The Economy and the Impact on Students, Parents and Colleges - Coursework Example

? The Economy and the Impact on Parents and Colleges Introduction There are two chief reasons for expecting to identify certain associationbetween education as well as economic growth. There has been an improvement in the living standards of people because of education. It has been demonstrated by the econometricians that the incomes that can be commanded by the individuals is generally dependent upon their degree of education. If investing on education is capable of offering returns, in the similar way as spending in fixed capital, then it is better to spend in human capital as the complement to invest in fixed capital. It is worth mentioning that the method of education can be categorized as an investment decision (Alliance for Excellent Education, 2011). The paper intends to identify the association between the economy and its impact upon students, colleges and parents. In this paper the economy of New Jersey and Atlantic County will be gauged. Education and Training Impacting the Economy One of the questions that arises in the minds of the people is related to the fact that why does the employees with college degrees tend to earn higher in comparison to those without college degrees. By comprehending how education as well as training interacts with the economy, people can easily realize the reasons behind the success of a few workers while the failure of certain others. With the rise in the supply of the labor, it is often noted that there is a greater emphasis upon the wage rate. If there is a low demand for labor by the employer in comparison to the supply then in such circumstances the wage rate is likely to decline. This is detrimental for employees who work in industries possessing low barriers to entry for the new workforce or in other words, less priority is given to the aspects of training and education. The industries that require employees with higher education tend to pay the workers with high wages because of the fact that training and education that is needed to conduct such job carry high costs. It is because of globalization and international trade efforts that are made between the two countries, the countries along with their financial system are found to be vying with each other. Two factors tend to determine how well a country’s economy will do i.e. education and training of the country’s workers. The wage rate of a particular country is affected by the education as well as training of a particular worker. It is a well known fact that a well-trained as well as educated worker is found to be more prolific and tends to earn more money in comparison to illiterate workers. It is the difference in the level of the training that has a propensity to separate the rich as well as poor nations. Most of the employers prefer staffs who tend to be efficient and productive as well as necessitate minimal management. There are various factors that need to be considered by the employer when making plan whether to pay for the employees training or not such as the enhancement of the productivity of the employees, loyalty of the employees and employees commanding a higher wage among others (Sturm, 2012). Most of the workers are found to be enhancing their earning capacity by emphasizing upon their capabilities about a particular job. The employees are found to be interested in learning to operate the new technologies in order to compete for high wages. The employees are supposed to consider numerous factors when taking training. They need to consider the extra productivity that they expect to attain, the cost of training program and the trends in labor market for trained professionals. Most of the countries focus upon the creation of the education system so that they can attain skilled workers. The economy of the country is found to be flourishing with the increment in the number of the educated personnel (Sturm, 2012). Education and Its Impact upon Economy of New Jersey The impact of the recent economic downturn has been hard-hitting in New Jersey. This downturn has compelled the individuals to present themselves differently at the status quo and more specifically in terms of spending priorities and short and long-term budget plans. As New Jersey is making efforts to maintain financial solvency, the individuals are attempting to look for ways to improve the economy along with identifying the deficit-cutting related tools. One of the main strategies is related to demonstration of the high school dropout crisis. It has been highlighted by researchers that there is an association between economy and education. By raising the educational outcomes, the income of individuals can be boosted. However, these individual gains also tend to be compounded in order to enhance local, state as well as national economies (Alliance for Excellent Education, 2011). During the times of shrinking revenues along with rise in state economic crisis, there has been an effect upon the people with less education. It was observed that in the year 2011 that the rate of joblessness among those individuals who do not possess a high school diploma was greater in comparison to those possessing a bachelor’s degree or higher. In this context, it can be analyzed that it is quite significant for the states to consider reforms in education