The gloating is easy to understand. After all, nominal wage rigidity is the driving assumption of the Keynesian model. Unemployment is just a labor surplus; since wages are the price of labor, the fundamental cause of unemployment has to be excessive wages. And as long as the wage rigidity is nominal, you can neutralize it by printing money or otherwise boosting demand.
Popular anger about universities’ costs is rising just as technology is shaking colleges to their foundations. The internet is changing the rules. Star academics can lecture to millions online rather than the chosen few in person. Testing and marking can be automated. And for-profit companies such as the University of Phoenix are stripping out costs by concentrating on a handful of popular courses as well as making full use of the internet. The Sloan Foundation reports that online enrolments grew by 10% in 2010, against 2% for the sector as a whole.