We are all aware of rising student debt, which now exceeds $1.6 trillion in the United States, dwarfing credit card debt ($930 billion). Although student loan totals have been growing for decades, only recently has their human toll been widely discussed, leading to calls to forgive debts and make some college tuition-free.
“Student debt has shaped how Americans live, work, and form relationships,” writes Josh Mitchell in his new book, The Debt Trap. Young people are delaying home ownership, putting off marriage, avoiding starting businesses, and failing to save for retirement, he says—all because they are trying to pay off their student loans.
Mitchell is a Wall Street Journal reporter. The book’s subtitle is “How Student Loans Became a National Catastrophe,” and Mitchell’s job is to tell the complicated story. Federal guarantees of student loans began in 1965, when the Higher Education Act was passed with the enthusiastic endorsement of President Lyndon B. Johnson.
It is a grim story and in many ways familiar: a long, slow process by which politicians, government bureaucrats, and private businesses pursued their narrow interests while failing to acknowledge the logic and warnings that foretold disaster. Supporting it all was the public, ignorant of the details but eager to send their children to college.
Editor’s note: This is a guest post by Jay Schalin, director of policy analysis at the James G. Martin Center for Academic Renewal in Raleigh, North Carolina.
As somebody who is right in the middle of the “boomer” generation, I often hear or read my peers lamenting the good old days in education, before the radicalization of the late 1960s and 1970s ushered in disastrous changes.
What they fail to realize is that the K-12 education we received in the post-World War II era was not only already severely degraded, but it paved the way for the radicalization they decry. Here’s how it happened. Continue reading “The (Not So) Good Old Days in Education”
Last week I wrote about the Transportation-Communication Revolution that has fostered economic growth around the world.[1] Yes, it may have sped up the international spread of the coronavirus but, if so, that is a short-run effect. Prosperity has been the long-run result.
In the late nineteenth century another transportation-communication revolution took place, as railroads enabled products to be sold over vast geographical distances.[2] In the United States this led to the emergence of mass marketers like Montgomery Ward and Sears, which sent catalogs, products and even kits for building houses all around the country.
You probably have heard of Robert Owen. He was a nineteenth-century British political activist (1771-1858) known for his “utopian socialism.“[1] He started communities that eschewed private property, including a colony in New Harmony, Indiana.
In those communities, he said, “the necessaries and comforts of life [will be] enjoyed by all in abundance,” and they “will ever be the abode of abundance, active intelligence, correct conduct, and happiness.”[2]
“Owenite” communities didn’t last for long.
Owen is rightly admired, however. He had a simple philosophy. He believed that all people are the products of both their inherited characteristics and their environment. If the environment is nurturing, they will develop into worthwhile beings, no matter what their economic surroundings. He held this view so strongly that, as a manager, he never punished anyone (except possibly for drunkenness) and was never visibly angry toward people. He knew their circumstances had made them as they were.
Had he stuck with being a businessman, he might have changed the world.
