The Looming Last Gasp of Indoctrination?

The inevitable collapse of the student loan “market” and with it the take-down of many higher educational institutions will be one of the happiest and much needed events to look forward to in the coming months/years.  Whether the student loan bubble bursts on its own or implodes due to a general economic collapse, does not matter as long as higher education is dealt a death blow and can no longer be a conduit of socialist and egalitarian nonsense for the inculcation of young minds.

 

Complain… declare bankruptcy… think for food… occupy… Decisions, decisions. [PT]

 

The perilous condition of the student loan sector can be seen by looking at a few ominous pieces of data:

 

  • The US has around $1.3 trillion in non-dischargeable loans to students
  • Over 120 billion in student loans are already in default
  • 27% of students are a month behind on their payments*

 

As economic conditions deteriorate and there are even less meaningful jobs for college graduates than there are now, these numbers will only get worse.

Not only have colleges and universities been havens of leftist thought for many years, but they have become ridiculously expensive and beyond the reach of most middle-class income earners to afford without going into significant debt.

Moreover, the incessant barrage by the Establishment about the necessity of a college degree has distorted the labor market to where worthless, debt-ridden degrees are pursued instead of much needed blue-collar employment.  The readjustment of the labor market to a proper balance will not only take time, but it will be a costly, painful process.

 

Student loans granted by the federal government. The total outstanding is actually around $300 billion more, but the above loans are backstopped by the tax serfs. Note when this bubble took off.  It happened just as the financial crisis triggered by the collapse of the housing bubble started. This is unlikely to be a coincidence – to us it looks like one of several methods that were used to re-inflate the credit bubble. Funny enough, the shorthand for this chart at the Fed’s economic data web site is indeed “TOTALGOV”. You couldn’t make this up. [PT]

 

Marxist Intellectual Wasteland

While the “hard” sciences have not been as affected by the Left, the social sciences have long been an intellectual wasteland devoid of any freedom of thought or opinion.  Promotion and recognition of academic excellence is, more often than not, based on diversity and one’s skin color instead of merit.

Arguably, economic science has been the most corrupted discipline.  Economics departments of major universities are now training grounds for employment in state and federal bureaucracies, the banking industry, and Federal Reserve where Marxism, Keynesianism, neo-Keynesianism or whatever kooky, nonsensical theory of the day can be put into practice.

While higher education has long been hostile to the ideals of Western Civilization, it is now explicitly a bastion of anti-white discrimination and hostility especially against white heterosexual men.  Few days pass these days without an incident, often with the approval of school authorities, blatantly attacking white Americans or symbols that supposedly represent them.

Of course, the higher education apparatchiks have had an easy time in their brainwashing task since the impressionable minds in their charge have been indoctrinated by twelve years of public “schooling.”  Not only has the public school been a mechanism of social engineering, but it has constantly pushed its chattel to continue their “education” at the collegiate level.

 

Protests like the one shown above have increasingly flared up in recent years as the student loan bubble has grown. One may be inclined to sympathize with students to some extent considering that the cost of education has exploded into the blue yonder, but it is not quite that simple. Education is certainly an area of the economy that is highly sensitive to monetary inflation. For one thing, it is not easily “tradable” (although that may actually soon change). For another thing, as a long-range investment in human capital, college education is part of the higher stages of the economy’s capital structure. A long period of time passes from the beginning of a college education to the production of a consumable service by those receiving it. Monetary inflation always steers investment spending toward the higher stages of the production structure, as it tends to push gross market interest rates below the natural interest rate determined by society-wide time preferences. This  distorts relative prices in the economy and artificially boosts the perceived profitability of long-range investments. Many of these investments are unmasked as malinvestments as soon as the monetary pumping stops, and college education is definitely no exception to this rule. However, even at the current high cost of education, students obtaining marketable degrees should be able to cope with their debt load once they enter the job market. Of course, marketable degrees usually involve a lot more work than nonsense like “gender studies” and similar cultural Marxism-type indoctrination masquerading as education. As an aside, students of economics have to keep in mind that the majority of macro-economists would be completely superfluous in a free market economy. Most universities therefore offer economics studies designed to produce central economic planners. To paraphrase Hans-Hermann Hoppe, one will mostly be fed “viciously statist, incomprehensible gibberish”. There are exceptions though, but one has to choose one’s alma mater very carefully if one is genuinely interested in being taught sound economic theory. To come back to the protesters above: if their student debt were to be canceled, their creditors would be forced to bear the losses. The vast majority of said creditors are tax serfs, who have lent them money involuntarily. By contrast, no-one forced these students to borrow money and spend it on obtaining useless degrees. [PT]

Photo credit: David McNew / Getty Images

 

Strike the Root

The Trump Administration and most on the Right have failed to grasp the socialistic bias of American education.  Education Department Secretary Betsy DeVos has spoken about “competition” via school choice, vouchers, magnet and charter schools to increase school and student performance.

