We found two very interesting articles in the New York Times this past week. First, “What Does Wall Street Do for You?” by Adam Davidson. In this article, which we recommend reading, Davidson explains how hating Wall Street—the country’s largest investment banks, commercial banks and big insurance companies—is a time-honored tradition that dates back to Thomas Jefferson’s days. However, the article also points out credit cards, mortgages, credit scores and securitized loans are all Wall Street inventions.
Wall Street essentially created our modern financial system in which we have an upwardly mobile middle class. Without Wall Street, most Americans would not have access to money. In general, savers save small but borrowers want to borrow big. Without banks working as the intermediary, there would be few other ways for money to exchange hands.
Our modern financial system is what separates us from third-world countries. It is what funded the research for life-saving drugs, and it is what allows students access to money for a higher education.
And that brings us to the second article, “Want a Job? Go to College, and Don’t’ Major in Architecture” by Catherine Rampell. In this article, Rampell discusses employment statistics from a recent study by Georgetown’s Center on Education and the Workforce. Today’s unemployment rate is 8.9% for college graduates; however, those with only a high school diploma face a 22.9% unemployment rate.
Graduates with a degree in architecture face the highest unemployment rate among college graduates at 13.9%, which is no surprise to us, as we have seen no one is building in the real estate market. For those more concerned with just getting a job, the health care field is the career path to choose.
The study continues to compare salary ranges for the different fields. Recent college graduates in the health care field can expect to earn about $43,000 while a recent graduate in business might earn around $39,000. However, salaries tip the other way among those holding graduate degrees, as a worker with a graduate degree in health care can earn $81,000 while a worker with a graduate degree in business can earn $84,000.
Overall, it pays to go to college. It might not pay to go to an Ivy League school and incur three to four times the debt for an undergraduate degree where you will earn around $37,000 upon graduation. Still, the fact remains, without the access to student education loans—a product of our modern financial system—you likely would not have the chance to be part of the middle class.
At Henssler Financial we believe you should Live Ready, which includes taking advantage of tax deductions while they are available. If you have questions regarding your year-end tax planning, the tax experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or e-mail at experts@henssler.com.