Not Earning Enough? Pay More

http://www.cartoonstock.com. Cartoon by Ed Fischer. Blog not for commercial use.

So if 30% of college graduates under age 25 (not including the unemployed) are working in a field that doesn’t require a degree, what does that do to the rest of the labor market? It requires a degree by default. In other words, part of the reason why the unemployment rate is higher for those without a degree is not because of training or learned skills in college. It’s because there are so many people flooding the job market with degrees not in demand that an employer might as well choose them over someone without. But that’s not good for anyone. A perfectly qualified person can’t get the job that would sustain their living and the college grad is saddled with debt (over $25,000 as of 2010 for the national average). It gets worse. Now, someone with a bachelor’s degree needs an even more expensive point of differentiation to earn a job. Take marketing for instance. A quick scroll on monster.com or CareerBuilder will show most available marketing positions requiring an MBA. The positions pay an average of around $40,000, yet  the average MBA program is over $60,000. Graduate school costs can range well into the six figures, and this doesn’t take into account room, board, fees, and lost income. The person that is overwhelmed with undergraduate debt has to incur even more debt to get his or her master’s degree because a bachelor’s  is unremarkable—and they still won’t be able to earn the income that justifies such expense. The point of differentiation continues to rise in cost, so the pundits continue to make unsubstantiated claims like this one: people with college degrees make 83% more than those with just a high school diploma, so more people should go to college. Lamb Chop could sing a song about it.

Next: Why people go to college. What was your chief reason for going to or not going to college?

http://www.nytimes.com/imagepages/2011/05/19/business/19gradsGraphic.html?ref=economy

http://libertystreeteconomics.newyorkfed.org/2012/03/grading-student-loans.html

http://businessmajors.about.com/od/bschoolrankings/a/How-Much-Does-It-Cost-To-Earn-An-Mba-Degree.htm

Advertisements

3 thoughts on “Not Earning Enough? Pay More

  1. Hey Grif!
    I earned my master’s degree for $10,000- so it can be done for a little less. I also have an instant $3,000 increase in pay from now on because of this degree. But I know it is hard. My husband has a marketing degree and was working odd jobs for the last three years- he actually just started his first “real job” today! (which we are very thankful for!).
    Best Wishes!
    -Ashley Cross

    1. Ashley, great to hear from you. That’s excellent news for your husband. $10,000 for a master’s degree? Wow. What is the degree in and from which university? Did you have grant/financial aid/scholarship/stipend or help of any kind?

      1. My Master’s is from The University of Southern Mississippi; my degree is in Special Education. No, I didn’t have any help paying for my graduate work. I know cost can range greatly though- I spent one semester at a private college in undergrad and racked up $10,000 in debt from that ONE lousy semester!

        I enjoy reading your blog. I agree with your most recent post- I don’t think that everyone needs to go to college (and I’m a teacher!).

        This pretty much sums it up for me: http://www.youtube.com/watch?v=zDZFcDGpL4U

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s