PhDs on Food Stamps

Dan Miller —  January 10, 2013 — 25 Comments

Okay – here’s some sobering statistics.  For years I’ve been talking about the limited value of many academic degrees.  In the second presidential debate back in October, Governor Romney said 50% of last year’s college graduating class were either unemployed or seriously underemployed.  Know any MBAs who are delivering pizzas? Yeah, so do I.

On The Dave Ramsey Show it’s consistently student loan debt that tops the list of crippling factors for people struggling to get by.

The real question employers want to know is – what are your marketable skills?  How can you help our company get ahead?  They really don’t care about that piece of paper in your hand – whether it’s a resume or a diploma.

Here are some startling figures showing how many highly “educated” people are on welfare or receiving food stamps. In fact, the number of PhDs and Master’s degree holders on welfare more than tripled between 2007 and 2010.

Thanks to our friend Mu Saleem for the informative infographic.

 

America’s PhDs on Food Stamps

*Credit to OnlineColleges.net

Think carefully about buying that fancy diploma.  Will it really give you a return on your investment? Real life success requires more than knowledge.

What skills have you found to be valuable in today’s marketplace?

In Finding Passion, Marketing, Personal Development, Wisdom meets Passion , , , ,
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  • Chadrick Black

    It is sad how many graduates fall into the trap of chasing a paycheck instead of following their heart. (Been there, done that, and own the t-shirt, hat, hoodie, boxers, and socks.) We all know someone who is getting a degree in (fill in the blank) because it pays well, it’s popular, or maybe it’s held in high regards by society. However, now the economic culture of society has shifted and many of these now hard to find jobs are being filled by….. Wait for it….. PEOPLE WHO ACTUALLY BRING MORE TO THE TABLE THAN A DEGREE! The idea of “I’ve just borrowed $50,000 to get an MBA so society owes me a job, benefits and $60,000” mentality is no longer a realistic approach to life. Isn’t that like buying a $50,000 bulldozer and believing society should create a $60,000 paycheck simply because you elected to buy the bulldozer?

    I often share the phrase, “Less Education and More Dedication.” Now, that doesn’t mean to not pursue new thoughts, books, ideas, a new degree, or test untapped talents. (I’m currently learning how to ride a unicycle!) It does mean, as you reiterate over and over, to place more of your time and energy in activities that have the ability to get you up at 6 a.m. without the need of an alarm clock.

    Oh yeah, learning how to place a plan of action on paper (or
    spreadsheet) and create a lifelong system of measureable results and accountability is vital! Why that isn’t specifically taught in every high school and college is beyond me. We’ve got too many college grads that can share a detailed analysis on the collapse of Ancient Rome from a few thousand years ago but can’t share a detailed (and measureable) plan of action forecasting where their life is going to be 90 days from today and the action steps they’re taking to achieve those goals.

    Good article, Dan!

    • arch1960

      I’d choose learning from awesome people like Chadrick who is out there making great things happen, then to buy a no where degree.

    • 48DaysDan

      Chadrick,
      Your highlighted phrase identifies the key in this discussion. We must bring more to the table than just a degree. If you’re a jerk without a degree you’ll likely just be a jerk with a degree after you get that piece of paper. Thanks for your input.

    • JAY

      I would agree that nothing worthwhile is taught in college. I wish I knew what you were talking about in regards to this statement: “…plan of action forecasting where their life is going to be 90 days from today and the action steps they’re…” because it sounds like it would help me.

  • http://www.workyouenjoy.com/ Adam Rico

    Wow Dan, these statistics are amazing. It would be interesting to see the breakdown of the areas of study of these PhD holders. I imagine they would be more in the social science arena vs. STEM areas. Regardless, I think there is a cultural myth that having an advanced degree equals more money and prestige. With the changing world of work it is becoming quite the opposite. Thanks for sharing this?

    • 48DaysDan

      Adam,
      Yeah, some of those high degrees are in obscure areas with little real application other than teaching others the same useless information.

  • http://www.howtohaveapositiveattitude.com/ Brad McCullouch

    That is almost unbelievable!

  • Bernard Haynes

    This would have knocked me off my seat, but I know several people with advanced degrees that are in the same boat. We have let go of the myth that more degrees equals great job with excellent pay. I get tired of hearing people that are out of work or desire something better say I am going back to school. They think another degree will automatically set them up. This information exposes that big, fat myth. Thanks for sharing this info.

    • 48DaysDan

      Bernard,
      That is so common – someone finds themselves out of work so they immediately go back to school, instead of asking themselves why no one wants them on their team. Thanks for your comments.

