Earnings gap between young adults with and without college degrees at widest level in 48 years

[akphidelt]

As this country becomes more advanced, we will need a more specialized and intelligent work force. Data has been showing for years that education pays in America and there is a growing problem with uneducated, unskilled laborers. Too many with not enough jobs. One way you can put them to work is through infrastructure development projects or other public sector jobs. The fact we are cutting jobs in the public sector during bad economic times is ridiculous. Apparently our current Congress didn't learn anything in college because no one with even the tiniest level of economic knowledge would support our current policies. In fact, adults over the age of 25 with a bachelors degree or higher have a 4% unemployment rate. The government needs to look at the past and continue doing what worked for the past century. Hire people to build America. Everything would be solved. Obstruct and blame is their new motto!!

WASHINGTON (AP) -- The earnings gap between young adults with and without bachelor's degrees has stretched to its widest level in nearly half a century. It's a sign of the growing value of a college education despite rising tuition costs, according to an analysis of census data released Tuesday.
Young adults with just a high-school diploma earned 62 percent of the typical salary of college graduates. That's down from 81 percent in 1965, the earliest year for which comparable data are available.


The analysis by the Pew Research Center shows the increasing economic difficulties for young adults who lack a bachelor's degree in today's economy that's polarized between high- and low-wage work. As a whole, high-school graduates were more likely to live in poverty and be dissatisfied with their jobs, if not unemployed.


In contrast, roughly nine in 10 college graduates ages 25 to 32 said that their bachelor's degree had paid off or will pay off in the future, according to Pew's separate polling conducted last year. Even among the two-thirds of young adults who borrowed money for college, about 86 percent said their degrees have been, or will be, worth it.


"In today's knowledge-based economy, the only thing more expensive than getting a college education is not getting one," said Paul Taylor, Pew's executive vice president and co-author of the report. "Young adults see significant economic gains from getting a college degree regardless of the level of student debt they have taken on."


The latest findings come amid rising college tuition costs, which have saddled young adults in the so-called Millennial generation with heavy debt amid high unemployment. Noting the increasing importance of a college education, President Barack Obama and Republicans such as Sen. Marco Rubio of Florida have pushed proposals to make higher education more affordable as a way to promote upward mobility and bolster America's shrinking middle class.


The report found that not only does a college degree typically yield much more inflation-adjusted earnings than before, but a high-school diploma also is now worth less. That adds to a widening earnings gap that Pew researchers found mirrors the U.S. gap between rich and poor.


For instance, college graduates ages 25 to 32 who were working full time now typically earn about $17,500 more annually than employed young adults with just a high school diploma ($45,500 vs. $28,000); those with a two-year degree or some college training earned $30,000. In 1965, before globalization and automation wiped out many middle-class jobs in areas such as manufacturing, the inflation-adjusted gap was just $7,449.
Meanwhile, median earnings for high-school graduates have fallen more than $3,000, from $31,384 in 1965 to $28,000 last year.
Young adults with just high-school diplomas now are also much more likely to live in poverty, at 22 percent compared to 7 percent for their counterparts in 1979.


"Despite their higher levels of college completion, today's young adults overall are doing no better — and on many key indicators of economic well-being, they're doing worse — than older generations were doing when they were the same age that Millennials are now," Taylor said. "This is mainly because the economic penalties for not getting a college degree are so much stiffer now than in the past."

http://finance.yahoo.com/news/widest-earnings-gap-college-grads-172803584.html

 

[russ1945]

You really are a moron. How many of them are working at jobs below their abililty and educational levels. So you envision a top heavy economy where nobody produces I guess. How many of them are saddled with ungodly student loans to pay back. You need workers at all levels and the loss of jobs since Obama came into office tell us all we need to know. How many of them still live at home. lol

 

[russ1945]

[h=1]The Unspoken Cause Of The Student Loan Crisis[/h]


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U.S. President Barack Obama shakes hands with university and college students after urging Congress to pass legislation that would keep federal student loan rates from doubling. (Image credit: Getty Images via @daylife)


