Thomas Edison State College Dennis W. Devery Vice President for Planning and Research

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1 Thomas Edison State College Dennis W. Devery Vice President for Planning and Research

2 The Research The Changing Paradigm: Luxury to Necessity Georgetown Center on Education and the Workforce Essentially, postsecondary education or training has become the threshold requirement for access to middle-class status and earnings in good times and in bad. It is no longer the preferred pathway to middle-class jobs it is, increasingly, the only pathway (Carneval, Smith & Strohl, 2010, p.13). Brookings Institute, Government Studies Big-ticket items once considered a luxury are now considered a requirement as well. Perhaps the most important of these big-ticket necessities is a college education. Once seen as a luxury for the children of the wealthy or the gifted, most middle-class parents now view it as a necessary credential that will allow their children to succeed. College is no longer simply for those who want to get ahead, but rather a requirement for simply getting by (Jacobs, 2007, p. 9-10). The Outliers (Didn t need College, self made men, Really?) Bill Gates Steve Jobs 2

It is no longer the preferred pathway to middle-class jobs it is, increasingly, the only pathway (Carneval, Smith & Strohl, 2010, p.13).

3 The Agenda Product Life Cycles The Typical Pattern The Luxury to Necessity Pattern Three industries that have gone from Luxury to Necessity Telephone Automobile Higher Education Impact of Necessity on Higher Education Possible Higher Education Solutions 3

Luxury to Necessity Telephone Automobile Higher Education

4 The Pattern The Changing Paradigm: Luxury to Necessity Luxury to Nice to Have Innovation Corporate/Government Support Mass Consumer Acceptance Decline in Sales Decline in Price Innovation etc.. Examples Music- Records, 8Track,,Cassett Tapes, CDs, IPODs, IPhone Movies Theater, TV, BETA, VHS, DVD, Cable, Netflixs 4

5 The Pattern The Changing Paradigm: Luxury to Necessity Luxury to Necessity Innovation Corporate/Government Support Mass Consumer Acceptance Societal Change Cost/Access/Quality Issues Corporate/Government Intervention Organizational Change Telephone Automobile Higher Education 5

Acceptance Societal Change Cost/Access/Quality Issues

6 The History The Changing Paradigm: Luxury to Necessity Telephone: Innovation: 1876 telephone invented, 1877 Bell Company formed Corporate/Government Support : 1913 AT&T agreed to become regulated monopoly to link Bell systems Mass Consumer Acceptance : % have phones to % have phones Societal Change: 1970 every home phone expected Cost/Access/Quality Issues: Monopoly restricted innovation and competition Corporate/Government Intervention: 1984 Court ends AT&T monopoly, Government expects Universal service Organizational Change: MCI, Electric companies, Cable companies, Consolidation and Industry Changes, Cellular and Mobile exponential growth 6

phone expected Cost/Access/Quality Issues: Monopoly restricted innovation and competition Corporate/Government Intervention: 1984 Court ends AT&T monopoly,

7 The History Automobile: Innovation: Henry Ford Model T, Corporate/Government Support : Federal Highways Act 1921, 1938, 1944, Interstate and National Defense Highways Act 1956 Mass Public Acceptance : million, by million, by million Societal Change: Rail travel declines, Drive-In everything, Suburbs, (Pew Study,2009) - 88% say Auto a necessity Cost/Access/Quality Issues: Safety, Fuel Economy, Cost, Quality and lack of Competition Corporate/Government Intervention: Pollution Controls, MPG standards, Chrysler Bailout, Auto Industry Bailout Organizational Change: International competition, process changes, consolidation,

Auto a necessity Cost/Access/Quality Issues: Safety, Fuel Economy, Cost, Quality and lack of Competition Corporate/Government Intervention: Pollution Controls, MPG standards,

8 The History The Changing Paradigm: Luxury to Necessity US Higher Education : Innovation: 1636 Harvard-Liberal Arts, 1811 USMA- Engineering, 1862 Agriculture, Engineering, Military Corporate/Government Support : 1862 Morrill Land Grants Mass Public Acceptance : GI Bill, Civil Rights Federal Financial Aid, Higher Ed Act Societal Change: College Education required for success, College Education required to survive Cost/Access/Quality Issues: Tuition Increases, For-Profit Colleges, State Subsidies Decrease Corporate/Government Intervention: Program Integrity Rules, Higher Education Reauthorization Act Organizational Change:???? 8

