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More summary on the current state of universities:
What's college bundle?
- skills & training
- adventure for young adults
- dating service
- sports complex attached to a hedge fund
- credential
- how employers delegate personality testing so they don't get in trouble for it https://twitter.com/eriktorenberg/status/1288911391747760130
What's college bundle?
- skills & training
- adventure for young adults
- dating service
- sports complex attached to a hedge fund
- credential
- how employers delegate personality testing so they don't get in trouble for it https://twitter.com/eriktorenberg/status/1288911391747760130
Startups used to give personality and IQ tests, but then they outsourced that to colleges.
Test for conscientiousness (self-starter) and industriousness (endurance)
College was sheepskin effect of proving IQ (via SAT) and conscientiousness (via completing the four year program)
Test for conscientiousness (self-starter) and industriousness (endurance)
College was sheepskin effect of proving IQ (via SAT) and conscientiousness (via completing the four year program)
Someone who goes to college for seven out of eight semesters receive half the income of somebody who goes for eight out of eight semesters.
Either last semester is more valuable OR more likely people are just trying to see if you can clear that hurdle (sheepskin effect)
Either last semester is more valuable OR more likely people are just trying to see if you can clear that hurdle (sheepskin effect)
In the current system today, if you can go to a great college, you should probably go. Most people aren't Bill Gates or Zuck
From financial POV, study something technical from a great school
Engineering degrees do well at all schools. Humanities only do real well at top schools
From financial POV, study something technical from a great school
Engineering degrees do well at all schools. Humanities only do real well at top schools
Is this a ponzi scheme?
We have a federal loan program funded by the taxpayer such that students can go into debt & then keep paying, via taxes to fund other people's debt.
Both K-12 and higher-ed are monopolies. Monopolies don't care to improve b/c they don't have to.
We have a federal loan program funded by the taxpayer such that students can go into debt & then keep paying, via taxes to fund other people's debt.
Both K-12 and higher-ed are monopolies. Monopolies don't care to improve b/c they don't have to.
They shouldn't be called public schools. They should be called gov't schools.
Would you feel good eating gov't sushi? or driving the official gov't built car designed by the DMV?
If we don't do the above, why do we expect gov't to make schools w/ better results than sushi/cars?
Would you feel good eating gov't sushi? or driving the official gov't built car designed by the DMV?
If we don't do the above, why do we expect gov't to make schools w/ better results than sushi/cars?
The great myth is that we've slashed funding for public education in the US over last 40 years. We've tripled it in terms of cost per student.
And results have been flat. Massive price increase, no quality decrease
With colleges, gov'ts don't own them, but it's an oligopoly
And results have been flat. Massive price increase, no quality decrease
With colleges, gov'ts don't own them, but it's an oligopoly
How is it a cartel?
Accreditation is a rigged process that keeps out competitors (last entrance into top 10 was Stanford over 100 years ago).
Non-accredited universities don't benefit from tax breaks and federal subsidies & loans so it's hard to compete.
Accreditation is a rigged process that keeps out competitors (last entrance into top 10 was Stanford over 100 years ago).
Non-accredited universities don't benefit from tax breaks and federal subsidies & loans so it's hard to compete.
From tax POV: Colleges are allowed to run nonprofit at the operating level.
And they're *also* allowed to invest their endowments, invest them on a nonprofit basis.
So don't pay taxes on operating income or investment income.
Harvard endowment $40b. Tax sheltered hedge fund
And they're *also* allowed to invest their endowments, invest them on a nonprofit basis.
So don't pay taxes on operating income or investment income.
Harvard endowment $40b. Tax sheltered hedge fund
The system is running as designed!
This is what happens when gov't restricts supply: price escalates. Quality remains stagnant.
Not only that. Gov't also subsidizes demand w/ taxpayer funding, causing price to rise even higher.
We see the same thing in housing and healthcare.
This is what happens when gov't restricts supply: price escalates. Quality remains stagnant.
Not only that. Gov't also subsidizes demand w/ taxpayer funding, causing price to rise even higher.
We see the same thing in housing and healthcare.
Re: housing. Cities are local monopolies over their own geography.
The housing policy in many big cities is "don't build housing"
Only 6000 new housing units a year.
Which leads housing costs to rise significantly. Which leads gov't to subsidize demand (which caused 2008)
The housing policy in many big cities is "don't build housing"
Only 6000 new housing units a year.
Which leads housing costs to rise significantly. Which leads gov't to subsidize demand (which caused 2008)
What's the difference in a country like the US btw being middle class & lower class?
Middle class can own a house, send kids to good schools, and get good health insurance.
Those are 3 indicators of quality of life, and gov't has decided to take over and raise prices extremely.
Middle class can own a house, send kids to good schools, and get good health insurance.
Those are 3 indicators of quality of life, and gov't has decided to take over and raise prices extremely.
What are big questions right now?
- will removing the SAT & GRE dilute the signal?
- how will colleges financially survive (bailout?)
- will remote degrees matter as much as a credential?
- will international students pay?
- what alternatives will emerge?
- will removing the SAT & GRE dilute the signal?
- how will colleges financially survive (bailout?)
- will remote degrees matter as much as a credential?
- will international students pay?
- what alternatives will emerge?
University format was standardized before the printing press.
If we built a new system today it'd look totally different.
COVID presents that option for reset: "there are decades in which nothing happens. And then there are weeks within which decades happened"
If we built a new system today it'd look totally different.
COVID presents that option for reset: "there are decades in which nothing happens. And then there are weeks within which decades happened"
The Credential? Show your work.
In some fields you can (coding, design), in some you can't (heart surgery).
If you can show your work, make a profile of all your best work.
people are building real track records on conscientiousness (if you've done X for years, that counts).
In some fields you can (coding, design), in some you can't (heart surgery).
If you can show your work, make a profile of all your best work.
people are building real track records on conscientiousness (if you've done X for years, that counts).
This was all summarized from this great view hosted by @zoink and Marc Andreessen
