This book maintains that federal subsidies to higher education have allowed American colleges and universities to overstaff, overspend, and overbuild, creating an economic, academic, and moral crisis in higher education. The book argues that, although American colleges and universities are the envy of the world, government funding has subsidized fiscal mismanagement and institutional corruption. Federal and state aid has driven college costs to unbearable levels, financed the professoriate's flight from the classroom, encouraged the abandonment of the traditional curriculum, and led to educators' rejection of their parental stand-in role. Ultimately, it has forced many institutions to change their top priority from educating undergraduates to attracting government funds. Hundreds of institutions are on the brink of financial disaster, with government subsidies creating an academic welfare state that will have to suffer radical change if America's educational institutions are to survive. Recommendations for remodeling American higher education are included. Contains references for each chapter in the form of endnotes. (MDM)