Because our educational system is such a worthless piece of
crap, most Americans cling to the ignorant belief that if something is good for
an individual or a business, then it is automatically good for the economy. Thus
many people have been fooled into thinking that if we increase the supply of
people getting college degrees, then it will be good for the economy because
people with a college degree generally make more money than those people who do
not have a degree.
There are several problems with this line of thinking. First
of all, we need to recognize that higher salaries are not based solely upon
whether you have a college degree or not. There have been numerous studies that
have shown how physical traits can often help people get higher paying jobs. It
may not seem fair, but taller, good looking people tend to be paid higher than
shorter, less attractive people.
In addition, certain people will always have more doors open
to them because of their connections in life. For example, a rich kid from the
suburbs with great family connections will almost always get a higher paying
job than an inner city kid with no connections. Also, the star quarterback will
almost always be able to open more doors than some no-name inner city kid.
Even more importantly, the degree itself is not the “real”
reason why people with a degree tend to earn much more than those people
without a degree. A college degree does not have any magical, inherent
properties to it that will automatically bestow higher wages upon whoever holds
one.
Because we have been trained to believe that a degree will
lead to a higher income, those people that desire a higher income will
generally pursue a degree. But even if we outlawed college degrees, these same
people would still seek out another means of acquiring a higher income. They
would study on their own, pick the brains of knowledgeable people at work, etc.
(i.e. they will take the steps necessary to acquire the knowledge they need to
land a higher paying job).
It just so happens that a college degree is currently the most
efficient path to a higher income, but it is not the degree itself that grants
the higher wages. The same people who hold degrees and higher incomes in
today’s world would be the same ones who had higher incomes in a world without
college degrees.
Thus, the pay differential that we see in our economy is not
simply due to the degree. Instead, it would be more accurate to say that the
degree is merely a reflection of the economic potential of the individual; not a driver
of their economic potential.
As always, please share with friends so that we can try and
restore some sanity to our discussions about the economy.
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