I was reading a blog post from Michael Robertson and it got me thinking about economics and why some people get paid more than others especially in regards to getting a college degree.
Why do people go to college? First, some people go to college simply to get an education to become a well rounded person. While others go to college because they want to use their education to help the larger community. Finally, many people go to college to get a better job so they can provide a better standard of living for their family. Of course, some people don’t know why they are going to college, but we will ignore them for now.
So why do some people earn higher wages than others? Some people believe that a higher education demands a higher wage. Other people believe that higher wages are related to how hard you work. Both of these theories are incorrect. Wages are based on your employers ability or inability to replace you. The employer will pay the least amount possible for any position in a capitalist economy.
First, let’s look at wages in regards to education. I know diploma nurses, an LPN with less than two years of formal education, making more money per hour than a friend of mine with a master’s degree in computer science. This is because the nurse cannot be replaced with someone who has not been licensed by the state. Where as, the computer programmer must compete with every Tom, Dick and Harry that can write code properly or quick and dirty. I also have a friend who has a Bachelor’s Degree in Psychology from the University of Arizona and an Associate’s Degree in Computer Networking, but now makes more money running a janitorial business. This is why Paris Hilton, the fine woman that she is, is able to make a lot of money doing nothing because she can not be replaced. She is a monopoly unto herself. There is only one Paris Hilton, Thank God, and if you want her you have to pay her price.
As far as the theory of hard work, if this were true every dishwasher and busboy in the nation would make more money than Paris Hilton. Unfortunately for the busboys, if they do not accept the wages offered they can be replaced by in house staff picking up extra work or by anyone on the street.
So why are you going to college? If it is to become a well rounded, well educated person you are golden. If it is to help others in society, college may help, but remember that even without an education you can make a real difference in the world if that is a priority in your life. However, if you are going to college to earn a better living, chose carefully, budget wisely and do your homework before choosing a school and not just when you are in it.
The Dumb Kid