Economics of Education: Crash Course Economics #23

[@DylanKoerner]

So let me explain why I like to pay taxes for schools, even though I don't personally have a kid in school: It's because I don't like living in a country with a bunch of stupid people.” John Green

[@HxH2011DRA]

+Dylan Koerner Too late

[@160p2GHz]

I used to be libertarian and basically this fact and that I don't want to be surrounded by sick people flipped me

[@CliffRoth]

Another reason its so expensive is that there are a lot of courses you need to take that have nothing to do with why you are there. My wife is a Nursing Student and the amount of extra courses she had to take just to graduate is ridiculous. Book costs are also ridiculous. Some Lean Thinking could really help out with streamlining the process.

[@DavidWilliamsaz]

+Cliff Roth Book costs are a lot like drug costs those doctors/professors that require people that buy the book/drug are not the same people consuming the book or drug.

[@mybestlifepossible2576]

Oh yeah, as a person who had a long nursing career, want to say, facetiously, " that's the nurse I want taking care of me, the one with the, " Lean Thinking, " and streamlined education . For your information, their is an nursing program like that, whose name I won't mention. I have always called it, sarcastically, " the nurse in the box program." Nurses that graduate from it, will find, most states, don't recognize their license. Also, many of those nurses patients often have negative outcomes, in some way, because their is no clinical. This program feels that if you were in certain allied or paraprofessional fields, than you have skills to transfer over , to their RN program. You don't do any clinicals, you just go to a site, are assigned, for at least a day, to patients, where under watchful eyes , you must pass doing these clinical skills, according to what you learned from a textbook. To pass you must demonstrate these skills, exactly, as the steps in the textbook show. Problem is some students in this " nurse in a box, " program , are admitted, but some come , from health care backgrounds that don't utilize nursing clinical skills. They accept respiratory therapists, for examples. I really would be lost, if someone suggested to me, I could be a respiratory therapist, because I am a nurse. There is crossover in airway management , but they are not at the bedside using the huge arsenal of nursing and clinical skills , nurses are trained to use, and get hands on practice doing under the direction of their clinical instructors , in a clinical setting. Last, I checked, this program had a lot of angry students, who first couldn't pass the necessary demonstration of the clinical skills, and others who did pass, only to find the states , they hoped to practice in, state boards of nursing, would not let them sit for boards, or if they did, their were other hoops they had to jump through to practice in some states. I hear they did some revamping of the program, but don't know , if it helped nurses who graduated from this program, obtain licenses easier, and be recognized , in every state. California did not accept these nurses. If a state like California which sets high standards in healthcare, does not accept your license, then you know, your in the wrong program. Lastly, shortcuts in nursing in any area, including nursing education, spells most likely negative outcomes , for you, the patient.

[@garethbaus5471]

I am majoring in metallurgical engineering, and have to take a few classes of limited value such as English, I have been speaking English for roughly 19 years if I am not fluent at this point one more class isn't going to do me any good.

[@chillsahoy2640]

Is college/university worth it? Yes, as long as you're willing to then work for free for a minimum of 2 years after graduating (and still find a way to pay for rent, bills, food, etc) before you can get a real job. Speaking from personal experience.

[@RedLeader327]

Ouch.

[@JayneCobb88]

+Mr “The One Who Reviews” Schrödinger I've never understood why people put up with non-paying internships. Just move to another city/state with a better job market.

[@HangerRaccoon]

+Mr “The One Who Reviews” Schrödinger As White privileged fuck that by some miracle landed in STEM in northern California (Comp-Eng At UCSC) I assure you that unpaid internships are not a bad thing when your receiving financial aid (less income = more aid [as long as you can keep up the grades]) That most people just don't take the time nor have the time to do the research about where they are going to collage and how to develop them self as a person. I got a unpaid-internship at Denso (but they did cover transportation, food and housing )when I was 17 working on diesel fuel injectors. That we should be investing in primary education instead of secondary education. because primary education is a better investment rather than secondary education due the larger impact it will have on society. Also because I am shocked by the number of my peers that are smoking and drinking away there education, paid for by government money. I know my grammar and English is bad, it's not my first language.

[@HangerRaccoon]

+Mr “The One Who Reviews” Schrödinger As White privileged fuck that by some miracle landed in STEM in northern California (Comp-Eng At UCSC) I assure you that unpaid internships are not a bad thing when your receiving financial aid (less income = more aid [as long as you can keep up the grades]) That most people just don't take the time nor have the time to do the research about where they are going to collage and how to develop them self as a person. I got a unpaid-internship at Denso (but they did cover transportation, food and housing )when I was 17 working on diesel fuel injectors. That we should be investing in primary education instead of secondary education. because primary education is a better investment rather than secondary education due the larger impact it will have on society. Also because I am shocked by the number of my peers that are smoking and drinking away there education, paid for by government money. I know my grammar and English is bad, it's not my first language.

[@JayneCobb88]

***** who ya talking to?

[@svetlanaprado1866]

We also to factor in those hidden advantages that privileged students have, such as; having parents that speak english or having the encouragement of family or even something simple as transportation. It is true, when comparing two students with different background, it plays a massive role in the success of a child.

[@RandyLy]

As a recent graduate, I've noticed a lot of college students not come out smarter after graduating. Sure they've received the information from their college if they attended lecture, but that doesn't mean they will apply it in the future. Some didn't know or care what they majored in from the start and just went to college because they were pressured to do so by their family or friends. The information they received and the amount they paid for it was practically wasted knowledge.

[@Mitsunosai]

I hope you will be addressing a couple issues related to this topic in a future episode. 1. If someone does not have the means to stop working long enough to go to college it does not matter how statistically better it would be for them to do so. They still need to be able to cover their basic needs. 2. Please go into the opportunity cost of both the loss of higher tax revenue and the potential loss of innovation by limiting the portion of the population that even have college as a viable option.

[@jonas6259]

Keep in mind, that jobs that require a college degree are harder to automatize. So your job is safer and you have a lower risk to pay one more time for a new education.

[@cjezinne]

Wait? Colleges are "Heavily Subsidized" and this is the price? DEAR GOD, I need to move!

