In the modern economy, you need access to a high-paying career path in order to have economic security ( http://intellectual-detox.com/2013/01/20/economic-classes/ ). College provides the social network, acculturation, and signaling that make it much more likely to gain access to such career paths. A good college is a college that has the best reputation and attracts the smartest and most savvy fellow students. Everyone has an incentive to attend a college with an existing reputation and students bid up the prices for these limited slots.
Also, colleges can pursue perfect price discrimination. The sticker price is set very high to extract the most money from those who can easily pay. The price is discounted based on ability to pay.
Why does formal education exist at all?
Well, originally, books were really expensive, thus self-teaching was hard, so the most cost-effective way to learn was from a lecture or a teacher with a slate board.
Currently, it exists because the formal education system teaches everyone that the formal education system is very important, that economic growth and our national competitiveness depend on more and more people going to college. People believe this myth, and then vote for politicians who sustain the institutions.
> Currently, it exists because the formal education system teaches everyone that the formal education system is very important, that economic growth and our national competitiveness depend on more and more people going to college. People believe this myth, and then vote for politicians who sustain the institutions.
It also exists because the gatekeepers for many professions require it. In many cases, they require multiple levels of it.
This problem keeps getting worse, too. For instance, NCEES guidelines require an accredited engineering Bachelors degree for a PE; they want to add mandatory post-Bachelors education to the licensure requirement because they feel engineering Bachelors degrees are too short.
Getting a PE also requires several years of experience working under the guidance of an existing PE. Maintaining a PE further requires continuing education.
Is anyone talking about post-graduate education requirements for the FE?
In the modern economy, you need access to a high-paying career path in order to have economic security ( http://intellectual-detox.com/2013/01/20/economic-classes/ ). College provides the social network, acculturation, and signaling that make it much more likely to gain access to such career paths. A good college is a college that has the best reputation and attracts the smartest and most savvy fellow students. Everyone has an incentive to attend a college with an existing reputation and students bid up the prices for these limited slots.
Also, colleges can pursue perfect price discrimination. The sticker price is set very high to extract the most money from those who can easily pay. The price is discounted based on ability to pay.
Why does formal education exist at all?
Well, originally, books were really expensive, thus self-teaching was hard, so the most cost-effective way to learn was from a lecture or a teacher with a slate board.
Currently, it exists because the formal education system teaches everyone that the formal education system is very important, that economic growth and our national competitiveness depend on more and more people going to college. People believe this myth, and then vote for politicians who sustain the institutions.