| The cost of college has risen so much that more than half of Americans no longer think a college education is “worth it.” We have reached the point where the cost of a four-year degree will likely be the second-largest expenditure in your lifetime, second only to your house. Students are literally mortgaging their futures to pay for college. Colleges today are experiencing falling enrollment. They’ve created their own crisis. What happens next for higher education, and how should prospective students and their parents weigh their options? These are the topics of this week’s Global Macro Update. Economist Dr. Gary Shilling joins us with his thoughts on the cost of higher education and alternatives to the college track. Gary is a veteran analyst, so be sure and watch through to the end of our discussion as Gary weighs in on the Fed, interest rates, stocks, and bonds. Dr. Shilling is president of A. Gary Shilling & Co., a consulting and investment advisory firm. Here are some of the highlights from our conversation: - How colleges have created their own dilemma because of their “price discrimination” financing model. - Why over half of Americans think college is not worth the cost. - The rise of the apprenticeship model as a way to achieve personal economic advancement. - The link between rising college costs and the college services arms race. - Why the middle class is shouldering the heaviest long-term cost burdens of paying for college. - The serious questions to ask yourself before you commit to the costs of college. - In the markets, the economy is slowing—whether we’re currently in a recession or not—and that hasn’t been completely reflected in stocks. - How weakness in corporate sales and profits should trigger the next stock market decline—the bear market process is not complete. - Why you should keep your eye on employment. Stay informed on the big trends by subscribing to Global Macro Update here: https://www.mauldineconomics.com/global-macro-update Time stamps: 1:05 How you should think about going to college 3:15 A renewed interest in apprenticeship programs 5:50 Is college worth it? 6:48 The college services arms race 10:02 Mortgaging your future: Have we reached the breaking point in college costs? 11:59 Is the “elite schools are worth the price” argument still valid? 16:45 The impact of loans on the college selection process 18:45 An individual’s interests and motivation trump the institution 21:13 The case for a general education 22:30 The student loan debt question 25:48 Gary’s thoughts on the markets and the economy 26:50 Two-part decline in stocks 28:03 Why bonds have been rallying 29:28 The Fed will kill inflation 31:22 Employment and the timing of Fed easing |
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