The Higher Education Bubble Is Bursting — And That’s A Good Thing

The Higher Education Bubble Is Bursting — And That’s A Good Thing

https://www.investors.com/politics/editorials/college-bubble-tuition-job-requirements

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Useless Degrees:

A good indication of a tightening labor market is the fact that several major corporations have dropped their college degree requirements. College just became an even bigger waste of time and money for many.

Job recruiting site Glassdoor recently reported that companies like Google, Apple, IBM, Bank of America no longer require that applicants have a college degree.

Neither do companies like Costco, Whole Foods, Publix, Chipotle, Home Depot, Starbucks. (Does it really take a college degree to know how roll a burrito, pour coffee, or stack giant jars of mayonnaise?)

When jobs were scarce and unemployed workers plentiful, requiring a college degree might have made some sense, if only to easily weed out most applicants. When workers are scarce, companies can’t be so picky.

But in any economy, there’s a downside to college requirements. Limiting the worker pool to graduates feeds into the notion that everyone has to go to college, when many kids shouldn’t. It also eliminates opportunities for the two-thirds of people without a degree, many of whom would probably be better workers than pampered graduates holding a degree in sociology and lugging a mountain of debt.

Further fueling this college bubble has been an upward spiral of federal grants, aid, subsidized loans and tax credits. College Board data show that federal college aid shot up 93% between 2001 to last year, after adjusting for inflation.

Not surprisingly, colleges and universities have been happy to take advantage of this artificial demand by raising tuition with impunity. Over those same years, public college tuitions climbed 72%.

Fueling Paper Pushers

Where did all that money go? As economist Mark Perry notes, mostly to overhead. College administrator jobs have climbed much faster than student enrollment.

In the rush to enroll as many students as possible, colleges clearly have been lowering their standards. Walter Williams points out that only 37% of today’s high school graduates are proficient in reading and 25% in math. Yet colleges will enroll more than half of them. “It’s inconceivable that college administrators are unaware that they are admitting students who are ill-prepared and cannot perform at the college level,” he says.

Meanwhile, good-paying jobs that require real skills, like electricians, carpenters, and so on, are going begging. The Associated General Contractors of America says that 70% of construction companies are having trouble finding qualified workers. The Department of Education forecasts that the next five years will see 68% more infrastructure job openings than workers with the skills to fill them.

If the current corporate trend away from college requirements catches on, it would go far to burst the higher education bubble. And that would be a very good thing. For students, their parents, taxpayers. And for the economy.

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2 responses to “The Higher Education Bubble Is Bursting — And That’s A Good Thing

  1. If a college degree can not get you a job and pay for itself with your
    own efforts then you will become another slug in a leftist backwash
    of useless trolls. The day would come as a surprise to some who
    climb up to a PHD in doodling that no one cares unless they get
    a job creating more doodlers. Education has lost it’s collective mind,
    so much so that funding must become paid for by the person wishing
    to be educated during the education, not on a promise to pay which
    brings on a financially bankrupt layer of basement dwellers. Today
    we see students that are mostly ignorant of American History, World
    History and Social realities. Disorder starts with the abandonment
    of the Bible, Scriptural teachings and religious worship, the farther
    away from God the worse the lack of order, discipline and goodness
    in life. We can blame the left for our predicaments who seek
    to destroy every aspect of historical American life and make a
    zomboid (part zombie, part robot) citizenry which is also described
    as a toy for a dull child. Put the Bible back in schools restoring
    morality and a secure life for our posterity………………….William

    Liked by 1 person

  2. I realize that college is not necessarily the ticket to a wonderful career. I also realize that colleges are more propaganda machines now than institutions of higher learning. However, there is just something about the process of formal learning after high school that is hard to beat. Maybe it has more to do with “learning the ropes” than it has to do with what is actually being taught. I do know that those who view life as a life-long learning opportunity are much more successful and much happier than those who become stick-in-the-muds and do not move past a certain age or point in time. I dated, briefly, a guy who was stuck at the age of 21 and in the year 1972. As far as he was concerned, nothing happened after that. This was in 1985/1986. Learning and growing should be a life-long habit.

    Liked by 1 person

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