Monday, June 06, 2011

Column on Higher Education Bubble

We have long blogged about how the cost of college and university education can not continue to climb twice as fast as inflation.  Instapundit calls this the Higher Education bubble. 

The decision to go on for higher education is not considered isolated from the rest of life.  It is a decision based on trade offs.  If it cost a dollar more people could justify the value of four more years.  If it cost a million dollars far fewer people would be willing to make the sacrifice.

Bubbles tend to burst over some event.  Often one that shows the emperor has no cloths or draws back the curtain to reveal a man pushing dials and buttons.

In What is a college education really worth? Naomi Schaefer Riley wonders:

Did Peter Thiel pop the bubble? That was the question on the minds of parents, taxpayers and higher education leaders late last month when the co-founder of PayPalannounced that he was offering $100,000 to young people who would stay out of college for two years and work instead on scientific and technological innovations. Thiel, who has called college “the default activity,” told USA Today that “the pernicious side effect of the education bubble is assuming education [guarantees] absolute good, even with steep student fees.”

Good column.  Some good thoughts.

Hat tip: Spunky Homeschool

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