After speculating about the two potential bubbles — tech and higher business education — the Economist went to Stanford’s Graduate School of Business Dean Garth Saloner, whose institution would be at the intersection of both inflated industries. He says that there may be an education bubble, but that the U.S.’s Top 10 B-Schools would be immune. (It could look a lot like today’s law school crisis.) As for the tech bubble, Saloner says that back in 1999, Stanford students would “simply disappear” from campus after sourcing failed million-dollar ventures. Silicon Valley today is much more sustainable because there are “many more sectors now: mobile phones, clean-tech, life-sciences,” he tells the magazine. “There are many ways in which we are diversifying.” New tech companies also have a much easier time monetizing their products.
Beyond that, MBAs are staying in school, he says. With better technology, it’s easier to innovate cheaply.
Regardless, potential students need to seriously weigh opportunity costs. Attending a Top-10 business school costs around $100,000 (closer to $300,000 if you consider lost wages and cost of living).
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