as one of the chief strategies for strengthening the economy. By enhancing the educational outcomes, the nation can obtain substantial economic gains that comprise stimulating the individual earnings, jobs, spending and investment and tax revenues in the state. It is a well known fact that the nation must invest heavily in turning ‘the drop-outs students into graduates’ (Alliance for Excellent Education, 2011). Dropouts in the Number of Students In New Jersey, it is observed that escalating quantity of students become drop-outs in every school day which accounts to more than one million in a year who are not likely to graduate from high school. In the world of competition, it is quite significant for the students to focus upon additional education after high school if they want to enter into good-paying jobs in order to endorse their families as well as themselves. It can be observed that in New Jersey, nearly 18000 students were found to be dropped out from Class of 2010 which had an adverse impact upon their lives as well as the lives of the society. It can be stated that if these non-graduate students would have graduated then New Jersey they would have attained economic benefits of nearly US$ 138 million for the state (Alliance for Excellent Education, 2011). It is worth mentioning that by reducing the number of dropouts, there will be tremendous economic advantages to New Jersey. Furthermore, by turning a single student from dropout status to graduate status will lead to the economic growth of the state. If 1000 dropouts are likely to graduate from high school then these fresh graduates would earn nearly US$15 million in an average year in extra earnings. They are further likely to spend more than US$1.2 million every year in buying vehicles. When they reach the middle of their career these graduates will have the capacity to purchase homes of nearly US$60 million. These fresh graduates are likely to endorse nearly 100 new jobs in New Jersey, augment the gross state product by approximately US$20 million and further invest nearly US$2.6 million yearly into the state. Out of 333 high schools in New Jersey, nearly 15 schools among them are found to be lowest-performing. Furthermore, approximately 17 percent of the high school students are not found to be graduating from high school on time with regular diploma (Alliance for Excellent Education, 2011). Colored Students and Native Students The educational related results of the colored students as well as native students need to be enhanced. However, during shifting demographics and ill economy, it is also an economic requirement to assist all students in demonstrating their potentials. It is also important to ensure that these students graduate from high schools with the skills and knowledge important to succeed in college as well as in their careers. The nation’s students belonging to color section of the society along with the native students have been found to be moving from minority of the student population to the majority. It has further been observed that in nearly ten additional states, students belonging to color section of the society along with native students comprise between 40 and 50 percent of the student population (Alliance for Excellent Education, 2011). Enhancement of the educational related results of the students belonging to color section of the society along with native students will have a significant influence upon the national economy. Enhancing the graduation rates among the students belonging to color section of the society and native students tends to create significant benefits for the nation that comprise boosting of the individuals earnings along with the enhancement of the state tax revenue. The point worthy of mentioning is that the information demonstrating the economic benefits of enhancing the educational outcomes of the country’s students belonging to the color section of the society and the native students can be utilized at the local, federal and state level to endorse the policymakers and the community members. They can be used to invest time, energy as well as financial resources into efficiently demonstrating the non-performing schools and thus ensuring that all the students obtain an education that prepares them for success in college and in career. Employees require that an equitable education needs to be an initiative which ensures that the students are quite successful in their career after the completion of the high school. Provided the several advantages of educating the nation, the country cannot afford unequal education for students belonging to color section of society and native students in its schools (Alliance for Excellent Education, 2011). Total Enrolment in the Number of Students During the autumn season in the year 2010, it was noted that the total enrolment was nearly 7655 in US. There were nearly 1395 first-time-full-time (FTFT) new candidates in that enrolment. It was further observed that out of these FTFT students, 1143 students came back for the spring semester in order to yield a preservation rate of nearly 81.9%, a decline of 3.4% from the year 2009 (National Center for Education Statistics, 2011). Furthermore, the three year graduation rate for the autumn 2008 has been 15.1% for the first-time-full-time groups. The total number of graduates had been 161 out of the 1065 