Articles on American higher education that appeared in 1975 and 1976 in "The Times Higher Education Supplement" (London) are analyzed in connection with two statements about American society and its economy. These statements are Joseph A. Schumpeter's 1939 analysis of business cycles, and James B. Shuman's and Davis Rosenau's 1972 description of the public mood and attitudes that reflect the climate of the times during business cycles. It is suggested that the evidence, as reported in the articles, supports the Schumpeterian thesis that the recessionary phase of the business cycle is making itself felt in higher education, and that the academic system is struggling to innovate its way back to economic health. The articles also support the Shuman/Rosenau notion that the growing conservatism of the recessionary period is affecting higher education. These conclusions are based on analysis of the contents of each news story, each of which was sorted into the broad categories of economic responses to recession, advancing conservatism, and receding liberalism, and into subcategories. Among the economic responses of American colleges and universities are cutting costs, increasing income, protectionism, and entrepreneurial activity. Within these areas narrower topics are also analyzed. The findings are presented in both narrative and numerical formats. Additionally, headlines of the 690 stories that appeared in 1975-76 are appended under the broad and narrow topical areas. (SW)