Our education system needs help because too many students are struggling.

Scott Galloway's recent TED Talk hit the nail on the head on why students are falling behind and overwhelmed when thinking about their future.

He highlighted a growing economic divide that's making it harder for each new generation to achieve financial stability. Rising education and housing costs, coupled with stagnant wages, are creating a perfect storm.

As Galloway puts it, "For the first time in the U.S.'s history, a 30-year-old is no longer doing as well as his or her parents were at 30."

His message was clear: we need accessible education and opportunities for all. Now.

Galloway's insights aren't just provocative—they're a wake-up call. Our approach to education and integrating career planning needs to change.

This blog examines education's core challenges and explores innovative solutions. We'll look at how closing economic gaps and nurturing entrepreneurial thinking can prepare the next generation for success in our evolving world.

Let's dive in and see how we can truly empower our youth for the future they deserve.

The Great Generational Wealth Reversal

The American Dream is experiencing a generational reversal, with today's youth facing unprecedented economic hurdles their parents never encountered. It's getting harder and harder to make it in America.

In a TED Talk published in May 2024, Professor Scott Galloway assembled some statistics that highlight a worrying trend for young people in America. He argues that today's 25-year-olds are living a very different life than their parents and grandparents:

→ Two generations ago, by age 25, our grandparents were earning an average pre-tax income of $74,000 (adjusted for inflation). They could pay for their annual college tuition with 14% of their income and could buy a house for just 3x their annual income.

→ One generation ago, by age 25, our parents were earning $70,000. They could pay for their annual college tuition with 17% of their income and could buy a house for 4x their annual income.

→ Today's 25-year-olds earn an average of $56,000 pre-tax, with an annual college cost of 42% of income. The cost of buying a home has climbed to 7x annual income.

As Galloway puts it: “This is a breakdown in the fundamental agreement we have with society,” saying that young people should have more opportunity and be more well-off than their parents and grandparents. Not the opposite.

This refers to a breakdown in what's often called the social contract—the expectation that each generation will have better economic opportunities than the last. Galloway provides concrete examples:

"Out of reach, the median home price has skyrocketed relative to median household income. As a result, pre-pandemic, the average mortgage payment was $1,100. It's now $2,300 because of an acceleration in interest rates, and the fact that the average home has gone from $290,000 to $420,000."

This erosion of opportunity breeds what Galloway calls "rage and shame" among young people. The rage stems from feeling cheated out of the economic progress their parents experienced, while the shame comes from struggling to meet societal expectations of success despite their best efforts.

The generational differences Galloway outlines represent changing realities in how young people approach life milestones and define success. While some traditional markers may be harder to reach, we're seeing a generation that values different aspects of life and work.

This shift affects us all. As a society, we have a chance to support youth as they navigate these new realities. This might mean reimagining education and exploring innovative paths to financial well-being.

The American Dream is evolving, not vanishing. Our task now is to ensure it remains attainable, even if it looks different than it did for previous generations.

The Rise of Alternative Pathways

The picture Scott paints is bleak, but I'm optimistic. Gen Z is waking up to new possibilities.

Hailed as "[The Toolbelt Generation](https://www.cnbc.com/2024/09/16/the-toolbelt-generation-why-teens-are-losing-faith-in-college.html#:~:text=Personal Finance-,Teens are losing faith in college%2C giving rise,interest in the skilled trades&text=Concerns over rising college costs,over a four-year degree.)", Gen Z is increasingly exploring careers that don't require 4-year degrees, considering trade schools and apprenticeships that set them up for blue-collar careers.

The numbers back this up. Over 2012 to 2021, the number of registered apprentices rose 64%, and from 2022 to 2023, enrollment in vocational programs jumped 16%.

Galloway sees this shift as crucial to reversing what he calls "The Great Intergenerational Theft." This term refers to the transfer of wealth and opportunities from younger to older generations, which Galloway criticizes throughout his talk.

He points out, "People over the age of 70 used to control 19 percent of household income versus people under the age of 40 used to control 12, their wealth has been cut in half." This means younger generations are controlling significantly less wealth than their predecessors did at the same age.

To combat this, Galloway argues, "We need to expand college enrollment and vocational programs" to provide more diverse pathways to success. As he puts it, "The whole point of higher ed is to give the unremarkable... a shot of being remarkable."

The way I see it, this shift towards alternative pathways isn't just a positive development–it's essential for creating a more equitable and opportunity-rich future for all young people.

By providing practical, accessible education options, we aim to empower the next generation to build stable, rewarding careers–regardless of whether that involves a traditional college degree.

Rethinking Higher Education

Lately, there has been more debate around higher education and whether we need to do better in helping graduates get employed and be prepared for the real world.

Traditionally, young Americans turned to higher education to improve their earning potential and quality of life, but that pathway is no longer a reliable route to a better life.

Not only is higher education too expensive—with annual cost coming in at 42% of income—it’s also gotten too selective, adopting what Scott calls “the LVMH Strategy” whereby Universities constrain supply to create aspiration and scarcity. Then, they charge more for their (now) luxury product.

