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One problem with this is this will probably mean firing on the basis of what the person says and using mob justice will be easier.

Another problem is that in universities, research and education go hand in hand. I believe that we need to have government-funded universities, that promote research in fundamental science, which may not be immediately applicable in practice and hence won't find much funding from private sector. Since research and education in Universities usually need to be done together, there is no escape to having a large government-owned and sponsored education system (and this is not necessarily a bad thing).