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There is mainly one reason why people want degrees, to have a job. There is mainly one reason why employers want to look at ones’ degree. To guess whether this person can do the job or not.
A degree signals that a person is capable to do a job. Also, most degree granting institution provide courses that makes people capable to do jobs.
As anything in economy, the most efficient ways to accomplish things tend to proliferate. Say I am buying a pencil. Say a pencil producers insist on mixing the lead in the pencil with gold. The process will make their pencils more expensive. To stay in biz, the producers will need to raise the price of that pencil. That will deter consumers from buying pencils.
The point is somebody got to pay for that doodad. If the producers pay that, then the producers will go bankrupt. The consumers pay that, then consumers will choose not to buy and producers will go bankrupt too.
What about if governments pay for the doodad? I’ll come back to that latter. In fact, that’s the main way anything inefficient flourish in our world. Government pays for the doodad or prohibits alternatives.
Is getting a degree efficient?
One thing for sure is it’s expensive. Decent international or national plus schools cost around $5k per year. People need to be in school for 18 years before getting a degree. If you spend $5k for education at degrees for 18 years, and you can turn $1 in your pocket into $1.2 latter, your bank accounts would have been reduced by $640k.
If you invest that $640k at 20% return per year, you would have gotten $128k per year. Indonesian typical entry level salary for programmer is $300 per month or $3600 per year.
Why 18 years? Because government says so. It’s difficult to cut of those years.
Do schools teach their students efficiently?
My physic teacher told me about how government conduct a seminar to train Math teachers. The teachers have to sign that they attend the seminar for 7 days even though the seminars are only 3 days. Those who do not attend or do not sign up will have their teaching license revoked.
The reason is obvious. Whoever makes that seminar will claim a 7 days expenditure while spending only for 3 days.
It costs government a lot of money to make those 7 days seminars. It’s inefficient. Under normal free market mechanism, anything inefficient will not be done. Why pay 7 days if the seminar is only 3 days? Also why attend seminars you do not want to attend? But because governments pay for the seminar, inefficiency flourish.
Is this happening only on corrupt countries like Indonesia? Not really.
I still remember when I study programming in UW Madison. I was so afraid of getting a bad grade that I did my homework early. Because I did my homework early, I had to learn the material to make the program much earlier than the lecture.
So why the hell should I attend the lecture if without lectures I could already understand the material, as shown by the fact that my homework was done?
If we divide schools’ teaching component, it’s pretty obvious that lectures are the most expensive part. Yet many people learn from books by themselves efficiently. People that can do that are actually better workers than those who cannot, and hence employers would prefer to hire them. I know. As an employer that’s what I would do.
Many parents put their kids to study oversea to avoid indoctrination. However, normal schools always have indoctrination courses because governments’ say so. So here, quite obviously this type of system is not going to prevail under free market. Recently there are cracks in the system.
An institution can teach students without mandatory indoctrination content if they do not claim to be an educational institution. Great. I’ll put my student there then. Also even Indonesian government allows people getting high school degrees by taking tests. Unfortunately that’s only open for students above 18 years old. But still it’ll be a great alternatives many would try instead.
Not claiming to be an educational institution means the student do not get a degree that Indonesian government acknowledge. Big deal. We can buy degrees. Some employers hire based on IQ anyway.
And what about the fact that degrees signals capability? Well, for some jobs, like programming, a 10 years old high IQ is can be more productive than a low IQ graduate students. A lot of what contemporary jobs need are common mathematical sense. And IQ signals that more than degrees.
And what’s the cost of a reliable IQ tests? Mensa provided that for a mere Rp. 100k. It’s $10.
Now, if people can study programming by themselves, and then solve IQ tests or google jam, then they would get MOST of what schools offer at much cheaper price.
Not doing that would be like sprinkling gold in our pencil leads. Somebody will have to pay the extra costs.
It could be the parents, which mean such parents will go bankrupt and produce less kids. It could be the employers that will indirectly pay for the extra costs. But they’re less elastic. Then there is another circumstances. Government pays for the extra costs.
However, under globalization, democracy, and freedom of speech, the people realize more and more that government’s expenditure sucks. No longer any countries can invest so much money on inefficiencies. Too much money on education means higher tax that will drive business away.
In addition, jobs nowadays are different than jobs before. Information change rapidly. To think that you can go to school, learn stuff, and be educated for the whole of your life is just insane. People look at capability to learn new tricks more than tricks you already know. That’s where IQ tests trample degrees once more.
More and more countries are letting free market govern their education. Those who don’t will keep losing their best and brightest overseas turning their countries into hell holes.
The cheap mensa test is a no brainer for anyone needing job as programmers, at least for the smart.
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