Gambling on Education - Collectively Doubling Down on our Great American Bet

When I was in my first semester of my first year of law school, the professor I disliked the most (since retired, thankfully) said something that has always stuck with me deeply: "There are 2 investments that always pay off: Land and Education." To first year law students, law professors are like Gods. Especially one so willing to squeeze as he held our legal lives in his hand. 

Obviously, with not only this in mind, I invested heavily in education to the tune of two doctorates, a masters, and around $80,000 in debt (the only reason it is that low is that I did community college and public schools). Later, when I get a chance, I plan to try the other half of his formula. So, keep in mind that not only did I personally invest heavily in higher education, I have seen the promised good returns at least so far.  

But, at some point, even the safest "investment" becomes a gamble. I think education is crossing that border. New data from the Wall Street Journal and Federal Reserve today show that while America has tightened our belts in every aspect of spending, we as a group are continuing to individually double down on education.  

As an educator, and a direct beneficiary of America's (particularly Kentucky's) higher education habit, I am somewhat honored that America continues to put their trust in us to bring them worthy returns. But, at the same time, I am also cautious of an individual betting too heavily on this investment and bearing all of this risk. 

America's great national bet has always been on our people. We have invested and put our trust in our people and we have shown good returns time and again. In particular, we have bet on our youth. If we pour resources into our youth, generation after generation will reward the investment. I know I am personally planning to pay off every cent invested in me twice over or more - and I am building that same responsible passion into my children. Thus, it is on this gamble, that we have built not only a strong middle class, but a strong country - generation after generation. 

From an economic standpoint, there is nothing more productive than an educated and motivated population. If anything, we need to continue to push more higher education (and better P-12 education) out to the general public (and I'm fine with demanding better returns, also). But, at some point, we have to question just how much debt Paul Q. Public can sustain and still return profit on his or her investment not only for himself, but for us generally.

Therefore, I think we need to be asking ourselves quickly whether or not it is economically sensible to continue to pass the vast majority of that cost into future debt payments from the very students we are entrusting with building our future. 

I am more and more convinced that as a nation, we must bear more of this cost. I still want each person (at least each middle and working class person) to have to pay back debt. There is something motivating about that prospect and makes me work later nights than I otherwise would have. But, for many people the "investment" is appearing more and more as a personal gamble - and rightly so. It is closing off access to higher education to many in society who simply cannot fathom taking on a hundred grand in debt when they come from a family that lives on thirty thousand a year hourly wages. Not only is their potential productivity reduced, but their understanding of the great American gamble on all of our people is also reduced.  

As this debt "super committee" is considering all the options, I hope many of them were told the same investment story as my law professor bestowed on me. Adding new taxes should certainly be on the table, but those taxes should not go toward highways or space shuttles or even more crazy lab research at higher education institutions (no offense to my colleagues). We just need as a country to reinvest in our future - our young people - as generations before us have done. We need to make sure that our young people understand that this is a country where you can gamble big on learning - as long as you are willing to reinvest your knowledge and skills back into our collective group over your lifetime.

We are passing off our economic mistakes onto our youth, not just figuratively through national debt debates, but extremely directly and personally (look again at the chart above). We need to stop it, quickly. Our's can not be the generation that loses sight of the gamble that got us to where we are today. My law professor may have been a jerk (and believe me he was), but he passed down the knowledge of the generation before him: land and education. Let's not lose sight of that.