The Student Debt Crisis: Explained
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- Опубликовано: 22 авг 2020
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Student loans are financial tools that have been put in place to give promising individuals the ability to get an education and increase their potential for future earnings with a strong professional career.
On a nationwide level having a well educated and skilled workforce is one of the strongest determinants of economic success. We have seen this time and time again with nations like South Korea, Japan, Switzerland and Germany, who are not necessarily blessed with a wealth of natural resources or great geography but nonetheless hold their own as some of the world's wealthiest nations.
For all of these reasons, young men and women from around the world have grown up with the idea that their education is the best investment they can make…
... but is it?
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Can you do a video on the economy of Jamaica
The Best way to finance Education is Income Sharing Schemes:
-The Graduates share a % (stipulated by the government) of their income with the institutions were they graduated from in the same way they would pay an Income tax. This way, everybody can have access to quality education regardless of socio-economic status and without burdening anyone else in society.
-This model has the benefit of aligning the interest of the Students and the Institutions, as the financial success of the later is tide directly to the former's. Which will make institutions offer Post-Graduation services to help their Graduates get High-paying Jobs.
-It also allows the institutions to have feedback from the Markets that can inform them what skills the later needs, the incentive to adapt to such needs and also reveal what education methods work the best (instead of these being decided by Politicians in the government), creating a labor force that actually matches the needs of the economy.
If people fail to payback their debts due to this crisis, wouldnt it mean that all those people probably wont get any loans for the near future, because they are concived as unreliable by banks? Which would mean, that banks would spread much less loans and mortages into the economy. What are the consequenzes for banks and the economy? Especially, if we think about the fact, that the US is basically a high debt driven economy. If the real jobnumbers cant recover in the next years and all those people have to live from the low socialscurity of the USgovernment... where does it end...
@Kalambong Kalambong p
How much do I need to bribe you to do a video on a controversial country like Taiwan. I don’t know how you feel about being on a CCP watchlist
Face it, as student loans became available, colleges found they could raise their prices by a higher percent every year.
@@Baddy187 But most those students where just high schoolers that don't know what they want to do in their lives. And when if feels like the whole world is telling you to go to college most of them just do it.
Same with real estates.
@@ayudrs That's correct. Which is why we need to STOP telling them college is life and they need to go. Don't tell them any of that.
Baddy187, because they can be sent to war…two separate issues, but I do see your point.
the biggest problems are that:
A.) high school students are not taught about money and how it works, thus do not have the proper tools to make an informed economic decision.
B.) high school student are indoctrinated to think that college is the only way to be “successful” and to do what the can to get in, regardless of the cost
C.) both public and private loans have artificially inflated the price of post-secondary attendance beyond its rational value
D.) colleges and universities do not charge price adjusted tuition, if going to college truly is the “investment” that it is claimed to be then each major should be price adjusted to match their ten year projected earnings potential
Colleges are the new hospitals. How much? Don't worry about it, you need to get it anyways...
Once you guarantee unlimited credit to students, universities are incentivized to charge unlimited money. In Germany, our student loans are capped at a fixed amount and universities are forced to charge accordingly. Hence, no crisis!
Too bad I stay in the USA
We have a similar system in the UK, but then they tripled the maximum amount per year, all of the universities increased their fees. I think they might have also lost quite a bit of direct government funding too though, so they had to make up the shortfall.
@Damien Gérard housing and food isn't
@Damien Gérard i pay abou 300 euro per semester so its almost free. if youre not from the eu you will pay much more tho
I was the final year that paid £3250 (which they honoured for my entire degree) before they moved the annual fee up to £9000
When I was in undergrad (~10 years ago) at a top ten public university in the US, I had a buddy who sat on the school's budget committee as a student ambassador. During the course of one meeting, the board voted to 1. stop supplying paper towels to all dormitory restrooms due to budgetary constraints, and 2. raise the salary of everyone on the board by around 15%. Food for thought.
Sounds just like how Blizzard has employees who cant afford food an opt to pay rent and starve while using work coffee as an appetite suppressant...but then the CEO gives himself a 40k bonus package...even though he gave himself a 30k package the previous year.
15% that’s disgusting!!!
I felt this, same thing I debated with the board at my university being a student ambassador. My freshmen year 08-09, school was affordable, it was 8k a year for in state students, and 16k for out of state students. My sophomore year, we got a new President, and he was adding expenses from left to right. My senior year 2012, I was paying 18k a year, and out of state students were paying 36k a year with no true improvements to the university. My junior year when I was on board with the Trustees, they agreed to cut 50% of the student jobs, gave themselves raises, and raised Tuition again.
Sounds like corruption. Can one sue them for it?
There is a HUGE corruption at the University/ community colleges level, specially at public ones. I don't know, WHOM and WHAT will take to clean the ROTTEN system...
There was this TV show where someone said "Grandma told me I could get a job now and pay off all my tuition" the dude next to him said "when your grandma was your age a summer job could get you through college" he wasn't wrong.
I get that from older conservatives ALL the time.🙄
@@08techgrad it's called just world fallacy.
Last time I was this early I could get a masters degree for $20 and a case of beer.
Last time I was this early I wasn't
Not even bar nuts on top? Nice
Lol
Can you talk about degree in third world countries with quality education? I am from Nepal. We get Bachelor under $300 and Master under $3000
You are one really old grandpa
17 year old with no credit, No income, no plan? Here’s $50,000!
most of them are doing bullshit colleges that nobody really can have a steady income like those social bullshit
except the course is not worth $50k
Joseph Barros facts like acting, political science, English, etc
I this in Western Australia. I know in primary school i would go to university. But what to do?
Step one: Find out which are the largest most successful local companies by looking at which company had signs on top of the tallest buildings
Step two: choose a course related to those industries that had high ROI and i interested in (it was extractive metallurgy btw)
Step three somehow finding out i was lied to all through out school and i didnt need to do my final exams (TEE). I could go to tafe instead for far cheaper then transfer over the next year.
Step 4 get almost a whole year credited. Losing no time and saving $600 per unit.
Step 5 dont fail anything. (Almost fail pyrometallurgy but luckily prayed the day before to help me pass the exam and with 45mins to go fire alarm went off and we all got bonus marks)
Step 6 get a job and pay off HECS in 4 years.
Sitting pretty. That is how you go to uni the end
And then 5-7% interest constantly accruing so that it kills your credit, since that's your only credit history. Don't forget.
Your options are go to college, join the military, learn a trade, have connections, or do illegal business and don't get caught.
True. I tried to make this point to other people. But, all I seem to get from them is a blank stare. The biggest selling point for regular military/reserve/national guard recruiters is free school/univ and job training. The regular army is required to fill 50K slots annually. If you take away the recruiters biggest selling point how are they going to fill these slots? Government forgiving the loans will generate votes for the politicians in the short term but has unforeseen long term problems as BF said, "When you dug yourself into a hole stop digging."
@West Seattle I live in a country with obstacles at every corner which limits movement, bless America ._. Furthermore i'm a black male. Pretty limited just cause of skin color and poverty that doesn't need to exist but exist because this busted system feeds off of it. The problem isn't simply my "limited view".
The blank stares are there because they know the truth but don't want to address it.Everyone else does it and receives "benefits" by becoming the property of the government. As long as they are getting taken care of, given a purpose where morals don't need to be carefully evaluated, and see everyone else is doing it because their opportunity pools have unfavorable options or need a quick fix for their debts. If they took away all those benefits and just said "join out of your dedication to protect your beloved nation" they would not make their quotas and start a draft which is dangerous. Imagine trying to force our current generation into the military en masse who are aware of our nations atrocities. A nation that preaches change but DOESN'T WANT CHANGE. They much rather kill you all off and restart the population then make life balanced.
@MyOpinion you sound like a delightful father
Or a combination of all of those things. You are definitely not wrong man.
When I was in my senior year I thought it was pretty strange to see all these college recruiters coming in to do their presentations to hundreds of students without taking into consideration whether they had a plan at all for their future, turns out it's not ok to sell a lot of stuff to minors but it's totally legal to sell them an education for thousands of dollars regardless of them having a plan or not
Of course, they are "recruiters" they have a quota to meet and may even get a bonus if they exceed their goals, specially a private college..heller.
