" Universities are fueled in large measure by what's called overhead of the grant...so if you get a million dollar grant, half or more will go to your university, right? So that's what builds the buildings and fuels the place. So the university has an incentive to get as many people to file grant applications as they can, and they have an incentive to hire people whose grant applications will be large rather than small.

So this, for example, is one of the reasons that science has taken up arms against theory –that is to say, proper scientific theoreticians like me – and it has instead hired people who run big expensive experiments: Because big expensive experiments have big grants, and those big grants bring in money.

But if you were a university and what you wanted was to have people writing big expensive grants who were capable of getting them, then what you would want to do is...you would want to free those people from teaching, and you would want to get people who weren't so expensive to do the work of the university...and the way you do that is: you bring them on as graduate students; and you pay them an appalling wage; you claim that they are not actually workers, that they are students; and they do most of the teaching, and they do a lot of the work of the university, for incredibly low amounts of money; they live under poor conditions; and increasingly they have to come from abroad where they are in some sense getting a deal that still makes sense.

But this means that we overproduce PhDs. We give people degrees instead of money to do the work of the university, in order that people who are capable of getting the grants spend almost full time doing that job. And it's a racket.

The person who knows the most about this is actually Eric, my brother. So...what he unearthed was actually that there was an explicit conspiracy to game the visa system in order to keep this system running...that effectively a fake shortage of science students was created to allow the universities to basically flood the market, to drive the wages down. "

― Bret Weinstein