tech and financial sectors of the economy are centered primarily in the commercial coastal hubs, and these industries have made for a disproportionate share of the past 20 years economic gains; as a result real estate prices followed similar growth geographically.So I would advocate that many of the economic ills we face today are directly attributable to the artificial inflation of houses and incomes in our nation's primary commercial coastal hubs...like Boston. Also, the cost of paying for college is higher today relative to 1960, because apparently professors with Ph.D.s seem to think they are worth more money.
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And the fact that Professor Bacevich lives near Boston tells me he probably owns a house worth considerably more than 12 times the average price of a new home in 1960...
I would say the rise of college tuition costs has had more to do with the decline in state financing than it does with professor’s salaries. I would also look at the massive expansion of full-time support staff and administrative positions; you didn’t all these IT workers 20 years ago, and you didn’t need all the back office staff to deal with all these laws and regulations 50 years ago. The shift toward a focus on student amenities rather than academics also needs to be considered.
This forum has several Ph.Ds who are college professors, and I think most would say they could be making more money if they did something other than teaching (at-least in pre-2008). Maybe less so for the liberal arts types, but for someone like selil in IT, I am sure the difference is in the hundreds of thousands of dollars in annual income.
Further, as a Boston University graduate and having had the privilege of taking Professor Bacevich’s American military history course, I can say that the school could easily double or triple his salary and still get its money worth. His course was the most rewarding educational experience I have ever had, and I say this as someone who at the time of taking the course was a non-matriculated student with a problem in motivation and a poor educational track-record in both experience and in practice.
Lest you have the impression that Professor Bacevich is some lefty academic jagoff or are unfamiliar with his background (which this article does not get into); it is notable that he is a West Point graduate and Vietnam vet who retired from active duty with the rank of Colonel. He is also an old school conservative and devout Catholic. This makes him a unique voice in the academic, for which he should not be brushed aside as a liberal academic elite.
And fwiw, Prof. Bacevich uses public transportation and shares a compact sedan with his family iirc. I would imagine such thrift extends to the rest of his lifestyle, including his house.
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