Maybe they should. The PhD dropout rate is almost 50%. Universities exploit PhD students for cheap labor and then throw them away.
I'll add as well: the standards expected for present day PhD students is insane compared to PhD students a generation ago. When I speak to some of the tenured professors I know, they readily admit that they would not meet the standards for TT positions today. Add to that the insane number of applicants, and the tendency for hiring committees to default to applicants from top-tier programs for hiring (regardless of the quality of their research), and you end up with an increasingly bubbled and desperate profession that is extremely unwilling to break from party line and disrupt whatever sliver of a living they ended up in.
The majority of my fellow students are international, mostly from China. I know hardly any other Americans in my program. At this point I see the system as more or less a way for international students to gain citizenship. I'm all for immigration, but I think it has gotten to the point where American students don't even want to go to graduate school at their own Universities, and the system imports foreign students who they know they can abuse for cheap labor. If grad student salaries were higher I'm sure we would see more Americans joining.
I decided to leave due to abuse by my initial advisor. So many of my fellow students have experienced abuse or neglect by their advisors. By neglect I mean that advisors won't even talk to them because the advisor has tenure and doesn't care. Many CS doctorate holders I've talked to have expressed that their degree was not worth it.
Humanities students are another story though. External grants for those are more rare, IIRC.
I’m not sure if the universities can survive in its current model with fewer graduate students. They are very integral to the teaching/grading/etc for undergraduate classes. So, it will be tough to make the system work with fewer of them. At least, that’s what the striking students are counting on.
It remains a huge challenge from a budgeting standpoint, though, I don't want to downplay that too much. And there are also other challenges- until very recently, my university didn't have job categories for software-related research staff roles, and so we had enormous difficulties figuring out how to hire and appropriately pay such people. The "how do we hire them" part has been fixed, which is a big help- but we still have to figure out how to pay for them ourselves.
At any rate, their numbers were insignificant compared to the administration, which occupied numerous buildings, including an entire skyskcraper. They didn't help us, and in fact made our jobs more difficult.
Edit, also some admins are paid out of the professors’ budgets, after overhead is taken out.
> The fact is, a lot of the research is being done by that so-called "bloated administration."
That's such bs! Admin have no time to read a single paper, forget about doing original research. Admins do exactly zero research.
This isn't the way "administration" is calculated. Statistics showing "administrative bloat" point to growth in spending on "staff"/"non-teaching employees"/etc. The job I describe above would have fit this definition of bloat.
Also, student unions have different priorities because this isn’t a lifelong career so reducing the number of jobs isn’t a big deal.
At my university, graduate students are state employees, but not standard state employees the way facilities/staff/administrators are. Those groups have a union, benefits, and pension plan, everything is very rigid.
Graduate students are paid a "stipend", required to work 19 hours or less/week, and can't have any other form of state employment that might put them at 20+ hours/week. Total pay comes out to about $18,000/yr before student fees. This is because at that point, the type of employment is considered changed, and benefits have to be provided. The default appointment is for teaching, and doesn't include summer pay (no teaching in the summer).
However, if your group has external funding, you can use that external funding to pay the students, but you can only pay them the default appointment (plus summer). So the wage doesn't change, the students are still paid by the university and are state employees, but the university gets the funds from grant funding, not wherever it comes from for TAing (probably undergrad revenue + state taxes).
The best solution here is state legislature passing legislation to increase what graduate students are paid, take the money out of the tax budget (seriously, 100% of graduate students at my university are below the federal poverty level, which just enables this stupid degrading benefit double-dipping to subsidize salaries), and provide benefits and treatment as standard state employees.
However, universities have been sucking up cheap/slave graduate student labor for years and are completely addicted to it. They have ignored this demographic completely and most state universities cannot function without graduate students. Graduate students do research. Research attracts big researchers who bring in multi-million dollar grants for the NIH and NSF. The schools take 45%-65% off the top of each grant in the form of indirect cost recapture. That heavily subsidizes the schools. Also, high quality researchers brings in more, better undergraduates. All of this while grad students are paid $16k-$30k/yr, mostly without benefits, for extremely highly skilled technical work. When fewer and fewer Americans were going to graduate school in the 80s and 90s, rather than try to make graduate school more enticing, the US simply pivoted to the H1B system. The hilarious thing is many schools claim graduate student tuition is part of their compensation, and that's worth tens of thousands of dollars, but in reality, graduate student tuition is just being in a research lab doing work that benefits the university anyways. Most graduate students in science take 4-6 classes over ~5 years of graduate school - not worth anything close to what universities claim it is. And most grad students still have to pay student fees, while having reduced access to undergrad facilities (no dining hall, no dorms, no gym access at lots of universities, reduced health clinic access, etc).