Having not yet officially started at university, perhaps it is too preemptive of me to write a post on this topic. However, doing so allows me to express an opinion without (and with) the influence and biases associated without having actually gone, despite the fact I have accepted an offer and will be going.
My questioning of the higher education system began during sunset on Sunday last week as I was watering the front lawn. While watering I was listening to The Tim Ferriss Show episode with Peter Thiel. Peter Thiel is renowned for his contrarian thinking, but also for being right in doing so. He bet right on Facebook, he bet right on the housing bubble and it’s yet to be decided whether he has bet right on the “higher education bubble”. He contends higher education is over-priced, that people go for the wrong reasons, and that even at a lower cost it is still pointless anyway since the skills are not directly transferable to the workplace.
Of course, the situation is different between countries. In the United States it is common for students to rack up a debt of more than $100, 000 USD for a 4 year degree. In Australia the cost is much lower at approximately $15,000 to $33,000 AUD (albeit for a 3 year degree). It is still a price though.
If we’re going to look at the economics of it, the opportunity cost must be accounted for. I expect the initial response to an evaluation of the opportunity cost of a university degree from most people would be to say that it is very valuable since “you get a degree and therefore a job”, “you meet like-minded peers”, “you have access to top professors (depending on the institution)” or “there are so many parties, you’d miss out on so much!”
While these may be true, they are rarely questioned. It seems the lists are created by the side in favour of going to university. When I realised this I was quite taken aback. Shocked even. Shocked, and somewhat annoyed at myself for never having asked the questions I should have. Eventually, after much thought, and after coincidentally having finished reading Influence by Robert Cialdini I began to ask the right questions.
Why University is Potentially Over-valued
1. The Scarcity Principle
By restricting positions of entry to students, universities are able to make the experience appear more valuable by creating value through it’s scarcity rather than experiential value. Think of it like a limited edition Buzz Lightyear toy. Let’s say only 300 are made and they are all sold. Well, so long as there are enough people interested in collecting Toy Story memorabilia, their value is higher than the cost of the plastic to make it. What if these exact same Buzz Lightyear toys were sold to anyone who wanted one? They do the same thing, shouldn’t they be worth the same as before? Well, yes, they should, unless you value something because of its rarity, which is fine if you like collecting things. Just ask yourself why you’re purchasing it: Do you derive value from it through using it or through possessing it?
2. Social Proof
I can’t talk on behalf of everyone, but at my high-school it was almost (pretty much was) expected that you go to university. So, everyone goes. In order to fit in with the crowd, to maintain your societal position as programmed through evolution you do as the crowd does. It is perceived as a safer decision, since if more people decided then it is probably a good decision, and it also an easier decision because you don’t really have to make it, you just follow. You can never be isolated and blamed if the plan fails since, to quote Warren Buffett on the 5 most dangerous words in business, “everyone else is doing it”.
3. Bias from Authority
This one is pretty self-explanatory. You perceive the words of someone of authority as more trustworthy and more accurate than someone who’s not. This is useful most of the time. I certainly wouldn’t like to be trusting the ice-cream man’s advice on cancer treatment over a doctor’s. However, doctors can be wrong and ice cream men can be right. It’s unlikely in this case, but nonetheless possible. How many qualified economists said there wasn’t a housing bubble in 2007-2008? How many people believed them? In the case of going to university the authorities are our high-school teachers.
4. Commitment/Consistency bias
No one likes to look like they don’t know what’s going on, especially under pressure. When someone doesn’t know what’s going on they are most likely to look to the person beside them and do what they’re doing. That is social proof. Once you have acted mostly involuntarily by following someone else who did make a decision (probably made off of the advice of authority), you would think, when the pressure is off, you would rethink your previous actions rationally and act accordingly.
The commitment/consistency bias begs to differ. You have committed to an action, whether you thought about it or not. It is now in your evolutionary best interests to remain consistent with this decision. Who likes someone who keeps changing their mind? Someone who’s unpredictable? No one really, and for obvious reasons, we have been programmed through evolution to value consistency of action because we’d rather not an unpredictable person near the children, and that is why you are unlikely, or at least less likely, to change your decision.
5. Abundance of online resources
There’s Khan Academy, Coursera, EdX, MIT OCW and plenty more. So, if you can get the information elsewhere, why do you need to formally go to university?
Why the Above Could be Overthought and Irrelevant
I mean, it’s certainly possible, maybe even likely. While I believe it is almost certainly true the value and tendency of people to go to university is influenced by the above, it doesn’t really matter if it is irrelevant to the ultimate goal. The ultimate goal being to learn as much as possible.
No one is stopping you from learning anything by yourself on your own terms, and if you’re disciplined enough you could learn an entire course, even in much less time. But what is missing? Or perhaps more revealingly, why have I decided to go despite my elaborate (and potentially stupid) theory.
1. Social
I like a good party as much as the next person, but that’s not what I’m talking about. Parties can be found anywhere, and thus should really be excluded from any sort of argument on this topic. I’m talking about meeting like-minded people and learning from others. Peer to peer learning is effective when there is a mutual interest to learn. If someone is going to university I would hope they have at least some interest in learning. You can help others by teaching and then probably learn something yourself in doing so. I hope people are there to learn anyway. Learning aside, meeting people of similar interests can never be a bad thing.
2. The Piece of Paper
Yes, the degree. While I wholeheartedly disagree that education of any sort should be determined by a piece of paper, it is an unfortunate reality that many employers are too concerned with saving their own job (if they are not the boss). Employing a “risk-free” degree owner over someone who has taken the initiative to learn something themselves, probably in a real-world context, is a safer decision. A degree offers some indication of knowledge, sure; I just don’t think that two people of equal merit should be regarded differently based on the possession of a piece of paper.
3. Highly Regarded Professors
This differs from institution to institution as well as faculty to faculty. If I have the chance to ask someone a question on a topic, it is comforting knowing I’m getting the answer from someone at the cutting edge of their field as opposed to some random on Stack Exchange.
4. No one’s Stopping You Anyway
If I don’t like the shallowness of the course, I can use the plethora of online resources available or the library to learn more about it anyway. The choice is still yours to learn something if you want to, even if you do have scheduled times for lectures on a set curriculum. As much as I hate to admit it, a curriculum is set for a reason, a reason which may not be clearly until later. Which leads to my next point.
5. You Might Stop Yourself
If you lack self-discipline or just prefer set structure to your learning then a curriculum is helpful. Even if you do have the self-discipline and ability to embrace a bit of uncertainty you can benefit by not having to use it. The fact you don’t have to worry about what’s next is a bonus, how big this bonus is really depends on the person.
To conclude
There you have it. My thoughts on higher education, without having gone. I will make another post once I’ve started and revise/reevaluate my thinking. So, I guess I just wait to see if university has value.
