Regular-reader Old Fart forwarded me a recent edition of the Jewish World Review that includes an article called, “Do Expensive Homes Make for Wealthy Kids?”
I think this is the article he intended me to read, as it was in the subject line.
Surprisingly, kids who live in homes that are more expensive have a better chance of going to college. And usually a college degree means the difference between gainful employment and non.
A new study from the Pew Charitable Trusts’ Economic Mobility Project shows a correlation between the housing boom and education gains for students from low- and middle-income families. For prospective students from families making less than $70,000 per year, an increase in housing value immediately prior to college might mean more educational success. For every $10,000 gain in such a family’s home equity, the likelihood of enrolling in college increased by 6 percent. In addition, the housing boom made these students 24 percent more likely to choose their states’ four-year public flagship schools and 17 percent less likely to choose community colleges, and also 9 percent more likely to graduate from college.
The article should really have the title, “Master of the Obvious.” But we’ll go with it.
I thought the last paragraph was worth reposting here, as well, but you should give the article a browse through. It’s interesting enough.
“The logical policy implications … to me are creating opportunities for people at the bottom and middle of the income ladder to not have such a financial barrier to college. And that can be a whole range of things,” she says, like helping families maintain assets like their homes and create wealth.
Full article link again here.
There’s an advert on TV with Rachel Maddow right now that, despite not backing her words with research, she says something about, “How can we wait for the wealth to ‘trickle’ down from the top to the bottom?” She cracks on Reagan economics and says something about supporting people now.
And that’s the key. Finding ways we can support the lower and middle classes now. And while I understand there are ways that governments fail and people fail, we need to issue a culture of helping people.
I hope we can agree that waiting for the trickle is too slow.
Thanks, Old Fart!
If that wasn’t the article you intended for me to read, please let me know.