Inventions
Alex Bäcker
1 min readInvesting in education offers a better return than the stock market, according to Greenstone & Looney. The article proposes a new investment model where investors fund the education of individuals unable to afford it, receiving a portion of their future earnings in return. This approach aims to create a more educated society while providing superior financial returns compared to traditional stock market investments.
In today's LA Times Op-Ed page, Greenstone & Looney show data showing that investing in an education provides more than twice as good a return as the stock market has over the last 60 years. For those who are already college educated, that provides little guidance, as you can only cure your own ignorance once. Yet these data suggest a new, scalable, socially conscious and economically superior class of investment: investing in others' education. By contracting with those unable to afford a college education to pay for it in exchange for a portion of future earnings, investors can create a more educated society while making a better return than the volatile stock market provides.