Recently I wrote to Senator Elizabeth Warren, thanking her for her efforts to keep the student loan interest rates as low as possible. It is a very important effort and we hope the senator will succeed.
But, I need to call to attention to an equally if not more serious issue (i.e.) the kids who borrow money and go to college, do not have enough jobs when they get off school. This is not just a matter of bad economy. It is a serious evolution happening world wide. We call this as the Binary Economy as outlined in my recent book. Please see the materials attached.
THRIVING IN THE 21ST CENTURY ECONOMY.FA_Subbu&Srini_Foreward plu Intro.
What we need are initiatives to create new STEM jobs and in large numbers. While this happens, the students should be smart to create their own jobs as outlined in our book, through Transformational Skills.
Industry will create such STEM jobs only when they need them and they can create most of what they need outside of USA (at lower cost). What we need are initiatives to create new STEM jobs, inside the USA, simply because they are needed to employ all our kids who graduate from colleges. We need Wind, Solar and PV and other jobs not because they will be economical some day – which is for the industry to start out – but simply because we need STEM educated kids to go to a job, have decent living and and pay off their student loans. Same goes for oil and natural gas jobs, High Speed Trains, Improved Infrastructure, Space Exploration, Medical Research, etc.
Government can not and should not choose the side among companies or industries. But, Government MUST choose side with educated kids and their long term living standards, since they are the future of the nation.
So, while the senators and congress fight for keeping the loan interest at low level, they are also required to fight for STEM jobs, so that the educated kids pay off the very same loans. Otherwise it is better to let them not borrow so much money, since they will only find low wage jobs with which they will be burdened with their loans for their life time.
Please don’t get me wrong. I want low interest student loans for education. But, we will be doing disservice to these kids showing them a rosy path, if we don’t create the necessary jobs available at the end of the tunnel.
Until that day comes, it will be smarter for the students to learn the Transformational Skills and for the parents help them with such education, to chart their own path for jobs and careers and avoid the pitfall of large student loans for an education that does not and will not get them decent jobs.