Colleges and Universities would not necessarily need to be “harder” to get into, we would just need to stop trying to coerce every high school graduate into going to college and stop using post-secondary education as the only way of defining success
Though the U.S. has generally lower wages and lower government services than other similar countries. So to people who don't want to work literally back breaking labour for pennies, college is seemingly the only option for success. When you don't have anything other than a high school diploma it's very hard.
Wages are generally low, the work is generally long and/or hard and/or tedious, and generally they are few benefits to go along with.
Generally the push for college is one of a desperate working class trying to escape the increasingly hostile conditions they exist under.
So I agree with you. Though financial stability is a sign of success that is logical and increasingly hard to get without college.
Joseph Henry, that is precisely the problem with the current narrative…it’s either college degree or high school diploma, and that’s just not true. There are skilled trades( plumber, electrician, HVAC) and you can also get certifications( in some schools concurrent with your high school curriculum) that in addition to the high school diploma will get you a job making 70k+ right out of high school…with no student loan debt.
I understand what you are saying, and it is the framing of the situation that is the problem…I was a high school teacher for a while and I have seen it first hand. I I tried to be part of the solution, but I was labeled a “trouble maker” 😒🤦🏾♂️
@@vincentstewart9215 but the problem is that not everyone can be an HVAC person Ect. If everyone was, heck if half of college students went into a trade instead and an even a smaller percentage of that group went into HVAC it would no longer pay the higher amounts. Equally making it worse for both the people already in the business and the students trying to learn those trades. Until things are improved so that, yes even a mcdonalds or dollar tree employee can live a life of stability and modest comfort you will never have a society that appropriates jobs and education well. Because people content to live humble lives will live them. But the current system makes not getting an education (degree or trade) a recipe for a life that is less than humble.
Joseph Henry,
A.) skilled labor pays well because it’s skilled, it’s like saying if colleges just pumped out doctors, lawyers and engineers(as some people advocate for if we were to subsidize college tuition with taxpayer money, so college would be free) that their income would decrease because of the supply and demand, but making it an unwise choice to go to college in the first place.
B.) yes, I 100% agree with you that no one working full time, regardless of the job, should be below the poverty line. This is why UBI funded by a VAT(adjusted to omit basic needs such as bread,diapers, ext.) is a good idea! It increases most people’s buying power without putting undue stress on small business(The back bone of the American Economy) 🤙🏾
@@vincentstewart9215 well anyway. I think you and I do agree that the backbone of the whole problem is generally the lack of support the working class gets. None of this would be a problem if people were able to live moderately happy lives being a waiter or a grocery store clerk, both essential jobs for our economy. I know many people in successful careers who told me they would have preferred working [X] non-educated job if it weren't for the fact they would lived comparatively bad lives. And that's the problem.
Wages: *stagnates for decades*
College tuition: *blows out of proportion*
Also College: _WhY cAn'T yOu AffOrD cOllEgE?_
I don't understand why americans pay these exuberant prices for their tuition ...
@@gerbo8018 For the most part we don't. In state tuition is actually quite reasonable. Then you add scholarships and any grants to the equation and you should only be paying a percentage of that cost. Then, you can get your basics done at a community college before spending the money at the 4 year university. But the student going to a private university for the full 4 years with little scholarship/grant money is making a horrible financial decision.
Nothing about a balanced education in order to promote a more enlightened population. It's just about the almighty dollar.
@@gerbo8018 The public university system is funded by the state (and to a less extent the county for community colleges). Also for public university residents of said state used to get a hefty discount. In states like NY, and even poor states like West Virginia public universities only cost about $1200-1500/semester in the early 90s. Since then state tuition assistance has been the 1st thing on the chopping block. The boomers got their cheap college education, and screwed the rest. Also, wages are stagnant, but you still have hire Americans and pay them an annual COL raise around 1-2% year + healthcare ins. Unlike electronics/consumer goods we haven't found a way to outsource college to the 3rd world yet. But give us time, we are trying!
"Wages: stagnates for decades"
Meanwhile avg productivity goes +300%...
I think the most dangerous part about student loans is giving a kid with no financial education/experience a $50k loan that they can never get out of paying.
And yeah, 18 year-olds are still children when it comes to personal finances. Plus at that age you very likely have no idea what you want to do with the rest of your life!
Happened to me. College was always pushed on me and i wasn't educated enough to understand the financial burden it would provide. Then when I got to college I actually changed my mind a couple times on what i wanted to do with life (blasphemy, I know). Now im stuck with 40k debt which will become 50-55k with interest. Looks like im not buying a house for a while
That's the way it happened to me. Drilled into me from as young as I can remember that I was absolutely definitely totally going to university. There was no choice. Sent to a grammar school aged 11, and was made to "practice" the entrance exam for a whole year before the test. Aged 17 I had to pick my university course, and I still didn't have a clue what I was prepared to do. I chose computer science because it was about the only thing I didn't totally suck at.
Left with a 2.2 when everyone else who barely turned up sleepwalked into 2.1. I left in 2009 with a low grade and into a non existent job market. The few gold dust jobs that did exist, were all immediately swallowed up by people with 5, 10, even 20 years work experience. No employer's going to go for someone straight out of university when people with experience are applying for the same role.
Five years of that, and then "oh your degree's out of date" says a corporate HR suit who literally has no idea what the degree entailed, what the job he's vetting requires, and couldn't do the job himself.
Wouldn't the inexperienced kid have to be considered financially independent by the set standards to qualify for that amount? Unless they get a private loan that is, which might require a cosigner. They would basically have to be living on their own if it's a federal loan. And you're required to complete pre-loan counseling where you're forced to consider your future potential salary vs. total projected debt with interest (I guess financially dependant students could eventually reach that 50k figure after maxing out federal loans through accumulated interest.) We're talking about fresh highschool graduates here, not anyone trying to finance graduate school, in which case 50k could easily be borrowed.
Buuut your point is still taken because you aren't that far off with that 50k figure. The basic idea still stands. Young adults probably shouldn't be starting life with more than 10,000 in debt that's taken on before their decision making capabilities have fully developed.
We should encourage students to take the task of minimizing debt seriously and offer them viable paths to do so.
To reduce tuition, either states would have to increase funding or schools would have to economize by cutting out all the truly extra stuff. Maybe both as a compromise, but I think public universities are generally doing a pretty good job and are underfunded as it is.
But to get them to actually to cut tuition in either case, you'll probably want to reduce the amount of loan money available. Maybe incrementally increase funding and lower federal borrowing limits while heavily regulating private loans.
If you don't like that option because it's basically just shifting the bill to taxpayers and possibly not reducing the actual cost (there are possibilities where tax burden would not be on most people though), I think a universal paid apprenticeship or internship system integrated with the university system could be an excellent solution the college tuition and funding problem as well as the "experience required for entry level" dilemma. Companies would be happy because their skill gap would be closed and they could pay apprentices/interns a little below what a new graduate would make, but ideally enough to cover the tuition.
Wasn't expecting to see the creator of EBF here. A surprise but a welcome one. :)
No, they are not children. They are adults. They have the freedom to move on their own and not listen to their parents. So they are old enough to accept the consequences of their actions. It is not the taxpayers fault that a person makes an unwise investment. You can blame the schools, parents ,student, or whomever. Just don't blame the taxpayer.
After checking out many of the comments, it occurs to me that perhaps people should attend college when they’re older, we really are too inexperienced with money, or life at 18
Do you ever remember a word problem in high school that required you to figure out the amount of a loan, the interest rate and the time and ending amount paid off with fees and interest? I don't.
@@Paul-ou1rx did you not take economics in HS?
@@Paul-ou1rx Me neither. Personal finance should be a class taught for at least one semester in high school.
@@deadbzeus I took both AP macro and micro econ in high school. I think these subjects are too theoretical and are not directly applicable to the kind of personal finance expertise that deals with student loans or other kinds of personal debt one might acquire in their lifetime.
there are plenty of adults who don't understand money either.
