Thursday, September 19, 2013

The Fallacy Of College Education

Prologue

For brevity sake, I will state here only a few observations and economic principles.

The Lure Of Higher Pay

We were reassured for decades that a college education would certainly increase the remuneration for our children or ourselves. We were constantly presented with statistics that claimed to confirm this. Thus, more people were attracted to study for a higher degree.

A Glut Ensued

Like affordable housing, government eagerly promoted and subsidized higher education for all. Like so many times before in history, government is a bad judge.

Like a self-fulfilling prophesy, the more people have a college degree the higher would be their earnings.


However, the more people have a higher degree, the greater the supply which depresses remuneration. This is the situation we have arrived at.

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