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 Bernasek, Anna. “What’s the Return on Education?”. The New York Times. Web.

           Dec. 11, 2005. http://www.nytimes.com/2005/12/11/business/yourmoney/

            Speaking on the US economy specifically, the article begins with a quote from Socrates— the more you learn, the more you realize how little you know.  The author applies this quote to the American school system, asking if the $1 trillion dollars spent annually on education is worth it, and if so, how can such benefits be measured, that the system might be improved to reduce costs and increase efficiency?  To the individual an extra year of education increases their average wage by 10%, as well as increases their ability to contribute to society through technical ability and ingenuity.  However it is becoming increasingly difficult to determine how effective education, so obviously beneficial to the individual, affects the economy as a whole.  It seems logical that higher education should always affect an economy for the better, measuring for instance the growing clout of India and China in the international market.  Their citizens, in achieving higher education, have become competitive with American workers, who until now have enjoyed a decided advantage in ability, largely because of our universal high school education, implemented between 1910 and 1940.  The closing of the educational gap means that more time and energy should be spent on understanding the true value of education to the national economy, both to maintain a functional democracy and continue improving individual prospects.

The Economist Print Edition. “Higher Education and the Recession: It still pays to study”. Web. Sept. 9, 2009. http://www.economist.com/world/international/

The article begins with the law of supply and demand, which says that an increase in supply of something tends to reduce its price.  It remarks, then, on the astounding exception that is higher education which, as so far, seems only to accrue more wealth to the individual.  There has been a significant increase in the number of college graduates over the years, and yet employers have not ceased to reward them for their investment.  The article concludes, therefore, that education must be an excellent investment for all, especially in the recession, when so many other things have lost their value.  However, state schools and private colleges are suffering visibly from cut costs or lost endowments, and as more students flock to higher education, good teachers become more scarce.  Also, it is important that economies, in order to be affected positively by such bountiful education, be able to incorporate graduates into the system, so that their acquired skills are put to good use.

World Bank. Economic Returns to Investment in Education: Ch. 2. Web. Accessed Nov. 14, 2009. http://www.siteresources.worldbank.org 

            The chapter focuses on the conditions under which education can positively affect an economy.  There are indeed economic returns to the individual, i.e. through increased salary, social mobility, and technical/critical skill.  On the macro scale, however, investing in human capital does not necessarily generate economic growth.  Though an insufficient amount of education may certainly limit growth, it is not entirely certain that the reverse, having a more educated workforce, will carry the same level of effect.  Greater earnings for the more educated represent greater productivity— yet in some scenarios this is not so.  In countries where there are class distinctions, in which education is representative only of social status, no improvement to the economy can be seen.  Similarly in socialist systems, economic growth is impossible because of the government’s unwillingness to reward individuals economically on the basis of their productivity, preferring instead the politically powerful and privileged.  Education, then, is only useful on the macro scale if it is applied to specific circumstances, and in certain ways.  Only open economies, with heterogeneous communities, can implement effective higher education. Secondary education, also implemented by governments, is very worthwhile because it increases the capacity of the general workforce, assuming that workforce can then integrate itself back into society and be convinced to employ its talents productively.  In weak countries, then, with extremely poor infrastructure, the benefit of education is insignificant, and can even negatively impact society (the cost of educating a person outweighs the contributions that person can make to society as a result).  Standardized testing, small student-teacher ratios and critical thinking, rather than memorization based educations are all indicators that separate the beneficial education systems from the worthless. 

Analysis:

            There are indeed continuing economic returns to education, but the conditions under which the relationship remains positive are fairly specific.  It is found that open economies specifically are the only ones that can provide returns of any (positive) significance.  Heterogeneity, technique and quantity are all key factors in determining how economies, on a macro scale, will grow over time.  On the micro scale— benefits concerning individuals, colleges, communities— the benefit of education is perhaps immeasurable, and a given.  As far as engaging government spending, however, I think it would be extremely prudent to establish that unless the contributions given are adequate and non-restrictive, and the government that gives them has an infrastructure capable of handling new talent (which I’m fairly certain the US government does), the gains over time will be minimal at best.  How we teach also greatly affects the outcome.  Repetition of facts vs. critical thinking— in short, a liberal arts college in the United States with a small student-teacher ratio is exactly the kind of education that would provide for future economic expansion.  The advancements in technology that would move the economy forward can only be conceived and incorporated via creative minds which, I think, Bryn Mawr is prone to producing.