According to a cover story in Newsweek of September 17, 2012, there is a "college bubble" much like the housing bubble; one that defies economic reality. The opening paragraph states:
Mythomania about college has turned getting a degree into an American neurosis. It’s sending parents to the poorhouse and saddling students with a backpack full of debt that doesn’t even guarantee a good job in the end.
All of which reminds us of the student during the second Romney-Obama debate who complained to the candidates that he was a recent college graduate and couldn’t find a job. He wanted to know what either of them could do for him. Indeed, Governor Romney pointed out that fifty percent of college graduates can’t find jobs. But he promised to do all in his power as president to expand the economy so that there would be jobs available for graduates like the questioner.
But who knows how long that will take? Meanwhile, a lot of kids out of high school want to go to college because they’ve been told that a college degree is a credential that will help them get a good job. Megan McArdle, author of the Newsweek article, writes:
More than half of all recent graduates are unemployed or in jobs that do not require a degree, and the amount of student loan debt carried by households has more than quintupled since 1999. These graduates were told that a diploma was all they needed to succeed.... For many the most tangible result of their four years is the loan payments, which now average hundreds of dollars a month on loan balances in the tens of thousands.
But one of the reasons why college has become so expensive is that it is being subsidized by government eager to guarantee student loans. President Obama is so keen on helping students get into college that he has proposed getting the federal government into the student loan business by eliminating private-bank middlemen. That would not only increase the cost of college but give the federal government the power to govern the colleges, another unconstitutional expansion of federal power.
Click here to read the entire article.
Sam Blumenfeld (photo)