I am an educator. I have been teaching for 10 years. This week, as I reach a huge milestone in my own continuing education, finishing my Master’s degree, the field of education is facing an existential crisis. K-12 schools are underfunded by state and local governments and have huge issues in inequality. College educations are increasingly necessary but wildly expensive. Covid-19 has magnified many of these problems and brought to our attention how vulnerable the system is. To use a finance metaphor, our society is in a period of price discovery for education. We cannot figure out what it is worth to us.Continue reading “Education and a Happy Life”
Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, wrote a startling article on “the economic side effects of the student loan crisis.”
1. Homeownership is on the Decline
2. More Student Loan Debt Among Older Age Groups
3. College Education is Still Key to Employment and Earnings
So you have to have a college education to earn decent income and steady employment, but the cost of that degree makes it nearly impossible to purchase a home, save for retirement, etc.
Rieder offers some excellent perspective on why this is some seriously alarming data for the economy.