Posted on 01/24/2020 9:19:04 AM PST by mr_hammer
A married couple, we will call them Ted & Alice, wanted to start a manufacturing business. They thought if they bought the best machines, hired the best workers and manufactured a quality product the path to a world paved with gold would be theirs to inherit.
The couple then went on to use their savings, borrowed against their home and took loans out from family and friends to capitalize their business.
Within six months the couple secured a small building, hired a staff, installed their new equipment and began manufacturing their product. Ted also applied for and secured low interest government loans to repay some of the money borrowed from friends and family.
A year went by, the business was in full swing producing about a thousand units a day. Production units were packaged and moved to inventory awaiting shipment to the points of distribution. After another ninety days, their inventory goal was met.
After another ninety days, their inventory doubled...and almost double again six months later.
Why wasnt the public falling all over themselves buying their beautiful, well made, nicely packaged BUGGY WHIPS?
Simply, in January 24, 2020 the demand for Buggy Whips was very small and the current manufacturing capacity of the industry was twice what the market place required.
Not to long after, being finically drained. Ted and Alice had to abandon their dream of owning a running their own manufacturing business and take jobs at the local retail and food establishment to make ends meet. A disheartening end to their dreams.
In todays economy and business climate, participation awards are not given out. The harsh realities and negative consequence of bad business decisions are the lessons painfully learned.
Lets use the story and draw parallel between Ted and Alices misfortunes (mistake) and the current unsustainable college debt that many students and families are taking on.
College costs have soared over the years. Many private colleges yearly tuition is in excess of $50,000.00 a year. A student who completes their degree at a private school can expect to have spent or financed over $200,000.00. Graduating to become a teacher, social worker or any other career that there is not a six figure salary guaranteed would be financial suicide.
No wonder the millennials are tripping over themselves to vote for a Socialist, they are looking to be protected once again from making a bad financial decision / choice.
Saddled with debt and jobs not paying what they need to in order to service that debt (and live), they are looking for the government (the tax-payer) to award them their participation trophy.
There’s plenty of guilt to go around.
*PING* More Student Loan discussion over here!
The government handing out loans to dumb 18-year olds is the cause.
Nullify any loans made to anyone under 21.
And take it out of the endowments of the universities that exploited them.
Require students go to their local Community College for the first 1-2 years.
I think most of the blame is on Obozo and the frauds who equated a college degree at any cost with a human right. Too many Americans have shown themselves to be financially illiterate. Expecting a 17/18 year old to understand the ramifications of taking on so much debt is not realistic. Their parents should have guided them better but they may not be any better at managing money either.
The activists who fought to nationalize student loans knew exactly what they were doing. They are criminals.
You have colleges requiring useless courses to meet an arbitrary number of hours to get a degree. If you want a business degree, you can get all the basics you need for under 60 hours. The rest of the hours are fillers to make the mandatory needed hours. You want to end student debt, completely restructure what is necessary for a viable degree, doing away with useless courses. If someone wants to add a philosophy class over and above minimums, not eligible for a student loan.
How else can they indoctrinate the kids to follow their destructive socialist agenda along with continuing to receive their high salaries without work.
This is proof again that wherever government gets involved in any part of the private sector, they ruin it.
As EEGator noted, there is plenty of guilt to go around.
Lets say a freshman student decides to major in 14th century English literature. Thats a bad decision, to be sure. But we will somewhat forgive the student because he is young and naive.
So this student goes to his colleges English department to sign up for his classes. What will his adviser tell him? He adviser will praise his decision, and tell him all the great things he can do with a 14th century English literature degree.
This story is NOT a hypothetical. Ive seen it play out quite a few times. Yes, the student deserves blame for not doing his due diligence. But the college deserves blame as well.
My solution: Make colleges co-sign for loans. You want to sign some kid up for 14th century English literature? Find. But you will then be on the hook for his debt.
How high was the college loan debt before Obama took office?
Colleges dumb down the curriculum to keep these mororns enrolled
You MUST finish in 4 years or less! Or not. Take courses as you can afford them and work while going. Life experience and the turtle approach could keep some folks out of massive debt and end up turning out a more well rounded result. And, how many parents are bearing the debt burden?
I would like to see the left amounts.
Does the scale start at zero?
IUD’s
Decades ago, one of our younger relatives with two engineering majors in his degree got several good job offers before he was graduated.
This was during one of the many recessions we have had since the Korean War.
So we asked him what was happening.
He said that most of the degrees even then were worthless.
Then, he labeled them IUD’s, Instant Unemployment Degrees!
Now the Instant Unemployment Degree/ IUD racket is bigger now than a few decades ago.
Our local morning news brings in singers on Fridays. 1 of the gals mentioned she had a Masters in art and music appreciation.
I have a friend whose wife has a Masters in art therapy.
Both are unemployable with their advanced degrees.
Go here: https://www.elitepersonalfinance.com/average-student-loan-debt/
Look up the Historical Aggregate Student Loan Debt - Total Outstanding Student Loan Debt (Billions) Graph
You should be a senator
The conclusion the author should have drawn is that the schools are putting out more graduates than the market demands.
While it's also true that the cost of a college degree is artificially high due to government interference with free market pricing, if the demand for graduates was in balance with the supply, they would earn enough money to pay back their loans.
-PJ
Almost 300% increase in 11 years...nice.
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