Peter Cohan: To Boost Post-College Prospects, Cut Humanities Departments | Forbes
Those students could skip college and go right to their jobs as waiters and receptionists. They would be better off because they would not incur the crushing debt loads that they would never be able to pay back. Or their parents could hold onto the money they would have spent on tuition and save it for their retirement. Moreover, lenders would lower the rate of student loan defaults.
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One thing is clear — academia’s effort to preserve its special exemption from the laws of economics is becoming too burdensome for many students, parents, and lenders to bear.
Much more in the full article. Read the whole thing here.
Thoughts?
Armchair Economist: On Q409 GDP Growth And What The Numbers Mean For A Recovery In Jobs
As I’ve been saying in various conversations with people for the last 6 months or so, my biggest concern regarding a recovery in job growth is this:
The economy has been able to grow even without adding workers because employers have found ways to accomplish more with fewer workers. Productivity grew at a robust rate of 8.1 percent in the third quarter of 2009, the most recent data available.
My thought is that continued high productivity numbers will keep many companies from hiring en masse. Output is up so much with current personnel. Why take on new salaries? And until consumers are back in force (Ed. - not anytime soon), the demand isn’t there to ramp up output through a new round of hiring. CapEx spending will continue to be the next wave in the short term.
See the full article here for an analysis of the GDP numbers (they’re always revised down), a disclaimer on the effects of tighter inventory management, exports and the cheap dollar.
