Interesting story from the Seattle Times that expresses some skepticism over whether getting a college education is really such a clear-cut good investment. It cites some work by economist Laurence Kotlikoff at Boston University. The basic argument is that a lot of the statistics supporting the value of education fail to take into account a number of factors that reduce its benefit like higher tax rates, lower Social Security benefits, and potentially lower Medicare benefits. These are all relevant “costs” that vary with the decision to attend college, so they should be taken into account.
As someone who has (over?) invested in education, I’m not sure I’m convinced. But, I see value in questioning “truths” many simply seem to take at face value.
Well, I could really get a bang for my buck if I stopped working, panhandled and spent all my time at the county free clinic. My quality of life would be shot, but I'd have tax-free income and the best benefits/income ratio of anybody I know.
ReplyDeleteBetter yet, I'd commit a serious crime and get sentenced to prison. Free room and board for life, a GED diploma on my cell wall, better health care than the free clinic offers and a free public defender to try to get me pardoned. Talk about benefits!
On second thought, I'll stick with the MBA and risk a life of better income, a better quality of life and more happiness.
I'd be curious to see what impact education level has on an individual's Marginal Propensity to Save as their discretionary spending level increases.
ReplyDeleteOctober 10, 2007 12:49 AM