In 2019, the Varsity Blues scandal erupted, revealing a web of petty corruption that was both darkly ironic and, for all its isolated nature, revealing of American parenthood.
One quibble: the institutional gains, in the case of academia, most assuredly do NOT go to even the tenured academics (let alone the 70+% who are untenured). The gains go to academia's ever-growing administrative class. And of course to sportsball coaches.
I think a lot of this is insightful, and identifies a problem that skilled labour has always faced: how to convert high-salaried jobs into generational wealth.
Two thoughts:
1. The above posits that these professionals are necessarily in tension with the institutions they rely on. In reality, is it not fair to say there is a more symbiotic relationship, where doctors teach at universities, executives are paid to lecture to certifying institutions etc? Or where the fees paid to the institutions allow those employed by them to steer their own children further down the path to the PMC? The point being that the more money flowing between the two groups benefits everyone.
2. The crucial point though, is that the more these qualifications cost, in time and money, the less accessible they are to the groups below the PMC. And isn't that the most important part of being considered part of a social class - not being infiltrated by members of the one below.
1. How skilled are the parents, truly? Are they 80%-90% which has jobs in America but isn't enough to progress if relying on their own entrepreneurial abilities?
2. What is the correlation between skill of the parent and skill of the children? How much does someone regress to the mean?
3. Where does grit / work ethic fit in? My mental modal is that most wealth dies within 3 generations because it's hard to truly cultivate grit and perseverance in your kids when you didn't need it yourself / the kids know they have a safety net.
4. Are there different types of professional classes? Doctors have skill but it seems like most people can't discern material differences between doctors and their degree matters less. Attorneys, in some lines, will be more distinguishable, but many may not. I would guess that corporate attorneys have smarter clients and are closer to sink/swim vs personal attorneys are more indistinguishable to their clients and therefore mediocrity can survive longer.
5. Maintaining wealth is actually a hard skill? Very few people truly understand retirement math, the 4% rule, saving vs balancing a budget, etc. at a masterful level. For this reason, many piss it away - even the savvy entrepreneur themselves.
6. All the above leads to a rent-seeking class - your PMC - but there is a smaller oligopoly of colleges that enable that class, so the colleges can rent-seek.
7. This is also aided by colleges being unique in that they are allowed to price monopolistically. They jack up tuition and then heavily discount for those who can't afford it. Thankfully most other purchases don't do that! The equivalent of $25 for eggs.
One quibble: the institutional gains, in the case of academia, most assuredly do NOT go to even the tenured academics (let alone the 70+% who are untenured). The gains go to academia's ever-growing administrative class. And of course to sportsball coaches.
I think a lot of this is insightful, and identifies a problem that skilled labour has always faced: how to convert high-salaried jobs into generational wealth.
Two thoughts:
1. The above posits that these professionals are necessarily in tension with the institutions they rely on. In reality, is it not fair to say there is a more symbiotic relationship, where doctors teach at universities, executives are paid to lecture to certifying institutions etc? Or where the fees paid to the institutions allow those employed by them to steer their own children further down the path to the PMC? The point being that the more money flowing between the two groups benefits everyone.
2. The crucial point though, is that the more these qualifications cost, in time and money, the less accessible they are to the groups below the PMC. And isn't that the most important part of being considered part of a social class - not being infiltrated by members of the one below.
I agree! I would add that...
1. The PMC can and should save and invest important amounts of capital that gives their children a head start in their lives.
2. Children from the PMC learn skills and attitudes at home (work ethic, quality standards, etc) that will also be helpful in their own lives.
Thinking through some of the issues:
1. How skilled are the parents, truly? Are they 80%-90% which has jobs in America but isn't enough to progress if relying on their own entrepreneurial abilities?
2. What is the correlation between skill of the parent and skill of the children? How much does someone regress to the mean?
3. Where does grit / work ethic fit in? My mental modal is that most wealth dies within 3 generations because it's hard to truly cultivate grit and perseverance in your kids when you didn't need it yourself / the kids know they have a safety net.
4. Are there different types of professional classes? Doctors have skill but it seems like most people can't discern material differences between doctors and their degree matters less. Attorneys, in some lines, will be more distinguishable, but many may not. I would guess that corporate attorneys have smarter clients and are closer to sink/swim vs personal attorneys are more indistinguishable to their clients and therefore mediocrity can survive longer.
5. Maintaining wealth is actually a hard skill? Very few people truly understand retirement math, the 4% rule, saving vs balancing a budget, etc. at a masterful level. For this reason, many piss it away - even the savvy entrepreneur themselves.
6. All the above leads to a rent-seeking class - your PMC - but there is a smaller oligopoly of colleges that enable that class, so the colleges can rent-seek.
7. This is also aided by colleges being unique in that they are allowed to price monopolistically. They jack up tuition and then heavily discount for those who can't afford it. Thankfully most other purchases don't do that! The equivalent of $25 for eggs.