Friday, January 3, 2014

PART 6: The Decline of U.S. Education and the Middle Class

PART 6: The Decline of U.S. Education and the Middle Class



By Allen Stansbury, Senior Associate, Center for Community Futures, Berkeley, CA
 
During most of the 20th Century both public and private institutions have flourished, helping the United States to achieve the highest level of participation in postsecondary education in the world for most of the twentieth century.

Elementary and secondary education served as the cornerstone of the US middle class. Nearly 50 years ago education experts and poverty advocates successfully argued that pre-school programs, such as Head Start were necessary to enable children of low-income families to successfully participate with others in public schools. High schools provided a basis for vocational education; as a smaller number of students were planning for college, college prep was then the alternative instead of the norm.  Then, much of the public colleges and universities were heavily subsidized.  Voters and their elected representatives, legislators, governors or presidents, knew full well that this was a powerful investment in the country’s future where returns would be many times its cost.  Part of that return would mean a very stable society one that could be built upon and serve as the foundation of the US Middle Class.

Heretofore, one of the keys to a middle class income was a bachelor’s degree and for many a masters, MBA or other graduate degree. Obtaining a degree was once considerable affordable and few student loans were taken out.

Today, public education has taken a huge hit in a variety ways. With the current state budget limitations on education, few high schools can afford to offer an extensive vocational program and many school districts have had to cut back on their advance college prep courses.   

This is no longer the case. The global recession has necessitated lower state subsidies to their public universities and raising tuition. Simultaneously there has been a severe cut back in classes and instructors.  Instead of four years to graduate, students are finding that it takes five or more years for a BA.  A typical top-tier U.S. liberal arts college costs about $55,000 to $60,000 a year, including room and board well beyond reach of today’s middle class family.[1] 

Not only has a four-year degree become very expensive, most of the expense must be covered by a student loan. Over $1 trillion is now owed in student loans. Still worse, these loans can never be forgiven (i.e. discharged through bankruptcy).  This means in a bad economy the middle class graduate is driven further into poverty having to repay a loan on a minimum wage job. 

In 2010 about 40 million American adults lack higher education. Many graduates at the start of the global recession are mostly:
·        Under employed, holding part time jobs,
·        Hold jobs that did not reflected their education background
·        Or, employed at levels that those without degrees would normally be doing

Without the necessary income normally found in the American middle class of the 20th Century achieved with higher education, the 21st century graduate (along with their education loan burden) has found that they have become a segment of the US working poor.

Please go to the website Center for Community Futures to obtain a downloadable PDF file that provides technical details on the decline of US education that supported by various charts, tables and research.  


[1] Many are finding that the best alternative is to attend European universities where they cost less than half (see http://www.latimes.com/opinion/commentary/la-oe-rosen-americans-foreign-colleges-20130820,0,7321491.story)

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