first-time-full-time entering groups. It has been observed that there has been rise in the enrolment rate during the autumn season throughout the past 5 years and the rate of autumn enrolment had been high by 1%. The number of female candidates is quite higher at Atlantic Cape. The number of public high school graduates enrolling themselves in the Atlantic Cape in the autumn after graduation attained growth after a period of time. It can further be analyzed that the percentage of the students enrolling themselves in the autumn 2010 was nearly 23.9% which had declined by 1.66% over the year 2009. The full time faculty comprises nearly 86.5% white and 13.5% minorities. There had been rise in the number of minority faculty members by 1.1% (Atlantic Cape Community College, 2011). Atlantic Cape Community College Impact on Economy One of the all-inclusive and student-centered institutions of higher education preparing the students for better job prospects is Atlantic Cape Community College. The college offers its students with high quality knowledge and skills through training programs for the students’ personal growth as well as professional attainment. The college offers access to numerous courses by maintaining moderate tuition fees and thus offers developmental programs as well as support services. The college reacts well to the economic, social, academic, cultural as well as employees’ requirements of a diverse area by working in close collaboration with other schools, industries, business houses and government. The college and the employees of the college offer excellent service to the society by offering educational and other related services endorsing the students to follow academic superiority, professional development and high moral standards throughout their lives. It is worth stating that Atlantic Cape manages the ‘Accuplacer Placement Tests’ for all the enrolling students. The total enrolment during the autumn 2010 had been 7655. The college obtained financial aid from State-Funded Programs in the form of tuition aid grants, ‘educational opportunity fund’, outstanding scholars, distinguished scholars and urban scholars. It obtains fund from the federal programs in the form of ‘pell grants’, college work study, and subsidized as well as unsubsidized loans among others. It also acquires funds from institutional programs in the form of grants and loans. The percentage of the students who were the state residents had been nearly 99.8 in the year 2010. It has been noted that the funding of Atlantic Cape Community College is in danger of being minimized. Hence, the tuition fees are likely to increase for the parents. Furthermore, high unemployability rate in the state can make the parents incapable of bearing high tuition fees which in turn is going to hamper the students’ future. High illiteracy rates would instead have a detrimental impact on the economy (Atlantic Cape Community College, 2011). Impact of Stockton College upon the Economy The New Jersey Legislature invested nearly US$15 million in order to create New Jersey’s Distinctive Public College forty years ago. The college has now turned into a multi-million Dollar institution of higher learning and assisting nearly 8000 students. The school was found to be generating revenue of in excess of US$100 million in a year. The school makes substantial financial contributions of its existence in the local community, region as well as state. It has been found that every year the Stockton College is investing huge dollars in order to fund the non-payroll expenditure. It has been during the year 2011 the college invested a total amount of US$33 million in capital improvement project such as Housing V project that offers the students with environmentally friendly residential accommodation. The college had also bought goods and services of worth more than US$21 million. During the fiscal year 2011, it was noted that the college employed nearly 2400 individuals. The college paid nearly US$80,815,557 to the full-time, part-time, adjunct, temporary and student workers. Within 19 regions of New Jersey, there are nearly 96% of Stockton employees. Most of them live in the southern region and a few outside the state. Furthermore, total of 2060 employees live in the southern region and more than half of them are found to be residing in the Atlantic region. It was during the year 2011 when the college was found to enroll nearly 6284 full time students. The transportation expenses demonstrated a little divergence demonstrating the reality of students living off-campus who are likely to incur more travel associated costs. It was further noted that the combined non-payroll, pay-roll as well as student direct spending related activities in New Jersey was nearly US$1.6 billion. It led to additional economic movements all through the county and state via the multiplier effect. This generally takes place when the spending and expenditure of one person tends to become the income of the other person. Furthermore, the income of the second person is spent that becomes the income of certain other person. In this regards, it can be mentioned that as the college takes the services, distributes the payroll, and as the students buy books such dollars are converted into income for the vendors of New Jersey. This is resettled consecutively in the form of wages and