Aid, Higher Ed Act Societal Change: College Education required for success, College Education required to survive Cost/Access/Quality Issues: 1990 2000 Tuition

9 The Impact of Necessity on Higher Education Demand exceeds Supply and is less elastic Leads to some issues Student Demographics Change The New Traditional Student Adult, Part-time, Working Diversity (Culture, Readiness) Stakeholder Expectations Change Cost Access Production Quality Stakeholders attempt to redress issues Personal/Organizational Changes Competitively Legislatively 9

Diversity (Culture, Readiness) Stakeholder Expectations Change Cost Access Production Quality

10 The Possible Fixes Status Quo Cost, Access and Outcomes Competing for Resources with the Baby Boom Generation New Higher Education Models Option A (Individualization) Course, Program, Institution Option B (College with Traditional and Non-Traditional Schools) Internal Parallel College or School that use the Principles of Individualization Non-traditional provides financial support to overall College Option C (Status Quo and Outsource ) College + Outsourced Vendor that assists with or provides courses Vendor takes a percentage of Tuition Option D (College Cooperative) College + Other Colleges work together Colleges share revenue from the cooperative 10

Principles of Individualization Non-traditional provides financial support to overall College Option C (Status Quo and Outsource ) College + Outsourced Vendor that

11 References Slide #2 Carnevale, A. P., Smith, N., & Strohl, J. (2010). Help Wanted: Projections of jobs and education requirements through Retrieved from Georgetown University Center on Education and the Workforce website Gladwell, M., (2008). Outliers; The story of success. Little, Brown and Company, New York, NY. Jacobs, E. (2007). The Politics of Economic Insecurity, Issues in Governance Studies, No. 10, The Brookings Institute, Washington DC Slide #4 Product Life Cycle Graph Figure 1 Quick MBA.com retrieved from Product Life Cycle Graph Figure 2 retrieved from Product Life Cycle Graph Figure 3 retrieved from Slide #5 Graphs - See slides 6,7,8 references Slide #6 Moore, S. & Simon, J. L. (1999). The Greatest Century That Ever Was 25 Miraculous Trends of the Past 100 Years, Policy Analysis, No. 364, The CATO Institute, Washington DC A short history of the telephone industry and regulation, California State University Dominguez Hills, retrieved from Modern Communications Graph - Moore, S. & Simon, J. L. (1999). The Greatest Century That Ever Was 25 Miraculous Trends of the Past 100 Years, Policy Analysis, No. 364, The CATO Institute, Washington DC 11

Little, Brown and Company, New York, NY. Jacobs, E. (2007). The Politics of Economic Insecurity, Issues in Governance Studies, No.

12 References Slide #7 The Age of the Automobile US. History.org, retrieved from National Interstate and Defense Highways Act of (2003). U.S. News & World Report, L.P. retrieved from Taylor, P. & Morin, R. (2009). Luxury or Necessity; The public makes a U-turn. Pew Research Center. Retrieved from: Automobile Graph Shoup, D., (2005). The High Cost of Free Parking. APA Planners Press, Slide #8 "No. HS-21. Education Summary High School Graduates, and College Enrollment and Degrees: 1900 to US Census Bureau. Retrieved from Gumport, P. J., Iannozzi, M., Shaman, S. & Zemsky, R. (1997). The United States Country Report: Trends in Higher Education from Massification to Post-Massification US Higher Education Enrollments Graph - "No. HS-21. Education Summary High School Graduates, and College Enrollment and Degrees: 1900 to US Census Bureau. Retrieved from 12

Retrieved from: http://www.pewsocialtrends.org/files/2010/10/luxury-or-necessity-2009.pdf Automobile Graph Shoup, D., (2005). The High Cost of Free Parking. APA Planners Press, Slide #8 "No. HS-21.

13 Questions and Discussion? 13

FEDERAL POLICY PRIORITIES

student success quality outcomes attainment benefits affordable credentials FEDERAL POLICY PRIORITIES students of color investment financial aid postsecondary education clear and transparent funds and