Even though school is online now we still gotta pay the same ridiculous amount
Stop going
defer until reopening
True, it's disgusting.
They charge more for online classes at my Uni
Then quit. We need more people in trades anyways which you can get into on an apprenticeship
Here’s what I’ve learned from my own college experience: don’t go to college when you have no idea what you want to do with your degree. My current job has nothing to do with my study field (bachelor’s in history), and I hated working in the field that my degree was in (teaching). I didn’t know what I wanted to do with my life, but I know I didn’t want to work a blue-collar job. Now, I work a blue-collar job. Ironic really.
Same story in my life.
That’s why i tell my kid to aim for dual enrollment when he gets to high school. That way he’ll graduate with an A.S. degree and jump into more concentrated courses upon entering college. Saves time and money. I wish growing up, our guidance counselors would have actually counseled us.
Same
Amanda Rodriguez our guidance counselors always advises students to at least try AP courses for that exact same reason
Edit: at least he did when I was in high school
@@walkermorales337 That's good. I guess everyone's experience is different. And I definitely hope this has gotten better with time.
I wouldn't say I'm an expert on this topic but based on my experience I would recommend going to community college first. If you're low income, you end up paying almost nothing. I would also recommend applying to fafsa. By the end of the two years, you end up with money that could also help you pay for your two other years at a four year university. I think community college is one of the best decisions I have made in my life.
Agreed. Community colleges need more love.
I agree 100% I graduated in 2011 from a community college with no debt and it allowed me to eventually find my way into my field (electronics engineering) and after I got a decent paying job, I was able to go for my 4-year degree and will be graduating this year (in December) with NO DEBT! It has been a very long journey, but I feel like I played my cards well so far.
Congrats on making strong moves for yourself.
Live with the parents! yes it sucks but believe me, your debt will be considerably less!
I wish more were available. I'm many parts of the country, they have been absorbed as satellite campuses for the state university.
The heaviest hitting thing you said was to treat education as an investment, and weigh its returns against other investments. It hammers home the importance of pursuing a marketable education, and on the individual level, it cements the need to work & study hard and not just party & good off.
Never closed my chemistry book so quickly
Not too quickly I hope, those things are expensive.
Organic. Chemistry?
@@EconomicsExplained I just payed 700€ for my 3rd year of high school books. But because I'm in Italy and not in US, we don't have students loans 😂
But yes, I definitely closed my chemistry book quickly
@gaogle censors already doing it, bro!
Ahhhh, now that is a book that make me cry. Fellow biochem here
In all of this, universities have no real incentive to give a quality education. Either the student or taxpayer will bear the burden. Their main focus will be to fill the seats. This ends up predatory practices where naive students are hooked into "college education". So, professors and staff are given recruitment bonuses and incentives rather than quality of education bonuses. Most departments only reward "growing" their classes and department. It is very hard to measure price/benefit for most universities. University paint a rosier picture of their alumni and corporations that hire are tight-lipped about what they think of universities and say they judge on an individual level.
Universities don't have any incentive do give a quality education right now
I couldn't agree with you more Mark A. As someone who has worked in a university, I know first hand that the university is only paid when someone passes their course. If people are failing in that course, then the government will not pay for those enrolments. So universities have every incentive to look the other way and pass people despite their short-comings. So not only do they need to fill the seats but they also need to "pass" those seats. Of course the corporations that hire students from the universities know this but saying it out loud is politically unwise and thus they remain tight-lipped.
@@jamesng7320 It's much worse! The requirement now to "be ethnically diverse" has caused them to accept students that don't even have a valid high school diploma. (socially passed) These "students" are lost in the college system and are again socially passed.
I disagree somewhat. You can't expect an institution to hand-hold you through the degree you want, but this is what many naive students who enter college believe the school is there for.
What you get out of higher education is directly proportional to what you put into it and, in many cases, universities provide _plenty_ of resources to help their students succeed. Often times students just fail to take advantage of these resources and do the minimum required to just barely pass, then go on to complain that they cannot get a job in their field.
These are the same people who would be complaining that 'college is too hard to get into' if education was state-funded.
Which system is better? I cannot say. It may seem like being more selective but providing state-funded education is the better solution, but sometimes students with a poor HS record excel in college, these students benefit from a student loan system. Sometimes students who did well in high school spend their college years drunk and partying, these students would just be wasting taxpayer funds in a state-funded system.
A university isn't just a school. They thrive on research and providing all kinds of innovation. University should therefore work with governments to make sure they provide to as large and as diverse of a base as possible.
I wish this was the conversation our counselors and teachers were having with us in high school. At the time, I felt like the only to options were go to college or work at McDonalds. I dont know if it is the same now or even across the country, but I try to pass down what I have learned about college to any one that has not yet been. This video did a good job covering it, thank you.
I'm convinced that universities lobby for finance not to be taught in highschool so that students can't understand the concept of college as a an investment and that they need to calculate if what they are paying for university is worth it in the long run.
Conflict of interest for them. But life is full of people who want your money. it is up to the parents, teaching their kids about financial choices.
I remember a political ad from years ago, where a mom complained about a group planning to teach finance and other practical skills in the classroom. According to her, it was a waste of time and would make her kids less competitive in the future from the lack of time that should be spent on core subjects. I was in college at the time and didn't care about finances since I was studying to be an engineer (I was supposed to get a high paying professional job and pay an accountant to do that), but I remember thinking, how is it a waste of time to learn how to take care of your money? We have to learn so much, most of which doesn't apply to everyone's future, but it's crazy to spend a little time on something that will apply to everyone?
State of NJ requires personal finance be taken in order to graduate high school I believe. I did end up taking the class, but I don't think they even really touched on the insanity of rising university costs as being a "good" investment based on what students saw themselves doing with their lives.
@@James-vc1kc It does not require it in all schools. I attended a private high school from 2014-2018 and finance was offered as an elective.
100% agree
“A country cannot run entirely on pushing numbers around”. Swiss bankers: «Hold my goldbar»
Hahahaha
?
I go with Luxembourg. The Swiss at least export a lot of cheese, watches and army knives.
@@lonestarr1490 and guards, dont forget them
Lone Starr the Dutch and the Irish
As a Norwegian student attending University, I still need a loan, albeit to cover living costs and the tiny $50 semester fee.
If I pass my exams and don't drop out, 40% of my student loan will be converted from loan to scholarship. So in essence, I only pay 60% of my loan back. 🇧🇻
Better than $50,000 in student loans debt like USA....
Similar to germany
Don't worry, you'll still pay back the other 40% in the form of higher taxes!
@@Hypercube9 yeah, taxes that gives you like the BEST health care and the best infrastructure and great public services in a high developed country......men i pay cause it WORTH IT
how much do you earn out of college?
in the US, yes it's expensive, but if you make your investment wisely and put in the right effort throughout college, you know doing internships, reaching out to potential employers, and building up your resume, basic stuff like that, you can make over 70-80,000$ right out of college with a Bachelors in a high paying STEM field.
Wish I’d never gone to uni. Studied law at a top 5 law school but was just what was expected of me. Suspended my studies and currently a lot happier out here focusing on something I actually want to work in - computer science
Good choice. I would argue that CS is a way more productive field than law anyways.
It would seem that the US is in its own boat. In the UK, unless you want to become a Lawyer, Doctor, Nurse, or Teacher you don't need a degree. Infact I'd say that you'd be better off without one now due to the debt.
It's important to consider changing demographics and shifting attitudes about college. There are simply fewer 18 year olds in the population, and that's one of many reasons for the decline in enrollment. Secondly, the idea that a college degree is needed to get a good job is being increasingly challenged. Many high school graduates would rather go to community or technical college, which was considered inferior to a four-year degree a few decades ago. Colleges have grown beyond what is sustainable. Many will close permanently. Many others will need to downsize or merge to survive.
A welder, electrician or plumber can probably earns a lot more than most college graduates who generally get out with a lower degree in a non sought-after field.
In my local area, it was drilled into our heads that you had to go to college or you were doomed to Factory Work. I really wish they pushed trade schools and other means as hard as they did college as those are really great alternate paths to success.
