May 28, 2013
College debt : is it a problem on the economic horizon?
Here is an essay that thinks not.
But the thinking here is that the framing of this argument as it being a form of debt does not meeting the traditional qualifier of an overvalued asset is missing the bigger point: that a huge financial debt load on a young person entering the work force stifles innovation -- and thereby stifles economic growth.
How? This person is far less likely to take the risk of starting a new enterprise when a fat monthly check needs to be mailed to the bank. Instead, it's a more logical path to go "work for the man", get that steady income flow and save the aggravation.
Not good; especially when considering that this is the demographic of people most likely to do so in the past.