The University of Austin, a new academic institution created by a group of donors and intellectuals unhappy about the increasingly left-wing tilt of Anglophone academia, was unveiled last week. Many faculty at existing universities, including several who are not especially left wing, were unimpressed.

This is hardly surprising, and not just for political reasons. Incumbents do not generally welcome new entrants to a market. And the core challenge facing U.S. colleges and universities is economic: An increasingly robust labor market is now competing with them for a dwindling number of young people.

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