The Economics of a Ph.D.

Gary North on the economics of a Ph.D. (via Political Theory Daily Review).

Ph.D. students are a lot like gamblers. They expect to beat the odds. The gambler personifies odds-beating as Lady Luck. The Ph.D. student instead looks within. “I am really smart. These other people in the program aren’t as smart as I am. I will get that tenure-track job. I will make the cut. I will be a beneficiary of the system.”

If wishes were horses, beggars would ride. Also, if ego were marketable, all Ph.D. graduates would get tenure…

At $20,000 or more per year in tuition and living expenses, plus the $35,000+ not earned in the job market, trying to earn a Ph.D. is a losing proposition.

In some departments, the years invested are horrendous. Breneman’s dissertation went into the grim details, department by department. Anyone seeking a degree in philosophy was almost doomed to failure, yet the Ph.D. degree took on average over a decade beyond the B.A. to earn. There were almost no college teaching jobs when they finished. That was before the glut.

Earning a Ph.D. may pay off if your goal is status, although I don’t understand why anyone regards a Ph.D. as a status symbol that is worth giving up five to ten years of your earning power in your youth, when every dime saved can multiply because of compounding. If the public understood the economics of earning a Ph.D., people would think “naïve economic loser” whenever they hear “Ph.D.”

A word to the wise is sufficient.