Education bubble

Recently I had a conversation with a close friend of mine about education bubble. How everyone has two or three diplomas, multiple masters but still can’t find a job. Is it possible? Supposingly when you follow a master’s program, you do it because you like it and because it will increase the chances to find a job, but why this is not the case?

In industry, you create a product, you make others believe it is mandatory to use and people buy it. The same rules apply to education. You create a variety of courses, you make others believe that your product is competitive and so, you get the money. Look England for example, they have a huge amount of Universities and every year they print tons of papers for degrees. Of course England is not the problem, the same rules apply worldwide, people pay to get a piece of paper that gives them a value.

The question is if this piece of paper really has value. From one hand when you print tons of papers you have inflation, meaning the value of the paper drops since you don’t have the unique privilege. On the other, when money flow to a direction bubbles start to appear.  Since people pay a lot of money to do a master’s program, it is obvious that more schools will appear to satisfy that need. The more schools you have, it is obvious the education level will drop.

So today we are talking about crisis unemployment etc. Except from the fact that global economy has fall in the mud, how is it possible to create jobs for all those people? The more graduates with a less ”serious” diploma you have, it is more likely for them to stay unemployed.