In the United States, student debt is skyrocketing, and young people are saddled with surging interest rates on their loans. It is not uncommon for Americans to start their career already $100,000 in debt. However, an investment in human capital (education) is, in theory, a productive investment. Economists Xavier Raurich and Thomas Seegmuller demonstrate this by analyzing how the speculative bubbles individuals use to finance their studies or raise children are, in the end, good for growth.
January 21st 2021