Most HS teachers are themselves unemployable outside of education. Their advice is really bad.
got a buddy who teaches high school in Newark. He said administrators pressure teachers to push college over trade schools because higher college admission rate looks good for the school.
@@wasssssuppppppp I'm pretty sure getting into a trade school/community college counts as higher education so i don't see how that makes sense on their part.
Modern factory works arent that bad tho. Most of the hard labour has been automated
Agreed. In some places, trade school has been looked down on, even though it makes a lot of sense for many kids.
When you realise you are paying taxes to the same people who create the money out of thin air, loan it to you at an interest, then tax you on any profits you make...
The government doesn't loan you money at an interest. That's the banks. Private institutions.
Hart Matejczyk Yes private banks like the Federal reserve are printing it out of nothing and loaning it at interest. Government does NOT print!!
Yup If we don't get rid of the federal reserve we lose simple as that
End the fed!
Tomas Gomez please
I’d like to express my admirations. Even though I’m not really into economics, i must say that the way you present all topics is fascinating and totally grabs my attention. Great teaching skills, great channel. Thanks for making my day interesting and keep up with the brilliant work : )
I paid off my $50,000 student loan balance on June 1, 2020.
This was 5 years after finishing my PhD in biochemistry.
It’s funny you mention Switzerland, cause here there is a much lower rate of university studies than in many other developed countries, a lot of young people get trade degrees instead of college (carpenters, watchmakers, bakers etc). A good reason is that tradesmen get very livable salaries, so the same “unless I get a degree, I won’t be able to live off my salary” calculation is not really needed here.
The dark side is that there is not as much social mobility here as in other countries. Learning to become a doctor is a very expensive endeavor, so not many blue collar children can afford to be without a salary for the 10+ years needed to become a practicing doctor.
Switzerland still holds to healthy, conservative, productive solutions....and still retains quality.
Lot of people get also trades in other countries, including USA and UK.
Just many irresponsible people get expensive and useless degrees and they are not able to make enough money (few examples are in the comments). Even if they are able the make small payments towards student debts (also few examples about this in the comments) - because it's not a high priority to get rid of the debt for them. Of course, the need also the latest iPhone or branded bags, or flying everywhere to holidays (because "you have to enjoy your life while you are young").
Let them pay if they are stupid, this is not a problem of taxpayers. They could also select trades - but yeah, it's sometimes not as comfortable as sitting in the office, doing some "manager work" and chatting with co-workers half the time.
Trades aren't bad in America but trades are limited to minimum wage. I'm not saying tradesmen make minimum wage but more to say they are limited by it. The tradesmen can only charge as much as the market can handle. Basically low minimum wage can bring down that average price people can charge for services. Combine that with the fact in the US minimum wage doesn't scale with inflation. So what you see is a cycle of people working then protesting for better pay.
Actually that's only halfway true... More people have now university degrees than ever, and many of them actually first had the vocational training and then after 3-5 years enroll for a university degree. Numbers for the years from 2000-2010, up to 40% of people older than 30 have an university degree, whereas in the early twenties there are 25% of young people, the tendency is however in the direction of higher education, with no risk for wages or any other problem...
Thats why they import doctors and engineers from india
I feel like RUclips is telling me something by showing me an investment banking ad before an EE video....
hey they have decided that you are a fancy pants I guess.
IB Life.
It kinda sucks, my parents want me to go to a really good college so that they can brag to their coworkers of where their kid goes. I don’t even want to go even though I have the grades to get in almost anywhere.
Go where you want, brags don’t mean anything, but four years of your life and the rest of your career do. Prioritize your well being and future stability man
Unless you are 100% sure what field you want to go into I would start at a community College or just do internships in fields of your interests for a while. Unless your parents are paying for 100% of the college tuition AND it is a field you want to work in you are setting yourself up to drop out partway or rack up tens of thousands or hundreds of thousands of dollars more debt than is necessary to get a degree. (Planned correctly, with enough scholarships, no debt is neccesary)
If you have a solid plan to do something worthwhile to earn some cheddar you may win them over.
Nice humblebrag.
@@adamcetinkent I saw that, too.
All I want is for them to stop charging interest on my loans. If you calculate what I paid in total my loans should be paid for by now, but because of the interest I'm still paying.
Welcome to Loans 101. You will pay more than what you took out.
If the bank weren't taking interest they would have no reason to give you the loan in the first place.
Ummmm that's called a loan
Oh yea, cancel interest. That totally fixes the problem doesn't it?
@@haliax8149 well seeing I've already paid them more than I actually got in loans, and I'm actually still willing to pay what they think I owe in principle, yes it will for me. As for others they need figure that out for themselves. Don't be so quick to judge that my statement was meant to be any type of a solution for the other students with debt.
"The military is unlike to ever protect your home for an air raid, but idk, dont tempt 2020" Ill mark that quote for future references
I hope you will live through 2020 to do so.
Speak for yourself buddy, I’m gonna make so many baskets that I’ll single handedly pay of the 1.6 trillion
You are funny! 💖
What, do you own a basket factory?
@@joshuacheung6518 No no no. Too much government regulation. He weaves them himself. He is that good.
"Careful, he is a hero."
You under underwater basket weaving majors always show off.
Let me help though, I'm a Gender Studies major!
Yeah, we can. We bail out corporations and banks every time there’s a dip in the stock market. We subsidize corporate research and development and we subsidize their costs for labor. We cut taxes for the wealthiest every 10 years. Yet, whenever someone proposes a bailout for Main Street we get Establishment fools questioning “how we will pay for it” and crying about the national debt.
Yes. If banks go down you and all your poor victim college kids would go down with them. 2008 economic crisis for reference.
@@kl6544 That's why first world countries have regulations so their banks can't get themselves in such a situation that easily.
AnHeC I can empathize with people sucked into a predatory scam, even though I paid my debts. Debts aren’t supposed to be guaranteed to be payed back either. I don’t consider it a spit in my face to forgive student loan debt, but clearly we’re very different people, and the only thing that concerns you is yourself.
When the engine fails in your car you fix it because the car is useless without an engine. If the paint on your car starts flaking you might not fix it because the car will still work. All those "C" students that are at the bottom of the pile in an overcrowded field are like paint on your car to the government.
psoltan nothing to do with grades. Has to do with profiteering off people. Compare tuition rates now with tuition rates in 1975. It’s a crime and the government is complicit. Joe Biden especially so.
I think we need to use the correct terminology, it is not "forgive" the debt, it is "write off" the debt.
@@tun0fun Debts that can't be paid ARE worthless.
While technically speaking forgive and write off have the same meaning in terms of debt,
there is a critical difference in moral tone.
Write off does not imply a moral component: people got f'd up by debt and that was resolved by writing it off.
Forgive does imply a strong moral component: people were wrong to take on this debt, but out of our generosity we forgive their debt.
I believe that "write off" is more appropriate here, as the people who took on the debt were misinformed at a still not fully mature age. The "forgive" angle implies an unnecessary moral tone that disgusts me.
@@tun0fun That doesn't solve the creditor's problem, though; the debt is still worthless. Even if you enslaved the debtor to the creditor, the full value would most likely never be realized. This is why debtor's prison was abolished, incidentally.
@@tun0fun There's a limit to how high garnishments can be without destroying the debtor's ability to pay. If that amount is less than the interest, then the debt can't be paid. I'd be very interested to know many student loans fall into this category; given how willing the government is to allow forbearance and $0 payments, I suspect it's a lot. Taxes aren't the same as loans, for the reason you stated here: loans are fictitious value. They have to be paid in order to be realized, made into real value. Otherwise, like I said, they're worthless.
And as usual the left wants the middle/lower class to bear the tax burden of writing off the debt of their 'bEtTeRs'.
So a worker in the US today is on average 4x more productive then in the 1960s but back then you could have one earner in a lower income family and be fine.
Today we're more productive but many people don't earn enough working full time to support their household.
That should tell you something....
@@joeosbornegregory8333 I'm confused - are you saying that the reason that people aren't paid more is because there isn't enough capitalism?
