Oversupply is part of it, but there's also the issue of Universities offering fewer and fewer full-time tenure track positions. This is a disservice to the students who are paying a fortune in tuition only to be taught by someone who, despite their best efforts, isn't given the resources to teach to the best of their ability.
I'd argue that the latter is a result of the former. The oversupply, enables universities to confidently eliminate tenure track positions and replace them with tenure track positions. The jobs will be filled despite being less attractive because there are just. so. many. newly minted PhDs all fighting over the same scraps.
The only limiting factor is that you do need to have a few tenured professors to get your name out there by publishing high profile papers. But there is only so much room in the high profile journals, so you really don't need that many of them. A sprinkle of graduates from one of the 2 or 3 top-ranked schools in their field will suffice.
To that end, I think the deeper problem is twofold: First, in order to support their own careers professors need graduate students. Many times as many graduate students as there are open positions that the professor will create by retiring. Second, schools aren't being honest with their students about this fact, and non-top-ranked schools in particular aren't being forthright about admitting, "We probably wouldn't hire one of our own graduates for a full time position, not when we can easily snap up one of the surplus doctors that Yale keeps churning out."
Eesh, right there in the 2nd sentence. WTH, people, why are you upvoting? I'm never going to learn to proofread if you'll even give me karma for a train wreck like that.
In addition, you have a lot of adjunct faculty teaching for low compensation because they want to teach. Some work full time and want to keep their ties to the academic world. Some don't have a PhD so adjunct work is their only alternative if they want to teach at a research university. Some are taking time off to raise children, and with a well-paid spouse, they are in a position to teach for $4000 a class. Some are grad students trying to make enough to support themselves while writing a dissertation.
As for the others...good question. Many are holding out hope that one day they will get the magical tenure-track offer. It's wishful thinking in many humanities fields, to be honest.
I taught briefly as a resume-builder. My wife did so to help out a friend who was taking over a class but not prepared to teach all of it; she later taught a restructured version by herself. Neither of us depended on it for a serious contribution to income.
But a friend of my wife's did the business of four classes at three colleges for a good while before she manage to catch on at a school prepared to offer her a tenure-track position. There is only so much work out there for an anthropologist.
They work for peanuts and a lottery ticket, not just peanuts.
I went to a "HYPS" school for grad school and postdoc (molecular biology). I wanted the typical tenure-track research position. At the end of my postdoc I had two interviews, one at at an ivy and the other at a very good state research university. Both jobs fell through for financial reasons (basically, both schools decided to withdraw funding for the position). At the time, my postdoc funding was running out and my sponsor suggested working at a startup in Cambridge. I took the startup job. It was a great job doing great research. However, after about 6 years, I decided that I needed to take care of aging parents and be closer to family. I quit the startup and moved to a place where there is essentially no biotech industry. There are some good schools in the area, but it's difficult to get back into the tenure-track research world as you get older (you can transition from industry to academia as an older person if you're "great", but I'm not great...I'm what I would call, "pretty good"...and a pretty good mid-to-late-40-year-old isn't getting tenure-track jobs at quality research universities). So, I'm geographically tied (by my choice). I work as an adjunct at a local university and as a full-time non-tenured faculty member at a local college (not a fancy school and no research). I also run a small consulting business. So, with 3 different jobs, I have cobbled together a salary that is similar to what I had in the biotech world (probably a little less than the biotech job).
A lot of the details in the Atlantic story rang true. I meet students from my adjunct position at the library (not by my car!). I keep almost everything in electronic format (including electronic scanning of student labs) so that I minimize lugging papers from school to school. The full-time faculty where I am an adjunct are quite nice, but you still get that vibe that you're a 2nd class citizen. If I want to write a student a recommendation, it's not a trivial endeavor to go to the adjunct school to get the proper letterhead paper. However, I've just downloaded the school's logo and made my own electronic version of their letterhead.
I think I'm in a better position than many of my colleagues. I'm still making decent money in aggregate. I think some of the adjuncts have very difficult lives, living check to check. And the ones who aren't very good at teaching (or who don't get along with the full-timers) feel like they're under constant threat of getting fired.
2) What else are you going to do when all your training is academic?
As for why she does it?
>> Sunk cost fallacy
I'm assuming this is based on the phrase "those who can, do; those who can't, teach". That all of her time has been teaching, so she might as well keep teaching. I'm also assuming you've never met someone who is actually passionate about their work. Is willing to work at 70% salary because funding is tight, or will take a pay cut to do something they love versus something they have little emotional investment in.
>> 2) What else are you going to do when all your training is academic?
I'm assuming here that you've never talked to anyone concerning their experience in getting a PhD. While many go on to academia, very little do it specifically to teach, many enjoy the prestige, pure research communities, and subject matter they study.
What the parent comment was saying, and something I'm quite familiar with, is that when you have invested a lot of time and money in getting a Phd, and then find the job prospects slim to none, you are likely not to just give up and take a different job outside your field because you have "sunk costs" into becoming an academic. Thus, you may take a job as an adjunct in hopes of getting to be a professor someday, even if your economic position may be better to just get a job in industry somewhere.
What's the alternative? Flipping burgers for the same pay?
Or do you imagine there are tons of industry jobs out there for folks without experience.. who will probably be considered overeducated but underqualified?