The McSpencer Group discusses the growing student loan debt crisis and what we can do to fix it. Guest: Edward Dutton, a medical doctor with a medical grade PPP rating, joins me to talk about his personal experience with the idea of not going to college.
00:00:32.800And while we're not against giving these kiddos a break, the fact is, American higher education is so horribly screwed up that debt forgiveness amounts to a Band-Aid on cancer.
00:01:31.420So, about, you know, what we're going to, how we're going to move forward in the future.
00:01:36.640So, it's very productive and fun as well.
00:01:40.960So, anyway, let's jump into the topic for today.
00:01:47.920And that is, at least at the beginning, student loan debt and a likely student loan crisis.
00:01:56.640But I wanted to talk more broadly about the problems of meritocracy and overstuffed elite and then also how we could conceivably reform education in a serious way.
00:02:16.140And that, you know, could be, you know, what we would like to see if we were king of the world, sure, but also what we can do right now that would be pragmatic for a lot of people.
00:02:28.340Because I think this is one of those areas where everyone acknowledges that we're in a massive crisis.
00:02:55.740And most people thought it was actually a wonderful thing.
00:02:58.500We're in a different situation now than in the sense that there is a creeping recognition that we are in a massive student loan problem.
00:03:07.360Um, I'll talk a little bit just about my personal experience through this, um, which is relevant in the sense that, A, I'm in my early 40s.
00:03:17.440So I, I actually have a lot of, I have about two decades of thinking about the college idea and so on.
00:03:24.580And, uh, and then also, um, uh, I went to a prep school.
00:03:29.320So I, I went somewhere where it was about getting you into college and in fact, getting you into a good one.
00:03:35.680And I, I, I know what it feels like to be in that pipeline.
00:03:39.800Uh, I didn't quite go to Exeter or Lawrenceville or whatever.
00:03:43.440That was our, uh, Texas LARPing version of East Coast prep school.
00:03:47.660We still wore uniforms and went to Episcopalian services twice a week and so on, but, uh, it was a little bit different, but, um, so in my experience, um, and again, I had a prep education, um, the thought of someone in the late nineties saying, I am not going to go to college.
00:04:09.260That was almost the same thing as saying, I'm going to join a biker gang, uh, or so on.
00:04:42.220Um, but, uh, there were colleges that were more expensive than that.
00:04:46.200I think there were some that hit on that $30,000 a year for a small liberal arts college or an Ivy league school or something.
00:04:53.040Um, by the time I went to graduate school, I was getting paid to go to school.
00:04:58.980So I, I did not pay anything to go to the university of Chicago.
00:05:02.240And actually I was being paid to go to Duke university as a doctoral student.
00:05:07.820Um, I was paid a stipend of $15,000 a year.
00:05:11.680You know, I, I, it was like a thousand or 1100 a month or something like that.
00:05:16.920Um, which is not a lot of money, but it was what it was.
00:05:21.420But while I was there in the mid two thousands, um, I remember undergraduate education at Duke was 40.
00:05:27.960From what I've heard, tuitions are climbing into the sixties per year, uh, at elite schools.
00:05:35.600So these are radically surpassing numbers of inflation.
00:05:40.100I mean, and if you look at what's the price of gold or what's the price of a, uh, Mercedes Benz or what's the price of a new suit, um, these things have gone up of course, but the, the education cost is outstripping them without, without even looking back.
00:05:56.800Uh, so in the United States, it is becoming extremely difficult to go to college.
00:06:01.360Now, no one is really paying for these things.
00:06:04.160And I don't know quite when we, we crossed that Rubicon where most people expected to pay for college.
00:06:12.020You would either save or get a job or your parents would give the money to you or so on.
00:06:16.680Uh, but we crossed a Rubicon at some point in the nineties and two thousands, where the vast majority of people were taking out loans.
00:06:25.220So college just became this financed thing.
00:06:29.120You got a mortgage effectively without a house.
00:06:32.520And, uh, again, the promise was, this was even better than a house because you're going to go get a great job or something like that.
00:06:41.080Um, where we are right now is that, um, student loan debt, and I, I can share this on the screen.
