This paper seeks to uncover the causes of ‘degree inflation’ and what can be done about it. It is divided into five sections. The first describes the staggering growth of higher education. The second analyses the effects of this growth on both graduates and those who were unable to attend university. The third examines the impact of higher education on national productivity and wealth. The fourth identifies the forces and policies driving the never-ending growth in degrees.

As this paper was being written, the Australian government had initiated an inquiry aimed at improving the quality and sustainability of higher education. The last section attempts to assist this process by offering policy proposals designed to make higher education more affordable, useful and fairer for all.