Episode 2: Mo Money Mo Problems

**Note: This transcript contains more text than the episode. The episode excludes dialogue, which you can find here in the transcript for clarity.**
Unknown Speaker  0:02  
You are good. Okay.

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for this episode of Get Schooled, I wanted to figure out one big bad reason behind her broken education system. So far, we've talked about teachers testing and bilingual programs. And all of these are part of the puzzle, but I wanted to find the biggest piece. So Connor is here to help me on our journey today. So maybe, enlighten me, why is it so messed up? Let me do that again. So maybe

Unknown Speaker  0:34  
enlighten me wiser education systems so messed up? Well, my original thought was it all comes down to money. As a country we don't invest enough.

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So why is our education system so messed up? Well, I originally thought that the reason behind all this was money. As a country, we don't invest enough money in education, at least not as much as

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Finland and the Netherlands, we don't invest enough money in our teachers, we don't invest enough money and resources. In fact, before this episode, I'd already made up my mind that money was the problem, the question and the answer.

Unknown Speaker  1:13  
I was wrong. preconceived notions.

Unknown Speaker  1:18  
Let's do that one again.

Unknown Speaker  1:20  
Just less greedy. Same thing as last night. If you can, I mean, I know it's hard several Can I just go through that one again? And then at that point, I'll go so how much money did we actually spend that kind of thing? Just keep it going. Okay, great.

Unknown Speaker  1:35  
Go for it whenever you're ready.

Unknown Speaker  1:38  
for this episode of Get Schooled, I wanted to figure out one big bad reason behind our broken education system. So far, we've talked about teachers testing and bilingual programs, all of which are part of the puzzle but I wanted to find the biggest piece. Connor is here to help me do that. So Navy. enlighten me. What's the problem soon

Unknown Speaker  2:00  
enlighten me, wiser education system so messed up? Well my first guest when trying to figure it out was that it all comes down to money. As a country we don't invest enough money in education, at least not as much as Finland in the Netherlands, we don't invest enough money in our teachers or in resources or an all of the important things that we have to. In fact, before doing this episode, I already thought that money was the problem, the question and the answer, but I was wrong. Wow. So how much money do we actually spend? So that's a good question. I'm going to lay out for you first, by comparing the US to other countries. In 2014, the US had the third largest expenditure by educational institutions per student of any OECD country, and it was the fifth biggest spender when it comes to proportion of national lump a

Unknown Speaker  2:55  
big sentence. Yeah. Let me see what yeah, maybe just brief

Unknown Speaker  3:00  
That one a little bit.

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So maybe, enlighten me, how much do we spend on education? Well, what I found out is that in our whole primary through tertiary education journey as a country, we spend around $12,000 per student. So this actually beats out Finland, the Netherlands, and everyone else other than Switzerland and Luxembourg. In 2014, we spent a little over 6% of our GDP on education, which is a lot compared to other countries. Question. What's tertiary? That's a good question. Oh, no, I shouldn't say that. Oh, is that not a good spot for that? I know that's a good spot for that. I'm sorry.

Unknown Speaker  4:00  
Good. I feel like this helps. All right, we're

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ready.

Unknown Speaker  4:09  
for this episode of Get Schooled, I wanted to figure out one big bad reason behind our broken education system. So far, we've talked about teachers testing and bilingual programs. And all of these are part of the puzzle, but I wanted to find the biggest piece. So Connor is here to help me do that.

Unknown Speaker  4:27  
Oh, I'm sorry.

Unknown Speaker  4:29  
I was in the wrong way to you're gonna say Connors here to do that. Are you not saying I was wrong? or me?

Unknown Speaker  4:39  
Oh, wait. I just It doesn't matter. My question. There was a question right after that. Oh, no, that was you were like, hey, why is the education system?

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Oh, right.

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Do I say enlighten here? No. I just say

Unknown Speaker  5:00  
So it's up to you. Yeah. Free balling. Yeah. Okay, good, whenever

Unknown Speaker  5:06  
cool.

