Private liberal arts colleges are among the oldest of American institutions. Yet their history has been surrounded by concern about their ability to survive. Some see these small colleges as increasingly irrelevant in a world marked by growing demand for technical training. Others wonder how private colleges, many with few students and high tuitions, can compete successfully against heavily subsidized public colleges and universities. David Breneman, an economist and former college president, confronts the renewed concern about the future of liberal arts colleges. He explains that as higher...