American college tuition inflation has been out of control for the past decade. During the financial crisis of late-2008/early-2009, almost all goods and services in America at least temporarily declined in price. The only service in America that continued to rise in price throughout the financial crisis, besides health care, was college education. Despite real unemployment in America reaching 22%, students were brainwashed into believing that if they were lucky enough to be blessed with the privilege to get half a million dollars into debt to obtain a college degree, they will be on a path to riches and have a guaranteed successful career; whereas those who don't attend college are destined to be failures in life.
The current college education bubble is one of the largest bubbles in U.S. history. The college bubble has been fueled by the U.S. government's willingness to give out cheap and easy student loans to anybody who applied for them, regardless of if they will ever have the ability to pay the loans back. Student loan debt in America is now larger than credit card debt, but unlike credit card debt, student loan debt can't be discharged in bankruptcy.
During the 1970s, college students were able to afford their own college tuition without getting into any debt, simply by working a part-time job year round or by working a full-time job during the summer. Not only that, but most college students were also able to afford their own car and a small apartment. However, since 1970, Americans have experienced a 50% decline in their standard of living due to the Federal Reserve's dangerous and destructive monetary policies. You never heard of parents setting up college savings accounts for their children 40 years ago, but thanks to the Federal Reserve, this has become the norm.
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2 comments:
We must also consider the value of some of the degrees earned. As I've said before how many social workers does a society need. The old joke was about classes in basket-weaving. But, basket-weaving leads to a salable product. Other then ginning up class/ethnic hatred of what value are ethnic/gender studies?
While there's no question a value in getting a college degree. There was actually a study recently completed (sorry I can't find the source), that suggests while you earn more from college, it is not actually any more on average then if you had not completed your degree after the debt is considered. That's really kind of sad when you think about it. It suggest that no question, the debt for high education has risen exponentially.
I think there's always a value in continuously learning and making yourself more valuable to the market place. The problem is that most people learn about books and school instead of actually how to generate money. The latter is a means to escape this insurmountable debt system.
Thanks for listening to my rant.
Trish
cta commodities
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