[@Lumamaster]

+Chidubem Ezinne Public colleges are anyway. But yeah....they're expensive af still T_T

[@Spice]

+Chidubem Ezinne Pretty sure Norway offers free university education to anyone living in the country. Move and get a dual citizenship, or outright denounce your US citizenship and become a proud Norwegian.

[@dragonlord2714]

+黒い楓（Spice） As a Norwegian I can say that that education is almost free and in addition so is Healthcare

[@FieldMarshalFry]

+Chidubem Ezinne don't come to Britain... we're becoming more like the US

[@iller3]

+Chidubem Ezinne most Big-Business in the US is subsidized. 3 to 1 over poor people. The reason everything is so expensive for us is because our market is literally a Video Game and not a real market. Everyone's out to get the biggest high score and price everything at "what the market will bare" . _Turning a profit_ is rarely enough, instead everything is measured on expectations of Growth. Companies that don't meet hedgefunder expectations or dividends are subject to hostile acquisitions/mergers.

[@honeysummerbear]

Some pretty questionable notes, but go wild yall Economics of education Education is considered a positive externality - a benefit that is enjoyed by a third-party as a result of an economic transaction (helps individuals and society as a whole) US has a problematic educational system, one of which - inequality. Funding is needed, but for others competition is needed. Investing in primary and secondary education is considered a priority. College has more requirement for enrolling and doing the degree. College graduates earn more, by showing proof for finishing a degree basically - a diploma. Cost - expensive in the U.S. Forcing students to take loans. There was an inflation in prices in recent years. There are options for discounting (scholarships, etc) Inflation in prices of unis are because the actual costs of running a college is higher.

[@TPRJones]

I work at a community college and it's so frustrating how the Tech Ed fields are dismissed by both academics and the counselors. So many times I've heard stories about students being told "no no you don't want to be a welder, why don't you try philosophy?" or similar crap. Not every student needs to go into academics, and pushing those students away from a technical degree is a horrible disservice that often leads to students that rack up debt working towards a four-year degree that will never get them a job that's better than the ones they could have had with that technical degree they were originally interested in.

[@bobchen5662]

I finished graduate school in my country last year, and I agree with the conclusion at the end of the video. Whether it is worth the money going to college or even graduate school really depends. There is no quick and clear answer to the question. As far as I am concerned, I took a loan on my study of the graduate program, and so far I do not regret it. I've learned what I wanted to learn at first place and now have more resources to be better at my job, which I've been doing for nearly a decade.

[@gmarefan]

In addition to signaling theory, it could be that people who are more likely to go to college are more likely to have access to connections. 7 and a half semesters of college also provides some level of signalling.

[@ChristianNeihart]

When I can, I'm going to bring education to those less fortunate than I.

[@HxH2011DRA]

+Christian Neihart You're good man

[@Gilbertopuppy]

+Christian Neihart sure you will and then we are all going to hold our hands and sing kumbaya

[@steviewonder65]

+Matt Colgate economist at this point are pretty much useless so no need to replace. They advance a theory that denies established laws of physics; the pursuit of models and plans based on that theory, and the dissonance between it and reality, is ultimately the cause of the unfolding ecological disasters we find ourselves in the midst of.

[@ChristianNeihart]

***** It speaks but I don't quite understand what it's saying.

[@kekero540]

+Christian Neihart most of the reason a lot of less fortunate countries are like that is because they aren't receptive to the ideas your teaching. imagine going to the 15th century and telling everybody, exoplanets, and the formation of the solar system. also the entire field of biology. and that's why those places suck because their society in general sucks and isn't receptive to new better ideas and truths. Europe and Asia dominated because they had many routes to trade with people and could communicate ideas more easily and Asia had a much more malleable form of ideas.

[@stellarfirefly]

Props to the AC/DC belt buckle. :)

[@roguedogx]

+stellarfirefly they do seem to be kind of his thing I remember him wearing a similar one a few episodes back.

[@davidp5823]

He wears one for every episode. They even change....

[@legoboy468]

Education is great for society, but it needs to interest students (mainly in high school and middle school) more or that money is just being wasted. That's why I like this KZbin channel, it teaches you things but also is entertaining!

[@ahouyearno]

In Belgium you can go to university for about 2000 euros a year if you play your cards right. - max 900 euros for tuition or 0 euros for low income groups - 150-300 euros for bus or train to university in the neighborhood (there is one within 80km for everyone) - max 500 euros for used books 2000 euros can be earned by students with tax free student work with 1 month of work.

[@jordanrussell6971]

small problem with "competition" the schools often blow their funding on dumb things like a new stadium instead of their curriculum, which actually needs work, looking at you Marcus highschool

[@TaltsProductions]

LOVE YOU GUYS . Very excited to see each episode each week, you all have helped convince me to pursue a degree in economics (I am currently serving active duty and half-way through my enlistment). Very interesting stuff and you all present it very well. Thank you very much again and keep up the great work.

[@microinvestor6191]

I've come to believe there is no mechanical solution to improving the education process. It's a complex social issue at large numbers. At an individual level it seems to come down to a willing student and a wise teacher.

[@bryanwan6169]

I wish I was taught how to do my taxes. :P

[@Lumamaster]

+Cryp Tic High schools REALLY need this to be a mandatory course or something.

[@SusanWojcucki]

Did your school not offer any personal finance classes?

[@israelsolis1068]

I would add that college horror stories also involve those individuals who finished college and can't find the career they want because of the academic red tape surrounding their field. For example, I spent nearly 14 years immediately following high school to achieve a Bachelors, Masters, and a Ph.D. degree in music academics. I was top of my class in undergrad, wrote an evocative masters thesis which captivated the the attention of the top minds in my field, and published a dissertation on a topic which opened for me avenues of communication with important Hollywood film compsers. Yet, after graduating with my Ph.D. in 2013, and over 70 applications later, I can't find a suitable teaching position with a college or a university that will provide for me and my family. All of the available teaching positions I have applied to and have seen advertised want veteran academic professionals; or, want you to teach a wide array of subjects outside of your expertise, in addition to your area of expertise, for under a $40K annual salary. So what do I do? I work for a company that provides just enough to get by, I'm not teaching, and I have over $90K in student loan debt. And I know people who are in the same boat as I am, within and outside the area of music.