The Administration’s proposed 2018 education budget calls for an increase in federal spending on school choice by $1.4 billion, a $168 million increase for charter schools, and a $1 billion increase for Title I “to encourage school districts to adopt a system of student-based budgeting and open enrollment that enables Federal, State, and local funding to follow a student to the public school of his or her choice.”**

 

A chart illustrating the problem discussed in the lengthy caption above. CPI for education and CPI for all times, indexed (1993 = 100). From a theoretical standpoint, it is no surprise that the cost of education has escalated to such an extent.

 

These shopworn ideas and policies are not only fundamentally flawed and will make matters worse, but they will do nothing to counteract and or end the Left’s domination of education.  Instead, President Trump should do what he spoke of at times on the campaign trail and what President Reagan promised to do, but never did – abolish the Department of Education!

While the collapse of the student loan bubble may be the catalyst for a general financial downturn and will certainly be the cause of tremendous social pain and dislocation, it will, nevertheless, be a necessary prerequisite if America and, for that matter, the Western world is to ever break the grip of leftist ideology which rules it.  May the bursting of the student loan bubble commence!

 

A few cartoons on student debt we have come across. Grandpa beats his grandson to the parental basement… and once you find out that there actually was a catch to that Bachelor’s in English for the everyday low price of $78,000, you can always try and epistemologize for your food! :) [PT]

 

References:

 

*Tyler Durden, “Staggering’ Student Loan Defaults On Deck: 27% Of Students Are A Month Behind On Their Payments.”  Zero Hedge,  15 April 2017.

**Jade Scipioni, “Why Betsy DeVos Is Visiting This Ohio School Today.”  Fox Business, 20 April 2017.

 

Charts by: St. Louis Fed

 

Chart and image captions by PT

 

Antonius Aquinas is an author, lecturer, a contributor to Acting Man, SGT Report, The Burning Platform, Dollar Collapse, The Daily Coin and Zero Hedge. Contact him at antoniusaquinas[at]gmail[dot]com https://antoniusaquinas.com/.

 

 

 

Emigrate While You Can... Learn More

 


 

 
 

Dear Readers!

You may have noticed that our so-called “semiannual” funding drive, which started sometime in the summer if memory serves, has seamlessly segued into the winter. In fact, the year is almost over! We assure you this is not merely evidence of our chutzpa; rather, it is indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Naturally, the traditional benefits that can be spontaneously triggered by donations to this site remain operative regardless of the season - ranging from a boost to general well-being/happiness (inter alia featuring improved sleep & appetite), children including you in their songs, up to the likely allotment of privileges in the afterlife, etc., etc., but the Christmas season is probably an especially propitious time to cross our palms with silver. A special thank you to all readers who have already chipped in, your generosity is greatly appreciated. Regardless of that, we are honored by everybody's readership and hope we have managed to add a little value to your life.

   

Bitcoin address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke

   
 

One Response to “The Student Loan Bubble and Economic Collapse”

  • zerobs:

    Not only have colleges and universities been havens of leftist thought for many years, but they have become ridiculously expensive and beyond the reach of most middle-class income earners to afford without going into significant debt.

    Who knew that socialism was so expensive?

Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • Japan: It isn’t What the Media Tell You
      Known for Being Terrible For the past few decades, Japan has been known for its stagnant economy, falling stock market, and most importantly its terrible demographics.     A chart of Japan's much-bewailed demographic horror-show. Most people consider a declining population to be a bad thing due to the implications for assorted state-run pay-as-you-go Ponzi schemes, primarily those related to retirement. It is hard to be sympathetic, since it would have been possible to...
  • Bitcoin Facts
      A Useful Infographic When we last wrote more extensively about Bitcoin (see Parabolic Coin – evidently, it has become a lot more “parabolic” since then), we said we would soon return to the subject of Bitcoin and monetary theory in these pages. This long planned article was delayed for a number of reasons, one of which was that we realized that Keith Weiner's series on the topic would give us a good opportunity to address some of the objections to Bitcoin's fitness as a medium of...
  • An Update on Polly: She May be Coming Back to Life
      A Twitch of a Toe In our recent update on credit spreads we proposed to use the seemingly deceased  Monty Python parrot Polly as a stand-in for the suspicion of creditors in today's markets.  The question was whether Polly was indeed dead or merely in a deep coma. Depending on this, one should be able to gauge how powerful a miracle will be required to resurrect her.   Meet Polly. Is she alive?   In the first half of November there was actually a small sign that...
  • The Complete Idiot’s Guide to Being an Idiot
      Style Over Substance There are many things that could be said about the GOP tax bill.  But one thing is certain.  It has been a great show. Obviously, the time for real solutions to the debt problem that’s ailing the United States came and went many decades ago.  Instead of addressing the Country’s mounting insolvency, lawmakers chose expediency without exception.  They kicked the can from yesterday to today.   The empty chairs meeting – this is slightly...
  • The Zealous Pursuit of State-Sponsored Collapse
      When Bakers Go Fishing Government intervention into a nation’s economy is as foolish as attempting to control the sun’s rise and fall by law or force.  But that doesn’t mean governments don’t meddle each and every day with the best – and worst – of intentions.  The United States government is no exception.   From the “When the government helps the economy” collection: Breaking a few eggs while baking the bridge to nowhere omelet. [PT]   Over the...
  • Precious Metals Supply and Demand – Thanksgiving Week
      Grain of Salt Required The price of gold fell $7, and that of silver 24 cents. This was a holiday shortened week, due to Thanksgiving on Thursday in the US (and likely thin trading and poor liquidity on Wednesday and Friday). So take the numbers this week, including the basis, with a grain of that once-monetary commodity, salt. We will keep the market action commentary brief.   Relatively modern examples of salt money which was widely used in African countries until the...
  • Lessons from Squanto
      Standing In Your Way Governments across the planet will go to any length to meddle in the lives and private affairs of their citizens.  This is what our experiences and observations have shown.  What gives? For one, politicians have an aversion to freedom and liberty.  They want to control your behavior, choices, and decisions.  What’s more, they want to use your money to do so.   As this by now famous cartoon implies, the State is essentially a gang of criminals...
  • What’s the Point? Precious Metals Supply and Demand Report
      Questions and Answers A reader emailed us, to ask a few pointed questions. Paraphrasing, they are:   Who cares if dollars are calculated in gold or gold is calculated in dollars? People care only if their purchasing power has grown. What is the basis good for? Is it just mathematical play for gold theorists? How does knowing the basis help your readers? Is it just a theoretical explanation of what has already happened? Prove that if someone has known the basis...
  • The Stock Market and the FOMC
      An Astonishing Statistic As the final FOMC announcement of the year approaches, we want to briefly return to the topic of how the meeting tends to affect the stock market from a statistical perspective. As long time readers may recall, the typical performance of the stock market in the trading days immediately ahead of FOMC announcements was quite remarkable in recent decades. We are referring to the Seaonax event study of the average (or seasonal) performance across a very large...
  • The Party of Spend More vs. the Party of Tax Less
      Eternal Spendathon The Senate just passed a 500-page tax reform bill. Assuming it lives up to its promise, it will cut taxes on corporations and individuals. Predictably, the Left hates it and the Right loves it. I am writing to argue why the Right should hate it (no, not for the reason the Left does, a desire to get the rich).   The Federal debtberg has grown beyond all measure since Nixon's gold default. So has the money supply and the amount of private debt. No-one...
  • The Santa Claus Rally is Especially Pronounced in the DAX
      The Gift that Keeps on Giving Every year a certain stock market phenomenon is said to recur, anticipated with excitement by investors: the Santa Claus rally. It is held that stock prices typically rise quite frequently and particularly strongly just before the turn of the year.   Unbeknown to many, Santa Claus paid a high price for enriching investors [PT]   I want to show you the Santa Claus rally in the German DAX Index as an example. Price moves are often...
  • Heaven Forbid Peace Should Break Out Between the US and North Korea!
      Rude Interruptions As long as the US Empire can be funded and maintained on the backs of its taxpaying public, the chance of a deescalation of tensions not only on the Korean peninsula, but throughout the world are practically nil.  And as long as the nation’s current interventionist ideology holds sway, it will only be through a financial meltdown that the role of the US as global policeman will come to a much-needed end.   Hamhung, North Korea, June 30, 1950; an example...

Support Acting Man

Top10BestPro
j9TJzzN

Austrian Theory and Investment

Archive

350x200

THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Realtime Charts

 

Gold in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Gold in EUR:

[Most Recent Quotes from www.kitco.com]

 


 

Silver in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Platinum in USD:

[Most Recent Quotes from www.kitco.com]

 


 

USD - Index:

[Most Recent USD from www.kitco.com]

 

 
Buy Silver Now!
 
Buy Gold Now!
 

Oilprice.com