So whats their take on college prices absolutely skyrocketing compared to the median salary? Not only that but the government writing out blank checks to unis without checking if the degrees are worth it or if the person will be able to pay it back in a timely matter?
College is going to be the next bubble pop if it doesn't get fixed
College prices skyrocketing compared to median salary will always happen. Suppose college increases the median person's yearly salary by 5%. Then, the present value of the education (assuming a $41k, 30 years of work, and 2% inflation) comes down to $46k.
And, this is only assuming that the education boosts their salary from $41k to $43k and that number doesn't change.
The real question is what majors have a lower ROI than the price of college. My first guess would be humanities, but I can't seem to find any data on this. I know Germany gets around this problem by limiting the number of majors in each field.
ping /u/commentsrus for lots of good major-specific earnings papers. She's done a ton of reading/research into the 'returns on major' idea, there's some good economic lit on that subject.
Don't they become worthless by making some jobs that don't need college education have a requirement of a degree? Most of those jobs just need onsite training
OK so you're just memeing but I have really seriously heard people advocate this as a fact. Like not even realizing that it implies some seriously fucked up things like we'd all be better off if we could form a compact banning education.
14 comments
n/a SnapshillBot 2017-05-21
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n/a Allanon_2020 2017-05-21
So whats their take on college prices absolutely skyrocketing compared to the median salary? Not only that but the government writing out blank checks to unis without checking if the degrees are worth it or if the person will be able to pay it back in a timely matter?
College is going to be the next bubble pop if it doesn't get fixed
n/a DracoX872 2017-05-21
College prices skyrocketing compared to median salary will always happen. Suppose college increases the median person's yearly salary by 5%. Then, the present value of the education (assuming a $41k, 30 years of work, and 2% inflation) comes down to $46k.
And, this is only assuming that the education boosts their salary from $41k to $43k and that number doesn't change.
The real question is what majors have a lower ROI than the price of college. My first guess would be humanities, but I can't seem to find any data on this. I know Germany gets around this problem by limiting the number of majors in each field.
n/a MrDannyOcean 2017-05-21
ping /u/commentsrus for lots of good major-specific earnings papers. She's done a ton of reading/research into the 'returns on major' idea, there's some good economic lit on that subject.
n/a EvanHarper 2017-05-21
It's actually the natural sciences. Basically don't try to become a biologist unless you're independently wealthy.
n/a HodorTheDoorHolder 2017-05-21
Degrees become economically worthless if everyone has one.
n/a Allanon_2020 2017-05-21
Don't they become worthless by making some jobs that don't need college education have a requirement of a degree? Most of those jobs just need onsite training
n/a eekkkee 2017-05-21
college as signalling is probably seriously overstated by a lot of people who talk about it.
n/a DracoX872 2017-05-21
Is everyone being uneducated equivalent to everyone being educated?
Obviously the premium for college drops as more people acquire degrees, but there is always economic worth in developing human capital.
https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci20-3.pdf
n/a HodorTheDoorHolder 2017-05-21
Yeah but that's long-term investments in human capital. Plus I'm being facetious and this is /r/drama.
n/a DracoX872 2017-05-21
I can't ever tell in /r/Drama
n/a EvanHarper 2017-05-21
OK so you're just memeing but I have really seriously heard people advocate this as a fact. Like not even realizing that it implies some seriously fucked up things like we'd all be better off if we could form a compact banning education.
n/a HodorTheDoorHolder 2017-05-21
no im arguing for the complete opposite.
n/a besttrousers 2017-05-21
Percent of people with college degrees has been flat for decades.
In any evidence suggests that education causes real improvements in productivity (see human capital theory).