18

College is key to success

Commentator Robert Reich says access to college is being squeezed at a time the country needs it the most.

To view this content, Javascript must be enabled and Adobe Flash Player must be installed.

Get Adobe Flash player

Kai Ryssdal: If you're in college or if you have a child in college for whom you want only the best, you're not going to like this news. The Economic Policy Institute, a think-tank in Washingon, released a study today showing wages for college graduates have fallen over the past decade more than 10 percent for some.

Be that as it may, commentator Robert Reich says a college education is still the key to a brighter future.


Robert Reich: Rick Santorum has called President Obama "a snob" for wanting everyone to get a college education. But Santorum needn't worry. America is already making it harder for young people of modest means to attend college. Forty-one states are cutting spending for public higher education this year -- and tuition and fees are rising as a result.

The children of middle and lower-income families are hardest hit. Federal education grants are shrinking, and student debt is skyrocketing.

Yet a four-year college degree now marks the great divide in America. Unemployment among college grads is just under 5 percent, but it's over 9 percent for those without college degrees. And the median pay of college grads is 70 percent higher than those with a high school diploma.

Public higher education isn't just an investment in individuals. It's a public good. Our young peoples' capacities to think, investigate, and innovate are America's future. We understood this during the great expansion of public universities between the 1950s and 1970s -- when tuition averaged about 4 percent of median family income.

Today public university tuition gobbles up 25 percent. Many qualified young people are discouraged from attending college at a time when America needs the brainpower of its young people more than ever.

So what's the answer? Public universities can surely be more efficient. But we should also charge higher tuition for students from higher-income families. The extra money can be used to subsidize medium and lower-income kids.

Part of the answer also has to be more government support for public higher education. This requires more tax revenues -- especially from Americans best able to pay.

Call me old fashioned, but I think America's richest citizens owe kids from middle and lower-income families the chance to make it in America -- especially when wealth and income are more concentrated at the top than they've been since the 1920s.

We'll all gain from it. But if our young can no longer afford college, we all lose.


Ryssdal: Robert Reich teaches public policy at the University of California, Berkeley. His most recent book is called "Aftershock: The Next Economy and America's Future." Let us know what you think -- write to us.

About the author

Robert Reich is chancellor's professor of public policy at the University of California, Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton.

Pages

conmigo's picture
conmigo - Mar 31, 2012

One thing no one ever seems to want to talk about is the degree versus no degree factor...I've been thrown under the bus far too often by the person 20 years older than myself who has no degree. You know, the "idiot" who always talks about experience while doing and knowing nothing. The one whose inflated wages would be hard to replace if they got canned. Those guys are cutthroat!!!

JorieG's picture
JorieG - Mar 10, 2012

A lot of insightful rebuttals to Reich's editorial.  I would just add that Reich doesn't seem to understand that federal student aid for college seems to be having a negative effect on the cost of a college education.  See this article which discusses two new studies regarding the cost of higher education. One measures the degree to which some colleges reduce their own aid in response to increased federal aid. The other suggests federal aid is helping to push college costs higher.
http://www.smartmoney.com/spend/family-money/why-college-aid-makes-colle...

Carlo's picture
Carlo - Mar 8, 2012

Robert Reich is completely out of touch. I have one child in college (and another headed that way next year), and after health care, this is easily my fastest inflating expense. With college costs increasing at 8-10% annually it is nearly impossible to keep up. My best effort was to begin saving the day my children were born, and while I am solidly middle income, it was a choice and a priority I made very early to provide an education for my children. We had to forego plenty of things, stretch extra life out of our cars, limit vacations, maintain a modest home, and so on, and when it came time to be judged against our peers for financial aid? Our savings eliminated us from any consideration. Of course I am glad we can pay for college without saddling our kids with debt, but as a taxpayer, I am now paying for my kids education and theirs. Not so different from my healthcare (I am self employed), and my mortgage. A college education is a privilege, not a right.

jackiero's picture
jackiero - Mar 8, 2012

Oh, no no no. I'm a STRONG advocate of college, but not with this attitude shift that occurred with this last generation. I know too many college-educated brats who are willing to default on their student loans because they don't think they should take a job...any job...in this down economy that pays "below their worth." Or those who major in some nonsensical subject because "it spoke to them." Eh. Does it make you employable?

I offer all my newbies only $22,000 a year with the incentive that they will get a significant bump (I don't specify when or how much) when they put in the work, time, effort, and skill. Some walk away at that point, not wanting to roll up their sleeves or sacrifice their weekly Thursday happy hour for overtime (again, I promise it's not forever). Some fall out in the first week because they can't master the basics like answering the phone or communicating effectively with customers--and of course, they don't want to hear criticism. Those who have made it have seen a bump of at least $12K within 6 months--because they were willing to put the iPhone down and walk away from Facebook to do their jobs. But that's the exception, and I'm not about to coddle my Millennial workforce no matter how much the experts say we should. Many will say I'm tough, but those who have moved on to greater things have often come back to thank me for being so hard on them because it made them "grow up." Their words, heard more than a dozen times.

