Several years ago, the United States made a concerted political push to increase home ownership rates. The idea was to help renters become buyers. Politicians argued this would have many benefits for those who made the jump. This included an increased standard of living, greater self-esteem, and financial security (by building up equity). As a result, many people who shouldn’t have bought houses, were pushed into doing so.
This was exacerbated by some lenders who got greedy, sub-prime loans, and the assumption that balloon payments would not be a problem. The belief was that the housing bubble would not collapse. We now know that these forces conspired together to create a perfect storm for economic disaster.Should everyone really have a college education? Click To Tweet
We now know the truth, not everyone should own their home.
A Free College Education
It seems that the political emphasis has switched from owning your own home to getting a college degree. Indeed the current mantra is “free college education for everyone.” Never mind that not everyone is college material.
Some need to pursue a trade, join the service, or directly enter the workforce. Sending the ill-equipped, the unmotivated, and or uncaring to college will do nothing to make them better. But attending will saddle them with student loans. It will also harm the overall learning opportunities offered at the institutions they attend.
In addition, if everyone obtained a college degree, then those seeking to distinguish themselves will feel a push into grad school. Indeed some fields are already like that.
If this effort to send everyone to college succeeds, the result will not be them getting a better job, but merely an upward push on required qualifications, as well as more money spent on schooling and increased student debt.
It will only be a matter of time before the college bubble bursts—just like the housing bubble before it.