http://www.businessweek.com/articles/2014-03-03/how-states-are-shifting-college-costs-on-to-students
Through recent years, it has become a must for someone to go to college in order to get a well paying job. The demand for unskilled workers has dropped dramatically due to the increase in technology and a machine's higher productivity than a human's. The jobs that are out there, mainly service-based, require some sort of degree. With demand for college increasing, these prices for higher education have increased dramatically.
As we have discussed in class, allowing more of a population to invest in higher education leaves everyone better off in society. However, state governments have been lowering the funding for public universities all over the nation. Some costs to the schools are no longer covered due to this, meaning more money is required from a student in order for him/her to study there. With these higher costs to students, many can no longer afford a higher education, leaving them to fight for the jobs that do not require a degree.
This is not the end of this trend, however. This article highlights the fact that some states may stop funding public institutes as soon as 2022. If this were to happen, it would become extremely difficult for many people to receive the higher education that is required to compete with the rest of the world today.
If there were a way to give more aid to those studying at universities, it would help educate the population more so that more can have a better chance at finding high paying jobs. While this may get expensive, education is certainly a requirement nowadays rather than a luxury.
I think if we are able to turn education into a requirement instead of a luxury it would lead to a fulfilling lifecycle for our economy. For example, if we have a good education we can get good jobs. Good jobs eventually lead to good pay. If we have a good income then we are able to give back to the economy to help others receive aid and go to school as we have.
ReplyDeleteI find myself split on this issue. On one hand, there are real benefits to public provision/subsidization of post-secondary education. We see that a more productive work force, which in turn innovates and earns more money, pays more money in taxes to a state. However, states should be careful because the fiscal benefits of education are hard to pin down precisely whereas the costs of debt and servicing that debt are immediate. I think we are seeing a re-calibration across the states of exactly who ought to be holding the risk for a college education, for indeed it is a risky venture. Many people don't finish school and if they do, do the skills they have learned help them find a job and pay "more" in taxes than they would otherwise? Perhaps in some case (engineering schools) but not always in others (fine arts schools), and that is where the societal risk comes in. Also, costs for SS, medicare and medicaid are rising and crowding out investment, so maybe they should be reformed? Anyways, thanks for the article. I found it intriguing.
ReplyDeleteHigher level education is necessary for higher paying jobs, however I think experience is the real key to success. Germany's Mittlestand company model has shown to work partly due to its emphasis on technical education and internships. Education, although very important, is not the only factor for employment.
ReplyDeleteI think this article brings up some very interesting questions and I appreciate the comments above. One of the points that I thought was very important in the article was that it stated that "an undereducated workforce isn't cheap". In my opinion, I think that this is true and it is always worthwhile to invest in education for leaders of the future.
ReplyDeleteWith the growing role that technology is playing in the manufacturing industry, the service sector is only likely to get a boost, requiring more skilled jobs. As such, a good education cannot be undervalued. With private universities charging exorbitant rates, public universities are a must have. This is especially true since America is so focused on keeping up with the rest of the world. Even now, international students and workers with a STEM (Science, Technology, Engineering, and Math) focus are given privileges because Americans are less interested in these vital fields. Interesting read! Thank you!
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