As student loans have soared to $1 trillion in the U.S. and created a crisis, people miss a key point about the cause and, thus, the solution: Much of the reason that half those loans aren’t currently being repaid is because student loans are made without regard to the creditworthiness of the borrower.
If a student intends to be an engineer and has the grades in math and science to suggest she can do so, she is an excellent credit risk. Engineers are very likely to be hired right out of college, to command premium salaries and to see their incomes increase steadily through their careers. Someone majoring in fine arts is not nearly as good a credit risk. Jobs are simply harder to come by and don’t pay as well.
Move up http://i.forbesimg.com t Move down
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Yet students majoring in highly coveted STEM disciplines (science, technology, engineering and mathematics) are evaluated in the same way as those focusing on fine arts, history, English, social work, etc. when loans are awarded.
When a couple applies for a mortgage, they face considerable scrutiny about their ability to repay the loan, and rightly so. In the early to mid-2000s, lenders got so caught up in the housing bubble that they basically assumed that everyone would be able to repay, and look what happened when they relaxed their underwriting standards: Millions defaulted on mortgages, and the country is still digging its way out from under the mess.
The discipline that has returned to mortgages needs to be brought to student loans. Those applying must be evaluated partly based on their majors.
That statement surely sounds harsh to some. College is seen as a good thing for all, a time for young people to mature and a means for getting a leg up in an economy that increasingly values education. So, the goal of national policies, including those related to student loans, has been to help as many people as possible earn college degrees.
But facts are stubborn things, and the fact is that students in certain majors will have a hard time paying off their loans. Some majors lead to jobs with starting salaries of $98,000 a year. Some lead to starting salaries of $20,000. The loans needed to earn a degree at a private institution costing more than $50,000 a year don’t fit a social worker’s salary.
Obviously, if people don’t need loans, then they can major in whatever they want—and the likely salary upon graduation shouldn’t be the only criterion for picking a major. The world needs people with the kinds of skills that humanities majors develop. The world needs social workers, too. In fact, government might decide that some of those going into social work should have their educations subsidized so that they can start their careers with little or no debt—but any subsidies should be explicit, not mixed in with policies in lending.
As a society, we actually aren’t doing students a favor if we grant them loans they can’t repay. A typical student amasses $27,000 in debt in college, and it isn’t possible to walk away from a student loan even in dire circumstances, as it is with other consumer debt. With student loans, the government can garnish wages to force repayment, so students may be saddled with debts that last a lifetime. Meanwhile, the lack of discrimination in handing out loans has created an enormous risk for the federal government, which either grants the loans or guarantees them.
President Obama recently announced policies on college education that, among other things, try to help students make better choices by rating the colleges that they might attend, but we also need to change the process of granting loans to help ensure that students can afford them.

 

[russ1945]

So many of these graduates you are referring to are deeply in debt and now with the new health care law may get reduced hours or lose their jobs completely. Some may have mortgages in addition to student loans and could face a real crisis and defaults could increase across the board. As far as skills go what is your skill Aktard, trolling.

 

[Acebb]

Hire people to build America. Everything would be solved.

Nothing says "everything would be solved" like a temporary infrastructure building job.

You obviously have no capacity for embarrassment.

Oh, and yes, income inequality has skyrocketed under Obama.

You voted for this.

Great thread,
Idiot.

 

[russ1945]

[h=3]Educational Financing[/h]
[h=1]Student Loans Are Becoming a Drag on the US Economy[/h]The CFPB's student loan ombudsman draws parallels with mortgage crisis and says student debt is hurting the housing market and the economy.
By Dan Kadlec @dankadlecOct. 18, 2013

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The housing recovery remains on track. But high levels of student debt threaten to hang over the residential real estate market for many years, acting as a drag on both household formation and higher prices.
At the height of the housing boom, the U.S. was producing 1.4 million additional households every year. That figure plunged to 500,000 in the Great Recession. The number of new households is expanding again but remains stuck at 700,000—half the peak level. One big reason is underemployed new college graduates struggling with student debt and unable to contribute to the economy.
“Three-fourths of the fall in household formation can be directly correlated to student debt,” Rohit Chopra, student loan ombudsman at the Consumer Financial Protection Bureau, said at a conference last week. His comments were reported on Mainstreet.com.
Chopra said he was seeing signs of far-reaching economic drag due to student indebtedness but that “the impact on the housing market is the most troubling part.” Many recent graduates don’t have the disposable income or the credit score needed to buy a house, Chopra said. So they boomerang back home.
(MORE: Lenovo Is the Only Company With a Chance of Saving Blackberry)
Student loans now top $1 trillion, and 81% of the most burdened borrowers—those with more than $40,000 of student debt—have private loans with interest rates of 8% or higher, according to the CFPB. Unlike federal student loans, private loans not only cost more they offer less repayment flexibility and typically cannot be discharged in bankruptcy. Almost all student debt is difficult, if not impossible, to refinance—sticking borrowers with high rates in a low-rate environment and adding to the economic drag.
In the ombudsman’s annual report, released Wednesday, Chopra detailed the problems that borrowers have trying to pay down their private loans, and how a seemingly intentionally confusing system often holds borrowers hostage. In the end this takes a toll on their credit score—and on their ability to buy a home or anything else with borrowed money.
“Repaying a student loan should be simple,” CFPB director Richard Cordray said in a statement. “When servicers process payments to maximize fees and penalties they undermine the trust of their customers. Student loan borrowers deserve better; they deserve transparency and accountability.”
(MORE: S&P 500 Hits Record High After Debt Ceiling Deal)
In the report, Chopra drew ominous comparisons between student debt today and mortgage debt before the housing collapse:

