Tag Archives: College

New York Fed’s Dishonest Survey About College Grads

A recent study conducted by the Federal Reserve Bank of New York found that, over the course of their lives, college graduates are likely to make $1 million more than non-college graduates. The report said, “Over the past four decades, those with a bachelor’s degree have tended to earn 56% more than high school graduates.”

Despite the results found by the New York Fed, college graduates looking to make that extra $1 million don’t usually find it coming to them so easily. In fact, according a study by Wells Fargo, about 31% of millennial Americans regret paying for college instead of trying to get a full-time job right out of high school.

The Guardian pointed out that, while student loan debt amounts to about $1 trillion in the United States, it is something the New York Fed report authors chose not to incorporate into their analysis on the rate of return of an education.

The Guardian also found that the New York’s Fed’s cost of tuition estimates were severely skewed. “The report estimates the total cost of four-year tuition to be $26,000, arguing that the net price of a bachelor’s degree is $6,550 a year – well below the annual $14,750 sticker price. At many private colleges, particularly elite ones such as those in the Ivy League, the sticker price is above $50,000,” wrote The Guardian’s Jana Kasperkevic.

In addition to undervaluing the cost of obtaining a bachelor’s degree, the New York Fed valued the cost of an associate’s degree at $0, stating the that real cost of an associate’s degree was “more than fully subsidized by various tax benefits and other form of aid.”

Kasperkevic mentioned that although everyone from President Obama to Starbucks CEO Howard Schultz, is concerned about the student debt epidemic in the United States, the New York Fed believes that student loans are cheap subsidies.

In exchange for paying interest, people can take out student loans to delay paying their college expenses. Thus, it is not necessary to incorporate such financing options into our rate of return analysis,” the report from the New York Fed stated. “In face, because interest rates on student loans are often subsidized at below-market rates, student loans generally allow people to earn higher returns than our results would indicate.”


The New York Fed also failed to acknowledge the fact that not all students are eligible for subsidized loans, with interest rates around less than 6%. Many students are forced to turn to private loans, which come with interest rates as high as 18%.

The current unemployment rate for college graduates is 3.2% in the United States – which may seem small – until it is calculated to equal more than 1.5 million Americans. That means more than 1.5 million Americans have a bachelor’s degree or higher, and are unemployed, each individual carrying an average of $30,000 in student loan debt, and with no guaranteed job.

While looming student loan debt has been one thing to make college graduates question the point of their degree, underemployment has been another.

The New York Fed admits that the likelihood of being underemployed, “declines significantly with age, and more college graduates work their way into college-level jobs by the time they reach their thirties.”

The report went on to say, “About a third of those who obtain a college degree do spend much of their careers in jobs that typically do not require a bachelor’s degree.”

The New York Fed did maintain that college graduates are still getting something out of their degree. “Employers are willing to pay a premium for college graduates relative to those with just a high school diploma, even in jobs that are not typically considered college-level positions,” stated the report.

Despite the recent struggles of college graduates, investing in a college degree may be more important than ever before because those who fail to do so are falling further and further behind,” stated the New York Fed.

“Mr. President, I’m Leaving The Medical Field”: Hanging Up The White Coat: A Letter To President Obama

Barack Hussein Obama

The White House

1600 Pennsylvania Avenue N.W.

Washington, DC 20500

Mr. President,

I was born at Centennial Medical Center in Nashville, Tennessee. My mother would later take a job delivering babies in that same operating room only a couple of years later. My parents got a divorce when I was young. There were many times during the summers when she would be forced to take my sister and me to work with her. I vividly remember the child version of myself walking the halls of the same floor I was born on in fascination as the years passed. The anesthesiologists used to bring us candy and watch movies with us.

I'm Hanging Up The White Coat Because Of Obamacare To Pursue My Doctorate In Economics And Head To Wall Street
I’m Hanging Up The White Coat Because Of Obamacare To Pursue My Doctorate In Economics And Head To Wall Street

When the holidays came, a nurse by the name of Patty Vaughn (we called her Granny), would have bags of presents for my sister and me. Donna Smith, a surgical first assistant who came to America from Canada to work in a free-market healthcare system, used to babysit us.

