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.
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I did a longer study on it once, but when I went to write the blog post I couldn’t find it to reference. It maybe had a little more detail and was more carefully worded. I’m glad you liked it. I sent this to the government as a crazy idea that someone would give me feedback at least, but all that happened was I got added to a mailing list and now they’re driving me nuts with emails!
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Yes, the specifics that make up the foundation of that story are always changing. I did the same number crunch several years ago and the gain of tax revenue over money spent was similar, but to be fair it could be re-written every year. What is your mission? I hope this idea becomes big one day. Thanks for reading and making a comment!
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Thanks! I’m not sure how you subscribe. You can follow it, but I don’t know what that does to be honest. I’m happy you like the idea. I hope one day some politicians like it too.
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Thanks! As far as I know, it’s a one of a kind, but of course nothing in the world is new. The details could be worked out for each jurisdiction and for each changing year, but I think the basics of the idea would be true in most places that don’t have free higher education already. I’m sorry I don’t have a better answer for you.
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I thought I replied to this already. Weird. Anyway, it isn’t as much time and effort as you would expect. The wordpress site does all the work, you just have to pick options. I never dressed up my site too much because the subject matter isn’t about fashion or photography or anything visual. Adding the odd picture is pretty simple. Give it a try. Good luck!
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I don’t really know of any other source other than doing the research on your own. I googled my little head off and combed through all sorts of statistics to assemble that article. If you find out more, or find something really convincing, share it with the world. I think this is an idea that is way past due in the countries that don’t already have free university education.
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