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Let’s start with what Khan Academy is. Khan Academy is a collection of video lectures that give demonstrations of mechanical processes. When it comes to this purpose, KA videos are, on the average, pretty good. Sal Khan is the main reason; he is approachable and has a knack for making mechanical processes seem understandable. Of course, his videos are not perfect. He tends to ramble a lot and get sidetracked; he doesn’t use visuals as effectively as he could; he’s often sloppy and sometimes downright wrong with his math; and he sometimes omits topics from his subjects that really need to be there (LU decomposition in linear algebra, for example). But on balance, KA is a great resource for the niche in which it was designed to work: giving demonstrations of mechanical processes.

But let’s also be honest about what Khan Academy is not. Khan Academy is not a substitute for an actual course of study in mathematics. It is not a substitute for a live teacher. And it is not a coherent curriculum of study that engages students at all the cognitive levels at which they need to be engaged. It’s OK that it’s not these things. We don’t walk into a Mexican restaurant and fault it for not serving spaghetti. I don’t fault Khan Academy for not being a complete educational resource, because it wasn’t designed for that purpose. Again, Khan Academy is a great resource for the niche in which it was designed to work. But when you try to extend it out of that niche — as Bill Gates and others would very much like to do — all kinds of things go wrong.

When we say that someone has “learned” a subject, we typically mean that they have shown evidence of mastery not only of basic cognitive processes like factual recall and working mechanical exercises but also higher-level tasks like applying concepts to new problems and judging between two equivalent concepts. A student learning calculus, for instance, needs to demonstrate that s/he can do things like take derivatives of polynomials and use the Chain Rule. But if this is all they can demonstrate, then it’s stretching it to say that the student has “learned calculus”, because calculus is a lot more than just executing mechanical processes correctly and quickly. To say that it is not — that knowledge of calculus consists in the ability to perform algorithmic processes quickly and accurately — is to adopt an impoverished definition of the subject that renders a great intellectual pursuit into a collection of party tricks.

An organization with cost disease can use lower paid workers, increase the number of consumers per worker, subsidize production, or increase price

Cheap graduate students let a college lower the cost of teaching the sections while continuing to produce lectures as an artisanal product, from scratch, on site, real time

2,700-and up educational videos.

Khan Academy account; get credit for watching videos, and track goals and achievements

Gates sees this problem largely as a matter of incentives. Publications such as U.S. News and World Report reward colleges for the resources they spend on students and their exclusivity, but not necessarily for their results. High SAT scores will move a colleges up in the rankings (and so, it should be noted, will having a high graduation rate). Making sure your alums have a well-paid job, or a job at all, will not. To begin fixing this problem, we need need flip U.S. News' logic, Gates said, and reward schools that "take people with the low SAT and actually educate them well."