College Education


Stuck at MacDonald’s with a college degree? Welcome to the latest version of the Tragedy of the Commons.

The relative value of education is falling. This is not to say that higher education is not important. It still gives you a competitive advantage in terms of potential income or just securing a job. What I mean is that a college degree no longer guarantees what it did in the past. Nowadays, many college degrees are not a winning ticket to a high-remunerated job.
We have just inflated the supply of college-educated people far beyond what the work market can absorb. There are not sufficient high-paid jobs for so many high-skilled workers. Many recent graduates are learning the hard way the diminishing market value of traditional college degrees. They are stuck with their student debt combined with shrinking financial returns from education. Many are wondering if, after all, university was a good investment.
What these newly arrived professionals are experiencing is the cruelty of the Tragedy of the Commons. Any college student can learn it in Economics 101. The bottom line of this economic theory is simple; too many people doing the same thing will at some point spoil the bargain for all.
There are plenty of examples of this law. A few private cars in town is great, too many drivers and you’re stuck in a traffic jam. A few fishermen in the pond is fun, too many ruin the fishing for all. Too many people speculating in the stock-market and a crash will follow. And so on.
Humans are rational beings who make decisions based mainly on narrow self-interest. The aggregation of the individual’s self-interest may lead to long-term disaster for all. How much longer do we need in order to realize the world is simply too small to accommodate everybody’s self-interest?
We may have more highly-educated people than ever, but unfortunately, some of the basics cannot be taught in school. We haven’t figured out yet how to instill some common sense to some people.
Did you say you want one or two cheeseburgers?

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