Terry B's Learning Journal

Module 1: Distance Education and the Economics of Education

In this module we began by discussing the worth of education, specifically can education deliver growth? Hulsmann (2010) claims, "Education can be seen as an investment with very real returns to the individual as well as to society as a whole. Individual demand rises and there seems little reason to discourage it. But trying to satisfy a mass demand for education, giving the scarcity of resources, leads to the question of the most cost-effective provision of education. Distance education seems to fit this bill. Using rational production techniques, including division of labor and the application of media and technologies, distance education may be seen as being capable of emulating the success of industrialized manufacture of high quality consumer goods."

We had a debate using the article by A. Wolfe entitled, Elixir or Snake Oil. I was on the side defending education. For me, deciding whether education is necessary or not provokes a lot more questions than answers. Yet from my standpoint an education opens job opportunities that would otherwise be unavailable, such as a teacher, a doctor, an engineer, or a lawyer to mention a few of many occupations that require a higher education unless the individual is inheritably a genius. Another thought perplexing is what is the definition of education as "a good thing?" We have been programmed by the media and others to believe that a good thing is money and power. There are numerous statistics to provide that the right education can make you bukoos of money, but how about movie stars and professional athletics?  Where is their education coming from? However, a good thing can also mean spiritual happiness and relationships, hence love.  In conclusion, there are numerous ways to define a good thing, but to achieve professional success requires a higher education, particularly entering in the knowledge-based economy of today. Some jobs in particular that come to mind involve those involved in technology and research.

We also read, Investment in Human Capital by T. W. Schultz (1961). In essence, education can be viewed as an investment. The article talks about how humans do not like to be reduced in terms of human property in means of dollars and cents, yet we want acknowledged in the monetary form (salary or income) to reflect who we are in terms of our accomplishments, hence education. Thus, a paradox of sorts?  The theory is fascinating from a sociological standpoint. On a separate note, in discussing education, the government provides student loans so people can become educated, join the work force and pay taxes as the world goes round. Yet education also feeds the colleges and universities and the general population. What I am referring to is those in education studying to be hairdressers or even dental assistants. Part of their curriculum is to practice on humans at an extreme discount rate which goes back into the education source. It’s a potential win-win situation for the student gaining experience, the educational institution off setting their costs, and the general public getting reduced rates.  In essence, education can support the masses in one form or another. The article additionally discussed Rates of Return on Education (RORE), hence learn more, earn more. This was troubling for me as I provided the following example: I know of someone that has a dr degree in business. He had a great job until the economy folded. He lost his job and ended up working in HR at a nursing home. They made cuts and he went to a Harley Davidson again in HR. With the economy, the sale of motorcycles steeply declined and he again lost his job. When he took the HR jobs, he experienced quite a decline in salary and he was over qualified. He now has a government job in an office, but at the bottom rung. Again, over qualified and under paid. He told me once that he sometimes doesn't even list his dr degree, because he feels it is a deterrent to getting hired. Thus, I would conclude that RORE is not always a truism. Another thought for RORE is this; in today's economic downturn education is risky, predominantly in the healthcare field. I see my friends around me that are radiologists and medical lab technicians losing their jobs to computers. So what options do they have? Either obtain more education to stay in a health related field and get in on a higher level, or education in a different field, or take employment non related to what their degree is in. Some tough choices when many may have not paid off their initial students loans. Again, RORE is not always a truism.

We finally read the article by Brown and Lauder entitled, Globalization, knowledge, and the myth of the magnet economy. The article is an interesting read as it stresses the importance of acquiring a higher education to be competitive in a global economy. More intensely, it is not enough to have the education, but one must have the knowledge to use the education. Thus, work smarter, not harder. To elaborate, it was once thought that an education would guarantee you a spot in the workforce with an equitable salary. This is no longer true as the masses are getting educated and consequently creating a struggle for the top rungs of the ladder, hence a "shift from bloody wars to knowledge wars" (p. 26). Brown and Lauder (2006) suggest that those that attend the best universities such as Harvard or Oxford “are most likely to succeed in the competition for elite jobs” (p. 48). This article really comes to light for me as many, like myself, think that obtaining a higher education (Master's) will increase the job opportunities immensely. But according to the authors, it is only the best of the best educated that will survive. Others, "will be left to fight over the scraps" (p. 47).  This is depressing. Yet, on a brighter note, Brown and Lauder state in their conclusion that employers are looking for "new employees who can hit the ground running and who have the social confidence and emotional intelligence to get on with colleagues and customers" (p. 48). This puts me back into the race. However, it makes me wonder what will happen to the heaps that remain under skilled and cannot compete in the global auction for jobs.

To finish out Model 1 we had to do an ungraded group task. Wow! What I brain drain in a short time frame. The project was based on a statement by Philip Combs (1985) in which he stated the following about the expansion of education as "the greatest worldwide educational expansion in all human history - an expansion fueled by hopes and expectations that followed the end of World War II" (p.3). We were asked to do two things: graphing and analyze Perraton data and use GED to 'triangulate' the data.  We were able to provide data that education is expanding on a global scale and supported the belief of Combs (1985).  The report gave  a snapshot of the global perspective looking at population and then on education in regard to enrollments, ratios and expenditures in industrialized countries and specifically in the developing countries of Russia, Brazil and Estonia. We finished right down to the wire. (I knew there was a reason I hated group work).

To summarize, this module really gave me a better perspective of education being global and the imbalance of education from country to country. More exclusively, it made me reevaluate the price that I am paying for education and the returns it has the propensity to deliver.

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