The effects of student loans…
Thursday, May 30th, 2013Whether good or bad, our economy depends on consumers. When young people have to enter the working force with tens of thousands of dollars in loans, it’s a drag on the economy and detrimental to their future security. How can we attack the problem?
First, let’s analyze the root of the problem: higher education in this country suffers from the same disease that the medical system does—the incorrect idea that colleges and universities have to make a profit. Whoa! you say. Aren’t they non-profit organizations? Some of them say they are, but more and more are admitting their goal is to make money, especially online outfits and those “professional schools” who pay their professors very little and charge their students big dollars to “learn a trade.”
Even prestigious schools are in it for the money. Harvard, for example, is connected to hospitals in Boston, MIT has its Lincoln Laboratory, Cal Tech its JPL, Berkeley its Lawrence Livermore, and so forth. Institutes and national labs funnel taxpayers’ money into big universities, many of them private. And these schools charge the most—obviously, prestige, earned or otherwise, is worth gold. I’m not saying that a full professor at MIT or Harvard makes a hefty salary compared to a corporate CEO, but they’re both overpaid. Academia also sports the tenure system—there’s a lot of deadwood among those tenured professors.