Liberal arts colleges represent a tiny portion of the higher education market--no more than 2 percent of enrollees. Yet they produce a stunningly large percentage of America's leaders in virtually every field of endeavor. The educational experience they offer--small classes led by professors devoted to teaching and mentoring, in a community dedicated to learning--has been a uniquely American higher education ideal.

Liberal Arts at the Brink is a wake-up call for everyone who values liberal arts education. A former college president trained in law and economics, Ferrall shows...