Monday, December 12, 2011
The Next Financial Bubble?
But is the cost of 'education' even worth it?
Bill Gates (In a Black Enterprise magazine interview) proposes that school districts run their schools the same way sports franchises run their teams. (He is against tenured teachers retaining their jobs when they consistently fail to produce the desired results.)
He says that spending per student has increased dramatically over the past thirty years while results have remained flat.
He noticed that there are more than twice as many adults being paid to educate (per student) as there were thirty years ago.
Mr. Gates also points out that some school districts in New Jersey spend as much as $25,000.00 per student yet these districts cannot outperform some districts in Utah which only spend $6,000.00 per student.
Money alone is not the answer to a better eduction.
Then there is college...
As student loan debt is approaching one trillion dollars - it is second only to mortgage debt as the being the biggest personal debt held by many Americans.
Since 70% of student loan debt is sponsored by the US Government (taxpayers) - should we be concerned?
The average price of a four year public university education has increased more than 128% in the past thirty years while the financial value of such an education has decreased.
Since the value of public school K-12 education is decreasing while the costs continue to increase - at what point does the taxpayer decide that the public school monopoly is also "Too Big to Fail" and that this monopoly should be broken?
At what point does the taxpayer decide that funding student loans for college is not worth driving the market price for such an education?
If 'education' is no longer worth the ever-increasing price tag - is education the next financial bubble?