via The Epoch Times:
James Altucher knows a lot about being a student. A lifelong learner, he went to university to study computer science and later taught himself to be a successful investor and entrepreneur.
In his investments, Altucher frequently manages to discover hidden aspects of a company or a sector and turn a tidy profit.
Looking at the U.S. economy with his unique perspective on analyzing risks and opportunities, he has found, unfortunately, that the student loan system may the single most destructive force in our country today—not only for the individuals who have to pay back the debt, but for the whole economy.
He sat down with The Epoch Times to discuss this controversial topic.
The Epoch Times: James, you have focused on student loans recently and have done a fairly extensive analysis. Why are student loans so harmful, not only for the people who take them out but also for the whole economy?
James Altucher: If you trace a lot of problems about what’s going to happen to the United States in the next 10 to 20 years, it boils down to not necessarily the educational system itself but the machine behind this educational system, which is tuition and student loans.
People argue with me all the time, “College was the best experience of my life; in college I learned this and that.” I have no argument against that. People should go to college. People should do whatever they want when they’re 18 years old.
The problem is, student loan debt is $1.2 trillion, and tuitions have gone up faster than inflation every single year since 1977—like 9 percent faster. Health care has only gone up about 3 or 4 percent per year faster than inflation since 1977. And when I say since 1977, it’s every single year—in not one year have tuitions gone down versus inflation. That’s 40 years.
So you have to ask why, and this has nothing to do with whether college is a good experience or a bad experience. But it does drastically affect the way kids today are viewing their opportunities in the world versus when I was a kid. So I graduated a couple decades ago and I had student loan debt but that was very different than the debt people graduate with now.