Many of the private student loan complaints mirror the problems heard from consumers in the mortgage market following the wake of the financial crisis…Consumers had difficulty refinancing their mortgages or had problems obtaining a modification of mortgage terms. Improper payment processing sometimes led to improper foreclosure…The similarity between private student loan complaints and problems uncovered in the mortgage servicing industry suggests that many student loan servicers are not taking proactive steps to avoid a similar breakdown.
​

Little wonder that some have called student loans the next debt bubble. That may or may not be the case. But it seems clear that student debt, and the obstacles to managing it well at the borrower level, will be a drag on the housing recovery and the economy for years to come.



Read more: Student Loans Are Becoming a Drag on the US Economy | TIME.com http://business.time.com/2013/10/18...oming-a-drag-on-the-us-economy/#ixzz2t2ogxJLv​

 

[russ1945]

from the above:Chopra said he was seeing signs of far-reaching economic drag due to student indebtedness but that “the impact on the housing market is the most troubling part.” Many recent graduates don’t have the disposable income or the credit score needed to buy a house, Chopra said. So they boomerang back home.

 

[SheriffJoe]

"One way you can put them to work is through infrastructure development projects or other public sector jobs" - fratfraud

 

[Dave007inVegas]

Hey AK, how's this thread working out for you? Slapping-silly90))




:hahahahah

 

[SheriffJoe]

Obamacare, Obamanomics ‘stimulus’ for parent move-ins with kids

By: Mike gamecock DeVine (Diary) | November 5th, 2013 at 11:54 AM | 1

RESIZE:AAA​

The only “work” stimulated for non-government union employees by President Obama’s 2009 “stimulus” bill was for U-Haul to move adult children’s furniture back to their parents’ homes.

Obamacare will force children lucky enough to have full-time jobs to rent Ryder trucks to transport mom and dad’s stuff to their abodes. Maybe President Barack Obama would consider issuing an executive order allowing adults to stay on their children’s employer-mandated insurance until a death panel deems them no longer insurable by Obamacare standards?

Full disclosure, when I was a young child in the early 1970s, my great-grandmother permanently resided with my maternal grandmother and my great aunt frequently resided with my paternal grandmother. Those experiences coupled with my revulsion at an all-encompassing cradle-to-grave had long caused me to bemoan the increasingly early placement of the elderly in the care of the state.

But that revulsion was borne of a highly taxed affluent society that seemed to have farmed out charity to a government monopoly. I’ll never forget an immediately regrettable statement I made to a United Way fundraiser that came to my law office soon after I had finished law school. I told them that I have already “given” to the IRS. My shame as soon as the young volunteer left my office inspired me to get personally and financially involved in the Homeless Shelter near my office as well as the charitable activities of my church.

But what we have been seeing as a result of Obamanomics is borne of the ongoing, five-year jobs and wealth-destruction depression, even if the Fed money-machine keeps GDP a pulse within the “official” definition of a “recovery”.

The lives of the young have continue to be destroyed, or at best, put on hold, thanks to government policies that declare wars on coal, other forms of cheap middle-class enabling energy, and full-time job creation; thanks to the paternalistic Obama Democrats that know best what insurance policies should cover and what economic activities best protect polar bears in the Arctic.

Robert Samuelson rightly points out that many transfers of what wealth is left for Obama to spread around, under current law have generally favored the elderly:

Two analysts at the Federal Reserve Bank of St. Louis have produced an important study that should (but probably won’t) alter the climate for Washington’s stalemated budget debate. The study demolishes the widespread notion that older Americans need exceptional protection against spending cuts because they’re poorer and more vulnerable than everyone else. Coupled with the elderly’s voting power, this perception has intimidated both parties and put Social Security and Medicare, which dominate federal spending, off-limits to any serious discussion or change.

