Are Student Loans the Next Housing Bubble?

We've seen the detrimental effects of the housing market bubble; will we see the same results with the student debt crisis? In this video Professor Antony Davies explains the higher education bubble and how a lack of economic freedom is taking us down the very same path.

"While we're seeing the same kinds of things happen in the student loan market that happened in the housing market, the implications for the borrowers in the student loan market are going to be much worse." --Professor Antony Davies

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  Education

[MrPloppy1]

The combined income of households earning $250k a yr and over is approx $1.5T. The combined annual profits of all 500 of the Fortune 500 companies is approx $500B.

The fed govt spends approx $4T a yr.

[AutomatedForexRobots]

the only economic ideology capable of predicting every engineered crisis is the austrian school of economics.

[trueconservatie33]

the problem is most people don't major in STEM, that's why so many companies can't find highly skilled worker right now. a lot of schools are basing their tuition price on how much a student can take out on a loan, and so many school waste so much money because they have no incentive to cut waste. if not a people can afford to go college on their owns, schools would be force to cut their tuition in order to attract more students.

[Mablak]

That issue wasn't really raised in this video, I'm not objecting to a focus on more useful degrees. I was simply referring to the free market dogma he's spewing. The idea that there's no argument for the government to subsidize education is ludicrous, institutions don't simply raise tuition in lock step with increased subsidies as some people think.

[trueconservatie33]

you are missing the point, not everyone should go to college. my mom went to a cheap community college and majored in Computer science, she now makes over 100,000 dollars. so many kids I know went to expensive college and majored in useless degrees and can't find job

[GoldAK47]

It'd be a lot of flipping burgers to save money for a semester at Harvard...

[Mablak]

Student loans are almost definitely coming next. I really can't stand this dogmatic 100% free market brainwashing though. Education needs to be cheap and available to everyone, the idea that freely made choices will result in the best outcome here is lunacy, our choices also need to be rational, well-informed, and directed towards building a better society. Poor students deserve an education as well.

[John Dyer]

How about teaching our children to pay cash for the things they want and living debt free instead of absorbing the broken theories of a bankrupt nation?

[StrafingMoose]

2:33, the argument I keep making over and over but I think most people hear Cantonese when I say it... Kudos to you sir.

[poopisnotpoop]

Thank you.

I do realize that you were being sarcastic, but I thank you anyway because it is a noble thing that I am doing.

It's bullshit because it's failing to comprehend basic under grad level economics.

You don't sell degrees the way you sell a house.

And let's face it, values of degrees aren't exactly skyrocketing either.

This isn't even apples to oranges in comparison. It's apples to carpet.

[Izack Soto]

What exactly did he say that you find to be bullshit? And you're proud to be getting something that taxpayers payed for even though this man pretty much outlined why it's a hugely inefficient use of resources? That's very noble of you, indeed. You're awesome.

[chrisfoose]

Full Sail University