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Re: I should have known that you missed my reply.
Posted by Reality (more from Reality) on Thu, 19 May 2011 18:28:17
In Reply to: I should have known that you missed my reply., AeroEd, Thu, 19 May 2011 17:52:03
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The last bit of a personal dig is quite unnecessary. In the recent really long discussion, I let James have the last post on the discussion when it wandered off topic, and let another poster having the last word commenting on how long the thread was.
In any case, I see what you are saying now. The tax code and regulations discourage in-house training while encouraging spending money on paper degree mills work in two ways:
1. Employers paying for employees into formal training programs (usually at graduate level). This is a more obvious effect.
2. Here's the less obvious but more devastating effect: because in-house training is not only non-tax-deductible but also regulated against (minimum wage law and regulations against "exploiting" unpaid interns), it becomes infeasible for employers to hire kids out of high school and train them in-house while paying them $100k-200k less than what they would have paid a college graduate in 4yrs (i.e. in lieu of the 4yr education). Parents and kids have to speculatively invest in formal 4yr education (with 50% graduation rate) in order to better employment prospect. It's as if prospect owners of houses were banned from building their own houses or even pre-ordering houses, but have to buy spec houses built by speculative developers that build tract houses. The result is of course a bloated speculative building industry, and masses of products that are less suited to the needs of the consumer (in this case, employers seeking to hire). The bankers are of course all to happy to sponsor such speculative building bubble, especially when it is backed up by government guaranteed loans that can never be extinguished even in bankruptcy protection.
posted by 76.118.39...
Posts in this Thread:
- Mike Rowe speaks before the US senate:, JWorsman, Sat, 14 May 2011 07:33:55
- Companies are also to blame, Mark from Toronto, Sat, 14 May 2011 10:37:52
- I'm no econ guru but the core of his logic is sound n/m, Joeychess, Sat, 14 May 2011 09:15:13
- I like his show, but really........., MI-Roger
, Sat, 14 May 2011 08:26:15 - Also a video for anyone who doesn't feel like reading!, JWorsman, Sat, 14 May 2011 07:35:42
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