A few years ago, there was a concerted political push to increase home ownership rates. The idea was to help renters become buyers. This, it was argued, would have many benefits for those who made the jump, including: 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, the assumption that balloon payments would not be a problem, and the belief that the housing bubble would not collapse. We now know that these forces conspired together to create a perfect storm for economic disaster.
The truth is now known that not everyone should own their home.
It seems that the political emphasis has now switched from owning your own home to getting a college degree. Indeed the current mantra is “a 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 will saddle them with student loans, as well as harm the overall learning opportunities offered at the institutions they attend.
Plus if everyone were to obtain a college degree, then those seeking to distinguish themselves will be needlessly pushed 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.