The Higher Education Bubble

UPDATED 06/15/10

Katherine Mangu-Ward, pinch-hitting for Megan McArdle, observes that

the phrase “higher education bubble” is popping up everywhere in recent months. This is thanks (in small part) to President Obama, who announced in his first State of the Union address that “every American will need to get more than a high school diploma.” But Americans have been fetishizing college diplomas for a long time now–Obama just reinforced that message and brought even more cash to the table. College has become a minimum career requirement, a basic human right, and a minimum income guarantee in the eyes of the American public.

When I entered college, I was among the 28 percent of high-school graduates then attending college. It was evident to me that about half of my college classmates didn’t belong in an institution of higher learning. Despite that, the college-enrollment rate among high-school graduates has since doubled.

Mangu-Ward is exactly right when she says this:

If we’re going to push every 18-year-old in the country into some kind of higher education, most people will likely be better off in a programs that involves logistics and linoleum, rather than ivy and the Iliad.

More work, less talk. That’s the ticket.

UPDATE (06/15/10):

An L.A. Times story (carried by today’s Austin American-Statesman) underscores the over-education — more correctly, mis-educaton — of America’s young adults:

[G]overnment surveys indicate that the vast majority of job gains this year have gone to workers with only a high school education or less, casting some doubt on one of the nation’s most deeply held convictions: that a college education is the ticket to the American Dream.

The Bureau of Labor Statistics projects that seven of the 10 employment sectors that will see the largest gains during the next decade won’t require much more than some on-the-job training. These include home health care aides, customer service representatives, and food preparers and servers. Meanwhile, well-paying white-collar jobs, such as computer programming, have become vulnerable to outsourcing to foreign countries.

“People with bachelor’s degrees will increasingly get not very highly satisfactory jobs,” said W. Norton Grubb, a professor at the University of California at Berkeley’s School of Education. “In that sense, people are getting more schooling than jobs are available.”

He noted that in 1970, 77 percent of workers with bachelor’s degrees were employed in professional and managerial occupations. By 2000, that had fallen to 60 percent.

Of the nearly 1 million new jobs created since hiring turned up in January, about half have been temporary census jobs. Most of the rest are concentrated in industries such as retail, hospitality and temporary staffing, according to the Bureau of Labor Statistics.

“Society” doesn’t owe you a job — high-paying or otherwise — just because you have a degree, of any kind. It’s the job-seeker’s responsibility to offer useful skills to prospective employers. Would that that rule applied to tax-funded universities, which hire (at taxpayers’ expense) persons with advanced degrees in subjects that have no marketable value.