If we college educate everyone (and let's face it, not everyone IS college material), we're going to have hotel maids and cashiers demanding 6-figure salaries. Not all of them are worth it.

Fred Mann's picture
Fred Mann - Mar 7, 2012

Causation or correlation? Reich says unemployment is lower among college grads. This is true. But perhaps it is MUCH more likely that the type of person who has the discipline and mental faculties to complete college is much more likely to be the type of person who has the discipline to show up and perform well at work!!

HeidiN's picture
HeidiN - Mar 8, 2012

Mr. Mann: Precisely. But I think college helps you become the sort of person who does that. That line of causation/correlation becomes pretty blurry . . .

I teach at a state university. I'm not sure people with opportunity OWE money or incentives to the people with less opportunity . . . that's a sticky question.

But I do think people with opportunity owe themselves and society the persistence it takes to achieve. In my work, I see a lot of students (or would-be students) who lack the desire to do things like:

* go without a car for a few years so they can afford school
* be willing to live at home and go to school
* be willing to live cheaply and go to school
* be willing to do those things for a number of years if that's what it takes to go to school
* be willing to stay with school . . . to keep turning things in, keep coming to class, persist, finish

I don't think it's any accident that these same qualities help people succeed in employment.

AK's picture
AK - Mar 7, 2012

I have taken college courses at my local community college and at my local four year college. Some -- most -- of my accounting courses at the two year school that were every bit as good as those at the four year institution, at less than a quarter of the price ($80 versus $373). We simply need to take advantage of educational opportunities that already exist at a reasonable price. The game of college education has been created by our own mythologies, political and cultural. I recently interviewed a individual with 20 years of accounting experience who lamented that in the past she didn't need college - her experience was enough to get her a job. Now she "had" to go back to school to "get" a degree, in order to "prove" she was competent. Why? Because we've made college a requirement it doesn't need to be - and forgotten what it means to simply be educated. Meanwhile the "cost" of college skyrockets far beyond the "cost" that is necessary to become a learned person, in most (if not all) arts. Personally, I don't want or ask the government to help me pay for education. If only the American colleges and universities would please stop gouging me with exorbitant tuitions.

hotstockpicks's picture
hotstockpicks - Mar 13, 2012

Wow.... Awesome post & your writing style is superb like as usual all your post.http://www.ourhotstockpicks.com/

ethan123's picture
ethan123 - Mar 7, 2012

I'm a very left-oriented liberal who still disagrees with this commentary.

I'm fine with people getting education, and I'm fine with the government supporting it financially.

What I'm not okay with is the idea that the government should financially support just any sort of education. Using federal dollars to subsidize a person's education is an investment, so it should be a smart one. That means little or no financial support for educational goals that don't mean a national need. No free money for art majors, we already have enough starving artists. No free money for music majors either. But if you want to triple-major in chemistry, education, and Spanish so that you can teach science to underprivileged Latinos? Different story: I'd vote to give you all the money you need.

The money must be used efficiently. I knew one student who took at least one class she didn't need (to graduate) for every two that she did need. Partly I suspect this was to make her workload easier, but I also know that she had trouble getting a seat in some of the the overenrolled courses. I believe in education for its own sake, but I also have a limit when that education is being funded by taxpayers.

There also needs to be more accountability for providing a quality education. Having taught at public and private universities alike, I've seen too many students allowed to skate by doing mediocre work in one class after another. Part of the premise of investing in the education of poorer students is that they deserve a chance to move up in the world, but I also believe in making them prove that they are worthy of this investment. They should be made to maintain a 3.0 GPA (and watch out for grade inflation while you're at it, because the Deans will be doing everything in their power to make it easy for everyone to get all B's). There should also be a three-strikes rule for getting a D or F. As it is, we have a culture of unlimited second chances, but this needs to stop.

I believe Mr. Reich makes a weak argument when he says "And the median pay of college grads is 70 percent higher than those with a high school diploma." The figures might be true, but that doesn't mean that the education is necessary for the job. I know one very smart young woman in particular who spent a lot of money getting a college education. She definitely makes a good living now, but the education she got is entirely unrelated to her current job (she would tell you this herself). The quoted statement might be true, but it doesn't mean that those jobs would go away if fewer people had college degrees. Perhaps under different circumstances the young woman whom I described could have the same job with only an Associate degree, therefore earning the same paycheck with only half the student debt.

facts by jack's picture
facts by jack - Mar 8, 2012

Great points by ethan123. I also believe that if we materially decrease the unrestrained flow of money subsidizing the current paradigm, that professors, admin and other college employees would agree to work harder for less money to make the system viable rather than being layed off as happens in the real world that most of must live in. All those uncollectible educ loans are allowing them to exist in lala land at our expense.

Pages