First of all, a major issue here is that we don't have enough good universities to accept all the talented kids applying. That holds true for high schools, etc. wherever there is contentious debate over "equity" or merit-based admissions. Just increase the number of good schools (which has not been done in proportion to population growth) and many things are solved. Just like how you never hear people in countries wi…
Indeed, I don't think there's a social or economic reason why higher education should be a scarce good. Likewise health care. There was a recent article suggesting that Stanford should just replicate itself in multiple states. My own preferred route would be bottom-up: Start by bolstering the community and technical colleges, then the regional public colleges, and finally large state universities. The "elite" private…
Exclusive educational institutions like Princeton are inherently a scarce good.