[@Lucy-ng7cw]

why do people in the USA call it collage and not uni?

[@MrAudienceMember2662015]

+Lucy Hunt Because they know how to spell college.

[@martinmartinmartinnmartin1380]

because their language is slightly different ????????

[@Mukation]

+Lucy Hunt The term university usually refers to instutions that also focus on scientific research on a larger scale, than "colleges" do and that they are allowed to gives PhDs, which colleges usually aren't. But for the averege studen that are just getting their bachelor or masters degree it makes no difference.

[@Lucy-ng7cw]

MartinnMartin I know that obviously, I was just curious about what the specific reason was

[@garrywarne1]

+Lucy Hunt I believe it's because most of them stay on campus.

[@ShawnRavenfire]

Going to college right out of high school is almost a waste, because most students graduating high school don't really know what they want to do with their lives. Of course, going to college later in life, after you've figured yourself out, is a big risk, because you'll probably have to pay out of pocket, you'll probably have to juggle other responsibilities such as work or family, and a lot of employers are reluctant to hire someone starting a whole new career later in life.

[@CliffRoth]

+Shawn Ravenfire on the other hand, hiring someone who is more settled down is a less risky proposition as they are more likely to stay.

[@ShawnRavenfire]

Cliff Roth Possibly.

[@TorreFernand]

+Shawn Ravenfire I had to "choose what I wanted to do with my life" in 8th grade. By the time I got to college I think I had a pretty good idea. Not perfect, but definitely much better than in 8th grade

[@AznPiano999]

+Shawn Ravenfire It's a waste because high school don't prepare students to help them to figure out what they want to do in life. College isn't a waste for me as I knew what I wanted to do. The video is right. We need to invest more into primary and secondary education. Other countries have better education in general than we do. Fact.

[@therealshadow99]

I'm one of those horror stories of people who did not finish college and wracked up insane debt. I went to a private institution the first time around and my parents were consider to 'rich' (both of them working they made ~50k/year) for me to get any real aid. In fact their burden was beyond their means and they took out parental loans, which they have held over my head for ages now. My first school I wracked up 80k in student loans and simply ran out of enough money to go in my senior year. With not enough money to finish I had to go home and try to get a 'real job'. However I quickly found I was nearly unhireable for anything that would let me pay back my student loans without a degree and I was talked into getting my associates degree to be somewhat more employable. Which since I owed so much was part time and took nearly three times as long as usual while I worked for a electronics store. I did get a fairly good job out of that, right up until the economic downturn and my position was removed. Out of work again I spent a year on unemployment without finding a new job, so I returned to school to finish my degree. However it had been 10 years and they didn't want to take my credits from my first college or my associates degree because of their age (what they did take became general education credits). So I had to go for another 4 years... And I'd taken out so much in loans I ran out of money in my senior year. Again. Which brings us to 14 months ago and I'm yet again unhireable with employers telling me I'm underqualified (anything out of my field), they only hire college grads, overqualified in my field (because I have a decade of experience and end up applying for jobs which are more 'entry level' because those are what have openings), and best of all 'to old' (though they make sure to say I have 'to much time in your field' to avoid legally saying I'm to old). So now I've been out of work for 14 months, I owe ~120k in student loans (~160k in real debt terms), and now they government wants to say I have no good reason to qualify for food stamps because I'm not in a 'critical category of need' (pregnant, have kids, work a minimum of 20 hours a week, go to school for at least 20 hours a week). Oddly enough both of the last categories are ones I've been told made me ineligible as little as 2 years ago for any type of assistance.

[@durand101]

What about the economics of education on a large scale? What about the benefits of a better educated population to deal with increasing automation? Plumbers and electricians are certainly useful and needed but not everyone can be one. This video didn't cover any of that so I hope you will talk about it in a future episode.

[@Viljai]

Sitting here in Finland being grateful of my country giving me all education free, even the university

[@coolidgedollar2154]

I want to gather opinions on a model I've been thinking of: What would happen if, instead of for-profit OR gov't-subsidized, universities were entirely donor-funded? I believe they would operate more meritocratically, make their students better off (to warrant their gratitude as alumni), and deliberately cut unnecessary costs, because they could not rely on the taxes of people who have no information about nor convictions for that institution.

[@DavidWilliamsaz]

I think that it's worth noting that with colleges with fund students and with the k-12 we fund schools. In the US one system is the best in the world and the other one isn't. It's not that hard to determine which one is which. With K-12 we make conclusions that we would never make for our university students. We would never require all students to go to a university based on geography or because it was the closest to their home. We also don't say well you have to go to the public school because if you don't the school will result in a lack of funding that hurts other students, but that is the conclusion we make to k-12 students.

[@160p2GHz]

Do appreciate your plug for trade. It was really under-sold in my generation and is a great way to get a good, well-paying, rewarding career. Even my friends who self-taught business and tech skills have done much better than folks who went for degrees in many cases. You don't start out well sure, but you're climbing the ladder getting EXACTLY the skills your field wants in the years all your friends are in uni, racking up debt. Much better option for like 90% of fields imo.

[@Sir_BoazMutatayi]

I asked a question in a previous Video on why my country was not productive even though thy were meeting the criteria of productivity. I guess I just got my answer now, Education. The more people are educated the more productive they get.

[@bdrizl]

says "gourmet dining" shows an omelette being cooked

[@figarofog9409]

I have a lot of college credits, can even get a shitty 50 hour, 10-hour-day factory job.

[@King-jy5vt]

do you mean can't?

[@Pointlessparodys]

+A Meister No it means to delay or hold back in terms of progress, development, or accomplishment.

[@maxmuller381]

+Figaro Fog What'd you get a degree in, the fine arts or philosophy? It's best to not attend college if you get a degree that doesn't equate to an array of job opportunities

[@MrKirbinio]

+A Meister :3 aww I feel like sticking a star on your forehead for being soooo smart :3

[@King-jy5vt]

+MrKirbinio hmmmm

[@benneedleman5027]

I'm just wondering as to why two things weren't mentioned. The first being that the Federal Government chips in money to public colleges which does account for the rise in college costs. The second thing I'm surprised was not mentioned was the Military option to pay for college.

