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First, Please avoid editorializing story titles. Second, this article has the facts wrong. MBAs from top schools aren't having trouble finding jobs, nor have t

First, Please avoid editorializing story titles. Second, this article has the facts wrong. MBAs from top schools aren't having trouble finding jobs, nor have those jobs started paying way less.

noelchurchill 17y ago
Also, I don't think it's the MBAs that are the problems. Rather, the job market was sending the wrong signals by paying people with MBAs far more than they're worth. Due to the inflationary monetary supply enabled by the federal reserve, the finance industry was able to grow and become extremely profitable, attracting lots of talent with large salaries. These people would have naturally gravitated to many different career choices if the pay scales weren't so lopsided.
- mnemonicsloth 17y ago
  Inflationary monetary supply enabled by the federal reserve... lots of talent with large salaries. This sounds like a villain-hunt: a well-known cognitive bias that seeks to explain circumstances in terms of human agents with simple, understandable motivations to the exclusion of environmental, structural, or probabilistic explanations that lack such features. In this case, while I'm sure the Fed bears some responsibility, a lot of the growth of the financial sector over the last 30 years is probably due to the fact that several billion Asians have entered the world economy in that time. Their work creates wealth, which is useful as capital, for which there are markets, which grow from the influx and thus offer larger rewards to clever people who work in finance, should they find a better/faster/more efficient way of getting things done.
  - noelchurchill 17y ago
    The Fed began expanding the M3 monetary supply at a historically unprecedented rate in the 80s, and has become more and more aggressive with this policy over time. The entire point of this policy is to stimulate business by encouraging spending, make credit more attractive because the value of debt loses value over time due to inflation, and discourage saving. As consumers spend more, businesses make more, sending signals to the job market that getting into business and getting an MBA is a really good idea because you make more money. So that's exactly what people have done. Now that the American consumer is tapped out, broke, and unable to take on any more credit, obviously businesses are going to do poorly because their goods aren't being purchased, and they certainly can't afford to hire any more expensive MBAs. Do you agree? A growing and productive world workforce does lead to additional production/wealth creation, and I do think this is conducive to business, but I don't think it's the significant factor explaining the current glut in the job market for people with MBAs in the United States. The population in China is still expanding, workforce is growing, and GDP is still booming, so if this were the driving force fueling the demand for MBAs from America then that demand should still be there.
deleted 17y ago
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antonovka2 17y ago
First, Please avoid editorializing story titles. The submission title is a direct quote from the article: The decline of the MBA will cut off the supply of bullshit at source Second, this article has the facts wrong. MBAs from top schools aren't having trouble finding jobs, nor have those jobs started paying way less. I don't have the statistics to support or refute this claim, but the article discussed a massive glut of graduating MBAs, not just the top of the class from "top schools". I'm not sure if you actually read the article, or simply penned a knee-jerk defensive response to the harsh wording.
loganfrederick 17y ago
To be fair, it was almost a verbatim quote from the article. Editorializing the headline, yes, but still surprisingly representative of the article's content.
logjam 17y ago
First, the title wasn't editorializing, and second, you are the one with the facts wrong about the MBA job market: MBAs Confront a Savage Job Market The MBA Class of 2009 was hit harder than expected by the recession. At some top schools, 1 in 5 are jobless 3 months after graduation....For many programs, it marked the first time since the tech bubble burst that salaries didn't increase. Signing bonuses, too, fell both in value and quantity. http://www.businessweek.com/bschools/content/oct2009/bs20091029_862211.htm http://www.businessweek.com/bschools/content/oct2009/bs20091... And now for some editorializing: the MBA is a completely bullshit degree.

First, Please avoid editorializing story titles. Second, this article has the facts wrong. MBAs from top schools aren't having trouble finding jobs, nor have those jobs started paying way less.

noelchurchill 17y ago

Also, I don't think it's the MBAs that are the problems. Rather, the job market was sending the wrong signals by paying people with MBAs far more than they're worth. Due to the inflationary monetary supply enabled by the federal reserve, the finance industry was able to grow and become extremely profitable, attracting lots of talent with large salaries. These people would have naturally gravitated to many different career choices if the pay scales weren't so lopsided.

mnemonicsloth 17y ago
Inflationary monetary supply enabled by the federal reserve... lots of talent with large salaries. This sounds like a villain-hunt: a well-known cognitive bias that seeks to explain circumstances in terms of human agents with simple, understandable motivations to the exclusion of environmental, structural, or probabilistic explanations that lack such features. In this case, while I'm sure the Fed bears some responsibility, a lot of the growth of the financial sector over the last 30 years is probably due to the fact that several billion Asians have entered the world economy in that time. Their work creates wealth, which is useful as capital, for which there are markets, which grow from the influx and thus offer larger rewards to clever people who work in finance, should they find a better/faster/more efficient way of getting things done.
- noelchurchill 17y ago
  The Fed began expanding the M3 monetary supply at a historically unprecedented rate in the 80s, and has become more and more aggressive with this policy over time. The entire point of this policy is to stimulate business by encouraging spending, make credit more attractive because the value of debt loses value over time due to inflation, and discourage saving. As consumers spend more, businesses make more, sending signals to the job market that getting into business and getting an MBA is a really good idea because you make more money. So that's exactly what people have done. Now that the American consumer is tapped out, broke, and unable to take on any more credit, obviously businesses are going to do poorly because their goods aren't being purchased, and they certainly can't afford to hire any more expensive MBAs. Do you agree? A growing and productive world workforce does lead to additional production/wealth creation, and I do think this is conducive to business, but I don't think it's the significant factor explaining the current glut in the job market for people with MBAs in the United States. The population in China is still expanding, workforce is growing, and GDP is still booming, so if this were the driving force fueling the demand for MBAs from America then that demand should still be there.

deleted 17y ago

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antonovka2 17y ago

First, Please avoid editorializing story titles. The submission title is a direct quote from the article: The decline of the MBA will cut off the supply of bullshit at source Second, this article has the facts wrong. MBAs from top schools aren't having trouble finding jobs, nor have those jobs started paying way less. I don't have the statistics to support or refute this claim, but the article discussed a massive glut of graduating MBAs, not just the top of the class from "top schools". I'm not sure if you actually read the article, or simply penned a knee-jerk defensive response to the harsh wording.

loganfrederick 17y ago

To be fair, it was almost a verbatim quote from the article. Editorializing the headline, yes, but still surprisingly representative of the article's content.

logjam 17y ago

First, the title wasn't editorializing, and second, you are the one with the facts wrong about the MBA job market: MBAs Confront a Savage Job Market The MBA Class of 2009 was hit harder than expected by the recession. At some top schools, 1 in 5 are jobless 3 months after graduation....For many programs, it marked the first time since the tech bubble burst that salaries didn't increase. Signing bonuses, too, fell both in value and quantity. http://www.businessweek.com/bschools/content/oct2009/bs20091029_862211.htm http://www.businessweek.com/bschools/content/oct2009/bs20091... And now for some editorializing: the MBA is a completely bullshit degree.