You can read about this in the many whining science blogs. :) There are no jobs for the zillions of PhD's that are churned out every year. As well, the education is worse because of the many scabs (adjuncts) that teach for practically nothing!
Unfortunately, this might be simple economics. The average professor can churn out a few hundred PhD's over his lifetime, but dies only once. If those students are only good for professor jobs, they are screwed! And yet the poor lowly students are responsible for the majority of decent research. Oh, the pain!
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