[@syksafi]

Thanks, Adriene and Jacob to broaden our perspective. There was a post on LinkedIn, "who should we hire a person with certificate or a long exp". Guess What might I have commented there. Thanks again

[@theenglishclub7301]

Not just economic but the aspects like health, women empowerment, social equality, reduction in crime rate etc. are also been impacted by developing education which indirectly act as catalyst for economic growth and development, therefore to analyse the benefits of education we need to see the broader perspective.

[@progamernot5987]

And this is where youtube comes into play as channels like crash course, etc; give free education to ppl who cant go to school. :) U rock utube!!!

[@middleclassseabass7178]

I would really like to see the income of a college degree when their parent's income is accounted for. In other words, does a college degree still average 40-50k a year for the same demographics as those who don't go to college? I think we have to assume that the really smart people would still make much better money even if they didn't go to college, but they went to college to get even more.

[@LibertyJava]

by subsidising student loans it has made students less sensitive to price increases of tuition, if it wasn't so easy to get a loan colleges would have to cut costs to remain competitive, if they are private of course.

[@Malegnius]

Great video, especially since I have one semester left in college, hit home haha. Debt-free though! :)

[@160p2GHz]

COLLEGES NOW EMPLOY MORE ADMINISTRATORS AND PAY THEM A WHOLE BUNCH OF MONEY I just want to point that one out to the audience. It's way more key than you're thinking. If you're at a public uni you can look up the pay of any uni employee online, it's public record. Look at who your highest paid are (coaches and admin usually). Look how much they are paid. You're paying for that. And that's just at a public uni.

[@donjon8142]

Private school really is an issue. The numbers are just insane, they charge 4-8 times tuition usually.

[@MoleDownunder]

How does that show human capital theory is valid? Even you had said that it takes a certain amount of intelligence and hard work to even get into college. The reason they earn more is because they are smarter.

[@Myron_The_Slavicwolf]

The reason educators are able to connect college readiness to economics is that economics is literally the study of how resources are distributed throughout society, and the scarcest resource available is time. That is why people say things like "it's never too early to plan for the future" or something like that.

[@vestererer]

Thank you for distracting me from my college homework...

[@IndyThought]

If anyone wants to see more about education in America (Although it seems to apply in general) check out John Stossel's old 20/20 Special "Stupid in America." It takes a pretty thorough look at the school privatization/competition idea. It was here on KZbin last time I checked.

[@SphankeyPD]

I just realized that Crash Course should cover Media and Communication.

[@SethWatersVlogs]

Thank you for pointing out the issue of unequal early childhood and primary education. Considering that there are 144,000 school districts in the US, each with a different amount of per student spending, it is ridiculous to believe that any two students have the same experience. Never mind the ongoing racial segregation that happens in NYC, Chicago, New Jersey, and many other Northern urban areas. We cannot expect the issues of gentrification and violence in minority communities to go away until we integrate schools and stop unequal federal government educational subsidies. The fact that educational subsidies not only go to the poorest districts, but also go to the richest does not close the achievement gap, it simply shifts the threshhold. We need to make per student spending equitable to every district if we expect the world to get better.

[@cfrits3]

Thank you so much crash course!

[@GregTom2]

From an individual perspective, is higher education worth it working with this hypothesis: - The student may get university education (H1) or go straight to school (H0). - If he goes to university, his course choice is unknown. He may pass university, and have the average salary for someone who passed university, or he may try university, and fail, resulting in the average salary of those who have 7 semesters of university credits, but no diploma. - He can also decide to start working straight after school. Working on the hypothesis that the student is smart enough to be capable of going to university, he/she will work at the same salary as those who have university credits, but no diploma. (basically, we work on the assumption that this is one student making the choice, and that the human capital will not change. He can self-teach using wikipedia and crash course on his free time. The only difference will be the signaling). - The student receives a grant equal to the average grant obtained by a student. - The student will work a 35 year carreer if he goes to university, but 40 years if he doesn't. - The student will spend y% of his carrer unemployed if he goes to university, and yy% of his carrer unemployed if he doesn't, corresponding to the unemployment rates for each category. - The probability that the student eventually finishes his studies is average. "Only a little over half % chance he finishes it within 6 years, and X% chance he never actually finishes". - The student is estimated to never get raises other than ajustement for inflation, but to start working at the average salary in the first place. - Factor in predictable interest rates on the loan, as well as inflation, and say that the stuent worsk a frugal lifestyle and puts all his extra revenue to pay back his debt or put money on the side in a portfolio that improves at a normal rate (morgage payment?). At the end of his carreer, considering the probability for university failure, does H1>H0? And you mentionned that wether or not university is profitable depends on the area you study in. Which ones are the top 10 most profitable, and which ones are the top 10 least profitable? And! Hm. What's the gender ratio in this winning / losing classes. And for the losing classes, is it even fair for universities to offer them? That's literally a cash grab, no?

[@GregTom2]

+GregTom2 And why do I need to ask for this on a youtube comment. This should be published on every university's website for the public to see.

[@sonicpsycho13]

As someone with a Master's in Aerospace Engineering and BS in Mechanical Engineering, I have found going to college to be a complete waste of time and money. No companies want to hire college graduates, and having 3 years of intern and fellowship experience while in school counts as exact 0 years of experience to the HR departments. Everyone requires a minimum of 5 years of experience for their entry level positions.

[@ChillStreamsLive]

+sonicpsycho13 I've noticed that too after looking at Indeed's job listing. Most of the engineering and technician positions requires someone already working in the field! Well, if I was in the field I wouldn't be in college!

[@irabakri2662]

why dont you try to work overseas first then back to US? I'm from third world countries and the demand of engineers are very high here. They're also still have the opportunity to decide whether they want to work here or overseas. most of them go to arab gulf-country and northern africa.

