Tuesday, January 25, 2011

The College Degree Scam

The cost of a college degree has skyrocketed in recent decades, rising 439% since 1982 (below, left) according to the Bureau of Labor Statistics as reported by CNN Money in Is College Still Worth The Price?

For more than two decades, colleges and universities across the country have been jacking up tuition at a faster rate than costs have risen on any other major product or service - four times faster than the overall inflation rate and faster even than increases in the price of gasoline or health care (see the chart to the right). The result: After adjusting for financial aid, the amount families pay for college has skyrocketed 439% since 1982.

Higher_education_inflation_edit
It is not an accident that I date the Empire's decline to the early 1980s. Even as the cost of college soars, it remains true that there are considerable advantages in having a degree in terms of earnings (above, right). If we look at the BLS unemployment numbers, Table A-4 indicates that in December, 2010, the seasonally adjusted jobless rate for those with a Bachelors degree or higher was only 4.8%. Clearly, there is significant advantage in having a degree if you want a job—any job, good paying or not. (more)

No comments:

Post a Comment