During the last 50 years, American higher education has steadily grown in scale, wealth, and, stature. Despite its current status as the world's education superpower, however, it has begun to encounter public disapproval and consumer resistance. Colleges and universities have been able to ignore productivity concerns because a college education paid off so well in the job market, but that payoff appears to be decreasing while the costs continue to rise much more quickly than inflation. Government funding is decreasing, there are fewer students available to fill the seats, and consumers are becoming more cost-conscious. Higher education must develop a greater concern for productivity a willingness to serve consumers. Costs must be cut, including those for personnel. Specific ideas include alternative work schedules for faculty and the use of additional technology to replace expensive faculty, and stiffer admission requirements with resulting cost savings for remediation. There should be more emphasis placed on academic subjects with more core subjects and requirements. The faculty research imperative should be ended and all non-essential amenities cut. (Contains 32 references.) (JLS)