Supply, demand, and education

It is ironic indeed that those who make a fetish of education are themselves so badly educated that the are unaware of the Law of Supply and Demand. It genuinely appears to surprise them that increasing the supply of university graduates would lower the value of a university degree.

More than a quarter of graduates do not have a full-time job three and a half years after leaving university. A staggering 115,000 youngsters who graduated in 2007 have been consigned to the unemployment scrapheap, lumbered with a dead-end part-time job or are still in education, according to the Higher Education Statistics Agency (HESA).

The research will raise serious questions about the value of getting a degree when tuition fees increase from £3,290 to £9,000 next year…. It follows a study last week which revealed that one in five graduates earns less than a person who left school with as little as one A-level.

There is no question about it. The value of getting a degree declines with every additional degree that is granted. And as the number of less educated, more highly skilled workers declines, their value will increase. Furthermore, the expansion in the number of university graduates has coincided, unsurprisingly, with a significant decline in the quality of the educations they have received.