Ok here's the situation from someone who knows exactly(ish) what is going on.
Things are changing in the United States, especially within the last decade. Competition within industries is increasing and businesses are putting a much deeper focus on what exactly a college degree means. To top this off, studies are starting to come to light within the past few years showing some troubling statistics and trends in education.
For example, one study which you can google if you so desire, looked at how students success was linked with the universities they went through. The methodology was to look at students who went to big name universities (Harvard, Stanford, Ivy Leagues, MIT, etc) and measured their career success. They they compared these students to students who were accepted to those high caliber schools, but chose to go to lesser schools (good state schools for example). What they found was that, except for slight gains for african americans and latinos, both groups enjoyed almost identical career success. So what does this tell us? It tells us something people have known for a long time: Successful Universities do not make successful people, successful people make successful Universities! It's just like how our graduate departments work, you're never successful because of the graduate department you went to; your graduate departments success depends on how good of students it produces.
We're also finding something which again has long been known in private. Certain degrees are worthless economically. Various programs such as ethnic studies and certain "artsy" degrees (of course, not all) have poor job prospects while others have decent prospects but have poor salaries (ie. social work... which honestly, in my humble opinion, is a horrible horrible field unless you enjoy watching innocent kids being treated in god awful way by "the system"). So we can now add to the issue that people are going into degrees with 0 economic viability.
To add to all of this, with this increased belief in a degree being a guarantee to a career (notice I said belief), universities are trying to bring in more and more people, many of whom are unfit for a college education. People believe this is something they MUST do and don't put effort into seeing whether or not this venture is worth it. Couple this to the mindset of "I just need to pass these stupid classes so I can get a piece of paper" and you have a disaster. MOST of my students seem utterly entrenched in this idea. What they don't realize is that sure you can get a degree and it can get you an entry position at some corporation. However, if you fuck up at that job, it's over. Your degree is nearly worthless. For a bachelors degree, thanks to the watering down of the US educational system, all that is assumed is that you know how to make deadlines. That is literally the biggest thing a bachelors degree tells an employer. And actually, that's not necessarily a bad thing because that is a very important skill. However, once you screw up, any job you apply for afterward that is worth anything will have an HR department that will find out you screwed up on your first job and that's it. No job offer.
Finally, many people are realizing that the watering down has (amazingly!) made for crumby college graduates. I was reading an article the other day which confirmed a suspicion a few people I know have: a majority of computer science graduates can't program. Specifically, it has been argued that a certain portion of CS students have a certain mindset at the start of their studies that is completely wrong and they rarely change the mindset to the correct way of thinking. The people who think incorrectly can't program and pass these so called "fizzbuzz" tests. I also see this problem occurring in my own field and others have seen it in their respective fields. Universities are graduating people who can't do what their degree says they can do.
So put this all together (and there other factors I haven't mentioned) and you can start to understand why there are a large portion of college graduates who have no decent career. College is not for everyone and unfortunately, we live in a country where politicians and idiot HS guidance counselors say that college is key to success. The fact of the matter is that it is NOT. Like everything in the world, when used properly, college will pay off big time. When misused by people with unrealistic expectations, it comes back to bite you in the ass. You absolutely can make a great living off what is taught at trade schools. I have yet to meet 1 electrician or plumber that says "I hate my job and the money, I wish I went to college all those years back".
Also, to toss in something that most people are getting annoyed at, the idea that "people with a college education will earn on average $1M more in their lifetime". The big big problem here is that there is the implication that a college degree = $1M. For 1) this is an average. For every guy who went on to be Steve Jobs, there will be a thousand people who probably made no net gain going to college. Also, many people will be successful regardless of going to college. The wealthy and upper middle class are examples of this. They have, what I like to say, "more access to success". In other words, they are surrounded by people and probably have parents who know how to be successful and show them how to be financially intelligent and what have you. These kinds of people are most likely going to be successful regardless as to whether or not they go to college. Of course, you KNOW they're all going to college. The thing is, of course, it never mattered if they went to college but at the end of the day, their success gets tallied up with the "went to college" part of that calculation. On the other end of things, you have people who are surrounded by unsuccessful people who will fall into the lifestyle of not being successful and wont go to college and these people will go into the "didn't go to college" side. So really, the argument should be "People who make $1M more in their lifetime proooooobably went to college". In other words, correlation =/= causation.
I agree with everything you said. I think basically the only thing that a degree does though is help you get your foot in the door. Even if you don't land a great career, you are probably still going to find something better than what you'd be doing if you didn't go in the first place. It's not always about the money that determines a great job. You can make good money working on high-rise buildings or being a trashman, but how many people would rather sacrifice that salary to find an easier and safer job in an office? I sure as hell wouldn't want to work 300 feet up in the air or have to handle toxic waste all day.
Like you said, and I totally agree, college isn't for everyone. I may be able to do accouting, but I don't know how to work on cars, fix my electrical wiring, or build things in general. That is where people who are good at handyman things come into play. They may not have went to college, but they had a passion for something else that they were intelligent enough to make a career out of. Not all of us are into handyman jobs nor do all of us have enough basic knowledge of those areas to pursue a career in them. That is where college comes into play because otherwise someone like myself would be stuck in a "McJob" the rest of my life because I don't know any trade skills.
Something I read recently summed it up best. Getting a degree doesn't guarantee you success. What you do to make something of yourself once you get the degree will determine your success. The key aspect of that though is that it is important to get the degree so that you have the opportunity to try hard to become successful. If you don't get the degree, chances are you aren't ever going to have a shot at a corporate job because those jobs almost exclusively require i minimum of a bachelor's degree and years of experience. However, you can't get the experience needed for those jobs without getting the degree to get into the field in the first place.
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