Unknown Speaker  5:08  
for this episode of Get Schooled, I wanted to figure out one big bad reason behind our broken education system. So far, we know that there's problems with teachers testing and bilingual programs. And all of these are part of the puzzle, but I wanted to find the biggest piece. So Connor is here to help me do that today. Hi, everyone, maybe tell the people why is it so messed up? Well, my first guess, when trying to figure this out was that everything comes down to money. As a country, we don't invest enough money in education, at least not as much as Finland in the Netherlands. We don't invest enough in our teachers and we don't invest enough money and resources. In fact, before doing this episode, I'd already made up my mind that money was the problem, the question and the answer. I was wrong. Okay, I'm gonna do that again. Because I asked that weird. We'll just go from

Unknown Speaker  6:00  
Baka

Unknown Speaker  6:01  
so needy. Why is the education system so messed up? Well, my first guess when trying to figure out why it was so messed up was that it all comes down to money. As a country, we don't invest enough money in education, at least not as much as Finland in the Netherlands. We don't invest enough in our teachers, and we don't invest enough money in resources. In fact, before doing this episode, I'd already made up my mind that money was the problem, the question and the answer. I was wrong. So enlighten us. How do we

Unknown Speaker  6:34  
Sorry, I'm invoice.

Unknown Speaker  6:38  
So enlighten us Navy. How much do we actually spend on education? Well, in our whole primary through tertiary education journey, as a country, we spend around $12,000 per student. To put this in perspective. This beats out Finland, the Netherlands and every other country excluding Switzerland and Luxembourg. So the United

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States comes in third. And in 2014, we spent a little over 6% of our GDP on education. question, what's tertiary? So tertiary education corner is the highest possible level of study in your specific field. You have primary, secondary, and post secondary education. And let's say you're trying to study to be a lawyer or a doctor, and that's the highest thing that you can accomplish in your specific career or your specific field. That's what we call tertiary education. Well, that all sounds really simple.

Unknown Speaker  7:36  
You had but it's not Yes. breaking it up. There might be good. Yeah, I see that.

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I feel

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that's a Y Combinator. There we go.

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question, what is tertiary. So in education, we have primary, secondary, and tertiary

Unknown Speaker  8:00  
Education. We're all pretty familiar with primary and secondary, but tertiary is the highest possible level of study in your field. So for example, Connor, if you're trying to be a doctor, tertiary education would be medical school. If you're trying to be a lawyer, it would be law school. I seen a VC. So you mentioned the United States spends a lot on education compared to other countries. But is there a specific reason for this? Yeah, and honestly, I was really shocked for the reason as to why we spend so much on education. When I was looking at our expenses compared to other countries. It looked like we were actually spending a lot less on primary and secondary education. And then suddenly, when it came to tertiary programs, we were number one in the world by a significant amount.

Unknown Speaker  8:52  
Cool, that was really good flow there. I like that. Yeah.

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You want to actually like

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All that really well, that too and I think the answer was,

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yeah.

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All right.

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Okay, so what does that mean for you and me? Well think about this for a second. We're number one in tertiary spending out of 35 countries. And we're number 20 and non tertiary spending. Somehow, despite this gap, we still ranked top five in the proportion of our nationals. Well,

Unknown Speaker  9:30  
you're good. Let's start again.

Unknown Speaker  9:33  
Okay, so what does that mean for you and me? Well, think about this for a second. We're ranked number one out of 35 countries in tertiary spending and number 20, and non tertiary spending. Somehow, we still ranked top five in the proportion of our national wealth spent on education.

