It is closely related to a shift in the definition of "what purpose should academia serve?"
Basically, old-school academia had the government pay a lot of money to universities to do general research and educate students to be researchers, and then the military paid more money for research that could be usable for military purposes (encryption, rocketry, nuclear). Training of new employees was paid for by the companies themselves (e.g. apprenticeships).
Nowadays, governments have massively cut general research budgets (leaving universities and research to the mercy of grantors aka the free market), the military is running its own show (aka the MIC sucks in enormous amounts of money and puts it into private coffers), and companies have outsourced training and vetting of new employees to universities and the payment for all of that to the students in form of student loans, which means that universities are no longer primarily a place of research but of schooling.
It's a real disgrace what happened over the last decades, and the Western world will pay badly for this since China does not follow this turbo-capitalist ideology.