The value of education is one thing most Canadians can agree on – where they disagree is who should foot the bill. Is post-secondary education something students should finance themselves, or an investment that the government should make in its citizens.
Post-secondary education allows for greater social mobility. College and university graduates have more employment opportunities at higher paying jobs.
Iglika Ivanova of the Canadian Center for Policy Alternatives says, “University graduates experience shorter periods of unemployment, are more likely to work full-time and earn higher salaries than their peers with high school diplomas”.
This is good for the individual graduate, but it is also an economic benefit to society.
“Over their working lives, women with an undergraduate degree contribute, on average, $106,000 more to the public treasury than women with only a high school diploma,” Says Ivanova. “Similarly, university-educated men contribute $159,000 more to the public treasury than men with only a high school diploma.”
This is just the individual’s contribution to taxes. According to Statistics Canada women with a university degree currently, earn on average 58% more than women with a high school diploma and 41% more than those with a college education. Women with higher education are therefore likely to have more disposable income that contributes to the wider economy.
If education is such a benefit to society isn’t society better off if everyone has access to it. Tuition fees present a barrier to education for some students and a challenge for many. The average Canadian tuition cost in 2018-2019 was $6,838 according to Statistics Canada, an increase of 3.3% from the previous year.
Many students can only afford education by going into debt. Graduates will then be starting out their working lives in debt. Apart from the difficulty on the individual this money is also not being spent in ways that might benefit the economy. The young person burdened by debt is not buying a house, making investments, or spending in local businesses.
Currently, in BC tuition fees represent around 40% of the cost of education, the rest is paid by the government. The higher taxes paid over a graduate’s career more than makes up for the cost to the government. If the graduate pays $159,000 more in taxes after a four-year degree that costs $50,630 of which the government pays 60%. If tuition fees were removed the difference in earning would still be over a $100.000 more into the public purse than the cost of the degree. Moreover, removing tuition fees would increase the number of graduates earning higher wages and contributing more to the public purse and the economy.
The government paying full tuition for students would be a beneficial investment for the future. More students could pursue post-secondary education, those students would repay the cost of their education through tax contributions over their lifetime. They would also contribute to the economy by having more disposable income rather than spending their money paying off student debts. The smartest investment BC can make is in its students.
Good idea's Sara. I agree that it would be helpful to the economy in the long run if students came out of school with less debt. Do you think that this type of tuition system would encourage more students who may not have considered higher education before to choose post secondary?
ReplyDeleteI really appreciate how you offer data to explain how the economy will benefit from students having the ability to spend. Students in such overwhelming debt can't build a future. This is discouraging people with less financial security to advance their education. If they had the opportunity to educate themselves, they would earn more, and contribute more to the economy, it seems so simple.
ReplyDeleteGreat article, you have some very strong points! I like when point out how most college graduates start out their careers going into debt. Not many people think about the effect it will have on the rest of that student's life.
ReplyDeleteFree tuition is a win-win for both students and the government. You illustrated that nicely with the example of the tax contribution. It is an investment for the future as you mentioned, and those words speak for themselves.
ReplyDeleteExcellent explanation of BC's current education climate. Considering all of the socio-economic benefits, the provincial government should absolutely invest in its students.
ReplyDeleteCanada investing in a free post-secondary education is a great idea if it is in fact it’s an investment. If the Canadian Government decided to introduce a free education system this would qualify a much wider range of graduates with high profile job requirements. This might cause a higher level of unemployment due to the same amount of jobs being offered and a huge rise in highly qualified applicants. If the Canadian Government wants to see investment, taxes would go through the roof in order to pay for the “free tuition” concept.
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