Thursday, September 10, 2015

Issue 675 College cartel: Degrees September 10, 2015

So we have talked about loans and about credits, but what about the college degree itself?  There is some funny business going on here as well.

The degree scam:  Let us first start with the fact that around 12% of jobs actually require a college degree.  Yes, that is right, only 12%.  Yet many people think you need a degree to be a writer, or even an artist.  Last I checked a certificate class can aid you in those without extra expenses.  The only degrees that I know for certain are needed is those of doctors and lawyers due to complexity.  But there is issues there as well.  The education a doctor gets and the education a physician assistant or a nurse practitioner gets with respect to diagnosis is the same.  As such, doctors do not need all that extra schooling unless they are going to specialize in another medical area as well.  But they are required to get their doctorate by the boards who run colleges and license these professionals.  They have that requirement because they know it is cost prohibitive to try and be a doctor due to the many years of schooling and thus it artificially limits the amount of doctors that can be practicing at any given time.  As a result, the number of doctors being limited leads to a direct increase in the salaries of these doctors due to demand (now even at the expense of not having enough doctors in America).  Pharmacists too, have this issue as they need to take at least 6 years of schooling (including pre-requisite programs), but the knowledge base on drugs only requires two years.  So would not a bachelor's degree be better to include the knowledge, and the hands on learning once the classroom work is done?  It would, but limiting supply to raise salaries comes first for those who decide degree requirements.  Then there is lawyers.  They require masters and doctorates, but if they made it so it could be studied right from the very first year of college, there would be more lawyers which makes them cheaper to hire.  Additionally, according to studies (source is the economist and New York Times) the final year of schooling for a lawyer appears to be redundant, and they are now considering making it optional (but law firms still have to retrain the students once they graduate due to complete lack of experience and the degrees not matching up with real life job conditions).  So let us review, only 12% need to get a degree, and the degrees are established to make it harder to get by making them more expensive to obtain.  Something is wrong here in my opinion.


Conclusion:  What this all tells me is that certificate courses, bachelor’s degrees, on the job training (OTJ) and associates degrees with OTJ combined to equal a bachelor's seems to be the best solution.    As such, most Doctorates and Master's degrees are outmoded unless something more specialized is needed to be studied.  But even then, a yearlong course can replace even those specialized degrees for special skills as well.  However, we are stuck with multiple people needing degrees because jobs simply say so due to colleges being propped up as the place to learn.  Meanwhile we could have saved our money if the degrees matched real world conditions, did not intentionally limit supply to increase salaries, and actually stuck to the professions that require specialized knowledge.  We have been had in many respects, and it should change.

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