Education Alone Is Not the Answer to Income Inequality and Slow Recovery: Our economy is now five years into an economic recovery, yet the wages of most Americans are flat. ... The top one percent has made off with nearly all of the economy’s gains since 2000.
Is there nothing that can be done to improve this picture?
To hear a lot of economists tell the story, the remedy is mostly education. It’s true that better-educated people command higher earnings. But...
If everyone in America got a PhD, the job market would not be transformed. Mainly, we’d have a lot of frustrated, over-educated people.
The current period of widening inequality, after all, is one during which more and more Americans have been going to college. Conversely, the era of broadly distributed prosperity in the three decades after World War II was a time when many in the blue-collar middle class hadn’t graduated from high school.
I’m not disparaging education—it’s good for both the economy and the society to have a well-educated population. But the sources of equality and prosperity mainly lie elsewhere. ...