new jobs among others. Multiplier can be utilized in two cases, one of them has been in identifying the influence of direct spending equating each Dollar used up by the college with an extra indirect Dollar of income distributing throughout a region and state. The College Outcome Evaluation Program considers this multiplier as a realistic choice while calculating the economic influence for a post-secondary institution in New Jersey (Stockton College, 2011). By implementing the multiplier to the Stockton’s direct spending, the economy of the region as well as state tends to improve to a considerable extent, leading to an impact of nearly US$3.2 billion. It has further been observed that the Stockton College is devoted towards the betterment of the southern New Jersey. By means of community service, the college aims at enhancing the physical environment in which the college is situated. Students and employees of the company have been found to be donating a substantial amount of money in numerous causes. The estimated value from the community services offered by the students as well as the employees had been nearly US$1.0 million in the year 2011. One of the facts regarding the Richard Stockton College of New Jersey is that it is an undergraduate along with graduate college offering courses on arts, sciences as well as professional studies. Hence, one of the main advantages received from such higher learning has been the income potential for those gaining degrees. The average salary of the high school student had been US$33,213, while that of the bachelors level had been US$56,472 and for advanced studies the average income had been nearly US$74,248 (The Richard Stockton College of New Jersey, 2011). Such income earned by the students tends to have a favorable impact upon the economy of a particular region. Richard Stockton College of New Jersey has been considered to be a major employer in comparison to other top businesses in the region. Richard Stockton College of New Jersey is also involved in the process of offering employment throughout the region and state. It is because of the college as well as state spending that has led to the creation of employment, since people are needed to fill the gaps of related spending. An estimated 4577 jobs is created by Richard Stockton College of New Jersey. It can be analyzed from the study above the Stockton College tends to have a favorable impact upon the economic condition of New Jersey. When the aspects of direct spending, community service, alumni earnings and creation of new jobs are combined then it tends to generate a major influence in the economy of New Jersey to an amount of nearly US$4.4 billion (The Richard Stockton College of New Jersey, 2011). Conclusion There is a considerable impact of education on the economy. With the increase in the number of the educated personnel in a particular economy, there is rise in the economy as well. It is the knowledge as well as the dexterity of the workers accessible in the labor market that determine the growth of the businesses as well as the economy. The economies possessing supply of skilled personnel brought up by means of school and college education and training is capable of capitalizing on this through creation of value added industries. The workers with high college degrees earn relatively high wages in comparison to the ones without college degrees. Hence, it is significant for the economy to place greater emphasis upon the training and education of the citizens. References Alliance for Excellent Education. (2011). Education and the economy: boosting New York’s economy by improving high school graduation rates. Retrieved from http://www.all4ed.org/files/NewYork_seb.pdf Alliance for Excellent Education. (2011). Boosting the nation’s economy by improving high school graduation rates. Retrieved from http://www.all4ed.org/files/NationalStates_seb.pdf Alliance for Excellent Education. (2011). Boosting the nation’s economy by improving high school graduation rates among the students of color and native students. Retrieved from http://www.all4ed.org/files/EdEconBrief_sebsoc.pdf Alliance for Excellent Education. (2011). Boosting New Jerseys economy by improving high school graduation rates. Retrieved from http://www.all4ed.org/files/NewJersey_seb.pdf Atlantic Cape Community College. (2011). Atlantic cape community college institutional profile. Retrieved from http://www.atlantic.edu/about/research/documents/AtlanticCapeInstitutionalProfile2010_002.pdf Atlantic Cape Community College. (2011). Fact book 2010-2011. Retrieved from http://www.atlantic.edu/about/research/documents/ACCCFACTBOOK10-11Final.pdf National Center For Education Statistics. (2011). IPEDS data feedback report 2011. Retrieved from http://nces.ed.gov/ipeds/DataCenter/DfrFiles/IPEDSDFR2011_114433.pdf Sturm, R. (2012). How do education and training affect a country’s economy performance? A literature survey. Retrieved from http://www.rand.org/pubs/monograph_reports/2007/MR197.pdf Stockton College. (2011). Economic impact report 2011. Retrieved from http://digital.turn-page.com/i/71748 The Richard Stockton College of New Jersey. (2011). The Richard Stockton College of New Jersey - performance indicators dashboards. Retrieved from http://intraweb.stockton.edu/eyos/inst_research/content/images/dashboards/2012%20Dashboards.pdf Read More