Economics

I was listening to some podcasts earlier this week and truly got to thinking about the modern day student. In today's day and age, no one - I mean no one - is taught economics.

Its a sad day when you realize that everything around you is falling apart and no one else can see it. As a 25 year old, fully employed, breadwinner I am deeply concerned of the ignorance writ large known as society. People walk around everyday with several thousands of dollars in credit card debt/student loan debt/car debt/home debt and have no real grasp of the consequences of those debt. The debt has to be paid off and until then is an incredible liability on the part of the holder of that debt. For example, most would argue that if someone used card to pay for gas once a month and paid it off at the end of the month would be acting responsible vis a vis the individual's personal debt situation. This is not how our modern society approaches this aspect of financial life.

Instead of the gas in your car, imagine it is now thousands of dollars in Student loan debt for a degree that, on the aggregate, is not fit for the skills one needs in order to pay of that debt in a timely manner. For example, my own personal degree choice - Criminal Justice - gave me several options after graduation to pursue a plethora of career options that are specific to that field. Careers in Law, Law Enforcement, Public Service, Corrections offer salaries that would allow an individual that would pay off student loan debt in that field in a relatively short amount of time. However, the personal responsibility of the individual to pay off that debt is the biggest factor in whether or not that individual will succeed financially in life.

At no point should someone take out $100,000 in student loan debt to enter the education sector (especially the public education sector) of the economy and then spend every last earning dollar they make to pay for rent, gas and food. If your outstanding debt liability is only getting paid by the minimum payment factor of your net take home salary then you will be a debt slave for the rest of your life This is exactly how most of the country is living and it will ultimately be the downfall of society in this country when the "student loan" bubble pops and deflates quickly.

This is exactly what goes on today in many young people's financial lives and it is difficult for them to do anything about it when there is no consequence for these actions. The federal government treats debt the same way and continues to foster an environment that encourages malinvestment with little to no consequence. The moral hazard of companies to continue with terrible business practices has fallen to blame at the heels of the federal government and the Federal Reserve. But for the Fed's loose monetary/injection heavy policies, the economy would experience appropriate corrections in sectors that have had bad investments - including but not limited to education.

I am all for people pursuing their dreams when it comes to their career. Every individual that wants to be a dancer, an artist, a social worker, a police officer, a teacher, a mechanic, et al. should go for it. However, there are consequences for every action individuals make in their lives. Not everyone can be a dancer. Not everyone can play in the NFL. Not everyone can be a teacher. Have something to fall back on and learn economics for your own sake, because if you don't the government wont be there to save you - you're not connected like the banks are.