A New Education Policy

The Problem

As of 2020, the US education sector was responsible for accumulating a $1.5 trillion, This means the US education sector has produced $1.5 trillion of education that has no value in the economy.

Still, 1 million of the highest paying jobs in sectors with the highest growth remained vacant, 71% supplied by India alone.

This demonstrates the enormous inefficiencies of the US education sector.

Individuals can be prepared for the US labor market at a fraction of the cost, not necessarily 5 cents.

Yet, 25 million Americans, or just over 15% of the workforce, educated in the US sytem were unemployed or in low paying jobs.

Yet, for every dollar the US education sector spends per pupil, the Indian education sector spends roughly 5 cents.

The Cause: Why is Education so Inefficient

College Education

A student will take roughly 36 classes in her four-year career although she needs only 10 classes for her major.
This means that 25 classes or two-thirds of a college graduate’s education has nothing to do with her professional career, and thus no return on investment in the labor market.
Those 25 classes, moreover, cost over $40,000 per year or more than $150,000 over four years.
While the education sector does provide intangible benefits, it is unlikely those intangible benefits have a value of $150,000 in the market or to the individual.

Secondary Education

In secondary education is no better trigonometry and Euclidean geometry have little application outside of mathematics and engineering.
In a world close to one person in every village on the planet can translate English, is there a foregin language requirement more relevant than a computer language requirement?
American students, notwithstanding, are required to fulfill these superfluous, outmoded requirements solely to be competitive for college entry.
These barriers, which foreign students do not face, make US labor expensive and unmarketable while forcing otherwise capable US students out of the market for technology jobs.

The Solution

Make Non-Major Requirements Optional

Under the Sherman Antitrust Act and the Clayton Act, both of which outlaws tying products, a student should have the right to fulfill major requirements without fulfilling extraneous graduation requirements.
This would force universities to develop a more dynamic and meaningful curriculum with maximum value added and least burden for students.

Employers Should Pay for an Employee’s Education

Employers can hire students out of high school and pay for their education similar to the farm league in Major League Baseball.
While this seems like it would raise costs, it would actually lower them.
Firms already compensate workers for their education indirectly through higher wages and signing bonuses.
If they take a direct role, businesses would ensure skill development costs would be as low, cost-effective, and efficient as possible.
Businesses would even develop skills in-house rather than outsourcing to universities if it would be more cost effective.
It is not uncommon for attorneys, investment bankers, IT consultants, etc to leave after two years with a firm that would have invested in their professional development as these firms also receive new hires that were developed professionally elsewhere.
The market could hedge risk with buyout clauses, similar to those employed in European football clubs, if needed.

Curriculum Audit

Even if firms don’t pay for education, the business sector could publish their market value for the specific skill set developed in each college course.
Better informed students can determine how much they want to invest in their education.

Socivisus