A dialogue on the economic decline and higher education.(Editorial)

MY PONDERINGS ABOUT this topic began one evening during a discussion of age cohort effects in a Helping Strategies with Older Adults class. We were discussing the fact that events such as wars, technological advances, and economic depressions have biopsychosocial impacts on persons who live through them. One student raised her hand and asked whether our present economic problems could be considered an event. With that question other hands raised. "How bad is our economy, Dr. Galambos?" "Will they stop giving out student loans?" "My financial aid package has already been cut. What will happen to us?" "Will we ever be able to get jobs?"

I found myself detouring from my prepared lecture notes and digressing into a lively but necessary discussion about the global economic state of affairs. These students were eager for information about how the economic crisis will affect them. We are in the middle of an historical economic event, and although there is much dialogue about personal pension plans, unemployment rates, and industry and business, little is being discussed about its influence on higher education, social work programs, faculty, and students. Current events warrant reflection on the past, present, and future impact of economic declines on higher education and their effects on social work programs.

Recessions and Depressions

Although economists differ in their opinions about what actually constitutes a recession and depression, many define a recession as two or more quarters of reduced gross domestic product (GDP). GDP gauges national income and output and is a measure of standard of living; as GDP rises, so does individual standard of living (Smullen & Hand, 2005). An economy in a recession experiences a period of negative growth in which real income declines, unemployment rises, and industrial production is unsteady. A prolonged period of recession moves the economy into an economic depression. Economic depressions are characterized by declining business activities, falling prices, rising unemployment, increasing inventories, and public fear (Smullen & Hand, 2005).

There is disagreement as to whether the United States is entering an economic depression. Some economists believe that what we are experiencing is indicative of normal waves of economic growth and contractions, typical of capitalistic economies. Others point to the declining housing market, collapses in the stock market and the banking industry, worldwide economic recessions, and an increase in overseas production as indicators that the United States is headed for a protracted period of economic depression (Petrov, 2008). Some economists believe that this next economic depression will be worse than the Great Depression of the 1920s and 1930s, and predict that it will be called "The Greater Depression" (Petrov, 2008).

Assuming that, at the very least, the United States is experiencing a severe recession with a good possibility that an economic depression will occur, an examination of the impact of depressions on higher education is in order. What are the implications for students, faculty, social work programs, and academe? Are there recommendations or lessons that can be learned from examining the impact of the Great Depression on higher education? Are there any gains to be made when the emphasis of higher education is on efficiency of operations as a necessity for survival? These issues are explored in this editorial.

Impact on Students