The 1%

[Weatherby]

<p>When my son was 3-4 years old, he asked me two rather profound questions.</p>

<p>He said, “Dadda, how much does college cost?”</p>

<p>I responded, “Probably about half a million dollars when you get there.”</p>

<p>DS said, “Dadda, can I just have the money to buy a crane and bulldozer to start a business?”</p>

<p>He will get an education but I do question the investment value of spending $500-700k on BS, undergrad, and graduate school</p>

<p>[Education</a> & Wealth Accumulation](<a href=“NameBright - Domain Expired”>NameBright - Domain Expired)</p>

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The Truth is this … The Relationship between Education & Wealth Accumulation is Negative.</p>

<p>Which means, the more education you receive … there is a greater chance that you will accumulate less wealth.

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<p><a href=“http://www.nytimes.com/2011/10/23/opinion/sunday/will-dropouts-save-america.html?pagewanted=all[/url]”>http://www.nytimes.com/2011/10/23/opinion/sunday/will-dropouts-save-america.html?pagewanted=all&lt;/a&gt;&lt;/p&gt;

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Will Dropouts Save America? </p>

<p>I TYPED these words on a computer designed by Apple, co-founded by the college dropout Steve Jobs. The program I used to write it was created by Microsoft, started by the college dropouts Bill Gates and Paul Allen. </p>

<p>And as soon as it is published, I will share it with my friends via Twitter, co-founded by the college dropouts Jack Dorsey and Evan Williams and Biz Stone, and Facebook — invented, among others, by the college dropouts Mark Zuckerberg and Dustin Moskovitz, and nurtured by the degreeless Sean Parker. </p>

<p>American academia is good at producing writers, literary critics and historians. It is also good at producing professionals with degrees. But we don’t have a shortage of lawyers and professors. America has a shortage of job creators. And the people who create jobs aren’t traditional professionals, but start-up entrepreneurs.
Yet our children grow up amid an echo chamber of voices telling them to get good grades, do well on their SATs, and spend an average of $45,000 on tuition — after accounting for scholarships — while taking on $23,000 in debt to get a private four-year college education. </p>

<p>It’s time that we as a nation accepted a basic — and seldom-mentioned — fact. You don’t need a degree (and certainly not an M.B.A.) to start a business and create jobs, nor is it even that helpful, compared with cheaper, faster alternatives.

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<p><a href=“http://faculty.chicagobooth.edu/erik.hurst/research/final_resub_jpe_dec2002.pdf[/url]”>http://faculty.chicagobooth.edu/erik.hurst/research/final_resub_jpe_dec2002.pdf&lt;/a&gt;&lt;/p&gt;

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And, the effect of otherfactors such as previous gifts, education and expected bequests is very small once income is accounted for. That we find only a modest effect of education once income is controlled for is particularly noteworthy…income does not fully account for the parent-child wealth persistence…We find that parents and children allocate their portfolios quite similarly, even after controlling for both the income and wealth of parents and children. We show that this tendency is, apart from income, the next most important reason why wealth tends to be similar across generations

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<p>I am more convinced than ever that receiving a skinny envelope on March 12 rather than a Fedex on March 10 means little in the quest to be part of the 1%, those who simply want to make the world a better place.</p>