Donna’s two-story townhome became a 3rd home (2nd was the hospital). We spent countless nights at her house. Patty passed away when I was ten. I still remember the last box of moon pies she gave me for Halloween that year. To this day, every time I see a moon pie I think of her. Donna helped me through my undergrad at Belmont University. With tuition at $30k/year, money was tight. Donna never let me go without a meal.

You see, Mr. President, the smell of sterile operating rooms, horrible coffee, crisp white coats, and cold metal was my destiny. The first time someone ever asked me what I wanted to be when I grew up I responded, “Anesthesiologist.” I had no idea what they even did, but it was the first big word I learned to pronounce as a 6-year-old. The hospital is my family. It’s all I’ve ever known.

Twenty-one years after my birth, in the same hospital, I listened to a fetal heartbeat through my very own stethoscope as a student. You know, it’s quite magical. As the cool, metallic bell lies upon the tight skin of a young mother’s stomach, anxiety, fear and joy are all present in her face. A week before my birthday, I stood at the side of the laboring mother. There’s no other way to explain childbirth than witnessing the face of God. The emotion is enveloping. You can only try (unsuccessfully) to hold the tears back. I knew at that moment what a gift God had given me. To be allowed the involvement in such a beautiful, pure moment was not to be unappreciated.

When I started college, I knew where I was going. You had just won the election. I remember the cameras focusing in on Oprah Winfrey’s face. Tears streamed down. At the time, I knew nothing about politics. My biggest concern was a girl in my Anatomy & Physiology class I had a crush on. I paid little attention to Washington, DC.

I worked hard. Multiple all-nighters, falling asleep behind the wheel of my car countless times, thousands of shots of espresso (I actually took a job at Starbucks to support the habit) and 15k note-cards later I had graduated in the top 5% of the country. However, during those last few years, something changed.

We studied medical legislation for an entire semester. It’s no secret that the federal government has overburdened the healthcare market, which has manifested astronomical costs to consumers. However, in 2010, Democrats forced through the partisan Patient Protection & Affordable Care Act (Obamacare), which was later funded by both Democrats and Republicans.

Since the passage of Obamacare, everything has changed. When I started college I never intended to work for the government. I never thought I’d have a government bureaucrat dictate what I was worth to the market, and I certainly never imagined those same bureaucrats (who have absolutely no medical training) telling me how to treat my patients.

I remember the day Obamacare became law. I was sitting in the hospital working in the anesthesia department part-time to cover the costs of tuition. Dr. Alfery, a mentor of mine, looked over at me and said, “Run – it’s not too late to change majors.”

Your legislation has caused countless doctors to go into retirement early, opt for cash-only practices, and has discouraged bright, young minds from entering the field.

With student loans reaching $300k, incalculable opportunity costs and 8 years lost to school, students seeking medical degrees give their lives to the practice. Starting our careers at 30 while dictating to us how much money we can make is nothing short of destroying all incentive to enter the field.

Since that day, I’ve yet to find a doctor who recommends the field. People respond to my complaints, “It’s still going to be a good job.” I don’t want a “good job.” I have not fought for a government entitlement of a “good job.” I want an incredible career. That’s what I have fought tirelessly for.

I have been on a path to enter the Air Force and continue my education in medicine. I have been dreaming of specializing in pediatric neurosurgery for half of a decade.

After quite literally losing my hair from the internal conflict, considering the sunk costs and evaluating different avenues, I have decided.

I have decided that I believe in the principles of a truly free-market, and I trust the free-market. Because of this deep, internal value system I cannot, with clear conscience, continue on this path. My life has value. Such value cannot be calculated by Washington bureaucrats. I won’t allow it. Only a true free-market can accurately assess the value I am capable of.

Mr. President, I’m leaving the medical field. I’m hanging up the white coat. However, let me be clear. You have not won. Unless something “changes,” you’ve lost and will continue to lose. You will fail because you lack principle. Meanwhile, we will succeed because we are born of principle.


Michael Gordon Lotfi