If AI kills the market value of a degree, how many colleges will survive?
- Joanne Jacobs
- Jul 16
- 2 min read
Just as the printing press made the monasteries obsolete, our university system is on the brink of collapse, writes John Carter in an epic rant on Postcards from Barsoom. "Scholarly careerism, declining curricular standards, the replication crisis, a demented ideological monoculture, administrative bloat" have rendered "universities less effective, less trustworthy, less affordable, and less useful than ever before."

Credentialism has kept universities relevant -- until now, he writes. While research universities will survive, AI will be the death blow for colleges that rely on undergraduates' tuition to pay the bills.
Very few are paying for an education, whether that's defined as essential career skills or critical thinking or "historical and philosophical understanding," Carter writes. What they're buying is a credential they can use to prove they have "the minimal level of self-discipline and intelligence required to handle routine tasks at the entry-level end of the org chart."
But ChatGPT, which can write essays or code or solve math problems, is a credential killer, he writes. Employers will assume everyone in the class of 2026 cheated their way through school. Degrees "will be assumed to demonstrate nothing more than the ability to write prompts, which is not a complicated skill."
Furthermore, with disparate impact under heavy fire, employers can stop using college degrees as a sign of cognitive ability and develop their own aptitude tests.
I think colleges will try to adapt: Perhaps they'll offer cognitive-skills tests that employers will consider valid. But many young people will be looking for cheaper, faster paths to the job market than the pursuit of a bachelor's degree. And, as AI fills many of those entry-level white-collar jobs, more young people will look to the skilled trades.
Some liberal arts colleges could become mental fitness centers for those who want to resist the inevitable brain rot caused by reliance on AI, Carter predicts. "The only possible way to keep our minds stay nimble and sharp is to deliberately engage in challenging intellectual pastimes," he writes."Study will be a high-status activity" for those with the self-discipline to pursue learning for its own sake.
To save higher education and keep faith with U.S. taxpayers, universities must commit to "truth over ideology, institutional neutrality, color-blind equality, free speech, civil discourse, and administrative transparency," writes Christopher Rufo in The Free Press.
The public has lost faith in higher education, according to a Manhattan Institute poll. The proposed reforms were backed by Democrats and Republicans and across racial lines. For example, 57 percent supported "a colorblind approach—eliminating DEI bureaucracies, ending racially segregated programs, and banning the use of race in admissions, hiring, promotions, and contracting," with 18 percent opposed.
Two-thirds want "universities provide a real forum for free speech, by protecting dissenting views and ensuring a wider range of debate beyond the dominant campus consensus."
Colleges call themselves non-partisan in order to get tax exemptions. Congress should define non-partisan as at least 30% Republican & 30% Democrat. The US Congress, like a court of law, is non-partisan insofar as it accepts the best evidence from each side.
Taxpaying Reps should not be subsidizing colleges that have long been discriminating against hiring or promoting Reps.
'To save higher education and keep faith with U.S. taxpayers, universities must commit to "truth over ideology, institutional neutrality, color-blind equality, free speech, civil discourse, and administrative transparency,"
In the immortal words of Yogi Berra, "I'll believe it when I believe it."
The value of the college degree has been dropping precipitately in the last 20 years as more unqualified students were let in, the grading curve was changed, and the focus changed from learning and challenging to 'indoctrination'. AI will only hasten the collapse of many schools whose diplomas are worth less than the paper they are printed on. The administrative overhead for many of these colleges is staggering in and of itself. As a technical hiring manager, I seriously consider people who graduate from community colleges or attend technical coding schools to be better educated and easier to work with than most degreed candidates. Higher education needs to reinvent itself and AI might become the tool that forces them to…
MicroSoft Office was an existential threat to typewriters. AI is a threat to search engines, along with spell and grammar checks. TurnItIn is struggling with catching AI-generated material. And all those 1930's switchboard operators I saw in movies from that era, where did they go? College degrees are obsolete not because of AI; rather they are obsolete because the monks in the university monastery failed to develop degrees with value rather than simply degrees that they valued. Monasteries may have codified knowledge, but for a widely illiterate population, they never created much of really useful value. AI is simply giving the dons a run for the money, and those dons have been demanding a lot of money for their degree…