00:06:49.960Um, student loan debt is, um, radically surpassing, um, basically mortgage debt, um, and other kinds of things.
00:07:05.320So student loan debt is climbing rapidly, um, into the trillions.
00:07:13.800Um, it is an incredible thing, uh, what is happening.
00:07:18.440And the problem with this is that there is in, in, in kind of an increasing.
00:07:25.200Uh, uh, cynicism on what you can actually do with your degree.
00:07:32.580Uh, so a lot of conservatives have complained about people getting useless degrees and, in women's studies or multiculturalism or something.
00:07:40.200Um, and they were kind of, you know, wagging their finger at millennials, but I think it's now a different situation.
00:07:47.520Millennials, particularly with COVID are rapidly moving back in with their parents.
00:07:51.480Uh, the job market is extremely tight.
00:07:55.320Um, millennials are not disagreeing with you.
00:07:57.740When you say this is a worthless degree, you have people with undergraduates degrees, maybe even master's degrees working as baristas and coffee shops.
00:08:05.980Uh, and having really kind of unfathomable amounts of debt, a middle-class person with a good job would, uh, you know, cringe at the idea of having a hundred thousand dollars of debt, even if he was earning good money.
00:08:20.700Um, now that is normal for a young woman.
00:08:23.580I discovered, uh, recently, well, I didn't know about this because I've been out of the loop of British higher education for such a long time.
00:08:30.580It was these leftists having a chat on, on Twitter, you know, who were, who were post-graduates.
00:08:35.960And they were talking about their PhD loan, their PhD loan.
00:08:41.860Now, which fees and living expenses of doing a doctorate so that they can go on to be an academic on a low salary.
00:09:23.680So your parent, there was an amount your parents would have to contribute.
00:09:26.740They won't know how much your father earned.
00:09:28.260Um, but, but you, but you, you, you would have a grant of which to live and, and you'd know tuition fees, obviously.
00:09:35.520And that meant you kind of like at school, uh, it was like being at school.
00:09:40.060It was school for the very, very clever people.
00:09:42.460And it was a tiny majority of people that did it.
00:09:44.720When I, uh, when I, my, my parents went to university, it was, uh, in the early seventies, it was less than 10%.
00:09:50.020Um, and it was only growing because more and more things which had previously been separate from the university system and didn't involve degrees,
00:09:56.360like teacher training colleges and nursing and whatever were coming under the university rubric.
00:10:03.540Uh, but even so that was all paid for by the state, no tuition fees and grant to live off.
00:10:07.620And the attitude was that we, the best people, and only those people will do the degrees and the government will pay for that to be the case.
00:10:14.520And, um, that's still going on in Finland, where I live now, no, no, no tuition fees, grant to live off.
00:10:21.120And it's highly competitive to get into these universities.
00:10:24.180And the vast majority of people that try to go to university are rejected.
00:10:27.720Um, I think the, the big change I think was philosophical.
00:10:32.280You could say more than anything, because the, the, the, the conception of the academy shifted.
00:10:39.660And I think you could look at, I mean, again, in the American context,
00:10:42.720you can see this in terms of the GI bill and so on for returning soldiers after the second world war and, and other, and subsequent wars, uh, of, you know, you went out, you risk your life, you earn this.
00:10:55.160Now we're going to bring you into the middle class.
00:10:57.000And if you hear a justification for academic work, it is overwhelmingly, this is your ticket to the middle class.
00:11:04.160And so it becomes a kind of cargo cult where you, you think that there's some mysterious magic involved with the university that makes you a middle class person.
00:11:15.760So you're really putting the cart before the horse.
00:11:18.300And the, the fact is the, you know, the origins of these universities is, uh, I, you could say monasticism or a religious institution.
00:11:28.060It is going into a place and contemplating the spheres for better and for worse, maybe mostly for worse, but it is never, we're only now in the past 60 to 75 years thinking that this is your ticket into the middle class.
00:11:46.520There was a degree, which even before that, it was your ticket to the middle class, but the number of been, the number of people that would go, would be able to uptake, take up that ticket was extremely limited.
00:11:56.620And, and there was, there was a very limited number of places.
