The College Fix

A recent New York Times piece asked experts to weigh in on education spending and the value of a college degree. Two experts–libertarian entrepreneur Peter Thiel and economist Richard Vedder–wrote that for many people, the costs exceed the benefits.

Thiel:

Talented, motivated, creative people tend to earn more than their peers throughout life. In today’s world, they’re also more likely to complete college. Colleges, for obvious reasons, claim that they make all the difference. There’s a similar difference in earnings between Brooklynites who work in Manhattan and Brooklynites who work in Brooklyn. Anyone who thinks that crossing the Brooklyn Bridge makes people more productive should think about buying it.

For some people in some careers, some colleges may be worth the price they charge. But millions of other people are paying more than quadruple what their parents paid 25 years ago (plus inflation) for a vague credential, not much knowledge or skills, and a crippling amount of debt.

Vedder:

Moreover, college costs are soaring, and almost certainly the education system is becoming less efficient, at a time when labor productivity is rising elsewhere.The icing on the cake is the total disconnect between student job expectations, college curricula, and the realities of today’s labor market. More college grads are taking low-skilled jobs previously occupied by those with high school diplomas — more than 80,000 bartenders, for example, have at least a bachelor’s degree. If students are successful in graduating (a big “if”), they often are saddled with debt and only able to get a relatively low-paying job.

Of course, not all of the NYT contributors were as critical of the education status quo. Read the other columns here. I wrote about Peter Thiel’s fellowship program, which requires students to drop out of college, a few weeks ago. Read that story here.

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