Image Image Image Image Image Image Image Image Image Image

Affluent Investor | March 28, 2017

Scroll to top

Top

One Comment

Teaching Economic Dynamism

STEM education 2

Business leaders often argue that the widening education gap – the disparity between what young people learn and the skills that the job market demands – is a leading contributor to high unemployment and slow growth in many countries. For their part, governments seem convinced that the best way to close the gap is to increase the number of students pursuing degrees in the so-called “STEM” subjects (science, technology, engineering, and mathematics). Are they right?

The short answer is no. Indeed, the two main arguments underpinning claims that inadequate education is to blame for poor economic performance are weak, at best.

The first argument is that the lack of appropriately skilled workers is preventing companies from investing in more advanced equipment. But that is not how economic development usually works. Instead, firms begin to invest, and either workers respond to the possibility of higher wages by acquiring (at their own cost) the required skills, or firms provide their current and future employees with the relevant training.

Article originally published on Project Syndicate. Continue reading here.

Become An Insider!

Sign up for Affluent Investor's free email newsletter and receive Jerry Bowyer's Special Report, "How to Be an Affluent Investor in the Age of Obama & Ineffectual Republican Opposition."



  • JT1964

    I don’t agree. While the humanities are nice and fuzzy and embellish on philosophy, the ability to “create” is rooted in physics and learned practical experience. Only those who understand dynamics of properties of materials are able to build things for the common world. 2 year “tech” degrees are far more valuable than liberal arts degrees because the person is able to use the technology available and understand, at least on a basic level, why it works the way that it does. These people are marketable to a far greater extent, will have many more job opportunities and will invent usable products at a much greater frequency than those with “liberal arts” training. Therefore, science, technology, engineering and math based education will offer a significantly brighter employment future for the individual and many more usable inventions for society in the future.

The Affluent Mix

Become An Insider!

Sign up for Affluent Investor's free email newsletter and receive Jerry Bowyer's Special Report, "How to Be an Affluent Investor in the Age of Obama & Ineffectual Republican Opposition."