  • Matt

    Very interesting. A few thoughts come to mind as I read this and review
    the post. First, I totally agree that student loans can be crippling. I
    saw many of my peers in school taking out loan after loan to live a
    rather lavish lifestyle while in school. And yes, some of them are now
    in so far that they don’t know what to do, and the value of their
    education is lost in debt. I worked hard to avoid loans entirely
    through scholarships and extra jobs, and it allowed me to pursue
    education that I wanted and would be useful for my career path. It has
    also given me flexibility in my career choices.

    I think it’s
    important to look at the whole picture though, and, while the
    infographic is interesting and informative, it can be misleading if
    taken out of context. For example, 5000 PhD janitors seems like a lot,
    but we have 2.5 million PhDs in the US according to recent census
    records
    (http://www.census.gov/population/socdemo/education/cps2006/tab01-01.xls)
    and produce nearly 25,000 PhDs a year in the US. So you have a pretty
    decent shot (99.8%) at not being a janitor if you get a PhD. And only
    1.3% of them are on food stamps compared to 15% of the general
    population. Masters are a little worse off at 2.3% on food stamps.

    Unemployment
    is strongly correlated to education, which has been particularly
    evident in this recent recession. For those with a degree, unemployment
    has continued to be very low: 2.4% for a professional degree to 4.9%
    for a bachelor’s degree. However, for those with a high school diploma
    only, it was 9.4% and for those without a high diploma it was 14.1%.
    You can see the complete chart at the Bureau of Labor Statistics at
    http://www.bls.gov/emp/ep_chart_001.htm

    Given that, I think you could make an informative infographic that
    sends the opposite message as this one, which shows the value of higher
    education, and that it may be more valuable than ever.

    Of
    course, even though unemployment is very low for those “with an
    education,” they may not be doing what they want to do. This is one of
    Dan’s regular messages. I agree–we need to develop ourselves to do work
    that is valuable and meaningful.

    I think that in general most
    people agree that education does make a difference. It shows in the
    statistics. It makes the biggest difference, however, when it is
    focused and directed. I’ve long appreciated Dan’s focus on that
    particular aspect. Don’t just get a degree to get a degree. Make your
    education meaningful, and never stop learning and acquiring value-add
    skills.

    Thanks, Dan!

    • 48DaysDan

      Matt,
      You make great points here. Having a degree is absolutely an advantage – this does just highlight that a degree alone is no guarantee. Thanks for your input.

  • Steve

    While certainly an interesting infographic, data indicates that a higher-level degree DOES cause average lifetime earnings to go up significantly. A PHD will on average earns 25% more during their lifetime than someone holding a masters degree, a masters degree holder will earn 17% more than a bachelors, and someone who holds a bachelors degree will on average earn 75% more than someone with only a high school diploma. Source: http://www.census.gov/prod/2012pubs/acsbr11-04.pdf

    • 48DaysDan

      Steve,
      You are absolutely right on this. Having a degree is an advantage. These stats just show that more is required in terms of what we have to offer than just a degree. Thanks for your comments.

  • DJ

    I note with interest that the sensible comments made by Matt and Steve are being ignored.

  • James

    Now you tell me. I wish I had read this before starting college. I graduated during the LAST recession with a Bachelor’s in English, I’m a published writer and I deliver inter office mail for idiots who misspell things and make 140 a month writing for a content mill. The system is broken and I’m not playing anymore. I’m writing what I want.

    And while 2500 PhDs may be statistically insignificant, it’s still too large a number to be janitors.

    • anon

      I wonder how many of those represent unemployed PhDs who are underwater on their mortgages, and can’t sell their homes in order to relocate? Being a PhD means having to move where the opportunities are. If you can’t move, you won’t be able to work, and if you can’t work, then food stamps aren’t a surprise…

  • fs2

    Numbers can be misleading or meaningless without context. 5,000! Wow! That is, until you put into the context of 2.5 million PhD holders. And how many of those PhDs are in esoteric subjects of little economic (real-world) value? Thanks to Matt and Steve for their comments.

  • OneAmericanAmongMany

    One factor that this article doesn’t cover is that there seems to be an attitude that comes with an advanced degree, and that attitude is one of being above the fray when it comes to getting one’s hands dirty. For example, I work in the accounting department of a small corporation – I have a B.A. (not in accounting) but have the basic knowledge of double-entry bookkeeping and am computer literate. My job functions include the day-to-day grunt work of accounting: posting cash and payables invoices, generating receivables invoices, etc, The assistant controller had a masters in accounting. When I had open time, I would take on some of her grunt work (bank reconciliations). However, when I was off for two days for some emergency surgery, she refused to do my work even though she had ample time in which to do it. The department was reduced by one employee – guess who is still working?

