This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Education Glut

NEW YORK ( TheStreet) -- If you want to know where the gluts are in our economy, just look at the billboards.

Personal injury lawyers and college education are the big advertisers where I live. The lawyer glut should solve itself -- they can sue each other to death.

The education glut is more serious.

Some of that glut is a disconnect in the economy. Jobs are hard to come by and judges won't limit the for-profit sector's loan-writing ability. It's a perfect storm of desperation, a bubble that is bound to pop.

But the bigger story is technology.

There are three things teachers do: present information, measure progress or test, and guide learning. Networked computers already do two of them very well.

MIT and Stanford are both offering engineering courses online, and Stanford has an online high school. Systems like uLearn are used on many college campuses to deliver, grade and manage homework. Real colleges like Troy State in Alabama and Central Michigan have long used online tools to expand nationwide through small offices.

In the private sector Apollo Group (APOL - Get Report), parent of the University of Phoenix, and DeVry (DV - Get Report), are both worth over $2 billion each. The Washington Post Co. (WPO) is no longer a newspaper outfit, but is evaluated by analysts as the Kaplan SAT group with some media subsidiaries.

It's the same kind of technology disruption that has hit every other industry over the last 30 years. Most see the current battle over education as a political struggle, but the politics is more a reflection of economic change. It's the John Henry story all over again.

I covered education technology as my kids were going through school, and until recently K-12 tools were non-starters. Computers became obsolete before teachers could be trained in their use. But the Internet is a more stable platform. A PC from 2005 with WiFi on it can be just as effective a learning tool as one bought today. Prices have fallen to within most family budgets.

Internet education -- teaching kids how to find what they need to know, how to join and profit from online communities, how to organize fire hoses of data into something coherent, useful and specific to their needs -- that's today's big education challenge. Do that right and most kids can do the rest themselves.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
APOL $11.61 1.20%
DV $26.99 -1.30%
AAPL $113.68 0.34%
FB $90.65 -0.40%
GOOG $632.59 0.35%

Markets

Chart of I:DJI
DOW 16,596.41 -46.60 -0.28%
S&P 500 1,976.69 -12.18 -0.61%
NASDAQ 4,801.9720 -26.3530 -0.55%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs