Anecdotal evidence — which certainly seems accurate on a broader scale from all I’ve seen/read/heard from others — indicates that young people are increasingly aware of the serious problems with the economy and the recession’s effects on their futures. For instance, Mish Shedlock shares a story from one of his blog readers about this economic fear:
Our daughters are 15 and 17. Most of their friends are very concerned about their parents’ financial situations and tell me their parents have too much debt. Whether their parents know it or not, these kids know exactly what is going on and they are scared.
And the fear isn’t without cause, especially for those young people who are college-bound:
Both parents and students are wondering what went wrong as noted in Subprime Goes to College; Students Buried in Debt; Who is to Blame….
Attitudes towards education and education costs have certainly started to change with some starting to question the value of an education and what they are willing to pay, even as the Obama administration tries to keep the education bubble alive by throwing more money at it.
However, in a follow-up post, Shedlock sees some light at the end of the tunnel, arguing that parents and students alike will come to realize the foolishness of going tens — if not hundreds — of thousands of dollars into debt for an overpriced degree which will do little to guarantee employment:
It is because of attitude changes by parents and teenagers regarding the value of an education, that I expect costs of education to drop significantly in the years ahead….
My bet is that 10 years from now (if not a lot sooner) education costs will be falling like a rock.
For those who actually do need to go to college (and haven’t simply bought the standard but false “everyone should have a college education” line), let’s hope he’s right. This might be the next big bubble to burst.Published in