@@joeosbornegregory8333 Ah right - Karl Marx.
@@joeosbornegregory8333 sounds like Marxism
More women working lowered salaries is simple economy law, and women are 62% of those debtors, it is a double bussiness more loans and lowes salaries....
In the 50s and 60s USA had less competitors once japan Germany the uk korea China etc starting competing things weren't as easy
I would say that most countries were convinced by lending institutions that student loans were the answer.
I don't see Student loans as predatory. I got a decent amount of student loan debt with little to show for it, but the interest rates are really low, so it's not as bad as other types of debt. I still think people should have a plan for leveraging Student Loan debt into higher earnings later.
As a high school student, I was told that a college degree would help me earn more money. But that's not the whole story. Just getting a degree isn't the answer, but getting a degree in the right field is. People went to college and didn't have a plan beyond that. If you don't know where you are going, then it doesn't matter what path you take.
Not most countries. The Anglo-Saxon countries are not the center of the world. It's not like this here in France, neither in most other European and developed Asian countries.
Shorewall I guess the issue though, is that the taxpayer is getting a bad deal. You were loaned lots of money and as you say have little to show for it and pay low interest rates. It’s pretty good for you, but the taxpayer got screwed.
The root problem starts with the colleges and universities rising their prices. Once they saw they could suck out of the students as much as they could, while being able to pin the debt on them, they went all in for it. Truly disgusting.
outstanding video as per usual man, great dissection and insight, much appreciated
Last time I was this early prisoners were still being sent to Australia
So you were able to use RUclips before it was even created
So you are here just on time!
@DiversionG yes, thank you for understanding
@B W nice
Last time I was this early Aboriginal Australians were being horrifyingly genocided
So
1. universities are overpriced ( due to easy access to education loans)
2. Students are supposed to pay the loan even If they are unemployed which cannot be defaulted(feel like a mental torture)
3. Students loans backed securities are traded( because everyone thinks of it as a risk free investment ,"oh common who doesn't pay their student debt")
This situation reminds me of 2008 subprime mortgage crisis
Can there be a bubble? How will this affect world economy?
And on the top of that the universities are demanding fees for attending online lectures
Thanks Obummer.
If you’re unemployed, you can call and request a deferment. The loans are owned by the government, there won’t be a bubble. The gov can print money forever, unlike Sally Mae. Maybe inflation, but not a bubble pop.
Unlike underthings we can't exactly boycott education
@@woodenfishes well I don't know exact figure but it wiped out around 6 to 8 trillion worth of wealth
Thank you for always providing a rational and enlightened view of these topics. Too many channels/commentary starts with some ideological framework and then spend the rest of discussion trying to justify that framework, rather than following the facts. 👍
Amazing explanation, esspically liked the comparison to the mortgage dbet
On a related note, when I was deciding on attempting to get a PhD, I checked around a bit and was shocked to find that as a PhD student you still pay tuition in the US & Canada. Over here in Germany, not only do you not pay, but actually receive a salary for your work as a researcher.
You have to PAY to do a PhD in the US? If you're doing research you should be the one being paid to!
@@rodrigolealmartir5902 My thought exactly!
@@rodrigolealmartir5902 The average cost for a PHD is 30,000 Dollars. Wait for it...... 30,000 dollars a year. For 8 years, for a total of 240,000 dollars for a phd average. Thats nearly a quarter of a million dollars.
No you don't. Well, depending on your field. For science research you almost always get a salary for a graduate degree. I was in a PhD program at a state University, was getting paid ~$25,000/year. This applies to research masters degrees too.
@@alexismartone8104 interesting. Is that a more general policy or only in your state maybe? When I was researching north-american schools (though, admittedly, I mostly looked at canadian universities), on their websites they all had quite steep pricetags attached to their graduate programs. Also usually with a note, that students are responsible for securing their own funding via scholarships or similar.
In the US, we have places like Sanford Brown who encouraged their students to take out big loans, but didn't really offer a quality education. These students were put in a really bad place because they didn't get the benefit of an education, but they did acquire a crippling debt.
US universities have no reason to keep their costs low because the people they service people who are allowed near unlimited credit. In any other business on earth, we'd all recognize this as a fraudulent scam: artificially jacking you prices to comedic levels solely to milk money out of someone at no actual benefit to the service provided.
@@bruhbruh4329 The best part is that it's an eternal debt that can't be discharged in a bankruptcy so these students are absolutely fucked. They might as well be Russian serfs circa 1910s in terms of how little they have and for the sake of everyone in the world, i hope this bomb is defused ASAP.
They are also the minority of cases.
A great book was written by Vedder in 2004 called 'Going Broke by Degree'. Pretty much calls it from almost 20 years ago.
I don't know. In my experience, middle- and upper-level managers are some of the most unproductive people you're likely to find in any business setting.
AMEN. Throw in the entire parasitic finance sector along with it. This is why "capitalism" is not a free market. Err, well, it is... but only for a select, elite few.
@@sovpsyche5427 👍👍👍
I wouldnt say so im a middle level manager at Axis communication and I work about 11 hours a day some of my fellow coworkers are lazy but they are never going to get promoted so i would say the upper are probably the most productive people as it’s really difficult to reach it.
I have 2 bachelors degrees, one in Theatre Scenery Design and one in Biomedical Engineering. My current job requires neither of these. My student loan payments are about equal to my rent. If I didn't have these loan debts, which will take decades to pay off, I could probably get a house and contemplate a family and such, but I am just barely able to maintain a single person in a place with ridiculously cheep rent that I lucked into (618 for two bedrooms). I know that I am EXTREMELY fortunate, and don't know how my peers can make it month to month.
Why the did you get a degree in theatre scenery design🤣🤣
Surprised Biomed doesn't get you something, it's supposed to be an in demand field.
@@Croz89 I mean, they probably should. I don't know what they are doing now.
@Hoo Mantew MBA's are a cancer. So please don't.
@@Croz89 same. Sounds like she might've gone off the wrong track professionally speaking if she actually enjoys biomed and would be happy working in that field. I assume this is not the case and she prefers her current job, because otherwise it makes no sense
Edit: I called this person a "she" but actually have 0 idea of his/her gender. Since I don't know, I'll leave it as is
Also a factor - trading student loans: Student Loan Asset-Backed Securities aka SLABs are similar to the now infamous mortgage-backed securities. Just like the idea mentioned at the end of the vid "who doesn't pay his/her mortgage?", for SLABs "who doesn't pay his/her student loans?", this is made worse when for some defaulting on student loans is not even an option.
As far as I am aware, defaulting on your student loan is not an option for ANYONE.
@@amsd1231 The only exception is if you become disabled to the point where you're bedridden 24/7.
Ah, the option is to vote democrat! FREE, FREE, FREE! EVERYTHING WILL BE FREE! (for a short while!)
I don’t see how this changes the underlying issue.
@@glasslinger wow what an intellectual, describing policies with one word, I'm sure that's very accurate and not at all an oversimplification
A good video. Working with a multinational oil company, I've worked with engineers that studied around the world, and then came to the US. One thing that I noticed about my friends from India, Africa (Nigeria) (Egypt) and Venezuela, they had to work their tails off to get into university.
My friend Srikanth from Hyderabad told me about being awoken in the middle of the night by his dad. His dad saw a light on in Srikanth's classmates room, and informed him that his classmate was preparing for entrance exams, and that he'd better do similar if he didn't want to dig ditches for life. My friend Luis from Venezuela had a graduate level degree and was a skilled engineer in PDVSA before Chavez sank the economy and his family had to flee for their lives. I'd go for the Australian model you proposed, no way the Bernie Sanders / Liz Warren freebee for anyone for anything version.
Weird, I have a friend named Luis from Venezuela who’s an engineer too. He lives very well. I just talked to him a couple weeks ago. He said, “ de mi no te preocupes. Estoy ganando muy buen dinero.”
It's nice to see an unbiased approach to this.
And not a video of an angry man cursing who's Ronald Reagan for everything.
Friend of mine at work: Yeah man my daughter just graduated she has a 300k student loan she should have it paid off fast shes getting 20 dollars an hour.. Me: Puzzled.
