In my last post, I warned that the stranglehold of public sector unions has caused property taxes to skyrocket, so that there can be no recovery from the housing bubble until all public sector unions are gone. I also have warned, more than once, about the imminent bursting of the college tuition bubble.
What we call the American educational system, at all levels, is a bubble that is in the process of bursting. Government-run or government-funded schools are an expensive form of indoctrination. In addition, unionized and/or tenured employees of the educational system form a major part of the protected class of apparatchiki who are enslaving and looting the rest of us.
Our “educational” system has also created a new class of radicalized who think they have an “education” but who have no prospects in what little is left of the US economy. Too many of those students who have been thoroughly indoctrinated by this failed system, and who have nothing to show for it but a crushing burden of debt, have been recruited into the “Occupy” movement. It’s a handy form of scapegoating, in that the unions, the DNC, the socialist academics, and the other nefarious organizations who are funding and running and promoting the “Occupy” movement are largely to blame for leading these students into their current predicament.
As an aside, Zombie and many PJM commenters have created an official, comprehensive list of all “Occupy”/99% supporters. Those on the list are our enemies, one and all, and I don’t care who they think they are.
What will be the upshot when the bubble finally collapses? The article excerpted below is well worth reading in its entirety.
Flip through enough of the 99 percent signs and you realize that the majority of that demographic aren’t complaining about the lack of financial regulation or income inequalities, so much as they’re upset that they took on loans to pay for college degrees to get jobs that don’t actually exist.
The fault here isn’t Wall Street’s, it’s a policymaking apparatus that decided the way to deal with the loss of manufacturing jobs was to get as many college graduates out there as possible to create the industries of tomorrow.
This was Clinton’s platform and it’s Obama’s “Winning the Future” platform, pump enough money into education and the jobs will create themselves. The Dot Com boom in the nineties seemed to back up that policy with entirely new companies springing to life with valuations in the hundreds of millions and twenty somethings at the helm. But a good deal of those companies were nothing more than the foam on another bubble– and more problematically the cream of the tech companies were created by college dropouts. Even more problematically, the tech companies liked to save money by importing Chinese and Pakistani employees on H1-B visas as cheap labor, while their lobbies insisted that this would protect “American” innovation.
But the real problem was that swapping manufacturing for college degree jobs solved nothing. American companies that manufacture anything become the tip of an outsourced iceberg. All the companies with the shiny logos depend on Chinese manufacturing and raw materials. They can’t create anything that the People’s Republic of China can’t take away from them when the time is right.
American companies aren’t outsourcing labor to China, China is outsourcing design and marketing to them and allowing them to serve as middlemen between Chinese manufacturers and American consumers, until a Chinese company decides to buy their product unit or its reverse engineered copies of their products are good enough that they invest the money in a marketing campaign to establish their own trusted brand.
The system would rather have 10,000 subsidized jobs that it creates than 10,000,000 jobs in the free market. It would rather have a middle class of 5 million college graduates, (40 percent of them government employees), than have a free market middle class of a 100 million, (only 30 percent of them college graduates and less than 0.5 percent of them government employees.) And it would rather have an angry mob camped out near Wall Street, than have a viable economy.
The educational bubble isn’t creating a new Middle Class that will keep social security viable, it is creating dissatisfied people who feel that they are entitled to better and don’t know who to blame. Like the rest of the government, the education bubble is too big to fail, which means that by the time it fails, so will the whole country.