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Why College Got So Expensive

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If your revenues are at least in the seven figures, try NetSuite Next for free at https://netsuite.ai/modernmba πŸ“Š Short on time? 20 charts, the takeaways, and the full write-up: https://modern-mba.com/case/colleges You can search our entire catalog, browse videos by industry, read takeaways, and swipe through key charts from every video (including this one!) on our official website instead of waiting for YouTube to decide what to recommend next - no ads, no email sign-ups, no paywall. Nowhere in the world is college more expensive than in the United States. The world-famous American universities β€” Harvard, Stanford, Princeton, MIT β€” all charge six figures a year. Families invest years in advance just for a shot at getting in. If we take a closer, more critical look, America's elite universities are really more like luxury brands. They're privatized businesses built on carefully manufactured scarcity, compounded over centuries. Like HermΓ¨s or Ferrari, these schools have deliberately kept enrollment flat for decades even as demand has exploded by orders of magnitude. Under this lens, America's elite colleges sell status, not education, and measure themselves solely on how many applicants they turn away while taking credit for the success of their alumni. And yet it works - billions flow back to these institutions annually and these elite schools regularly rake in more donations in a single year than most universities raise in a generation. From this angle, Stanford, Harvard, MIT, Princeton, Yale, UPenn, and Columbia are more like cults, banks, and cartels that live on a pyramid of contradictions. They're non-profits, yet sit on more cash than Nike, Disney, McDonald's, Coca-Cola, and Boeing. They charge six figures, collect millions in donations, and hoard billions in reserves β€” yet remain federally funded and pay little to no tax. They appoint presidents no one ever meets and pay them millions a year for a job no student can even describe. They employ the most celebrated scientists and researchers alive β€” and give every discovery away for free. Their biggest buildings are funded by donations. They lose money on almost everything they do, and still get richer every single year. Ultimately, America’s elite colleges are so complex that the best way to understand how they make money is through strategy games like Starcraft, Civilization, Age of Empires and Total War. In these video games, you win by assembling the most powerful units, unlocking the most advanced tech trees, building the most productive economy, constructing wonders that generate culture, planting seeds to harvest turns later, or spreading reputation like a religion across the map - all while paying maintenance on centuries of decisions and infrastructure. In this episode, we break down how America's most prestigious universities actually make money and why every contradiction on the list makes sense once you see the game they’re really playing. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━ SUPPORT MODERN MBA - we're 100% independent, self-funded, and committed to making business education free for everyone. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 🌐 Website: https://modern-mba.com Search our entire catalog, browse videos by industry, read summaries + key takeaways, swipe through charts β€” no ads, no emails, no pop-ups! πŸ“Έ Instagram: https://www.instagram.com/modern.mba/ 🎡 TikTok: https://www.tiktok.com/@modernmba πŸ’¬ Reddit: https://www.reddit.com/r/modernmba/ β˜• Support Modern MBA: https://buymeacoffee.com/modernmba

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