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Gini coefficient and college education

darkkermit
Posts: 11,204
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3/28/2012 5:10:36 PM
Posted: 4 years ago
So, as almost everyone is well aware of, the United States has one of the highest gini coefficients in the developed world. Gini coefficient is a measure of income inequality.

However, note that income inequality does not measure wealth. There's also a large discrepency in income between college degree earners and non-college degree earners. What makes up the difference, college education isn't free or cheap in the US, so in order too make the investment worth it, the college education has to have a high rate of return and thus wages have to be higher then non-college graduates.

This accounts for some of the differences in wages, however college grads don't have too much of a difference in real income because they have to pay it in student loans and lose 4 years of potential income and job experience (from not working full time).
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darkkermit
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3/30/2012 4:31:54 PM
Posted: 4 years ago
At 3/30/2012 3:32:05 PM, FREEDO wrote:
Do you, then, advocate universal college education?

No of course not :). Who do you think you're talking to? I'm just saying it skews with the US gini coefficient to make the problem look worse then it is.
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Contra
Posts: 3,941
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3/30/2012 4:52:10 PM
Posted: 4 years ago
Would you support a program:

That gives students federally backed loans, and once the graduate lands a job, pays back the loan gradually at a rate no more than 10% of their income?
"The solution [for Republicans] is to admit that Bush was a bad president, stop this racist homophobic stuff, stop trying to give most of the tax cuts to the rich, propose a real alternative to Obamacare that actually works, and propose smart free market solutions to our economic problems." - Distraff

"Americans are better off in a dynamic, free-enterprise-based economy that fosters economic growth, opportunity and upward mobility." - Paul Ryan
darkkermit
Posts: 11,204
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3/30/2012 5:06:47 PM
Posted: 4 years ago
At 3/30/2012 4:52:10 PM, Contra wrote:
Would you support a program:

That gives students federally backed loans, and once the graduate lands a job, pays back the loan gradually at a rate no more than 10% of their income?

I've discussed before that I'm in favor of human capital contracts which is what is sounds like it is. However, why does the government need to fund it when we have private banks and other financial instruments?

Anyways 10% of their income is ridiciosuly low. Average cost of private college is $140,000, assuming graduating in 4 years. The total revenue that would be generated based on average salary of $46,000 a year. If a person spends their entire working career to pay it off, that's only $197,000. That's a ridiculously small rate of return on investment. (I didn't take into the effect of inflation, but average interest rates are usually higher then inflation)
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Contra
Posts: 3,941
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3/30/2012 5:59:05 PM
Posted: 4 years ago
At 3/30/2012 5:06:47 PM, darkkermit wrote:
At 3/30/2012 4:52:10 PM, Contra wrote:
Would you support a program:

That gives students federally backed loans, and once the graduate lands a job, pays back the loan gradually at a rate no more than 10% of their income?

I've discussed before that I'm in favor of human capital contracts which is what is sounds like it is. However, why does the government need to fund it when we have private banks and other financial instruments?

So that the students have a guaranteed loan without the hassle of companies egging the students for money more than they need to. So would you support the plan I described?

Anyways 10% of their income is ridiciosuly low. Average cost of private college is $140,000, assuming graduating in 4 years. The total revenue that would be generated based on average salary of $46,000 a year. If a person spends their entire working career to pay it off, that's only $197,000. That's a ridiculously small rate of return on investment. (I didn't take into the effect of inflation, but average interest rates are usually higher then inflation)
"The solution [for Republicans] is to admit that Bush was a bad president, stop this racist homophobic stuff, stop trying to give most of the tax cuts to the rich, propose a real alternative to Obamacare that actually works, and propose smart free market solutions to our economic problems." - Distraff

"Americans are better off in a dynamic, free-enterprise-based economy that fosters economic growth, opportunity and upward mobility." - Paul Ryan
mongoose
Posts: 3,500
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3/30/2012 9:24:20 PM
Posted: 4 years ago
At 3/30/2012 5:59:05 PM, Contra wrote:
At 3/30/2012 5:06:47 PM, darkkermit wrote:
At 3/30/2012 4:52:10 PM, Contra wrote:
Would you support a program:

That gives students federally backed loans, and once the graduate lands a job, pays back the loan gradually at a rate no more than 10% of their income?

I've discussed before that I'm in favor of human capital contracts which is what is sounds like it is. However, why does the government need to fund it when we have private banks and other financial instruments?

So that the students have a guaranteed loan without the hassle of companies egging the students for money more than they need to. So would you support the plan I described?

