January 29, 2013

HIGHER EDUCATION BUBBLE UPDATE: Investor’s Business Daily: Subsidies Create Glut of College Grads. “While colleges will churn about roughly 19 million college graduates between 2010 and 2020, the market will likely create fewer than 7 million new jobs that require at least a bachelor’s degree. Weirdly, at the same time, the country faces a shortage of skilled labor — plumbers, electricians, carpenters and the like. . . . If this all looks strange and mysterious, it is. Until, that is, you realize a big reason for all these distortions is the massive federal effort to encourage and subsidize college education.”

I told you so.