Economics @ ITT

Economics Education Has it All Wrong

Posted in economics by ittecon on January 10, 2014

It’s long overdue to bring the outside world into the classroom at the beginning of the economics syllabus, not at the end, and to teach students how to use the tools we give them to make sense of the problems that excite them.

Economics Education Has it All Wrong gives some interesting perspective on this topic.

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The Road From Rags To Riches No Longer Passes through College

Posted in economics, education, employment by ittecon on December 20, 2012

The apparent benefit of higher education is mostly attributable to selection bias and network effects. The increase in tuition costs makes this an ROI model that won’t work for most, though through marketing and deliberate disinformation people are led believe that this is not only a path forward, but that it’s the best path.

[C]olleges are sold to you as the critical stepping stone on the path to wealth and prosperity, but sadly the empirical evidence demonstrates that when it comes to an actual, demonstrable income effect, only the wealthiest people actually benefit from a degree! The lowest fifth of household by income see their change in income decline by 10%, while the middle fifth sees an incremental 2.1% drop.

via Sorry (Poor) Kids: The Road From Rags To Riches No Longer Passes Through College | ZeroHedge.