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There can even be competition for those lousy adjunct positions.

Indeed, and those positions have had semi-legitimate purposes in the past but have now become a treadmill. For instance, they often served as "academic spouse" jobs. I have a friend who had an English degree, and his wife was a high level science professor. Teaching classes wasn't hopelessly taxing, and they kept re-upping his contract year after year. The flexible schedule allowed him to manage their kids.

I used an adjunct job as a stopgap when I was an "academic spouse" too. It was in the EE department at a Big Ten university. I spent my time networking, and one of the other teachers helped me get a permanent job in local industry.

I worked for a household-name-prestigious school (not as an academic) and they essentially used adjuncts for their cash-cow open enrollment classes knowing that people that were passionate and/or wanted to get the big name on their resume would essentially work for free compared to what even full-time non-tenured faculty got. They made a lot of noise about the university “community” and wellness but I guess that didn’t include adjuncts. It wasn’t UPenn, but the conditions are similar:

https://www.openculture.com/2013/09/death-of-an-adjunct-a-so...

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