How does she rack up so much debt? Why should my taxes go to her recklessness ?
@Greg Spolar Probably won't be 40k job forever. I don't know US system (where I live, we have free education), but for example law students have extremely low income when they graduate, but it gets to a really interesting numbers after ten or so years and they retire very rich (assuming they are at least ok in their field). Similar for doctors.
Yea that's crazy. I wish students were taught financial literacy from a young age in school so that by the time they're ready for college they're equipped with the knowledge to make a good decision.
We have highly educated people but dumbed down on financial education. Man this country is so shrewd.
Old friend of mine two years before joining the military:
"Yea man it's cool I got my associates and after talking with the financial department I've got my monthly payments on it down to 12 bucks."
"Wow that's..really low. Does it even cover the interest?"
"......"
"Hey, joining the service seems like a cool idea now!"
So you're saying that the entire education system is broken and that ivy league colleges are actually overrated?
Something I figured out in highschool
Ivy league colleges provide access to Ivy league graduates. Good ol' fashioned cronyism is a lot more valuable in the real world than a groundbreaking thesis. That's the difference between the Ivy league and State U.
@@rook1196 kist join a fraternity and clubs related to your major
@@rook1196 its the same thing as saying "if you invest in our piramid scheme in the future you will meet others that also invest in the scheme"
hacker russo and this pyramid scheme PAYS.
Please, the government needs to STOP guaranteeing these loans.
Ping pong
Most student loans, thanks to Bill Clinton, are private and have nothing to do with the government. Only the poorest of the poor qualify for government backed loans. Billy boy Clinton, bff to Wall Street and....
No, we need to quit charging 22 year olds usurious interest. Banks pay a fraction of a percent for money from the fed, students should get that rate. Who’s getting rich? Bankers, and school administrators.
The humanities create problem solvers and historians and critical thinking skills. Apparently you didn’t go to university.
I did fine arts. I make plenty of money. Artists create civilization.
We need to revive, the jubilee is ordained and established
Paid off my $20,000 student loans today and so grateful 😊
I feel like you're proposing a false dichotomy here, either free but limited education or pay extraordinary amounts for it. When a large part of the problem, especially in the US, are predatory lenders and bloated bureaucracy in the universities.
Predatory lenders and bloated bureaucracy are the result of unlimited loans. I do not see how you could mitigate all of that in a free market economy. What he is suggesting is for the government to pay for education, but as a payer, the government will decide which major to fund. That decision should be based on the economic predictions(ie which industry is set to grow), Obviously there is much more to it and it would be a complex system, but currently it seems that the current system just simply does not work
Whether the costs are paid by individuals or the state, college degrees are insanely overpriced because their primary purpose is to provide prestige to its students, not education. Nonspecialized degrees end up acting like a test for an employees basic intelligence+conscientiousness, and the more people get degrees the more employers demand higher levels of education from prestigious colleges to compensate.
Most of these problems could be rapidly solved by barring employers from considering degrees outside specialized areas however. So employers would have to test hires for basic competence/diligence themselves instead of using degrees as a shitty psychometric test costing tens of thousands of dollars.
Having the government pay the cost of non-specialized degrees is essentially a tulip subsidy that only serves to prop up a hilariously broken system without fixing the underlying problem: www.reddit.com/r/slatestarcodex/comments/7t59x1/review_bryan_caplans_the_case_against_education/
All university grading should be done on a live examination level, this avoids cheating as well. You don't have to do any courses if u don't want to, pay the fee, do the exams, get the degree.
Why waste years if the student already knows what they need to on day 1. Also means u don't need all that money if u just study the curriculum on your own for a few years while working. Med School etc will still be necessary, but most tuition is basic filler/optional.
The law should be changed to allow discharge through bankruptcy. Every other common law allows this (I think) because that is how bankruptcy works. It would force the lenders be a lot more choosy.
@John Clemens P. Rubi Med school is by far the hardest and most obscure, plus it's gross.
But chemists and MBA's are responsible for the drug industry not doctors and surgeons lol. What I would love all the 'anti-big pharma' sheep to do is prove they never take any drugs, antibiotics or injections and always refuse surgery. Big Pharma is a God-sent if u've ever actually needed pain relief.
I got my masters in basicly tech for performance. I was set to start my dream job. Then covid hit.
I totally understand. I got my first degree then 9-11 happened. I got my second degree, then the housing bubble burst, a recession started, people started leaving the city I live in en mass, my sector consolidated and reduced jobs and I was over educated for what they wanted to pay. And I've been over educated for pretty much everything else here. I'd move but I do not want to chance being without the support of my extended family. I was finally set this year to start over, then Covid... Sadly I will never get from under this student loan debt.
@@SomethingBeautifulHandcrafts I'm sorry to hear about ur struggle but keep it up and something will work out eventually.
Stock clip showed my Alma Mater, University of Houston!! Go Coogs!
Great Video, thanks for explaining!
I feel like this is an issue all economics student can agree on
this is an issue all students can agree on
Definitely not bailing them out.
Why is government takeover needed why won’t they let credit unions/banks back into the student loan business instead of letting university’s feed off the tax payers money. The public shouldn’t have to bailout people for irresponsibly taking out to many loans. Thoughts?
You can use your student loans for anything u want in America, buy a car, pay your rent, or blow it on a holiday. Blowing it at Spring Break is a common theme.
What The not here in Florida
laughs in Scandinavia
Doesn't laugh in Doctor Congo
laughs in german aswell
Scotland also, we don't have to pay college/University fees either
@Daniel Bally the rest are fine
We still have student loans though, just not for paying for the education. In Sweden, we are able to borrow money in order to pay rent, etc during the studies, and that is not forgiven (although the interest rate is far below market). Also, we do NOT have free university studies. We pay for them through our extremely high taxes. Nothing is free, only the left thinks it is. At least our universities are still decent. The rest of our school system is not. Our healthcare is also not free, we pay very high taxes to fund it and we get an average service.
Repayments for Australian student debt starts at 46k AUD (not 52k). I think its important to mention the currency too as a viewer could think the repayments are at 52k USD when in actuality its 46k AUD which is 33k USD. Another important note is the median wage for someone in the country is $48,360 AUD. Minimum wage for full time 40hr weeks in Australia is $41,600 AUD. Knowing this paints a bit of a different picture to the idea of you only paying for the degree once you benefit from it as if you are working full time you will most likely have to pay it off.
Hey that’s CMU’s campus at 0:23!
Walked those halls countless times… Finally got my diploma this year!
You are asking a teenager, who is biased towards getting higher education, to make an educated life choice nd consider education as an investment. Do you see some problems with this?
This.
Well, if you are already biased towards H.Education. how can you be persuaded anyway ?
@@vsssa1845 It would mean you were forced by parents after coming right out of highschool.
Exactly. I feel like we can help people by discouraging them from going to college and enter trades instead
A teenager who most likely got very little/no person finance education and doesn't understand the implications of all the debt they're taking out as well.
One thing I get to understand with the system of education is that out of 100% of college students, 85% don't graduate with the mindset of getting a job after school except you know who someone or have a connection to the top
With such economical state of the country, the best option is to venture into diversified investment in any favourable way. There is the stocks, ETFs, crypto, real estates and even gold. At least financial independence is an option everyone would really love to partake in.
I get to wonder if the population is way to big for the economy or the government just need to level up. I'm just 23 but really time flies like a thief in the night.
Currencies are on life support. Businesses are being suffocated. Economies are in collapse. Government and Media will never tell anyone this, do what's the alternative? Gold, silver and Bitcoin. The next 2 years will either make or break people.
@Jace
The stock market has been rising for a while now. Except the stock market is an indicator of the economy not the economy itself. According to the stock market the tech industries are doing well. The price for oil on the other hand hit negative numbers for the first time in history few months back. The ramifications of all this is yet unclear. Economist are gazing through their sacred text for answers but the spirits are not speaking to them.
@@chizzithemagicfingers.5476 I believe that every market is profit worthy, this I know for a fact, but how can it be? How do you handle this markets ?
