ali255

The core problem is that state and federal funding of colleges has consistently been going down over the last 30 years, and continues to go down. When colleges get less money from government spending colleges either have to cut spending (and in result provide less to students) or increase tuition.

The high tuition causes student debt, so the only way to cut student debt is to decrease tuition.

Their are only three ways to get tuition to decrease.

1. Increase Federal and State funding of colleges. As I mentioned in an earlier response, this is doable. College spending is 3.3% of GDP in the USA. Looking at the economy and country as a whole, that's not huge. Re-arrangement of spending, increased federal and state investment, and optimization of spending could reduce student debt a lot.

2. Get rid of much of Universities. Turn Universities into Trade schools and get rid of many University programs. This is not really the approach I want to see, as I think universities have a lot to offer the world in their current complexity.

3. Find Technological solutions and applications that reduce the cost of education without reducing its quality. This is the Entrepreneur's job.

When I think about innovative companies in software and computer engineering, Apple is one of several companies that comes to mind. It's worth noting that Steve Jobs turned innovative artistic design, not just innovative engineering, into economic value. One of Job's criticisms of Microsoft and Google was their lack of appreciation for "the humanities and liberal arts" ( http://www.vanityfair.com/business/2012/08/microsoft-lost-mo...). He saw Social Science as a component to making great products.

I'm a Computer Science Major. If I was recommending a Freshman what to Major in, I would recommend looking into something within Science, Engineering, or Business. They're unlikely to get an upper middle class salary majoring outside of those three fields.

However, just because a field doesn't produce dividends doesn't mean that it does not have educational value. A political science degree doesn't make money, but we can't have functioning governments without an understanding of politics and government.

Instead, we ought to consider the fact that college spending is only 3.3% of U.S. GDP. Re-prioritization of spending, and optimization of spending can carry American education forward. That's not a huge chunk of the American economy's wealth. People are falling into debt because the burden of college spending has been placed on individuals, rather than on federal and state funding. Over the last 30 years Federal and State expenditures to college education have dropped. In result, Colleges increase their tuition rates, and students and their families have a tougher time paying for college.

Microsoft is in a lot of trouble certainly. Reading both sides of the aisle on Microsoft, I think the products Microsoft produces for Businesses (SQl Server, Office Pro, etc.) will keep them from losing a significant chunk of PC sales to Businesses. However, Businesses only account for 40% of Microsoft PC Sales (based on Calculations I did off of Microsoft earnings press releases).

If they can't restructure their company they will have to eventually reduce in size significantly to maintain profitability.