The government goes to far the other way and never gets enough money back, wasting taxpayer dollars.

Anyways 10% of their income is ridiciosuly low. Average cost of private college is $140,000, assuming graduating in 4 years. The total revenue that would be generated based on average salary of $46,000 a year. If a person spends their entire working career to pay it off, that's only $197,000. That's a ridiculously small rate of return on investment. (I didn't take into the effect of inflation, but average interest rates are usually higher then inflation)
It is odd when one's capacity for compassion is measured not in what he is willing to do by his own time, effort, and property, but what he will force others to do with their own property instead.
Contra
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3/30/2012 9:30:27 PM
Posted: 4 years ago
At 3/30/2012 9:24:20 PM, mongoose wrote:
At 3/30/2012 5:59:05 PM, Contra wrote:
At 3/30/2012 5:06:47 PM, darkkermit wrote:
At 3/30/2012 4:52:10 PM, Contra wrote:
Would you support a program:

That gives students federally backed loans, and once the graduate lands a job, pays back the loan gradually at a rate no more than 10% of their income?

I've discussed before that I'm in favor of human capital contracts which is what is sounds like it is. However, why does the government need to fund it when we have private banks and other financial instruments?

So that the students have a guaranteed loan without the hassle of companies egging the students for money more than they need to. So would you support the plan I described?

The government goes to far the other way and never gets enough money back, wasting taxpayer dollars.

I prefer the words a smart investment.

Anyways 10% of their income is ridiciosuly low. Average cost of private college is $140,000, assuming graduating in 4 years. The total revenue that would be generated based on average salary of $46,000 a year. If a person spends their entire working career to pay it off, that's only $197,000. That's a ridiculously small rate of return on investment. (I didn't take into the effect of inflation, but average interest rates are usually higher then inflation)
"The solution [for Republicans] is to admit that Bush was a bad president, stop this racist homophobic stuff, stop trying to give most of the tax cuts to the rich, propose a real alternative to Obamacare that actually works, and propose smart free market solutions to our economic problems." - Distraff

"Americans are better off in a dynamic, free-enterprise-based economy that fosters economic growth, opportunity and upward mobility." - Paul Ryan
darkkermit
Posts: 11,204
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3/30/2012 10:16:47 PM
Posted: 4 years ago
At 3/30/2012 9:30:27 PM, Contra wrote:
At 3/30/2012 9:24:20 PM, mongoose wrote:
At 3/30/2012 5:59:05 PM, Contra wrote:
At 3/30/2012 5:06:47 PM, darkkermit wrote:
At 3/30/2012 4:52:10 PM, Contra wrote:
Would you support a program:

That gives students federally backed loans, and once the graduate lands a job, pays back the loan gradually at a rate no more than 10% of their income?

I've discussed before that I'm in favor of human capital contracts which is what is sounds like it is. However, why does the government need to fund it when we have private banks and other financial instruments?

So that the students have a guaranteed loan without the hassle of companies egging the students for money more than they need to. So would you support the plan I described?

The government goes to far the other way and never gets enough money back, wasting taxpayer dollars.

I prefer the words a smart investment.

How can the government make smarter investment decisions then the private sector? The government can't make investments that offer a higher rate of return then the private sector.


Anyways 10% of their income is ridiciosuly low. Average cost of private college is $140,000, assuming graduating in 4 years. The total revenue that would be generated based on average salary of $46,000 a year. If a person spends their entire working career to pay it off, that's only $197,000. That's a ridiculously small rate of return on investment. (I didn't take into the effect of inflation, but average interest rates are usually higher then inflation)
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mongeese
Posts: 5,387
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3/31/2012 12:53:26 AM
Posted: 4 years ago
At 3/30/2012 9:30:27 PM, Contra wrote:
At 3/30/2012 9:24:20 PM, mongoose wrote:
At 3/30/2012 5:59:05 PM, Contra wrote:
At 3/30/2012 5:06:47 PM, darkkermit wrote:
At 3/30/2012 4:52:10 PM, Contra wrote:
Would you support a program:

That gives students federally backed loans, and once the graduate lands a job, pays back the loan gradually at a rate no more than 10% of their income?

I've discussed before that I'm in favor of human capital contracts which is what is sounds like it is. However, why does the government need to fund it when we have private banks and other financial instruments?

So that the students have a guaranteed loan without the hassle of companies egging the students for money more than they need to. So would you support the plan I described?

The government goes to far the other way and never gets enough money back, wasting taxpayer dollars.

I prefer the words a smart investment.

