What about Spain? Maybe completely different than many think. What when is the epicenter of Spanish demonstrations in Spanish education?
Ve Spain is protesting. For a long time - true. There is talk (or there has been talk) of the "Spanish Spring" or the "Spanish Revolution." The riots were started by young people, Unemployment among people under the age of 25 is over 44%, generally over 21%. They generally want "change" - work, apartments and a better life. Thus, we can consider unemployment as the primary cause of the problems.
How is it that the "educational society" being built, full of university students with a diploma, cannot find a job?
Again, let's look at who started the protests - young people, graduates, with an unemployment rate of over 40%. Spain's problem is immediately "twofold" - firstly, it is an economy regulated by the European Union, which we already know 27. It is an economy with a hostile business environment, with a difficult opportunity to lay off and so on. The business risk in employment is artificially high and starting a business is not so advantageous.
This is the view from the "job offer". But what about the "demand" for jobs?
Young people demand work after they finish education. The vast majority of the education system in Spain is state-owned and free. And universities? 43 of them are state, 4 are church and 3 are private. Private, which are also subordinated to the Ministry of Education, so actually state.
What does it mean? That The Spanish education system is, to a greater or lesser extent, centrally planned by the state. Autonomous regions also play a role in regulating education, but they are also de facto "branches of the state".
The state of central planning is also called "economic socialism." In the field of education, let's call it "school" or "academic" socialism.
Impossibility of rational calculation
However, economic socialism of all kinds has one major problem: the absence of real, voluntarily determined market prices.
As a result, that means no one knows what to learn. Schools do not know what fields are of interest to students and what fields are of interest in the labor market. He does not know which fields are "effective", which are to "stick" and which fields are unnecessary and there is only a waste of talent.
Students do not know which field is worth studying, which fields are of interest in the labor market and which field is "right for them" - there is no system of scholarships and market (unregulated) loans with a centrally unaffected interest rate. It cannot even exist in the system of academic socialism.
Carrier of information about the preferences of many millions of cooperating individuals for those are the priceswhich do not exist in education.
Small investments in education
But what should the school give us? It is to help us build and develop our human capital - knowledge, experience and more. We then offer this capital together with our labor force (which is also a form of capital) on the labor market and we want income for its "renting" - salary.
The problem, however, is that young people spend a substantial part of their lives in the system of state-organized economic socialism. They invest precious time in capital formation, which is largely unnecessary because schools do not know what to teach their students.
The state that finances these schools then actually subsidizes the creation of capital with billions (euros or in our country crowns), which actually come to naught. The money collected in taxes is thrown out the window into the system of real anarchy - economic socialism without the possibility of any calculation.
Basically, it's a situation similar to before the mortgage bubble burst.
While in the mortgage bubble it was about building a "mortgage economy" where everyone has their own house and therefore the state pushed semi-state agencies to relax the rules for the mortgage market and the central bank to reduce interest rates (subsidized the emergence of some form of "capital"), in this education bubble it is a matter of building an "educational economy", where every young person has his or her degree and therefore the state finances the education system, he can.
The more state subsidies for education, the more state regulations, the more the central plan and the less real prices. The more central the plan, the less individual the plan of students and schools.
The more state money for education, the worse for school graduates.
The result of this whole marasmus of public education is a lot of school graduates (whether high schools or universities) who have spent a significant part of their lives learning specific field knowledge because to then waste them and devote themselves to something completely different. This is called a waste - human capital is wasted herewhich is, in general, capital like any other. We waste production factors, time, lives.
It is the ignorance of what "human capital" is required in the market that makes school graduates unable to use their own capital anywhere, and it thus becomes worthless. Yes, these are the famous "FHS graduates* in Alberta at the box office "or young Spaniards protesting for social security.
The famous "branch inflation" thus has the same effects as "monetary inflation".
We can find a parallel with Austrian business cycle theory - through state subsidies there is an "inflation" of university graduates - state subsidies and the absence of prices bring many graduates to education and tertiary education, but they invest poorly due to the lack of real price information - there will be small investments and a bubble. It will burst in time. It's about people - the bursting of the bubble will cause high unemployment of graduates ("Write-off" of bad capital).
However, one part of our "human capital" is common to all of us - it is ours working strong. When they fail investment into our own "specific" capital, we can use this less precious (and therefore less valued) capital.
Here comes the problem of job supply: if business is too bound by state regulation and it is too risky to employ, jobs are not created "for the workforce" either. He won't even open the supermarket.
And then? And then Spain comes "to us". Let's stop state funding for at least higher education while it's time. For the good of the students and all of us.