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The College Bubble

The university graduation season this past spring dumped another seven million job seekers onto the sputtering economy.  A June headline in the New York Times painted a dismal picture of their likelihood of finding employment: “Degrees but No Guarantees: Faltering Economy . . . Dims Prospects for Graduates.”  In response, the mortarboard horde took to social media to voice its postcommencement frustration.  The Times noted that alarmed government officials begged schools, public agencies, and businesses to hire the frustrated microbloggers, if only on a temporary basis.  One Columbia University economist articulated the political leaders’ latent fears when he warned readers that the only thing worse “than an unemployed low-skilled person is an unemployed educated person.”  Not surprisingly, graduates from the nation’s top universities have had the most success at landing employment these last few months.  But even that elite group has not been immune to financial reality.  Many employers, fearing continuing economic weakness, have subsequently rescinded their offers.  Unemployment nationwide for college graduates between 21 and 25 years of age now hovers at 16 percent.  That’s the bad news.

The good news?  The Times article dealt with China, not the United States.  After enjoying GDP growth rates between 10 and...

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