An investment that in the long run loses money is a rather poor investment, I must say.
Contra
Posts: 3,941
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4/2/2012 10:23:20 PM
Posted: 4 years ago
At 3/30/2012 10:16:47 PM, darkkermit wrote:
At 3/30/2012 9:30:27 PM, Contra wrote:
At 3/30/2012 9:24:20 PM, mongoose wrote:
At 3/30/2012 5:59:05 PM, Contra wrote:
At 3/30/2012 5:06:47 PM, darkkermit wrote:
At 3/30/2012 4:52:10 PM, Contra wrote:
Would you support a program:

That gives students federally backed loans, and once the graduate lands a job, pays back the loan gradually at a rate no more than 10% of their income?

I've discussed before that I'm in favor of human capital contracts which is what is sounds like it is. However, why does the government need to fund it when we have private banks and other financial instruments?

So that the students have a guaranteed loan without the hassle of companies egging the students for money more than they need to. So would you support the plan I described?

The government goes to far the other way and never gets enough money back, wasting taxpayer dollars.

I prefer the words a smart investment.

How can the government make smarter investment decisions then the private sector? The government can't make investments that offer a higher rate of return then the private sector.

Are you sure?


Anyways 10% of their income is ridiciosuly low. Average cost of private college is $140,000, assuming graduating in 4 years. The total revenue that would be generated based on average salary of $46,000 a year. If a person spends their entire working career to pay it off, that's only $197,000. That's a ridiculously small rate of return on investment. (I didn't take into the effect of inflation, but average interest rates are usually higher then inflation)
"The solution [for Republicans] is to admit that Bush was a bad president, stop this racist homophobic stuff, stop trying to give most of the tax cuts to the rich, propose a real alternative to Obamacare that actually works, and propose smart free market solutions to our economic problems." - Distraff

"Americans are better off in a dynamic, free-enterprise-based economy that fosters economic growth, opportunity and upward mobility." - Paul Ryan
darkkermit
Posts: 11,204
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4/2/2012 10:33:33 PM
Posted: 4 years ago
At 4/2/2012 10:23:20 PM, Contra wrote:
At 3/30/2012 10:16:47 PM, darkkermit wrote:
At 3/30/2012 9:30:27 PM, Contra wrote:
At 3/30/2012 9:24:20 PM, mongoose wrote:
At 3/30/2012 5:59:05 PM, Contra wrote:
At 3/30/2012 5:06:47 PM, darkkermit wrote:
At 3/30/2012 4:52:10 PM, Contra wrote:
Would you support a program:

That gives students federally backed loans, and once the graduate lands a job, pays back the loan gradually at a rate no more than 10% of their income?

I've discussed before that I'm in favor of human capital contracts which is what is sounds like it is. However, why does the government need to fund it when we have private banks and other financial instruments?

So that the students have a guaranteed loan without the hassle of companies egging the students for money more than they need to. So would you support the plan I described?

The government goes to far the other way and never gets enough money back, wasting taxpayer dollars.

I prefer the words a smart investment.

How can the government make smarter investment decisions then the private sector? The government can't make investments that offer a higher rate of return then the private sector.

Are you sure?

Why would they? (Unless of course they use unfair advantages like not having to worry about paying taxes).



Anyways 10% of their income is ridiciosuly low. Average cost of private college is $140,000, assuming graduating in 4 years. The total revenue that would be generated based on average salary of $46,000 a year. If a person spends their entire working career to pay it off, that's only $197,000. That's a ridiculously small rate of return on investment. (I didn't take into the effect of inflation, but average interest rates are usually higher then inflation)
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darkkermit
Posts: 11,204
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4/2/2012 10:41:48 PM
Posted: 4 years ago
At 4/2/2012 10:35:42 PM, Apollo.11 wrote:
Should rich and poor get equal opportunity to an education, regardless of income?

Yes, that's why financial institutions give up loans. I'd also be in favor of human capital contracts, in which one only has to give X% of their income to their loaner, instead of actually paying full money. It adds less risk to the loan receiver and more risk to the loaner. The human contract can be done progressively too depending of course how the free markets decides.
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Apollo.11
Posts: 3,478
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4/2/2012 11:13:07 PM
Posted: 4 years ago
At 4/2/2012 10:41:48 PM, darkkermit wrote:
At 4/2/2012 10:35:42 PM, Apollo.11 wrote:
Should rich and poor get equal opportunity to an education, regardless of income?

Yes, that's why financial institutions give up loans.
Only the dumbest lender would give two people the same loan when they have incomes on opposite ends of the spectrum.
Sapere Aude!