Amen, we have a friend who spent 12 years getting a PhD in Russian History only to get out and face no job prospects. Depressingly, every year he gets ready for the one History Job fair that happens in January, flies down there and presents himself at interviews. 3 years later he still actually believes that he has a chance at getting a job after being out of the game a while. He has no sense to pivot, no sense that maybe he needs to find a new calling in life and utilize his skills in another fashion.
Contrastingly, we knew another PhD in Chemistry from Cornell. He got out and hated academia, but still loved teaching. He decided to teach chem and physics at some fancy prep high school and is doing well for himself.
To me these people need to understand that if they can't find their place quickly to scale that pyramid need to find a more general use for their skills.
There's perseverance and then theres a false sense of hope.
The guy who developed a proof to Fermat's Last Theorem worked on it for seven years. I suspect people laughed at him, told him he would never succeed, told him he should do other things.
After he came up with the solution, he was knighted: http://en.wikipedia.org/wiki/Wiles%27_proof_of_Fermat%27s_La...
I don't think that's true. IIRC, Wiles was pretty successful before he started the work (tenure at Princeton?), worked on it secretly, and still published (though at a lower rate) to cover his secret.
--Paul Graham from http://www.paulgraham.com/love.html
To put it simply much of the time higher education is consumption not investment. Overspending on anything be it Roads, Medicine, the military, or Education is simply wasteful. And not just for the teaching staff your taking a large number of talented young people and keeping them fully engaging in the workforce for an extended period of time.
I only realized it afterwards, but many people are simply incapable of working by themselves without being given precise instruction: PhD teaches you that in some way (of course, there is a selection bias). It also trains you to communicate to other, which is a very valuable skill. You are also used to being criticized on somehow objective criterion: few people are able to take critics in any other way than personal. Finally, you almost always learn tenacity.
For me, saying that PhD is a bubble because there are few academics positions is like saying being an entrepreneur is a bubble because so few people become very rich. Even failure teach you a lot (where failure would be defined as not becoming an academic in the PhD case).