pull down to refresh
55 sats \ 3 replies \ @Undisciplined 4 Mar \ parent \ on: A Visual Breakdown of Who Owns America’s Wealth econ
Most Americans take out student loans, mortgages, auto loans, etc. when they're young. This is a normal part of what economists call "consumption smoothing".
Taking out loans when you're young and paying them back during your career, allows a more consistent standard of living than only spending what you've already earned.
Those that are able to avoid the initial debt by not taking out the auto loans, school loans and etc. are able to save and perform in the economy much better than the majority of the college educated, especially if the college educated didn’t study STEM sorts of subjects. Some education is good for the certificate only, not much more and is great for getting a job in something like Starbucks and leaving yourself in debt you will never liquidate.
reply
I think we often make a mistake in evaluating college as a purely financial decision. People like going to college, so it also has to be thought of as a consumer good.
reply
Yes, they may like going to college, but is the satisfaction of going to college worth the debt and heartaches afterwards? In that case the intangibles on the books are, perhaps, not quite accounted for accurately. I also know that when you purchase something you think you are getting more value for the good than you are paying for it. However, there is also buyer’s remorse and the forever troubles with student loans because there is no way to bankrupt out of them. The risks have been totally f*cked up by the state and the colleges playing their games of fraud with the students. BTW, fraud vitiates or invalidates all contracts.
reply