    • 48DaysDan

      Oh you are so right. Last night a guy called me asking for a car and some money. At one time he was on top of the world – and now he resists anything that would look like real work, even though he’s homeless and broke. Somehow he’s “above” getting his hands dirty.

  • Here

    This infographic isn’t evidence of education’s inability to help, it is evidence that whole life maturity is needed. There will always be people with phds who have low emotional quotients, or are addicted to something or someone, or who simply never grew up.

    Education is an excellent way to get in the door, but not a guarantee. But without an education, you are not even in the game in this economy, unless you are the one in a billion to write that massive bestseller, or invent the next ipad, or have a specific trade skill such as the ones that are featured a lot here. I’m not a world-class landscaper, I didn’t write 50 Shades of Grey, and my family didn’t leave me a business or trust fund. My only small leverage is my bachelor’s degree. It is the only thing keeping me from being homeless or a mess.

    I haven’t given up, by the way. I still might make my internet business plan succeed. But that would make me a part of a small, small minority. And I wouldn’t have thought it even possible had I not had a small amount of success from having the degree. Maturity, confidemce, stepping stones, getting anywhere without a degree isn’t just hard through lack of skills and people ignoring you, it is hard because, well, you haven’t built success upon success. For many of us, it is about growing up, vs sitting around with nothing but dreams and food stamps.

  • anon

    The infographic represents changes in higher education since the 1970s. Seventy percent of all university courses are now taught by low-paid adjuncts, many of whom do rely on food stamps to get by. There is an assumption that if you just pay your dues for a few years as an adjunct, eventually you might land a real, full time position as a professor, but this is less likely than it was even 10 years ago. 2255 Films is producing a documentary about adjuncts in American higher education. The book “Ghosts in the Classroom” is an expose of the system. I’m sure those PhD’s on food stamps, and probably most of the MA’s on food stamps, are in the Arts and Sciences. Some burned out and just quit the academic profession, and have taken any low-paying job they could find in the interim. Some will go back and get teaching certificates so they can get into the (relatively) higher-paying K-12 schools. I had an acquaintance in grad school who went back for a teaching certificate for the money. A PhD is a worthless degree because of changes in the academic labor market, not because the adjunct teachers are worthless people. It seems to me that they would benefit from learning how to transfer their academic skill set to a larger market the way Khan Academy, Udacity, and Udemy have done. Chris Guillebeau gives several examples of people who earn upwards of six figures just teaching others how to use Microsoft Excel, in his book “The $100 Startup”. I’m studying library science. I took Dan’s personality profile and it told me that I’m really cut out to be a librarian, or a procurement specialist, or both – which I could do as a technical services librarian, or as a technical services specialist for the global processing center of an international law firm. I got an MA in Spanish years ago, but by itself Spanish is not a marketable skill. You have to pair it with something else. Bilingual public librarians are in demand, as are bilingual school librarians. I think a lot of opportunities will open up for me as soon as I finish this degree (hopefully within the next 8 months).

    • 48DaysDan

      Wow – thanks for the great input and added information.

  • Josh Thomas

    Our society seems to place such a high regard on higher Ed. I’m not arguing that they’re irrelevant. I would not give up mine, however a college degree is not to be confused with necessity. Some, if not most, of successful people in America’s history have barely had a high school education let alone higher Ed. I could give a huge list of people but I’ll just use one example: Ben Franklin. Franklin was born into extreme poverty and hardly finished grammar school yet he did more in life than most groups of successful people today. He was quite literally America’s first Titan of entrepreneurship. How did he do it? Where did he get all his smarts? Books. The library. Collaboration with like minded people. He did it all with what he had at his fingertips. AND He didn’t even have the Internet! I truly believe people allow not having degrees to block their success because then failure doesn’t have to be their fault. Fear pushes us to build mountains of credentials before we even try. We should all take a lesson from good ol’ Ben.

  • JAY

    My Computer Engineering degree was worthless the day I received it. My experience has been that major universities such as mine are only selling degrees to fund their new buildings. They have no interest in actually educating people. What I need is a solution to the statement “Your diploma has expired”. Where do I find that solution? I have no idea where to look.

    • Dan Miller

      Jay – you can’t depend on the degree itself to open any doors. You have to show specific ways you would add value to any organization. Ultimately, companies don’t really care about a degree – they just have to be convinced you can deliver something they need.