00:12:00.140There was in England, for example, until 1830, until the, 1890, three universities.
00:12:07.680Um, and so there's a tiny number of universities, tiny number of places.
00:12:11.340And so, yes, you would occasionally get people that were born into working class families that would do well at school, uh, and would, would get funded, would get scholarships.
00:12:18.860It was because there was tuition fees in those days and they'd have to get scholarships to go to Oxford or Cambridge or Durham or somewhere like that.
00:12:24.540And, and they'd go and they'd have a degree.
00:12:26.260And for those people, it was a ticket into the middle class.
00:12:28.740But once you have a huge expansion of the number of universities, uh, which is what we've seen, and then a huge expansion of the number of courses to include the Mickey Mouse non-academic nonsense courses, um, it's, it's, it ceases being a ticket into the, well, what would traditionally have been the upper middle class.
00:12:44.140It becomes maybe a ticket into the middle, you know, the lower middle class, um, and, and who didn't need a degree.
00:12:52.400Why on earth do they need to go to university to just do basic admin work or whatever it is, you know, bookkeeping, that kind of thing.
00:12:58.540Which they never, and that's what you're going to end up doing with a lot of these jobs, with a lot of these degrees, those kinds of jobs, which in the eighties, nobody had a degree.
00:13:05.820Nobody, the kind of people that would, uh, well, my, my grandfather was the manager of a greenhouse making company.
00:13:19.860And the masters in the United States, the master's degree has really replaced the undergraduate degree, because again, it's just a simple inflation, uh, in the sense of you create more of these degrees and they become worse, less, less, less.
00:13:34.260It's just, I think I'd say it's the PA in the sense that you used to be impressed by a degree.
00:13:39.280You used to go, so he's got a degree, has he really?
00:13:54.600And so the PhD is the, what, what, what, when does that react?
00:13:58.120Now a master's just isn't much of anything.
00:14:00.760And, and, and, but, but it's, it's become like the undergraduate degree in the sense that you need that to do advanced, you know, information administration work.
00:15:18.040What we were told when we were there, there was a sense of humility.
00:15:21.920Most of the children, like 40% of the kids.
00:15:25.720My university had been to private schools and up until that time, up until the year 2000, there was corporal punishment, legal, all private schools in Britain.
00:15:34.840And it was practically at the public schools.
00:15:36.860And so these people were using humility and to, to, to, you know, obedience and whatever.
00:15:42.040And, and, and that was the, that was the system.
00:15:44.220And then they brought, then they increased the tuition piece to 3000.
00:15:47.200And even then a lot of people's parents could pay that and would.
00:15:50.980When it became 9,000, it was too much for the most, you know, sort of middle-class parents in the British sector, teachers, people like that.
00:15:59.020And so therefore you've got to get a loan.
00:16:00.340And therefore the students are now paying for it themselves.
00:16:02.380And that's when it starts to break down because suddenly the students, in a way that had never, ever been the case before, ever.
00:17:17.440I remember my friend, Ollie, streaked, his friend, streaked naked through the hall of, through the dining hall of St. John's College Durham for a bet.
00:17:26.180And therefore they were sent to the mistress, the woman actually, the master of the college.
00:17:31.080And as a punishment, they had to like pick up litter and things like this around the college.
00:17:36.860I thought you were about to say he was sent to the mistress's office and she was spanked.
00:35:38.060that's what always hits me is the nature of these situation comedies over the years.
00:35:41.900America has never really had much in the way of comedies about working class people or lower middle class people that are happy to be that.
00:42:32.540of course they can't work properly and they can't look after themselves,
00:42:35.740but there are certain companies that will let them basically work for them so they can feel they're doing something.
00:42:43.980I was at a sort of leisure centre in Guildford and it's called the Spectrum Centre and a huge number of people that work there are mentally retarded.
00:43:36.220the idea of returning to medievalism has always been a silly notion to begin with,
00:43:41.200but how can we basically decisively create dignity for people's lives and that we basically lose these liberal illusions of everyone can make it if you just want it hard enough or something like that.
00:49:06.740We aren't saying anything as crazy and outlandish as developing a trillion dollar student loan program in which you lie to people and you get,