Take Harvard as an example. In the last 20 years, their endowment has grown 425%, while enrollment is up 4%. Scott sums it up: “They’re a hedge fund offering classes.”

These practices contribute to alarming statistics:

• Only 58% of students who start a four-year degree finish within six years

• Approximately 20% of first-year college students do not return for their second year

These numbers suggest a disconnect between the promise of higher education and student outcomes. While Universities market themselves as gateways to success, many students struggle to complete their degrees or find them less valuable than anticipated.

Galloway proposes a bold solution: "Biden should take some of that $750 billion earmarked to bail out the one third of people that got to go to college on the backs of the two thirds that didn't and give a billion dollars to our 500 greatest public institutions size adjusted in exchange for three things. One, they use technology and scale to reduce tuition by 2 percent a year, expand enrollments by 6 percent a year, and increase the number of vocational certifications and non-traditional four year degrees by 20%."

In other words, Galloway proposes redirecting federal funds to public institutions, with certain conditions. His idea involves reducing tuition costs, expanding enrollments, and increasing vocational certifications and non-traditional degrees.

This proposal isn't just about affordability or access. It's about reconsidering what higher education can offer in today's world. It's about creating a system that adapts to the needs of students and the evolving job market.

This presents an opportunity to explore new approaches—educational pathways that are more flexible, inclusive, and aligned with real-world needs.

While the way forward may not be clear-cut, it's an exciting time to reimagine education. We have the chance to create something that better serves our young people and society as a whole.

Technology Skills as Essential Learning

Tech skills aren't just nice-to-haves—they're as fundamental as reading and writing. As Galloway emphasizes the need for education reform, it's clear that technology literacy must be at the forefront.

We're not just talking about mastering the latest gadgets. It's about understanding how technology—especially Generative AI—is reshaping our world and adapting quickly to new innovations.

Galloway argues for "expand[ing] college enrollment and vocational programs." In line with this, we need to prioritize tech education now. Our goal isn't to create a generation of passive tech consumers, but to empower students to shape the digital world, not just exist in it.

At PathSpark, we're making tech literacy core to our curriculum. We're not just prepping students for tech jobs—we're teaching them to critically engage with technology's role in society. This aligns with Galloway's call for education that prepares students for the realities of today's economy.

As Galloway warns about the dangers of unchecked technological influence, stating, "I think Mark Zuckerberg has done more damage to young people in our nation while making more money than any person in history," we're focused on fostering a generation of tech-savvy, critically thinking individuals who can navigate and shape our digital future responsibly.

Developing Well-Rounded Individuals

While technical skills are important, they're not enough on their own. We need a more comprehensive approach to education that includes emotional intelligence, social skills, and mental health support.

Galloway emphasizes this point, stating, "We're economically attacking the young, but I know, let's attack their emotional and mental well being. Let's take advantage of the fact of the flaws in our species with medieval institutions, paleolithic instincts, and god-like technology."

The statistics he presents are alarming:

• Self-harm rates have exploded, especially among girls

• Teen depression rates have skyrocketed

• Cumulative gun deaths are rising, with Galloway noting, "You're more likely to be shot in the United States if you're a toddler or an infant than a cop."

Galloway highlights this issue, noting, "When I was in high school, it was drunk driving. Now it's kids killing themselves."

Galloway's call for comprehensive support cuts to the heart of our education crisis. The numbers don't lie—our young people are struggling. But beyond the statistics, there's a human cost we can't ignore. Every student wrestling with anxiety, every dropout, every "death of despair" represents a loss of potential that ripples through our entire society.

We need to radically rethink our approach. It's not enough to focus on grades or career readiness. We must create environments where young people can develop emotional intelligence, build meaningful relationships, and learn to navigate the complexities of modern life.

The solutions Galloway proposes—from banning phones in schools to investing in mentorship programs—are a start. We need a cultural shift that prioritizes mental health and holistic development as much as academic achievement. Our future depends on it.

Creating a Better Future

Education should empower, not hinder. We need to provide young people with accessible, high-quality education that equips them with skills and confidence to shape their own futures, without crushing debt.

Our education system needs a complete overhaul. Galloway's suggestions are on point: expand college enrollment and vocational programs, and implement income-based affirmative action. This means giving advantage based on financial need rather than race or ethnicity. As Galloway puts it, "Affirmative action...should be based on green, how much money you have or don't have."

I've seen firsthand how financial barriers can crush potential. Income-based affirmative action could level the playing field, giving talented kids from all backgrounds a real shot at success. This isn't just fair—it's smart. We're leaving too much talent on the table by letting finances dictate futures.

Conclusion

Our education system needs an update. College costs are rising, and career paths are evolving rapidly. We're using old methods to prepare students for a new world.

But there's hope. We can create positive change by focusing on making education more accessible, teaching practical, real-world skills, and supporting personal growth.

This approach helps students develop tech skills, think like entrepreneurs, and grow as individuals. With personalized guidance, they'll be better equipped to face today's challenges.

Together, we can build an education system that helps every student reach their full potential. It's not just about learning—it's about thriving in the future we're creating.