See our slideshow: Magna Cum Lousy: Where Bad CEOs Went To School
Will the value of an MBA from an elite institution hold up even as so many MBA jobs disappear?
In our Magna Cum Lousy slideshow, we suggested that there answer was no, though we got some push back.
So we’re glad to see that Matthew Stewart at The Big Money has written up an excellent essay arguing that the MBA is collapsing in value and won’t return to its prior glory. His excellent points include:
- MBA jobs on Wall Street and at big consultants are disappearing and they won’t return to their previous stature.
- The supply of MBAs is actually increasing now that job prospects seem so dim.
- The idea of a true “teachable body” of useful business knowledge is largely a myth.
- A blind, rational belief in efficient markets — which is what you might learn in many B-schools — is way out of favour.
- The ethics of the b-school education — everything that’s legal is ethical — has now been rejected.
We can think of a few more things, including the fact that the networking opportunities are no seriously degraded due to the collapse of old institutions.
But what really animates our view is this: To believe that the old educational institutions will maintain their value is to believe that all of the other old institutions around them — banks, failed cities, collapsed law firms, broke old-money families etc. — would go down, and yet for some reason those same dynamics would not affect the schools. How likely is that?