David Maney Is College A Sucker Bet Summary

Dave Maney states in his article ‘Is college a sucker bet?’ that college is a suckers bet. He has obtained an economics degree from SUNY-Binghamton and an MBA from Stanford. He uses his insights into economics and business to frame many of his points throughout this article. So Mr Maney throughout this article is listing of the fallacies of college and the future changes it will have on the world as a whole.
One of his first points was that society has been indoctrinated with the belief that college is the best way to guarantee success. He points to the statistics many colleges have shown as points to back this claim. He decides to dig deeper into these statistics, showing something that was not factored in. He looked at the statistics to

see there was a correlation, but not a causation. He had stated that the link between more money and a degree exists not because of the degree, but because the people who get degrees normally have higher intelligence, higher earning jobs, and come from stronger socioeconomic backgrounds. He also states that many students of colleges and universities are using these colleges to teach them something that a computer and the internet could have taught you. Stating that, the only thing you get out of colleges is a bigger bill and that colleges have no incentive to study this point as it would prove that they are pointless.
David Maney then starts to break down the uses of the degree from an economic standpoint.

He said that in history the degree has had two sources of value. These sources of value were in its taught skill or knowledge, and in its signalling value. He was saying that a good degree from a good school would give off good vibes about you, telling future employers that this candidate is a good pick based on the consensus of the school. He also states that this value has been increased by the fact that in the U.S. there is legislation in place banning the discrimination of potential employees by IQ. This potentially limiting traits by which candidates could be judged. However, we now live in the information age, in this age, employers see pieces of your life that come up on Google, Facebook, LinkedIn and other information hubs learn useful information about you. These fragments are solid information about a potential employee. An employer doesn’t make an assumption of someone with their degree in this case. They are judged based on information about this person from their internet

footprint.
The next point Dave starts to dissect is what should a bright person do then. He states that the best things to do in this new situation are to recognize the changing world. Understanding the new changes and getting on top of the driving forces behind this change. He also says to create the perfect mix of relationships, experiences, resources or credentials someone may need for the future. Finally he says to take action and make it happen. Things are only so good in theory we need to set that theory in motion.
He then moves on to his conclusion stating that in his eyes the answer is yes.

That college is a suckers bet and that the game is rigged. He is stating that in the present there are many cheaper alternatives to college and that they are not accepted as merit in most job fields. He is saying that in the present degrees have inflated bloated values and prices. He believes that soon the bubble will burst. He thinks that in the future there will be more employers that do not judge people by degree. He believes that there will be more people like Peter Thiel, a silicon valley billionaire. Peter has launched a program to pay 20 bright young entrepreneurs to drop out of college and start their business. He further emphasizes his point by talking about his first career compared to his friends. Where he started working with $10,000 in debt at a job that pays $20,000, his friend got a job that payed $50,000 per year, however he was $100,000 in debt (5). He says that all degrees have similar value now and that being cheap and flexible is more valuable. He states that he wants the future generation to see this and take control of their own

futures.