Editorial: Time to trade in that degree

SCARCITY of resources drives up the value of those resources. Once tertiary education was once the preserve of a few. But now, like colour television and mobile phones, university ­degrees are far more common.

St John's College at the University of Sydney.

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SCARCITY of resources drives up the value of those resources. Australians of a certain age will recall the novelty of colour television’s introduction during the mid-1970s, when the first home on the block to shell out for one of the (very expensive) new colour sets witnessed a sudden, ­increase in household visitors.

As time went by and colour television became the norm rather than the exception, visits once again normalised.

That pattern was repeated during the 1980s as the first mobile phones hit the market.

Some status-anxious types actually resorted to fitting their cars with dummy antennas in a bid to convince onlookers they were part of the mobile revolution.

Again, the rapid ubiquity of mobile phones ended that trend.

Tertiary education, too, was once the preserve of a few. But now, like colour television and mobile phones, university ­degrees are far more common.

In one sense, this is all for the good.

Universal Colour Visual Services receptionist Lynda Pollard with the new Phillips domestic colour TV set in 1973.

Education in most cases is valuable in and of itself and Australians should be pleased that a much greater percentage of our population has obtained higher qualifications.

At the same time, however, what are those higher qualifications worth if they no longer confer advantages in the ­employment field? What if ­degree-holders had instead pursued trade-based qualifications?

This is an issue to be ­addressed today by TAFE boss Jon Black during his speech to the Careers Advisers Association annual conference.

“Why is it,” he will ask, “that every Uber driver I speak to has a communications, business or law degree?”

It’s a great question. Black’s additional thoughts are also worthy of deep consideration.

“While there is obviously an important role for universities in our nation’s future, a (vocational education) pathway to a job and a career should be regarded as a valid and inspiring first choice,” Black will continue, ­according to a draft copy of his planned speech.

“Often earning a degree is just where the ­trouble starts for uni leavers.”

Additionally, Black will point to a compelling financial consideration: “Would you rather finish with a $4000 debt or a $30,000 debt?”

Those with an accounting ­degree might be able to answer that question quickly.

Those with an arts degree might take rather longer.

LABOR IN A DIFFERENT GETUP!

Left-wing activist group GetUp! has been running campaigns for some time now.

These usually take the form of television ads, online programs and what have you.

It is all very undergraduate, although it seems the broader membership tends to be of retirement age. Still, let them have their fun.

Labor leader Bill Shorten with GetUp! members when he made an election day visit to Winmalee with candidate Susan Templeton (far right) in 2016.

Yet matters become more serious when GetUp!’s finances are examined — especially how those finances very frequently flow between Labor and other GetUp!-favoured entities.

By all means, have your say.

But if GetUp! wants to pretend it is something more than a Labor-loving pressure group, it can GetOut!

PRICE ISN”T ALWAYS RIGHT

While Australians face continuing and unjustified financial stress over absurdly inflated electricity power charges and other ever-increasing basic living costs, at the same time we are enjoying record low prices in other areas.

The cost of televisions, phones, audio gear, clothing, cars, and fruit and vegetables are at their cheapest level in years, relative to average wages.

According to CommSec chief economist Craig James, low inflation is a major driver for price reductions for so many items.

“While there has been much bleating about higher electricity prices, there hasn’t been the same focus on falling food prices — recording the biggest annual decline in five years,” he said.

Food prices have come down.

“The slump in fruit and vegetable prices has greater rele­vance with increased food afford­ability giving people more cash to spend, such as on electricity.”

One important issue here is that cheaper groceries and price cuts for televisions, cars and the like do not make up for the blowout in electricity charges.

Given Australia’s abundance of cheap power sources, ordinary citizens should not be just breaking even. Instead, they should be in profit.