Did you know that in California, for every $1 the state invests in getting more students in and through college, it receives a net return on investment (ROI) of $4.50 — an ROI of 450%.
Staggering.
And that ROI happens fast!
According to a study on whether investing in higher education is worth it or not by researchers at UC Berkeley (and others), "By the time a college graduate reaches the age of 38, the state's initial investment has been repaid in full."
The study goes on to show that Californians who earn a bachelor's degree earn more than $1,340,000 on average over their peers who only have a high school diploma.
It also seems it would take higher education costs rising THREE TIMES as much as it costs now, before the state would lose any money. So while there are problems in higher education, the system, for all its many faults and issues, seems to be working fairly well.
Educated people get out of poverty sooner, get better jobs because they have more knowledge and skills and rarely go to jail. They contribute to the overall economic earning power of businesses and the state. Better jobs means higher pay. Higher pay means greater spending power (including more disposable income)—fueling economic growth. And while it also means tax revenues increase (an inevitability), the savings from not needing as many jails, or for supporting people in poverty, is even greater.
And as goes California, so goes the country. California has a younger and more diverse population than the rest of the country. For now anyway. By 2050 it's predicted that California will be 45% Latino while non-hispanic whites will drop to 33%. It's only a matter of time before the rest of the U.S. catches up.
So as a business owner it seems to me that rather than making more budget cuts to higher education, it makes economic sense to keep investing in higher education. To help our employees (not just our children), regardless of age, get a college degree. Because an educated labor force is good for business and your community.
"Baloney," you say? Read the report, it's an eye-opener.
Then tell me what you think.
