September 6, 2013
Are Public Schools to Blame for Student Loan Bubble?
The potentially explosive student loan bubble in the U.S. has been attributed to the pursuit of certain useless degrees, the urging of some to attend college where doing so may not be warranted, rent seeking on the part of universities and of course -- government intervention. But does blame for the more than one trillion dollars in outstanding debt rest squarely on the above causes? Or can a sizable portion of this massive debt be traced further back to failures within our public education system? We can gain a little perspective on a portion of this student loan bubble if we take a peek through Frederic Bastiat's "broken window" and focus on one of the byproducts of our "broken" public education system -- the need for remedial college courses. Our already overpriced (talk about a misallocation of resources) public school system is sending students off into the world who lack many of the basic skills that they should have acquired before being allowed to exit high school, diploma in...(Read Full Post)