I started this video very skeptical but I felt like you did a really good job talking about the issue. I like the idea of the Australian system where the tax burden falls on people who were benefiting directly from the service. This approach also addresses rising university costs which the US suffers from as a result of our government essentially writing a blank check to our universities for basically any degree. Pretty. Cool
Super Super Super Super Super awesome!!! Super thanks for sharing...if possible can you please suggest some books on this topic..thanks so much!!! You're awesome!!!
“Promising Individuals”
More like
“Has a pulse”
Elitism.
Nice.
Not.
I could tell you some stories about C and D students who were pushed to go to college. High school counselors and administrators want their school to have a high percentage of students go to college because it makes their school look good.
That may be good for them but it ends up being a disaster for those students who never graduate and have tens and thousands of dollars in debt. I could tell you stories about some of them too.
The elites in these high schools led those nice innocent kids into a life of financial ruin.
@@fuckfannyfiddlefart Well, let's face it, if you have an IQ below 100 an education is probably wasted on you. All men are not created equal, that's simply the cold hard reality of this world.
@@tomlaureys1734 if there was free higher educating this would not happen.
We need kids.to be smart in a democracy.or they vote Republican.
@@fuckfannyfiddlefart EVERYBODY IS EQUAL, EVERYTHING ELSE IS HERETICAL !
What is this "IQ" thing ? Must be Republican propaganda. After all, literally everyone could have a PhD in Neurosciences if it weren't for those biggots. Nobodies life would be better served with a profession that suits them properly as opposed to being shoehorned into the educational system.
Just to point out a misunderstanding - if the military is actively defending your home from an air-raid - it has actually _failed_ it's purpose. The purpose of a military is actually to NOT be "needed". That is, a good military is the one that makes it so that it DOESN'T need to actively defend against an air raid. If you are being subjected to an air-raid, then the military has _failed_ to present a sufficient deterrent to another entity launching an air-raid in the first place. The measure of a military is how many air-raids did _not_ take place in the first place, not in how many air-raids it successfully defended against.
Think about car accidents - the objective should be to NOT have an accident in the first place. Thinking about surviving an accident is necessary only as a result of _failing_ at the former. Thinking about successfully defending against an air-raid is necessary only as a result of failing to successfully deter the launch of an air-raid in the first place.
I said it's more compare toa burglar alarm. The MAIN goal is sitting there as a deterrent, but it ALSO kicks in when needed to protect you directly.
The military would be more effective at preventing attacks if the government would stop invading other countries and making enemies. George Washington was wise for telling posterity to stay out of foreign affairs.
... tell that to the US...
The most expensive military in the world couldn't prevent a couple of terrorists high jacking planes and fly 'm into the World trade center killing thousands. Than goes on to invade Afghanistan where it fights for 20 years without any result. Pull out handing the now war torn country back to the 'enemy' now with more resentment to the west than ever. Invades Iraq twice, claims victory, leaving a bigger mess than they originally fought against resulting in ISIS today. Gee that's some effectiveness you're all paying for. If you don't realize the military is there to allocate recourses and think the US biggest military complex in the world is for 'deterrence', these things will keep happening. The US fought countless wars of agression over the last few decades with devastating effects.
www.commondreams.org/views/2019/04/18/jimmy-carter-us-most-warlike-nation-history-world
Jimmy Carter: US 'Most Warlike Nation in History of the World'
Carter then said the US has been at peace for only 16 of its 242 years as a nation.
by Brett Wilkins
(2019.04.18)
☝️🤔
The captions are awesome.
4:11 that's some pretty convincing stock footage.
A US student loan is an investment a private bank is making into somebody's career. If their career turns out to be worthless, the investor (the bank) should lose their investment as any other investor would. The future income of somebody getting an underwater basket weaving degree is a stupid investment, and no bank would make it if they had to carry the burden of the risk. Risk-free investments only exist through collusion of the government and private enterprise.
Thanks. The loaning institution should feel the cost of one unable to pay. There is a sinful collusion between the government and these loaning institutions. These loans are risk free for the loaner, which is so wrong.
Then this would lead into banks giving out loans to only a select group of students that are either likely to succeed or with a wealthy enough family.
That's the point they are loaning to people that can't really pay for it.
@Berke Tuğral Simply not true. College would become more affordable in time thereby becoming more available for more people.
This this right here is a pound-for-pound recreation of what started the 2008 recession with those housing loans. Right now we're walking right into another cluster if a lot of people start defaulting on their student loans.
Well we did spend over $1 trillion dollars in Iraq and we gained nothing. Free college tuition would have been better.
*7 trillion, once everything’s all done
You got oil to power your reality
yay more useless degrees in Swedish medieval era lesbian literature
You did gain something lol, if there is anything the military complex in the US does is provide military contracts and this jobs for normal people.
A college education is wasted on half of the population
An aspect of the downsides of all these loans I don't often see discussed is the impact all this debt will have on local economies.
If all this debt never existed these students would have so much more money in their pockets to do things like buying houses/cars, hiring skilled local professionals to build/maintain them. They could start businesses and hire more people to work for those businesses. They could support local restaurants and local entertainment.
Instead all of their money is going towards making these debt-holding corporations rich and nothing else. Imagine how much value has been siphoned out of local economies by student debt alone. That's an entire generation of new businesses and new consumers who will likely never enter the market. It's bad for literally everyone but the lending corporations.
In Finland students take loans too. We use them to fund our living expenses during our studies.
This will be the next economic bubble, similar to the 2009 housing crisis. It's so rampant and uncontrolled that it's enviable millions of people won't be able to pay off their loans.
Are they trading derivatives on the basis of these loans yet?
@@anartapoashan5714 Not that I know of, but it's possible. A great question though.
Students: We want to learn
Universities: Sure, First make sure you pay us for the next 20 years
What if you dont pay them? Lets say that y dont make enough money to pay the loan
@@giorgostsxenkeli8004 Your credit score gets eviscerated and you'll never be qualified for a loan ever again until you pay it off. Can't buy a house or car unless you have the cash for it immediately, and any legal job you get with money that is tracked to your account will be pulled by the fed to pay the loan. You don't get the option of not paying.
Library is free. You don’t actually want to learn you want extended adolescence
atleast in india, it's not that bad.
@@yuvraj7214 Yeah, in India you have the option of government funded universities if you can handle competition, and if you don't mind paying, then one can go to private universities, So it works...
“I have a hard time getting my head around the idea a majority who earn less because they didn’t go to college subsidize a minority who earn more because they did.” -Pete Butigieg
There goes my support for Pete.
A massive element of this is worthless degrees. (I have one: occult science. This "field" is founded primarily on the 19th century works of Rudolf Steiner, who was a lunatic.) Students are getting "a college degree" without any understanding of what degrees are marketable or bankable, and hence no way to judge whether the loan they are taking out is a good economic decision.
I love how the blonde girl at 4:14 is just staring at their closed laptop. Like all the other actors are at least trying to look somewhat occupied.
But If you think about it she is actually the most realistic though. Good method acting, most students are just bored in class.
@@Hydrargyrum8 Well most kids at least try to look like they are paying attention. Better yet, they would be playing games on the laptop
@@cole2504 I loved having laptops in class. :D
It’s also a risky bet as life can throw unexpected curveballs on your plans and derail a 4 year degree.
Even free it still happens.
Yeah, I took a few unexpected curveballs. If you'd told grade 12 me where I'd be down, I wouldn't have believed it.
Who needs school when we have RUclips
How do you think they learned?
@Steve Harvey Oswald Idgaf.
Most government jobs are available only to those who take a formal degree. Just like every other problem created by government
My biggest concern over free college is that it will devalue college degrees, putting anyone without one at an unnecessary disadvantage.
The big issue with what we have now is that people with student debt cannot declare bankruptcy on it. This means that lenders can freely give out loans, knowing that the borrowers must pay it back. If bankruptcy protections were added, this might force lenders to have different interest rates for different degrees (lower rates for degrees with a higher probability of return), incentivizing students to pick majors that are in demand.
when you give out student loans, universities raise their tuition
Student loans wouldn't be an issue if they were properly underwritten like any other loan: based on the person's ability to repay the loan. But that's illegal.