[@billiegirl7736]

Im in Australia where we have free education for primary and high school and subsides heavily for higher education, once a upon a time university was free in the 70's to mid 80's then they stop it but was very affordable; although now days (2017) its becoming expensive as the government keeps dropping spending at this level . In Australia you dont generally need to get a uni degree to get a decent job, you can leave high school get a job work your way up without a degree. Many successful people have done this. You can go to TAFE (similar to what american call community college) which is highly regarded education here in Australia. The current government Liberal party (which are not liberal at all they are conservative government) are into pay for yourself government (they dont like our universal health care much but they know it kill their votes to touch it). To fund your university education you apply for Fee help - a government scheme to help you study. once you earn a specific income you have to pay a % of that income back to your education. its a very very cheap loan thats been around along time. The current government has just increase the % you pay back and the minimum when you should. Its also drop their subsidies to universities meaning a degree will cost more money than before. But not like USA and once again we dont need a university degree to get a high paying job in Australia. TAFE has increase massively which has cause a large issue with people wanting to improve their skills - also the government allowed private business to offer "tafe" like courses and give them subsides as well - issues is now many are going broke and there a large number of students lost their money and no qualification. The previous government (Labor Party) introduce a education scheme known as Gonski which was to send fund to school they really needed it. So poor public school that actually needed it not the rich private school that were making a million dollar a year profit. Still see the results of this scheme hopefully it will be beneficial.

[@echoambiance4470]

Having an episode like this but for healthcare would be interesting, i'm really curious about how the hell with a privatized healthcare sector the US manages to spend a larger percentage of their GDP on it, and yet still manage to have lower quality healthcare than most european nations with universal healthcare.

[@mkb6418]

So much money means that education is expesive. However, the nature of education as good is such that will always be expensive.

[@PathfinderHistoryTravel]

Well done. Most journalists are uninformed about tuition discounting. Their failure to do their homework misleads people into believing higher education is more expensive than it actually is.

[@ceives]

The irony of using a graphic of Eton, one of the most expensive schools in the world, to signify free education in Europe!

[@christhecurator6403]

love you crash course . you guys just saved my life ...

[@lauren3062]

For profit colleges are so terrible you can rack up like $20,000 in debt and end up working a job that barely earns more than minimum wage. Best way to save money if you want to go to a four year college is to pay in state tuition at a campus near you.

[@satellite964]

Don't rule out culture and parents. I've seen children of low income parents who are Asian and Indian do better than children of Black parents who have more wealth than the aforementioned Asian/Indian parents.

[@SusanWojcucki]

Thank you! Everyone wants to pretend that all cultures are the same. But some cultures simply don't value education as much as others; thus, they fall to the bottom in a society where education is objectively valuable.

[@TorreFernand]

Not everyone can be Carlton Banks

[@jackoroni5054]

Not only that, but 50% of your personality is from genetics. So a kid with wealthy parents would be more prickly to succeed partially due to the fact that they just have better genes than the kid who comes from a poor family whose parents dropped out of school.

[@radiantblue8001]

My father immigrated from Ethiopia (located in the Horn of Africa) to Canada as an refugee escaping persecution leaving behind family and friends. He's worked multiple minimum wage jobs while attending University full time in Canada. I was luckily born in Canada and my dad always instilled the idea of education and hardwork within me. He continuously reminds me that I'm extremely priveliged and lucky to be able to attend school in Canada with many resources put in place that help ensure students succeed without fear of war/violence. If my father can attend University in Canada after quitting school in his home country to flee war, then I strongly believe anything is possible if you are willing to work for it. Income does not limit your chances of receiving of an education(very few exceptions). As I'm an African Canadian who's near middle class I have often done better than Asians in my classes who are wealthier than I. Simply because I study for longer periods of time than my other classmates do. My hardworking mother also attended college likewise to my father and is also my motivation for working hard in school. Education is essential for the advancement of human kind and is the sole reason I yurn to give back to my community. (For further context I'm currently in Grade 11)

[@alexmoore9663]

I'm so glad I live in Scotland where we have free university, how can we offer this with our economy but the largest economy in the world can't? Mind boggling

[@eileen1820]

+Daniel Bryan With your profile pic, are you for real that it's "mind boggling"?

[@alexmoore9663]

+Eileen D mind boggling that we can afford something that America can't considering we have 1.4% the population that America has with the USA also having the worlds biggest economy etc

[@eileen1820]

Daniel Bryan My country can; sadly, it just won't. Karl Marx had it right, imo. BTW, Scotts are totally rad!

[@kylemedeiros6907]

The issue with college being free is many students who start college do not finish. Consider those who didn't pay up front! There is less of an incentive to finish because the $ isn't even real to many subsidized students. Imagine an institution where in order to get a loan people had to compete for it. Forcing people to pay for someone else's education through taxation is questionable...blatantly wasting that money is immoral.

[@zwe1l1nkehaende]

A large portion of dropouts in the US do so for financial reasons, one could argue that would offset the effect you speculate will happen. And you leave out that every bit of education is valuable. Even if a dropout doesn't achieve a degree, they are better workers and more informed citizens, effects that benefit the whole country.

[@pacificalliance3782]

Why is that more immoral than the billions wasted on the over-bloated defense budget?

[@chinguunerdenebadrakh7022]

In Germany, almost all universities are free (tuition doesn't usually exceed 1000$ per year, so virtually free), but they are doing pretty good.

[@rukianur8640]

Nope as scholarships and schools that subsidize low income students find the graduation rates for these students is in the high 90th percentile sometimes higher than the institutions average

[@ALADDIN22091978]

The cost of tuition fees is variable in the European Union. I think it maybe that the current tuition fees in the UK - England are as high as the USA, It is currently around £9000/year (around $11000/year). I think the cap has been lifted. It has been rising at a faster pace than any other country in the Western World. I think the returns on the US degrees are higher than in England. In England, most of the good jobs are in London, a very expensive city, outside London there is much less. In the USA, there is San Francisco, Los Angeles, New York City etc. I have reservations about the USA, I think it is a very tough country. I think lots of graduates struggle to great jobs, to pay off their debts !!!

