The Washington Post just came out with a blog post showcasing Peter Thiel’s Graph of the Year. What could possibly be the graph of one of Silicon Valley’s most prominent tech entrepreneur and venture capitalist?
Take a guess…it’s not what you think.
It’s a graph of the sharp rise of Student Loan Debt joined with a decline of the median income of those with a Bachelor’s Degree.
This is a post I have wanted to write for a while and this graph just got the fingers moving.
There is always this immense focus of the American Middle Class and the question to be asked is why? Less than a hundred years ago, America transformed from a mechanical economy to an intellectual economy. Even though there was a loss of mechanical jobs and factories, there was a sharp rise in tech, medical, pharmaceutical companies…you name it. Believe it or not, you’d get huge discounts and prescription coupons at that time. Point was that the American Middle Class truly enjoyed success when education was on the rise and intellectual industries were booming.
With the cost of education sharply increasing, the American Middle Class is at jeopardy. Education as an investment is increasing in cost and declining in return. While that is not the only factor in education, it is definitely a significant one that prevents thousands of students from going to college.
One might think today that countries like China and India may overtake us in the next few years. What is not realized is that these countries are a mere page in America’s history of growing rapidly as mechanical economies. The success and modernization of these countries is extremely sparse with respect to their populations. Most importantly, there is no middle class and without a middle class a country cannot organically grow.
As we look at these surrounding countries in the world today, it seems like we are taking a step back instead of forward. In order for America to continue being an intellectual and entrepreneurial country at heart, education costs need to decline not increase. Education is by far our country’s strongest asset as still today thousands of international students come to study in America. If we jeopardize education, we are nothing but stigmatizing our growth and influence as a country.