I don’t know how many times I
have seen the statistic that a college education results in career earnings of
more than $one million over the individual’s lifetime. Well I call BS on this number every chance I
get. The figures do not factor in the IQ,
family wealth and the socio-economic background of individuals that graduate
from college versus those that do not.
But most importantly these
amateur statisticians forgot one major economic factor – the Law of Supply and
Demand.
The rarer the asset (in this
case a college diploma), the more valuable it is. The more common the asset, the less valuable
it is. In 1960 about 8 percent of Americans 25 years old and older had college
degrees. By 2009 the percentage had
reached 30 percent.
And here is where it really
gets nuts. Despite the fact that so many
recent college graduates are back working as waiters where they toiled during
college, some suggest that the answer to our economic challenges is for far
more high school grads to attend traditional college.
Make sure and download a copy of Lucky and Good: Risk, Decisions and Bets for
Investors, Traders and Entrepreneurs.
1 comment:
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