[@KarlRamstedt]

"Is education worth it?" Obviously. Otherwise it would have died out by now. BOOM, episode done. See you next week.

[@mvnnytrades113]

it only has not died out because it is a social expectation lol.

[@TheAfc93r]

Most Economists i have read about were well educated and had rich families.

[@DestinyQx]

a friend and i once asked roughly 30 random people the question "why go to college?" and the overall majority answered either "to make money" or "to get a job" .. no one said the one answer I was hoping at least someone would say eventually.. I wondered how many more people would it take for at least one person to provide the response i was looking for.. this video hinted at it.. but it still did not say it directly.. and that makes me think that if such a response (the reason to attend college or improve the mind) is not within the national consciousness.. no one will work for that purpose.. the greatest of all positive externalities: To maintain and promote a democratic society.. If no one ever thinks about attending college or improving the mind in order to improve our society.. to participate in democratic process.. if everyone is only concerned with a job and or money.. the cultural values we hold will change from democratic values to monetary values.. it was written that no form of government could survive without wise and virtuous voters.. if the reason everyone attends college (or improves their mind) is only to get a job without any consideration about improving wisdom or virtue.. the people may not have sufficient virtue and intelligence to come together to maintain and improve our society.. to engage in meaningful dialogue that would promote quality forms of schooling.. or be able to work together and maintain bridges and roads.. or even provide clean water to the people.. hypothesis: if within the national consciousness.. the primary reason to improve oneself in mind was to maintain and improve our democratic society.. our democratic society would actually improve over time..

[@fanfanatik3144]

You don't have to go to college in order to "improve your mind."

[@ALBANIAN4FREDOM]

When it come to managerial job position, lots of companies are hiring uneducated employees because they don't want to pay the educated one,

[@quantumperception]

"You have to receive a fairly good primary and secondary education to be able to keep up with college work." Sadly, this is no longer true. The standards for courses have been drastically lowered, so that we can accommodate people who are not yet ready/prepared for college. They now have incentives attached to enrollment and graduation, so they are forced to lower the standards in order to enroll and graduate more students. My classmates post "formal essays" that read as if they are twitter posts- no capitalization, no punctuation, and all-around poor grammar/spelling. I have put out what should be C work, having never read the textbooks, but I usually receive an A, and even compliments from my instructors about my writing, merely because I use correct grammar, spelling, punctuation, etc. It is unfortunate, but those who had a poor primary/secondary education, and should struggle to keep up in college, will now do just fine; those of us who should be getting by with earning a B or C will now receive an A. No wonder other countries have better education outcomes- they merely have not yet lowered their standards. P.S. Though I support removing the barrier of cost to higher education (socializing higher education), that does not mean that I support the idea that everyone deserves to go to college. We still need standards, and I have no problem with an intelligence/education barrier to higher education. Basically, if you have the education/grades needed to be accepted, then money should not prohibit you from attaining that higher education; however, just because the state will pay for you to receive a higher education, that does not mean that you automatically get one... you must still meet the enrollment requirements. I recognize that certain areas (usually poor, often black-populated) have poor primary/secondary education outcomes, but to me that means that we should address those poor outcomes, not lower the standards of colleges to accommodate the people who come from failing school system. Don't continue to give them a poor education, with low standards; instead improve the circumstances from which they come.

[@thekaxmax]

one of the problems of private schools; they need enrollments, not successes.

[@quantumperception]

@@thekaxmax Actually, I am talking about the state school from which I recently graduated, as well as the one at which my mother teaches and my brother works. This is mainly due to one party (anyone with a brain knows which) cutting education budgets over and over again, so that schools are even more reliant on grants, scholarships, endowments, etc. to survive (because taxes from poor areas aren't enough); again, they then lower their requirements so more people qualify. At my mom's school, they are often pressured to pass people who shouldn't really pass, because if they don't have enough people passing, the program will be eliminated. This is especially dangerous because she is the dean of the nursing department; giving someone an art degree who didn't necessarily earn it isn't a huge deal, but passing someone in the nursing program who shouldn't be passed may have dire consequences for their future patients- as does the program being shut down just for upholding standards. Unfortunately, her students largely come from poor areas with not much tax money available for funding local school, which then suffer- as do the students. They "graduate" from those crappy high schools, and arrive at the nursing program without knowing how to do fractions, for instance, which is very important when determining dosages; that is just one example, but again, this is widespread. She works at a technical college, but I attended a four-year university, and found the same thing. Again, I do not necessarily fault the students, or the school itself. If you cut funding on a state and federal level, and force schools to rely on local taxes, rich areas will be fine, but poor areas will suffer (which I believe is the way that they want it). When the majority of students are coming from poorer areas, and therefore receiving a poorer education, they won't be able to compete at the college level (assuming that the colleges have appropriate standards), and one of two things will likely happen: 1) they will get kicked out for not meeting the standards, of 2) the college will lower the standards so that the poorly educated majority can compete. Don't get me wrong, I am all for competition for good grades, jobs, etc., but we also have to recognize that it isn't a fair competition when a small group receives more and better opportunities than the rest of the majority. I am lucky enough that I was part of the small group who had those advantages; I went to private school when I was young, and when I transferred to a public school, it was in an area that was thriving and rapidly growing, so tax revenue allowed us to have great schools and resources. I just think that everyone deserves the kind of education that I received, and think it is shameful that money is a barrier to them receiving it. I also think it is shameful that, rather than investing in fixing the problems in lower education to produce students able to meet college standards (as they should be), the government instead seems to be lowering the college standards so that the crappy students they are producing can meet them. That hurts the country as a whole, as well as robbing them of a good education, and making the degrees we receive practically meaningless (because anyone can get one). So again, I don't agree about private schools; I was talking about public schools. I received a great education at a private K-12. Private schools tend to be filled with rich people paying out the nose in tuition, so the school has plenty of resources. Sure, there are a handful each year who probably do make it to graduation because daddy donated a wing, but if you are a student who wants a decent education, you will find it fairly easy to get one at a private school; some of my fellow students were intelligent, but came from a poor area with a bad school, had to work very hard to educate themselves- sometimes in spite of their school. I remember teaching some friends who were 20 things that I had learned at 14, because no one had bothered teaching them. Often, it wasn't even that they had outdated books or apathetic teachers, it was that the school couldn't even afford to have the class at all; for instance, they didn't have Civics classes, so even those that had taught themselves the basics like the three branches of government had no idea about the history of the "checks and balances" idea, or how a bill became a law- it wasn't that they weren't smart enough to learn, it was that no one had taught them. And even those that took it upon themselves to learn still need someone to tell them what to read, practice, etc. So again, this isn't a "poor people are stupid" argument; poor and rich people are both capable of being stupid, just as they are both capable of being smart. This isn't about the ability to learn, it is about access to resources and information. This is more an argument that poor students often receive a bad primary education, and are therefore not ready for college standards (or what those should be), and instead of lowering the college standards, we should be providing a better primary education (so that the poor students are able to meet the college standards).

