Peter Thiel: We’re in a Bubble and It’s Not the Internet – It’s Higher Education

Analysts prowl for the next bubble, and venture capitalist Peter Thiel argues that higher education is a likely candidate. In an article for TechCrunch by Sarah Lacy, Thiel compares higher-education costs with US housing prices: Both are touted as investments, promising long-term financial security; highly exclusive homes and educations can convey what Thiel calls “an unhealthy sense of entitlement.” Yet after an expensive Ivy League degree students often return to board with parents. He contends that talented students should succeed even without educations from the world’s most reputable institutions. Setting out to gather evidence supporting his theory, Thiel launched a contest to select 20 talented young adults, including international students from emerging economies, with good ideas, paying them to leave school and start companies instead. The notion that a select education determines success is limiting and self-reinforcing, and Thiel wants to establish a debt-free alternative. Great ideas, aided by funding and determination, can emerge from many sources. – YaleGlobal