NEGATION

College and Income

Area of Analysis 1: Lifetime Earnings Soar with Education: Masters degree worth $2.5 million income over a lifetime; Dec 31 2011 by Robert Longley (About.com guide) How much is higher education worth in cold hard money? A college master's degree is worth $1.3 million more in lifetime earnings than a high school diploma, according to a recent report from the U.S. Census Bureau. The report titled "The Big Payoff: Educational Attainment and Synthetic Estimates of Work-Life Earnings" reveals that over an adult's working life, high school graduates can expect, on average, to earn $1.2 million; those with a bachelor's degree, $2.1 million; and people with a master's degree, $2.5 million. Persons with doctoral degrees earn an average of $3.4 million during their working life, while those with professional degrees do best at $4.4 million. "At most ages, more education equates with higher earnings, and the payoff is most notable at the highest educational levels," said Jennifer Cheeseman Day, co-author of the report. The figures are based on 1999 earnings projected over a typical work life, defined as the period from ages 25 through 64. Along with the financial data, the report also shows that more Americans are staying in school longer than ever before. In 2000, 84 percent of American adults age 25 and over had at least completed high school and 26 percent continued to earn a bachelor's degree or higher, both all-time highs. The report also shows that while more American women than men have received bachelor's degrees every year since 1982, men with professional degrees may expect to cumulatively earn almost $2 million more than their female counterparts over their work lives. Glass ceiling aside, the U.S. Bureau of Labor Statistics reports that women who graduated from college earned about 76 percent more than women with only a high school diploma in 2004. Over a work life, earnings for a worker with a bachelor's degree compared with one who had just a high school diploma increase by about $1 million for nonHispanic Whites and about $700,000 for African Americans; Asians and Pacific Islanders; and Hispanics. Currently, almost 9-in-10 young adults graduate from high school and about 6-in-10 high school seniors go on to college the following year.

Area of Analysis 2: Education Pays The Bureau of Labor Statistics (2010)

Area of Analysis 3: Income and Education as Predictors of Children's School Readiness Brookings Institute Julia B. Isaacs, Child and Family Policy Fellow, Economic Studies & Katherine Magnuson, University of Wisconsin - Madison With respect to maternal education, we find higher levels of education predict higher achievement and physical health, but not behavior. Our estimates imply that an additional year of school would increase math and reading scores by 0.06 to 0.09 standard deviations. Area of Analysis 4:

Area of Analysis 5: INCOME OF U.S. WORKFORCE PROJECTED TO DECLINE IF EDUCATION DOESN'T IMPROVE; November 2005 National Center for Public Policy and Higher Education If current trends continue, the proportion of workers with high school diplomas and college degrees will decrease and the personal income of Americans will decline over the next 15 years. Substantial increases in those segments of Americas young population with the lowest level of education, combined with the coming retirement of the baby boomersthe most highly educated generation in U.S. historyare projected to lead to a drop in the average level of education of the U.S. workforce over the next two decades, unless states do a better job of raising the educational level of all racial/ ethnic groups. The projected decline in educational levels coincides with the growth of a knowledge-based economy that requires most workers to have higher levels of education*. At the same time, the expansion of a global economy allows industry increased flexibility in hiring workers overseas. As other developed nations continue to improve the education of their workforces, the United States and its workers will increasingly find themselves at a competitive disadvantage. In addition, a drop in the average level of education of U.S. workers would depress personal income levels for Americans, in turn creating a corresponding decrease in the nations tax base. The projected declines in educational and income levels can be reversed, however, if states do a better job of increasing the education of all their residents, particularly those populations that are growing fastest.

Patrick J. Kelly at the National Center for Higher Education Management Systems

Area of Analysis 6: Faith, Education and Income; May 13, 2011; The New York Times; DAVID LEONHARDT In this weekends Times Magazine, I have a column explaining the tight link between education and income for religious groups in this country. The most educated groups, like Hindus and Jews, are the most affluent, while the least educated are the least affluent. The chart with the column has more details. On Twitter, Matt Chingos, an education scholar and the co-author of an excellent book on college completion, asked whether the relationship depended on the exact cutoffs for income and educational attainment. It does not. The chart in the magazine looks at the percentage of people with a four-year college degree and the percentage of people with family income of at least $75,000 a year, using data from Pew. In every case, the correlation between education and income is extremely strong. As I note in the magazine, the relationship goes both ways: more affluent people tend to produce more educated children, and more educated people tend to earn much more than less educated people. Its one more reminder that the financial value of education has never been greater.