Starting wage for my B.S. STEM degree was projected at 50k yearly entrywise. The market, in CALIFORNIA, the biggest economy in the U.S., was offering me minimum wage (and I worked in my field through college, so I had about 4 years of experience), so now in returning for a masters, just to get to a point where I can afford my loans from undergrad
Scary thought, but leave California. Don’t pick up more debt and get to keep more of your income from lower taxes.
Pack your bags
Leave cali bc you'll end up homeless there. Move to the south
Exactly what happened to me 20 years ago. We were told a BS in computer science would get us 40k or more as a starting salary. It was all bullshit. It took over a year after graduation to find my first job in my field and I was making 20k, after loans I was literally making a dollar more per hour than minimum wage.
@@nlahanas1088 Right - leave and go where? He's gonna need to go to another decent sized city, because as someone from north Louisiana, I can tell you many places have no market for someone with a STEM degree. For most STEM fields, you need to be where the employers are, and there's not yet an easy way around that. Most employers are near medium to large cities - you'll need to have landed a job BEFORE you leave, which can be difficult - then you have to deal with moving costs. Many people say 'just leave', not realizing it's never that simple.
I started off at community college and its the best decision i ever made! Also, I majored locally. I live in an area where stable jobs are possible and pay well. During my undergrad 2 years, i applied for financial aid grants and maintained good grades. Now in grad school, i saved every penny i got in order to pay for my 1st semester. I have a little savings for the next semester but hopefully by being in grad school gives me opportunities like paid internships or scholarships.
I did feel bad about paying that $6,500 out of pocket but once i graduate and get s state job I can focus on other investments
I live in van and graduated with a biochem degree. while I'm in a field where i can use my studies (I'm fortunate enough to even find a job), I'm not earning much at all. compared to some of my friends who went to do skill trades, I'm making less than half of their pays and got set back 4 years of study, let alone the debt.
What you left out is the fact that prices were still relatively low before student loans. Then when federal student loans were implemented, people could afford to pay higher prices so colleges were able to jack up the prices. When the government gets involved it ruins everything
Suggestion for a future video: Economics in small cities and rural areas. What factors drive or slow small town development, provide employment opportunities, and what challenges do these places face in keeping up with the global economy?
“Don’t tempt 2020” 😂😂😂 7:40
Fair arguments.
lots and lots of talk about the universities being able to charge more- none on the employer side who can require a college degree without really considering what they cost. at least here in the US- we need to end the disparate impact exemption that college degrees have. force the employers to actually consider if they really need a degree for a given job. for some technical jobs yes a degree is needed. but do restaurant managers, buyers, admin assistants, hotel cleaners, hotel managers, store managers, HR people, do they all need degrees? (there have been claims of hotel cleaners with MBA's) we need to look at these highly paid people who run our businesses and ask, 'why can't you actually hire and evaluate people?'
If the MBA part is true, that's just sad. I 100% agree. I don't think most jobs require university degrees.
This might be an unpopular opinion, but I would venture to guess that a decent amount of the reason why has to do with minimum wages across the US. Some of the nicest hotels and attractions in the country exist in places that are also very expensive to live in/have high state-mandated minimum wages. If you absolutely have to pay - let's say - $12/hour for what is in essence unskilled labor, you better make sure they aren't someone who's going to flake on you after a couple weeks. Higher education, then, is a sign that you're capable of sticking with something you don't necessarily enjoy for an extended period of time. An actual evaluation/probation period would incur the opportunity cost of the manager(s) in question not actively doing the rest of their job.
KaiserKlay If you are only paying an adult $12 an hour, you should expect them to not treat you seriously!
A cleaner who has an MBA is not the same as a cleaner required to have an MBA.
@@davidboeger6766 a part of the history might help- 'disparate impact' here is a legal term. at one time employers used tests to try and screen applicants. some were good, and many were awful. then along came incredibly poor applications of statistics and now the legal ramifications of 'testing' applicants is huge. if protected classes are disproportionately affected (i.e. fail the test) the employer can be sued. we are talking about sample sizes under 100 individuals in some cases. one of the exceptions is requiring a college degree. so KaiserKlay is right, but not quite for the reasons given.
I reckon this is the time to promote the culture of self studying.
There is nothing wrong with self-taught on its own, the issue is rather that being self-taught does not give most employers the immediate verifiability of what you know and don't know. Especially for larger companies which often can have dozens of applications for every available spot they sort out 90% of applicants out already before even reaching interview phase, sometimes they even automate that process by giving "scores" for each section and sorting applications out. Your chances are nearly 0 to land a job if you have neither the experience nor the qualifications in such a setting. It is not only about you knowing certain things, but also about the employer being able to know what you know. You have some room in your CV and depending on the industry you are in you may have good chances based on porftolio instead (creative industries typically give more weight for portfolio than strict qualification requirements).
100% this!
Lowered friction to learning (not having to relocate and basically forfeit your first few years of wages to fund your education) seems like it’d be a boon for our global productive capacity. Additionally it’d open up more entrepreneurship and innovation.
That being said, the US k-12 school system needs to be revamped.. There’s no reason MOST citizens couldn’t graduate highschool with the level of knowledge required to start entry level professional careers that most bachelors degrees prep students. That goes for trades too.
@@hecticenergy1233 As I said in the other reply, there is nothing wrong with being self-taught on its own, but the information (and verification) of what you know and don't know still needs to be conveyed to the employer. This works better in some industries than in others. Creative industries tend to be a lot more open to that for example. But especially for larger firms the entire process itself can be automated or very quickly discarded if you don't have neither the experience nor formal qualification. If they have dozens of applicants for the position, chances are very low they will bother taking their time to find out how well you taught yourself to use DWH, CRM & SAP, if you are experienced in creating hitlists, whether you are able to do proper accountancy based on your self-taught skills and whether your trade law knowledge is solid enough to be equal to the guy who had 4 semesters in it.
You still need an expert to teach you. Most people don't know how to read valid or reliable research. Also in field that practice; law, medicine, education- you need an expert to teach you as well and guide you through practicum.
@@HUeducator2011 "Most people don't know how to read valid or reliable research." I may be a bit an outlier because I have learnt this skill independently. Moreover, and more importantly I doubt my course at university has been teaching me that skill, except maybe indirectly through some course on statistics which helps a bit in detecting blatantly BS research.
The don't tempt 2020 line killed me lol
The frustrating thing is everything you can learn in college you can also learn from far cheaper books, but for whatever reason there aren't certifying agencies for the self-taught 😤
A friend who self taught just contacted people and showed them his skills. He is now a verified programmer. He gets by trough the verification from his work. There are a lot of jobbs that don't really care about the degree as long as you know what you are doing.
Its more difficult but its possible.
Rule of thumb is if a course's name ends in "study", it is not worth it
Word, when a professor doesn't come up with a more unique name it's a Red Flag they are probably boring.
"Gender as a Western Construct" now sign me up.
All knowledge is important and useful.
@@cliffordohrnberger I can tell you my shoe size and i can 100% guarantee that knowledge is not useful.
''Women's Studies''
@@DeadNoob451 not to me, but it's probably useful to you or someone selling or making you shoes. Right?
Not all knowledge has to be useful to you specifically for it to be valuable And useful to society.
@@DeadNoob451 also Biologists, doctors, and lots of other people might be interested in your shoe size for studies or research.
Recording peoples' heights overtime for example shows us that Napoleon was actually average in height for French men at the time.
Also Foot Fetishists definitely want to know your shoe size.
It’s a sad thing about our society that we wait til it’s too late before we actually make much needed change
I meant we often wait
It's just how we operate. Churchill said it best (paraphrasing): the US will always make all the wrong decisions before it makes the right one.
taking student loan in the US is like being given a gun before the Hunger Game starts but you'll have to shoot your leg first.
Sounds about right XD
I'm surprised you didn't mention the fact that the UK uses a system similar to Australia. We have "student loans", but in practice they operate more like a graduate tax on future earnings. It's not perfect but it's much better than the USAs it seems.