I've written an article previously with my thoughts on college, and your return on investment. Well, it appears that someone with lots more money than I have tends to agree. Peter Thiel is paying $100,000 for students with promising ideas to drop out of college and become entrepreneurs.
You can watch the video on 60 minutes.
I do not know very much about the billionaire, however I do know that what he is saying about our education is correct. If you look at education and how much it has gone up in the last 12 years...it is rather staggering. This isn't just about college either. If you look at your property taxes that you paid back in 2000, the amount I am paying today has risen by 43%. Many other areas has risen 77%.
According to the article above, inflation has only grown at 30%. Peter Thiel says our education system is a bubble. He might be right.
I know from my experiences going to school, and talking with many people...they feel that we aren't very prepared after college. Hardly anyone knows anything about money. Even if you were a finance major...you wouldn't know any more about money than anyone else. Finance majors are off learning worthless financial theories such as the efficient market theory, CAPM, arbitrage or beta. Rather than reading the Intelligent Investor or Security Analysis...we read from some worthless book written by someone who never made much money.
College really doesn't prepare you to do your job. Certainly it doesn't prepare you to start your own business. Starting your own business is what America needs. We do not need more employees...we need jobs. How do we create more jobs? Well, you need people who knows how to create jobs to create them. Even if you create a job for yourself...that helps the economy. Rather than have someone sit around putting their resume online hoping for a call back.
My friend who has his own law practice said he was ill prepared on how to start his business. He also said that while he was taking the bar exam several people from prestigious schools failed in preparing their students to pass the bar exam. I didn't get a degree in accounting, however I was only a few classes from getting one. Even if I would have taken the test right out of school, I would have failed miserably.
For anyone who can go to school for free this is a different story. However, I think he did shed some light on a huge problem we have in this country. We have about a $1 trillion in student loan debt. Sounds like a serious problem to me.