Quote:
Originally Posted by ZenGum
There does indeed come a point where an economy has enough accountants and engineers, and just needs someone to drive the cabs and mop the floors.
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An OECD economy needs about 6% of their graduates in engineering. The US graduates about 3%. Meanwhile we have too many accountant and business school graduates. People educated in things that are unproductive. Leaving large numbers with high degrees, large debts, and lower salaries.
We also have an unusually large glut of recently graduated lawyers (according to current hiring rates). Also in great and increasing numbers are communication majors. As if advertising or spin creates productivity and innovation.
An iconic example of someone educated in something less useful was once the English major. That resulting joke still survives today even though the problem has more educated in other disciplines.
We also know from history and from Economics 101 that more jobs are created when existing jobs are done with less people every year. A reality that contradicts a popular soundbyte.
We have an increase in people with less education among the early 20 somethings. Whereas education level of girls has increased, a massive downturn in educated boys is growing.
We also know those who most succeed and graduate are uneducated immigrants. That has always been a secret power in the American economy. Large number of uneducated immigrants coming here to be educated and succeeding is why City College of NY historically has a large (if not largest) number of Nobel Prize winners.
In 1950, we knew the future of those kids was the transistor (even though some said it was plastics). Today, we know the future lies in quantum physics. How many today are educated in those principles? To a larger extent, immigrants. Unfortunately, we also have hate of foreigners. Large numbers, educated in such sciences, must now leave due to near zero H1B visas and other 'intentional' obstructions.
We have so few educated in useful disciplines that the Silicon Valley talks about ICs. Not integrated circuits. Indian and Chinese employees.
Source of everything productive in the American economy is innovation. It cannot be measured on spread sheets. Or predicted by economists. Cannot be increased by government. But it can be subverted by politics and financial money games.