> Education (in a worthwhile degree) is an asset that should pay a return. Where is the return coming from? There was once a theory that labour income with a d

> Education (in a worthwhile degree) is an asset that should pay a return. Where is the return coming from? There was once a theory that labour income with a degree attached would rise, but that didn't happen. Incomes have held quite stagnant. We've known that for many decades by now. Why do you think we've been dissuading people for the last many decades to not take on the debt? Because there is no return! In fact, the best way to estimate the return on an investment is to look at the asset sale price as buyers will pay some multiple of the yearly return. How much do you think you can sell a degree for on the used market? I'm guessing no more than nothing. Quite possibly you'd have to pay the buyer to take it off your hands. Clearly there is no retained investable value there. Which should be really troubling when you take on debt for it. If you can't resell the asset to get you out of debt, that's a scary proposition. At least the used Ferrari is still probably worth approximately what you paid for it, allowing you to get out if need be. > A Ferrari isn't. If you have a Ferrari you can almost certainly start making money with a YouTube channel. People eat that kind of thing up. If that's not your cup of tea, you can rent it out. People will pay a healthy premium to be able to rent a unique car like that. There are all kinds of ways to make money with a Ferrari. There is real, tangible value there. As such, Ferraris carry a decent resale value.