https://en.wikipedia.org/wiki/Principal%E2%80%93agent_proble...
16 karma · joined June 20, 2012
https://en.wikipedia.org/wiki/Principal%E2%80%93agent_proble...
The data from 1956 to the present makes this whole article kid of boring. https://www.census.gov/housing/hvs/data/histtabs.html
Rates are also fixed with no possibility to refinance. you have to make other decisions, like buying a house and borrowing extra to pay off your student loan. this could have other repercussions and is not very "free market."
but in the end, the degree itself is supposed to be worth about a million in lifetime earnings. for professional degrees it is multiple millions. maybe it is all worth it anyway and the price of education is still too low.
If you compare the entire education investment to the return during year one in the workforce, it isn't going to look good.
If you compare the entire education investment to the impact it has on that person's lifetime, e.g. lower unemployment, easier time getting into grad school if the economy goes sour, easier time retraining, and just general high earnings, then the investment makes a bit more sense. I assume if this were a business, Thiel would wonder why education is underpriced.
Still, it seems like a good idea for a book.
http://www.econlib.org/library/Enc/CompetingMoneySupplies.ht...
http://www.econtalk.org/archives/2011/04/andresen_on_bit.htm...
so here it is again
There are a bunch of papers on what counts. My take away was that many courses of study say they have a way of reasoning, but at the end of 4 years (or an additional 3), most students perform no better on abstract tests of whatever metric was selected for that major (e.g. law, analogic reasoning