Can't fool the market

HIGHER EDUCATION BUBBLE UPDATE: Investor’s Business Daily: Subsidies Create Glut of College Grads.

While colleges will churn out about roughly 19 million college graduates between 2010 and 2020, the market will likely create fewer than 7 million new jobs that require at least a bachelor’s degree. Weirdly, at the same time, the country faces a shortage of skilled labor — plumbers, electricians, carpenters and the like. . . .

If this all looks strange and mysterious, it is. Until, that is, you realize a big reason for all these distortions is the massive federal effort to encourage and subsidize college education.

Planner Disease:  A form of egomania, characterized by strong and persistent delusions characterized by an unshakable belief that the person's macro-economic plans will prove superior to market allocation of resources. The malady shows great tenacity, with affected individuals showing a general resistance to any form of rational argument or contrary evidence, suggesting the possibility of organic precursors. 

Attempted cures for Planner Disease having been uniformly unsuccessful, intervention is limited to amelioration, which consists in not allowing affected individuals to occupy any position of planning or decision-making authority whatever.

Byron