[@cckidd53]

workaholics reference?

[@gmarefan]

Competition would be a good motivator, primary secondary needs complete program overhaul and move to the next level. Average teacher on a higher level is equal to the best teachers on the lower level. Better to move to the next level rather than try to perfect all the teachers.

[@PSYCHROCKS5]

That AC DC belt is amazing...I need it

[@taschke1221]

this is truth. I've lived it.

[@zackatwood2867]

I don't need to pay for college, #crashcourse is free!

[@SusanWojcucki]

I don't think you were paying much attention to the part about Human Capital and Signaling.

[@wildcard1210]

MOOC will change everything

[@danceinocean]

what is MOOC?

[@ulysses7157]

make college cheeper yes but making it free no. reason being is that once it is government funded, not all universitys will get the same funding and becomes unequal which makes the level of education unequal. as long as your paying for it you get the same education from a 2 year to places like stanford, cornell, or harvard.

[@treymedley]

A few factors neglected in this conversation that should have been brought out. 1) The single biggest reason for tuition increases is the reduction in federal and, even moreso, state funding of colleges and universities. Also 2) Community college is not only for trades. I suspect it is the same in most states, but I can only speak authoritatively about Texas. In Texas, the Texas Common Core Course Transfer Law requires that public colleges and universities (Texas A&M, University of Texas, and many, many others) are required to take courses on the Common Core (which they have have to publicly advertise) from any other public college or university. Meaning: students can take those courses at a community college. 3) Community college students who stay enrolled past the first semester have a higher rate of success in completing a Bachelor's degrees than similarly situated students (adjusting for socio-economic status and other factors) who begin at 4-year institutions, often at a discount (in TX a local community college is usually around 1/5 the cost of a 4-year state school). Translation: Community Colleges are absolutely for "trades" or "workforce" degrees, but they are also accessible and affordable entry points into professional type degrees (e.g. traditional "white collar" focused careers).

[@allamrushdi5957]

Next video: education of economics

[@slawomirgadek]

Bring down the debt? You guys should learn MMT.

[@makisjnx007]

I know this may sound dumb but I would like to hear about what is happening with the emergent currencies right now around the world specially the MXN peso

[@ajay09123]

A well structured critique

[@benjamincolegrove415]

The comparison of well off go to college. NO my parents were not well off and I paid for my college.

[@Nr1GamerGringo]

arts major isnt worth it but a welding major or construction is definetly worth it

[@leion247]

+CptBeer97 Very true

[@frostynorth]

+CptBeer97 Dunno, I have an arts degree and work in a field that has made me both happy and reasonably prosperous. I could have taken a path that would've made me more money, true, but I've always thought of money as a means to an end and not an end in itself. Satisfaction is the real goal, and if I make more money but not enough to make up for the happiness, work/life balance, and sense of accomplishment that I'd lose by going for a "better job," then to me I would be worse off than I am with my arts degree. I know that while I have a lot of respect for skilled trades workers, I would not be happy at all in those fields. The problem with arts degrees is that many students go for them with no real (or realistic) end goal. Whether it's in administration, education, skilled labour, etc., you need specialized skills to get the good jobs - and with arts, that means continuing education. The young arts degree holders that fall into that trap are the ones who don't realise or understand that.

[@Nr1GamerGringo]

frostynorth i agree but its not a confirmed job in that field that you can get its more like a dream. sure some people make it but not all do. its more of a guarantee for someone in construction to get a job in their field than a arts student. i go to a gymnasium (10-12 grade) in sweden with a photo/film goal. i know that its a longshot but i will go for something else when i go to university. its more of like a have fun school period that im in right now

[@NsMs96]

Here in Sweden average student debt after a bachelor is lower than yours is in the US, but compared to the average wage you get it's actually slightly higher. Obviously the education is free but living costs are much higher, especially if you want to live somewhat close to the university, which you'd have to since theres no way in hell you could afford a car. The cost for my education is in the 25% VAT I pay for everything and the income tax I pay in the summers now and I will pay for the rest of my life. Sure, the cost will progrssively spread out on the population so the rich will pay a bigger share, but that also means that working people with lower education will pay for my higher education as well. We don't just tax the rich here, everyone has about a third of their salaries taken away in payroll, at least a third of the remaining money taken away in income tax and then all prices are increased by 25% through VAT. I'm not complaining about my "free" education at all, I'm not trying to make a political argument but rather to point out the fact that nothing is free and whatever you finance through taxes eventually will cost everyone money, not just the rich.

[@momergil]

I didn't get that Human Capital vs. SIgnaling theories trying to explain why high graduated people earn more; isn't that just supposed to be the old offer vs. demand? I mean, someone could have a ton of education (human capital) a a ton of degree certificates but if he is specialized in something that the market doesn't want, "boom" for this salary (like nuclear physicists expert in the middle of australians aboriginals)

[@GauntuM]

What is a "Real Job"? ( 3:18 ) or what is a fake or unreal job?

[@starbury64]

Great video. I wish others could see the economic, social and psychological benefits of education. Despite the recession, I still believe that it is a sound investment for an individual's future.

