The US Investment in Education - Essay Example

The federal government should provide financial support to needy bright students to promote the competitiveness of workers.
The government controls a certain proportion of employment opportunities while the rest is contributed by the private sector (Thelin 53). The federal government plays a crucial role in funding education in public institutions either through grants or loans. Without government support, more than 400,000 students would not have access to quality education or employment (Thelin 120). Therefore, the federal government can encourage more investment in education through subsidies to promote quality education that leads to better jobs.

Limiting subsidies to specific professionals considered crucial for economic development will increase competence in technical areas; increase job stability and marketability of the workers hence increasing in global competence of the economy (Flores 78). However, it will have adverse effects because some students will not join their careers of choice, increase unemployment due to congestion in particular careers, and increase the illiteracy rate for those who cannot afford to take careers of their choice (Flores 79). Increasing subsidies to certain professions will violate the economic principle that upholds government market outcomes because it will increase inequalities in sharing national resources (Mankiw 64).

In conclusion, education is essential for economic growth hence government support through subsidies increases the literacy rate, employment opportunities, and improvement in living standards. Read More