Education Bubble

This is something I bumped into this morning.

The budget for education in the United States was $972 billion in 2007, according to the 2009 Statistical Abstract of the United States — all of this money and all of these people for the promise that a life of employment success follows. Just as buying a house was the surest of investments, investing in an education is thought to be a sure bet. But the housing bubble has popped, and the education bubble is afloat, looking for a needle, according to PayPal founder and Facebook investor Peter Thiel.

"A true bubble is when something is overvalued and intensely believed," says Thiel. "Education may be the only thing people still believe in in the United States. To question education is really dangerous. It is the absolute taboo. It's like telling the world there's no Santa Claus."

In an article for TechCrunch, Sarah Lacy accentuates Thiel's point, writing, "Like the housing bubble, the education bubble is about security and insurance against the future. Both whisper a seductive promise into the ears of worried Americans: Do this and you will be safe."

Read the whole article.