[@kentschultz367]

What would happen if there's an artificial demand on a service.. like education? Now factor in the cheap credit provided with guaranteed loans but socialized risks from the banks and bankruptcies for individuals with student loans made illegal. Banks practically socialized risks they used to handle handing out loans to individuals while artificially raising the cost of education. They win, we lose.

[@TheAfc93r]

Question... If the demand for college is high then why is the cost high as well?

[@naudious4416]

They explain that college prices are going up due to expansion of the college system. They don't bother to ask why that expansion of the college system has happened. Asking WHY? is a pivotal part of solving a problem, and the answer to 'why?' is quite clear. The implementation of cheap credit for college students has made college more accessible to more people; and this in turn has led to expansion of the college system because it is able to expand (and charge more money) with much fewer people then choosing alternatives. i.e. Cheap Credit Loans have shifted the Demand Curve for college to the right, hence a rise in price,. Cheap Credit Loans create the illusion of massively increased incomes. The problem is, of course, that incomes have not actually increased, and it is actually untenable debt. A terrible trade-off when any knowledge available in Higher Education is available for free on Wikipedia, and you really just need verification of having learned the material; not a constantly expanding Educational Country Club. But screw Economic Considerations, make College Free. #FeeltheBern

[@christopherstory3226]

If language, philosophy and law where comprehensibly taught to a public, the remainder of an education could be selectively taught by industry leaders without fear that anyone will be marginalized.

[@GeterPoldstein]

2:58 Grammar nitpick! (Each... has) Carry on!

[@Harriet1822]

"If you go to college, the cost is not just tuition and books, it's also the income you could have earned by going straight into the workforce." The opportunity costs of compulsory pre-college schooling include the opportunity cost to students of the time that they spend in school and the opportunity cost to society of the lost innovation in curricula and methods that a competitive market in education services would generate. "Why do governments spend billions funding universal public education?(1) Why not let profit-seeking businesses handle it? Many argue that if education was entirely privatized, it's likely that some children would be excluded (2) and that would make society as a whole worse off. Education is a positive externality(3)". 1. This "why" question has three interpretations: the historical "why?"(a), the welfare-economic "why?"(b), and the political science "why?"(c). a) The US "public" (i.e., government-operated) school system originated in response to theocratic imperatives in the religious colonies of British North America [search "that old deluder, Satan] and later in anti-Catholic bigotry [search "bible riots]. b) The "public goods" argument implies subsidy and regulation, at most, not State operation of an industry. See Steuerle, et. al., _Vouchers and the Provision of Public Services_. Furthermore, the conclusion, that taxpayers or "society" benefit from tax subsidization of public goods does not follow from the definition and standard economic reasoning. Corporate oversight is a public good and the State is a corporation. Therefore, oversight of State functions is a public good which the State itself cannot provide [search "regulatory capture"]. State assumption of responsibility for the provision of public goods transforms the free rider argument at the root of public goods analysis but does not eliminate it. c) The US K-12 school system has become an employment program for dues-paying members of the NEA/AFT/AFSCME cartel, a source of padded construction, consulting, and supply contracts for politically-connected insiders, and a venue for State-worshipful indoctrination. The current system survives on strident lobbying by current recipients of the taxpayers' $640 billion+ per year K-12 school subsidy. 2. Some children will fall through the cracks in any system. 3. I suspect you mean "public good". Often asserted but seldom even given an attempted demonstration. Whether education is a positive externality (or, public good) will depend on what you call "education".

[@undefinedvariable8085]

1:14 Detroit: Become Stock Photo Human

[@0MrMath]

And man I'm glad I'm a European now. Getting paid to go to Universities instead of paying to go to Universities makes a BIG difference.

[@fununclenerfs]

So weird that this episode comes out same day as College Humor's "Don't pay your Student Loans" video

[@zekelyness]

Okay, a few things not addressed in this: The amount of money you pay to go to one of those high end college/universities where you end up ultimately paying for their sports teams rather than your actual education. If I want to go to MSU, how much am I paying for my education vs my money going to paying however much it costs to fund their coaches/stadiums/sports related needs? Or the amount we (the US) spend on "free rides" for people who sports well rather than are educated? These huge college related sports events are a moral related thing and not really related to education. Can we at least be honest and move college sports into their own business that requires funding from somewhere else? I don't want to waste my money on something essentially useless to my education so someone who can make the points happen. Also not touched: Online college degrees. Online students pay just as much as those who actually go to, say CSU, but they physically require less out of the actual location where the school is. The cost of books, which is not included in tuition in most places. And the fact that you often have to buy that professors book for various classes. What's also not talked about is the people who don't graduate in 6 years because they have to work full time while trying to get and education. There's an added cost there as well. There are added costs if you can't be a full time student, because you often have to pay back your loans while going to school, while working.

[@cbtuib2170]

Hi. this was very educative, now i know thank you so much.

[@aldenrodzik3011]

Say that there is a population that is 100% college graduates. We would still need someone to work at McDonald's. Say the government paid for all of this with tax dollars from the people living state/country. They would have to increase the tax rates to pay for this or go into dangerous debt(like the students are now). Why should I have to pay the person who gives me a Mcflurry to have a liberal arts degree?

[@JamieTheTroll]

Alden Rodzik Because the general level of productivity would increase, increasing income growth. Also, the aim isn't 100% attendance. Only those who want to, should not face a barrier.

[@SparshAgrawal44K]

College is really expensive for many reasons, but also because of government funded college loans, which encourage universities to raise tuition

[@JamieTheTroll]

Sparsh Agrawal Then how does that explain the UK and rest of Europe?

[@AnotherPlaneGeek]

I am suprised you didnt bring in any of the lessons from your market failures video to examine what could be driving up the costs. Are the correct incentives in place to drive affordability in higher education?

[@FortuitusVideo]

After 2008 people were told that investing in yourself was safer than investing in a house or wall street. Turns out, that was a bad idea too.

[@qhack]

+FortuitusVideo Really? If you invest in yourself such that you are learning a subject that will provide you a better future, then the saying is true. Today, that means something in the STEM fields. However, if you are wanting one of those useless degrees like gender studies, then yes, that would be a bad idea.

[@kgray6171]

Hello CrashCourse can you make a video on the ASVB test?