The Daily – Is College Worth It?

Intro

In this episode of “The Daily,” the host explores the shifting perception of college education in America. With a decrease in enrollment and a growing skepticism about its value, the podcast delves into the challenges and complexities surrounding the idea of college as a pillar of American society.

Main Takeaways

The Changing Perception of College

• Americans are becoming more skeptical about the value of college education.
• A decade ago, 98% of parents expected their kids to attend college, now only about half do.
• The number of undergraduates on American college campuses has decreased by 2.5 million.
• Despite the decrease in enthusiasm, college graduates still earn more than high school graduates.

The College Wealth Premium

• The college wealth premium, which measures how much wealth is accumulated over a lifetime, paints a different picture of how well college grads are doing compared to the college wage premium.
• For those born after 1980 and certain cohorts, such as black and Latino-headed families, the wealth benefit is much smaller or has disappeared altogether.
• The cost of college hurts wealth accumulation for almost everybody, even those who don’t go into debt, because the money spent on college is subtracted from their assets.
• The wealth premium for those who attend college versus those who don’t is dependent on decisions such as attending a public versus private college or choosing a lucrative major.

The Risk of the College Gamble

• The college gamble is becoming riskier due to factors such as major choice and college type.
• Graduating in four years with free college gives a 96% chance of coming out ahead, but the risk of dropping out reduces the chance to 3 in 4.
• Spending more on college decreases the chance of earning a college wealth premium, except for STEM majors.
• Going to college used to be like investing in a Treasury bill, but now it’s more like going to a casino, which increases the sense of risk.

The Political Divide on College

• Republicans have become more skeptical about college since 2015, which may be due to a cultural and political shift.
• Cultural and political shifts have made Republicans more skeptical about college since 2015.
• College campuses are seen as increasingly hostile to conservative viewpoints.
• Data shows that there are more liberal students and faculty on college campuses than conservative.

The Economic Impact of College

• Opting out of college is not a viable solution for the country’s economy, which needs more college graduates to fill jobs.
• There are some jobs in skilled trades that pay a decent middle-class wage, but there aren’t many of them.
• For most people with only a high school diploma, opportunities are limited and getting a middle-class job will be increasingly difficult.
• The fastest growing jobs for those without a college degree pay a median salary of less than $31,000 a year.

The Need for Change

• Higher education is embedded in a national economy that is increasingly unfair, making it increasingly unavailable to middle-class people.
• Senator Bernie Sanders and President Biden have proposed plans to address the issue of college debt and accessibility.
• Republicans and Democrats view college differently, and there is no consensus on the importance of higher education in American life.
• A cultural shift is needed to view higher education as a public good rather than just a consumer good.

Summary

The Changing Perception of College

Americans are becoming more skeptical about the value of college education, with a significant decrease in enrollment on college campuses. Despite this, college graduates still earn more than high school graduates. The shift in public opinion challenges the idea of college as a pillar of American society.

The College Wealth Premium

The college wealth premium, which measures how much wealth is accumulated over a lifetime, shows that the wealth benefit for college grads is smaller or non-existent for certain cohorts, such as black and Latino-headed families. The cost of college negatively impacts wealth accumulation, even for those who don’t go into debt. Decisions such as attending a public versus private college or choosing a lucrative major can influence the wealth premium.

The Risk of the College Gamble

The college gamble is becoming riskier due to factors such as major choice and college type. Graduating in four years with free college significantly increases the chance of coming out ahead, but the risk of dropping out reduces the chances. Spending more on college decreases the chance of earning a college wealth premium, except for STEM majors. The perception of college as a risky investment has increased.

The Political Divide on College

Republicans have become more skeptical about college since 2015, possibly due to cultural and political shifts. College campuses are seen as increasingly hostile to conservative viewpoints, with a higher representation of liberal students and faculty. This divide adds to the complexity of the perception of college education.

The Economic Impact of College

Opting out of college is not a viable solution for the country’s economy, as more college graduates are needed to fill jobs. While there are some middle-class jobs in skilled trades, they are limited in number. For those with only a high school diploma, opportunities are increasingly scarce, with the fastest growing jobs for non-college graduates paying low salaries. The economic impact of college education is crucial for upward mobility.

The Need for Change

Higher education is embedded in an increasingly unfair national economy, making it less accessible to the middle class. Senator Bernie Sanders and President Biden have proposed plans to address college debt and accessibility. However, there is no consensus on the importance of higher education in American life, with differing views between Republicans and Democrats. A cultural shift is necessary to view higher education as a public good rather than solely a consumer good.

Conclusion

The perception of college education in America is undergoing significant changes, with a growing skepticism about its value and a decrease in enrollment. While college graduates still earn more than high school graduates, the economic impact and risk associated with college have become more apparent. The political divide further complicates the issue. Addressing college debt and accessibility requires a collective effort and a cultural shift towards viewing higher education as a public good. The future of college education in America remains uncertain, but acknowledging the challenges is the first step towards finding solutions.