Area of Analysis 7: US Income Inequality: Its Not So Bad; Spring 2010; Federal Reserve Bank of St. Louis; Thomas A. Garrett Each year, the U.S. Census Bureau releases data on the income levels of Americas households. A comparison of the annual data over time reveals that the income of wealthier households has been growing faster than the income of poorer householdsthe real income of the wealthiest 5 percent of households rose by 14 percent between 1996 and 2006, while the income of the poorest 20 percent of households rose by just 6 percent. As a result of these differences in income growth, the income of the wealthiest 5 percent of households grew from 8.1 times that of the income of the poorest 20 percent of households in 1996 to 8.7 times as great by 2006. Such figures commonly lead to the conclusion that income inequality in the United States has increased. This apparent increase in income inequality has not escaped the attention of policy makers and social activists who support public policies aimed at reducing income inequality. However, the common measures of income inequality that are derived from the census statistics exaggerate the degree of income inequality in the United States in several ways. Furthermore, although many people consider income inequality a social ill, it is important to understand that income inequality has many economic benefits and is the result ofand not a detriment toa well-functioning economy. Misconception 1: One big problem with inferring income inequality from the census income statistics is that the census statistics provide only a snapshot of income distribution in the U.S., at a single point in time. The statistics do not reflect the reality that income for many households changes over timei.e., incomes are mobile. For most people, income increases over time as they move from their first, low-paying job in high school to a better-paying job later in their lives. The implication of changing individual incomes is that individual households do not remain in the same income quintiles over time. Thus, comparing different income quintiles over time is like comparing apples to oranges, because it means comparing incomes of different people at different stages in their earnings profile. The U.S. Treasury released a study in November 2007 that examined income mobility in the U.S. from 1996 to 2005. Using data from individual tax returns, the study documented the movement of households along the distribution of real income over the 10-year period. As shown in Figure 1A, the study found that nearly 58 percent of the households that were in the lowest income quintile (the lowest 20 percent) in 1996 moved to a higher income quintile by 2005. Similarly, nearly 50 percent of the households in the second-lowest quintile in 1996 moved to a higher income quintile by 2005. Even a significant number of households in the third- and fourth-lowest income quintiles in 1996 moved to a higher quintile in 2005. Misconception 2: The statistics do not include the noncash resources received by lower-income householdsresources transferred to the householdsand the tax payments made by wealthier households to fund these transfers. Lower-income households annually receive tens of billions of dollars in subsidies for housing, food and medical care. None of these are considered income by the Census Bureau. Thus the resources available to lower-income households are actually greater than is suggested by the income of those households as reported in the census data. Misconception 3: The census statistics also do not account for the fact that the households in each quintile contain different numbers of people; it is differences in income across people, rather than differences in income by household, that provide a clearer measure of inequality. Lower-income households tend to consist of single people with low earnings, whereas higher-income households tend to include married couples with multiple earners. The fact that lower-income households have fewer people than higher-income households skews the income distribution by person. When considering household size along with transfers received and taxes paid, the

income share of the lowest quintile nearly triples and the income share of the highest quintile falls by 25 percent. Income inequality will still exist even if the income inequality statistics are adjusted to account for the aforementioned factors. Given the negative attention income inequality receives in the media, it is important to ask whether reducing income inequality is a worthy goal of public policy. It is important to understand that income inequality is a byproduct of a well-functioning capitalist economy. Individuals earnings are directly related to their productivity. Wealthy people are not wealthy because they have more money; it is because they have greater productivity. Different incomes reflect different productivity levels. The unconstrained opportunity for individuals to create value for societyand the fact that their income reflects the value they createencourages innovation and entrepreneurship. Economic research has documented a positive correlation between entrepreneurship/innovation and overall economic growth. A wary eye should be cast on policies that aim to shrink the income distribution by redistributing income from the more productive to the less productive simply for the sake of fairness. Redistribution of wealth increases the costs of entrepreneurship and innovation, with the result being lower overall economic growth for everyone.