Unknown Speaker  9:52  
I would be really happy if the reason for that was because the government funneled a ton of money into higher education but

Unknown Speaker  10:00  
Most of that money is coming from private institutions, man, why private institutions? Well, unfortunately, Connor, what that pretty much means is that a bulk of private institutions are US households. So it's not that America as a whole isn't spending enough money on education, it's that instead of the government shouldering a bunch of that, it's the people it's our households that are forced to spend all of this money on tertiary education. And if you want that in numbers

Unknown Speaker  10:36  
I'm an essay on I got something

Unknown Speaker  10:40  
cool. We want to start from what private institutions what private institutions? Well, unfortunately, Connor, what this means no. Okay, say that again.

Unknown Speaker  10:51  
So what private institutions though? Well, unfortunately, Connor private institutions include in large part households

Unknown Speaker  11:00  
So what I'm saying is it's not that America as a whole isn't spending enough money on education, it's that we the people, in households in America are pulling more weight than the US government is to send ourselves to school. So, okay, I'm just gonna How much?

Unknown Speaker  11:20  
That was really good. Do it again.

Unknown Speaker  11:25  
Yeah, do it again. What private? Oh, shit. What private institutions? Unfortunately, Connor, private institutions largely include households. So circling back to my original assumption, it's not that America as a whole isn't spending enough money on education. It's that we the people are pulling more weight then the government to do so. So how much do these private institutions spend compared to the government then? Well, in numbers a little bit over 2.6% of GDP in 2014

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goes towards tertiary education spending. And of this 2.6% the government only contributes about 1%. So if you do the math, you can see that private institutions households, including you and me, and our families, spend more than the US government does on the highest level of education.

Unknown Speaker  12:20  
Good, that makes sense.

Unknown Speaker  12:25  
So higher education is really expensive for us, we get that. Why does it matter to people who aren't going to law school in med school, though? Well, here's the thing. This affects every single listener, because the discrepancy in how we spend money on education is representative of a much bigger social problem, income inequality. And the big reason I wanted to do this podcast was to show that all of the problems within education seep into everything else going wrong in our country, and that these problems affect all of us who live here. So

Unknown Speaker  13:00  
Why isn't it? Okay, that was really good, like that.

Unknown Speaker  13:07  
So why is income inequality such big deal Novi, first of all, income inequality just keeps growing over time, which makes it a problem that we can't afford to ignore. being raised in a wealthier household matters even more now for completing a degree than it did for decades ago. And I'm guessing if we just keep ignoring this problem of income inequality, access to education, for the middle class is just going to keep getting worse. And if like me, you're part of the American middle class, it's going to be increasingly more important to be rich, rather than to be smart. If you want a degree. And I think that's a problem that we all have to start dealing with.

Unknown Speaker  13:51  
Let's read through it one more time.

Unknown Speaker  13:57  
Okay, so I understand what it means for us, but what does it mean for

Unknown Speaker  14:00  
Society. Currently, family wealth and Education Opportunity are intertwined. So that means that the richer your family is, the more opportunities that you're going to have for education. But if we're interested in a society that produces the most competent doctors, lawyers, and politicians who can actually make important decisions that affect all of us, it's critical that America spending is used to create opportunity and not destroy it. Amen.

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Cool.

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How's good bed?

Unknown Speaker  14:38  
Hit me with a fun fact Navy. Well, this isn't really fun, but I can definitely tell you that tertiary education is really damn expensive for you and me. I'm not saying that the government is investing a lot into tertiary education programs. A little over 2.6% of GDP in 2014 went towards tertiary education.

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spending and have this, the government only spent about 1%. So as you can imagine, it's up to private institutions, households like you and me to make up that balance. We spent more than the US government does on the highest levels of education.

Unknown Speaker  15:17  
So maybe where'd you get all this information? Well, Connor, I got it from the internet. But honestly, if you want to see where I got my research and reports, you can find it on our website at soapbox. project.org

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slash Get Schooled podcast.

Unknown Speaker  15:34  
This isn't Evie and this corner and you're listening to Get Schooled.

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Shall we say Get Schooled.

Transcribed by https://otter.ai
Nivi Achanta