Market failure? Why do we have so many overeducated people?

By David McElroy · October 19, 2011

We see plenty of unemployed people with advanced educational degrees today. Want to meet someone with a master’s in English or art? Check behind the counter at Starbuck’s. Those people are pretty angry.

On the other hand, we have companies begging for highly skilled workers who are nowhere to be found. Why is there such a disconnect between what people are trained for and what the market needs?

Some would say it’s a market failure and that we need some kind of system to co-ordinate job training and education. Instead, it’s what happens when you let government rig the incentive structure, even with the best of intentions.

For something like 60 years, government has made it easy to go to college and has taught people that a college degree is the ticket to a good life. Going to college to get an undergraduate degree (or more) has been subsidized and propagandized, so that’s what people do — far out of proportion to its necessity.

College has become a glorified trade school with a more professional veneer. Many of the people there should have been in trade school instead, so we dumb college down to keep from flunking out too many people. (Or we send them to learn out to make bulletin boards in education majors, if you’ll forgive me for bringing up one of my favorite whipping boys.) We then have too many college graduates, so what do employers do? They raise the requirements for jobs. Those that might have once required a high school diploma now require an undergrad degree. Jobs that might have once required a bachelor’s now require a master’s. And so forth. It’s crazy.

If government will quit rigging the incentives to get people to go to college — and quit pretending that the vast majority of people would be better off going going that route — the market will even out the supply much more successfully. And people who now graduate with high hopes and higher student loan debts can quit piling up that huge debt and get real highly skilled jobs more quickly by learning the skills that industry needs.

But because big government thinks it knows better, we’re going to continue to have overeducated people standing on street corners and working at Starbucks — while companies needing people with entirely different skills go with jobs unfilled. And those underemployed PhDs will keep blaming Wall Street or “corporations” or “the 1 percent” or the Illuminati or whatever the favorite scapegoat of the day might be.

The imbalance between education and skills needed in the workplace isn’t a market failure. It’s another failure of top-down thinking brought to us by the good intentions of the coercive state.

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If you have problems with high blood pressure, I’d like to encourage you to consider making serious changes to your diet. There might be some people who don’t have any choice but to start taking prescription medications for high blood pressure, but I’d like to tell you that I have completely eliminated my issue by eliminating all sugar and almost all carbohydrates. (A couple of months ago, my blood pressure hit 185/144, which was dangerously high — considered stage 3 hypertension.) By completely changing my eating habits, I’m down 22 pounds and my blood pressure is now in the “ideal” range — without taking any medication. In addition, I sleep better and I have more energy. Getting away from the sugar-laden mess that we generally refer to as “highly processed food” has been a life-changer for me. Now my challenge is to avoid slipping back into old habits — by eating in the dangerous ways that almost everyone in our society has come to see as normal.

When I first heard about this, I thought it must be satire. When I discovered it was real, I was appalled, but I still thought it must be a one-time thing from some nutty activist. But it turns out it’s the latest bit of pandering to a bunch of far-left activists who believe that a man can become a woman if he decides to claim he’s a woman. As everybody knows, men have prostate glands. Women do not. Period. End of story. Men can get prostate cancer. Women cannot. But political activists are so eager to pretend that a man claiming to be a “trans woman” is really a woman that they are insisting that “women” be included in public health messages about the issue. This is nothing but political virtue-signaling. If you’re a man, you know which parts you have. You know that you ought to be screened. Nobody is made any safer by dragging far-left gender ideology into simple medical reality.

Every time someone tries to tighten requirements around the use of absentee ballots, I hear screams from Democrats and others on the political left that such efforts are nothing but “suppression of black voters.” These protests have never made sense to me, especially because it’s never been a secret that absentee ballot fraud goes on all the time in certain areas. (Everybody knew it when I worked in politics.) The people who engage in such fraud are rarely caught — often because the local political establishment approves of the crime — but a Democrat who won a primary election in Clay County, Alabama, last year has pleaded guilty to this sort of cheating. Terry Andrew Heflin was running for a place on the Clay County Commission. He was caught ordering seven absentee ballots in the names of various voters and sending them to his post office box — after which he used the ballots to vote absentee for himself seven time. Did he have other people cast additional fraudulent ballots? We’ll never know. But in a primary in which he was able to win with only 141 votes, it wouldn’t take many fraudulent votes to change the election. The next time you hear “civil rights activists” claim that it’s just “voter suppression” to hurt blacks which is at the root of efforts to stop this fraud, remember Terry Heflin. If you care about fair and honest elections, ballot security and voter identity should matter to you.

A state legislator in Maine has been stripped of the ability to speak in the state Legislature — and her votes are not being counted on legislative issues — all because she made a truthful social media post. Rep. Laurel Libby (R-Auburn, Maine) opposes allowing boys to compete against girls’ teams in school athletics and she’s become known for making an issue of it. On Feb. 17, she posted on Facebook about a recent example that she found outrageous. She posted side-by-side photos of a boy named John who competed last year in a state track event and won fifth place against other boys two years ago — and a photo of the same boy (now called Katie) who won first place in the same event this year against girls. Whether you find this outrageous or not, Libby is clearly being honest and truthful about the objective facts of an issue of public importance. But the state Legislature censured her. Democrats decreed that she could not speak in the House and that her votes would not count on legislation — until she apologized for the outrage of telling the truth. She refused and her constituents have been unrepresented in the state House since then. The people who promote this ideology are out of touch with reality and won’t rest until they force the rest of us to join them in this delusion. But even if you agree with “trans” ideology, you should be appalled at this heavy-handed attack on political speech.

The late Steve Jobs was at the center of our culture’s transition from analog to digital. He co-founded Apple Computer. He led the team that revolutionized personal computing with the first Macintosh. As CEO of Apple, he led the development of the iPhone and later the iPad. You would think the children of such a man would be surrounded by technology. But Jobs and his wife Laureen didn’t let their children use iPads. Their home had few screens of any kind. Even though Jobs spent most of his time developing and selling Macs and iPhones and iPads, he was home with his wife and children for dinner when he was in town. The family ate together at a simple wooden table in their kitchen — and there were no digital devices or focus on popular culture. Instead, he’s said to have guided his family toward deep discussions of art, philosophy and education — with no iPads to be found. If the man who guided the development of such products chose a different path for his own children, does that suggest that his digital experience taught him that children need human connection, not screens? And does it suggest the possibility that we might be better off if we made the same choice for our families?

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