It has long been obvious that the 65-and-over population doesn’t fit the Depression-era stereotype of being uniformly poor, sickly and helpless. Like under-65 Americans, those 65 and over are diverse. Some are poor, sickly and dependent. Many more are financially comfortable (or rich), in reasonably good health and more self-reliant than not. With life expectancy of 19 years at age 65, most face many years of government-subsidized retirement. The stereotype survives because it’s politically useful. It protects those subsidies. It discourages us from asking: Are they all desirable or deserved? For whom? At what age?


​

But a funny thing happened on the way to “affordable” health care. Medicare got robbed, and now regulated via Obamacare’s full implementation so that the America Dream of a secure and independent retirement may soon turn into the nightmare that liberal Democrats made of “affordable” housing. The elderly are among those having, not just losing Medicare Advantage thanks to Obamacare, but also individual policies for those not eligible, or able to afford, to retire:

America can’t afford much more affordability schemes that are mainly jobs programs for government bureaucrats. But at least with Mama in the house, the meals taste better?

“One man with courage makes a majority.” – Andrew Jackson

 

[akphidelt]

Hey AK, how's this thread working out for you? Slapping-silly90))




:hahahahah

Working out just as planned. Acebb, Russ, and Joe trying to spin basic facts! Hilarious!!

 

[SheriffJoe]

The legacy of Obamanomics/fratfraud-o-nomics: Moving back home with Mommy and Daddy

No surprise a beta male like fratfraud craves even more Nanny State Big Government!

 

[akphidelt]

You really are a moron. How many of them are working at jobs below their abililty and educational levels. So you envision a top heavy economy where nobody produces I guess. How many of them are saddled with ungodly student loans to pay back. You need workers at all levels and the loss of jobs since Obama came into office tell us all we need to know. How many of them still live at home. lol

Facts don't lie... only conservatives do.

 

[akphidelt]

Hire people to build America. Everything would be solved.

Nothing says "everything would be solved" like a temporary infrastructure building job.

You obviously have no capacity for embarrassment.

Oh, and yes, income inequality has skyrocketed under Obama.

You voted for this.

Great thread,
Idiot.

Obstruct and blame!! You're really dumb. That's why you are besties with Sheriff Joe and Russ. I'd give up on life if I thought like those two clowns, lol. And now you got Dave cheerleading for you too! Hahahaha, it's hilarious how you can't comprehend how dumb you guys really are when it comes to the real world.

 

[akphidelt]

So many of these graduates you are referring to are deeply in debt and now with the new health care law may get reduced hours or lose their jobs completely. Some may have mortgages in addition to student loans and could face a real crisis and defaults could increase across the board. As far as skills go what is your skill Aktard, trolling.

Facts don't lie. Educated people have more job opportunities, much less unemployment, and make more money. Having to take on student loans to achieve that is better than the cost of not getting an education. And this is according to the facts, not my opinion. You guys are nothing but conjecture... completely disconnected from reality.

 

[SheriffJoe]

Facts don't lie... only conservatives do.

Half of college grads are currently working jobs that don't even require a degree and even a greater number aren't working in their chosen field. In this socialist economy (Obamanomics/fratfraud-o-nomics) the jobs simply aren't there.

You just don't get it...it's all theoretical Big Government bullshit with you 24/7.

 

[akphidelt]

Half of college grads are currently working jobs that don't even require a degree and even a greater number aren't working in their chosen field. In this socialist economy (Obamanomics/fratfraud-o-nomics) the jobs simply aren't there.

You just don't get it...it's all theoretical Big Government bullshit with you 24/7.

Facts don't lie, only conservatives do. And you just make shit up, it's hilarious.

 

[Acebb]

Obstruct and blame!! You're really dumb. That's why you are besties with Sheriff Joe and Russ. I'd give up on life if I thought like those two clowns, lol. And now you got Dave cheerleading for you too! Hahahaha, it's hilarious how you can't comprehend how dumb you guys really are when it comes to the real world.

I'm not "obstructing" anything and am not blaming anything other than President Obama.

You voted for this.

You've never held a real job. You don't have the foggiest clue about 'the real world'

Which leads to silly, idiotic posts such as this thread.

 

[Acebb]

The fact we are cutting jobs in the public sector during bad economic times is ridiculous.



The fact that you think public sector hiring would do anything for America's economy speaks volumes.

Look, you're a dumb little kid who says dumb little things on the Internet. Everyone reading knows this.

You don't have to pretend that you have any sort of knowledge on this topic.

It is ok.

Really.

 

[SheriffJoe]

Facts don't lie, only conservatives do. And you just make shit up, it's hilarious.