Quote:
Originally Posted by sylar
It's even better for the government, because that's earned income taxed at a higher marginal rate. It costs them like $500 worth of books and maintenance of a crappy dorm room and classroom for 4 years to keep the university lights on, and they reap the tax benefits for the rest of the student's lifetime.
Yeah, see this is the sort of fallacy that makes me suspicious of free college. You've certainly demonstrated that those who attend college have better incomes than those that don't. Technically you have not demonstrated any causation there; it could be the case that people who attend college are just smarter and do better in the workforce and that's why they have better salaries (I don't believe this, but it's one interpretation).
But what you DEFINITELY have not demonstrated is that college education actually creates these better paying jobs. The alternative is that colleges are simply rent-seeking gatekeepers to the scarce good jobs that are out there. The truth is going to be somewhere in the middle. Obviously to an extent, educating people does empower them to create wealth. But equally obviously, sending everyone to college is not going to mean that everyone gets those higher incomes.
The whole sector needs much better information availability. At the moment we really have no clue whether colleges are providing value for money in a social sense.