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As consumption -- "I want to know about history" -- it's great. As investment -- "I want a degree to get a better job" -- it may not be good for the individual
by danielweber 13y ago
As consumption -- "I want to know about history" -- it's great.
As investment -- "I want a degree to get a better job" -- it may not be good for the individual, and for society it's probably a net negative, because the benefits to your human capital are minimal while you are putting more resources into a zero-sum status competition.
Now, it's perfectly okay to have consumption, but you shouldn't confuse it for an investment. Spending 4 years backpacking across Europe also sounds like an awesome time, another end unto itself, but you shouldn't borrow money you don't have to do it.
- lotsofmangos 13y agoNot all returns on investments are financial. Spending money improving the level of history knowledge in a population can have paybacks that range from better national security through to the quality of art. These things are very hard to quantify and to just look on their direct financial return gives a very poor measure.