Inflation, AI, and College: The Broken American Dream

Inflation and interest rates are still high, which begs the question: does an educational investment in a top university make sense right now? It doesn’t seem so, if you consider that the income gap between workers with a degree versus those without is only about $15-20k/year. It could take 10-15 years to break even after taking into account the cost of the degree, plus the lost income of not being employed full-time while taking classes.

Not only that, will this eventual return on investment even make a difference in today’s inflated housing market? Consider how student loan debt ranging from $120,000 - 140,000 on average will affect one’s credit rating. Will the ROI make a difference for those in entry level positions that only pay $40,000 - $60,000 yearly?

Considering the time for growth and experience, it’s not likely that graduates will obtain a sustainable salary in these economic shifts. And this next generation may be stuck at home with crippling student debt and a housing marketing that’s unreachable. To add to the imbalance, the American Dream is threatened by both partners having to hold a full-time job to sustain a household.

The newest challenge for Gen Z will be considering their education after high school, and making sure their role is not replaceable by Artificial Intelligence (AI) technology in the next 4 to 5 years. With AI continuing to emerge in the workplace, are universities and colleges handing out obsolete degrees?

That’s why it’s critical to investigate the market, salaries, and networking sites like LinkedIn. The next generation of workers faces many challenges ahead. Success means different things to different people, but the basics remain the same for the American Dream: education, a home, and a career. When all three are threatened, does that mean the American Dream is broken?

For more information about alternatives to college, please contact:

RHK Construction, Inc.

219 West Galena Blvd.

Aurora, IL 60506

Ph: (331) 212-5158

rhkconstructioninc.com