A Restructuring Of U.S. Education Could Create Substantial Equity

The pessimistic tone about credit crises, healthcare, social security, aging population, government deficits, taxes, the US dollar, and ways to compete with hundreds of millions of hard-working Chinese and Indian youngsters, assumes that there is not much slack within the United States. A much-circulated Mary Meeker USA Inc study carries that tone when listing solutions. It suggests increasing the age of retirement and taxes, diminishing social security and various health program benefits.

Yet there is another, better solution: Create equity by redeploying the American youth.

What if one could complete high school and college in 15 years or even 14 years? Or, in case of community colleges, get to the finish line in 13 years, as New Hampshire has been proposing? Or 12? Consider a "Fermi" calculation about the financial consequences of this reduction.

There are about 16 million youngsters enrolled in post-secondary education, say four million for each year. Assume that from now on four million join the labor force a year earlier. Each subsequent generation could then stay one year longer in the labor force. How much annual income would this generate?

Reuven Brenner holds the Repap Chair at McGill’s Desautels Faculty of Managament.   The article draws on his Force of Finance (2002), and “The Three Year Plan” (2005).

Read full article: Forbes, August 11, 2011

Shorter Version: Asia Times, August 13, 2011