Canada should have free education for its citizens. It seems like a very expensive idea, but it actually isn’t that crazy.
Ontario is the easiest place to use as an example. It has a median family income of $76,510 per year which is almost exactly the average Canadian family income of $76,550. Also the average university graduate in Canada earns $144 for every $100 earned by a high school grad, and the rate in Ontario is almost exactly average at $144.20. It also has a very average income tax rate, and of course, the most people by a wide margin. The numbers I use come from these earnings and reflect taxes paid federally and to the province of Ontario.
The fact that the university grad earns much more money also translates into that grad paying a lot more income tax. Starting at age 22, after completing a hypothetical four year degree, the grad will be many thousands of tax dollars behind the hypothetical high school grad who began paying tax at age 18. However, the degree holder will pass the high school grad in lifetime taxes paid when they reach age 29, and if they both continue to work until age 65, the university grad will pay an extra $365,940 in taxes. Not bad for the $60,591 the average four year degree costs in tuition. The government comes out $305,000 ahead on the deal. The rate of return is about six tax dollars taken in for every dollar spent on tuition. If an extra 1/6 of high school grads attended university because of the free tuition, the program would make the government money.
Of course, many people are willing to go badly in debt to get an education, but there is a strong correlation between education levels and the cost of tuition. This suggests that there are people not pursuing higher education because of the cost. As an example, the cheapest tuition in Canada is in Quebec, which also has the highest rate of post-secondary attendance. In Quebec, some college courses can be taken for free. Certainly more people would choose university if it were free. There might have to be some rules, such as it might only be free until you reach the age of 20, after which you must kick in 10% of the cost per year. Obviously, it would not be cost effective to open free education to anyone nearing retirement age. They also may want to limit free tuition to four years.
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The government would also gain in other ways. The university grad would be much less likely to be unemployed during his or her working life. Also, degree holders tend to save more for retirement meaning they are less of a burden on the national pension. They also tend to live healthier lives, so the government spends less on their well-being throughout their lives. This is not to mention the fact that the $60,000 they would have had to repay for their student loan now is spent in the economy.
There are other non-financial benefits to society. Degree holders are also less likely to smoke, less likely to be involved in crime, more likely to volunteer, give blood and vote. They are more likely to read to their children which raises them with higher cognitive skill. The list goes on and on.