Area of Analysis 8: Has US Income Inequality Really Increased? January 8, 2007; The CATO Institute; Alan Reynolds In sum, studies of changes in income distribution based on tax return data provide distorted and misleading comparisons of U.S. income shares because of dramatic changes in tax laws in recent decades. Aside from changes in taxpayer reporting due to changes in the tax laws, there is no clear evidence of a significant and sustained increase in the inequality of U.S. incomes, wages, consumption, or wealth since the late 1980s. Gains, such as the Congressional Budget Office figures, reductions in the capital gains tax rate in 1997 and 2003 would be expected to increase the amount of gains reported on tax returns, since the amount of gains realized is very sensitive to the tax rate.

College Education Reduces Unemployment

Area of Analysis 1: Obama's American Jobs Act Will Create New Employment Opportunities, Jobs which My Colleges and Careers Can Help Students Acquire by Arming Them with a College Education; January 13, 2012; PRWeb Last week, President Obama proposed a job creation plan called the American Job Act. The act involves adjustments to Social Security tax rates, tax cuts for businesses who hire those who have been unemployed for more than six months, extending unemployment benefits, and payroll tax cuts for businesses. If the act were to pass in its present form, it could potentially create thousands of new jobs and reduce unemployment, reports CNN. My Colleges and Careers provides tools and other features on their website that will help potential students and employees find online degree programs and certifications that will prepare them to start a career. The American Job Act in its current form would reduce social security rates for those with an annual income of $106,800 or less from 4.2 percent to 3.1 percent. This will increase disposable income for the average American and thus consumer spending will also increase. The more consumers spend, the more job creation will grow. Extending the length of time that unemployed workers can receive benefits will also raise consumer spending. With the possibility of increased spending, and thus more jobs, it is important that unemployed workers and students get all the preparation possible. My Colleges and Careers can help connect both prospective and returning students connect with online schools that will help them earn degrees and thereby improve their likelihood of being employed. Several career fields will particularly benefit from the President's American Job Actinfrastructure development, teachers, and first responders. They will also be able to find out more information regarding each career, such as how to become a teacher or where to earn accredited online engineering degrees, both fields that will have more employment openings should the new jobs act pass in congress. Additional tools and information available on the My Colleges and Careers website include lists of the top online degrees; infographics about careers, education, and financial aid; and news updates relating to new educational policies in government. This information will allow students to have the knowledge necessary to make wise choices regarding their education. The education blog hosted by My Colleges and Careers also offers valuable advice from a variety of industry experts. Experts write on subjects including: how to choose a career, how government policies can affect education and financial aid, and the best careers for the current economic conditions. All of the tools on the website were made to help improve the education and job opportunities of those looking to find jobs or even better their current employment situation. My Colleges and Careers is dedicated to helping students and prospective students earn their college degrees through online degree programs. Considering that most students have other responsibilities and time commitments, My Colleges and Careers can become a great resource for those seeking a way to fit school into an already busy schedule. Through online programs, students can complete their schooling at their own pace. The tools and services offered on the My

Colleges and Careers website have already assisted many students in completing their education and starting a successful career. Area of Analysis 2: Benefits of Undergraduate Research: The Benefits of Undergraduate Experience; Utah State University Top Ten Reasons to Get Involved in Undergraduate Research In undergraduate research, teaching and scholarship become parts of one simultaneous, overlapping, shared process. Undergraduates can become active scholars throughout their undergraduate careers, not just at the last stages.

1. Get involved in research, scholarship, and creative activity that is innovative. 2. Engage one-on-one with faculty in the work of your discipline. 3. Clarify and prepare for your career by developing an understanding of research methodology in your field of study. 4. Develop critical thinking, creativity, problem solving, and intellectual independence as well as team skills and communication skills. 5. Reinforce what you are learning in your classes with a steady supply of hands-on research opportunities 6. Investigate a problem or question, carry out a project, and then share those discoveries with their peers. 7. Get your hands on plenty of internships, fellowships, and summer research experiences 8. Become more competitive for national and international scholarships and fellowships. 9. Become one of the undergraduate researchers who have been shown to persist in finishing their undergraduate degrees at a higher rate
and also pursue graduate education at a higher rate.

10. Become one of the alumni who have reported more satisfaction and higher gains after participating in undergraduate research.
In addition to these reasons, research has been proven to enhance the following:

Analytical Skills Teamwork Time Management Leadership Writing Skills Troubleshooting Understanding of Ethics Communication Self-Confidence