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 ti

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.